How to prepare Bank Loan project report

Project Report for Bank Loan:

  1. Basic Information required: 
  • What is the nature of Business: Manufacturing, Trading, Service, Professional  
  • What is the Constitution of Business: Proprietorship, Partnership Firm, Pvt. Ltd. Co. Public Ltd. Co, Trust etc. 
  • Existence: Whether the business is already existing or new. Depending upon the above parameters, project reports vary. Depending upon the nature of business, the requirements differ, depending upon constitution of business the Tax related issues differ and depending upon existence of the business, the projections differ. In case of existing business the projections can be prepared on the basis of past data, in case of new business such information is not readily available and projections are to be made by collecting relevant data from the prospective entrepreneur and also from the financial statements of similar business operating in the area. In case of new units, the projections are to be supported with proper data and the presumptions on which the projections are made.
  • Requirement: Requirement of any business are of two types : Capital Cost and Working capital. Capital cost includes creation of additional “Fixed Assets” i.e. Building, Machinery, Furniture, Vehicle etc. Working Capital is funds required for efficiently running any business. Generally for capital cost Banks sanction Term Loan which is repayable in installments. Working capital requirement is provided by Banks by way of Cash Credit or Overdraft facility with sub limits for Bills Discounting. Cash Credit / Overdraft / Bill discounting facilities are sanctioned for a period of one year subject to renew every year depending upon past performance. Besides this, Banks also sanction Non Fund based Limits for Bank Guarantees and Letters of Credit under which limits are fixed and these are considered as Contingent Liabilities in Banks books.
  1. Project Cost: Once the above basic information is collected next step is to arrive at the Project cost. Project Cost in case of existing business is the “Additional Cost” required for expansion of the business e.g. purchase of additional Machinery, Construction of shed / building etc. In case of new business it is the “Total cost” required to start the new business. Ex:

 

Description Estimated Cost
Purchase of Plot
Construction of Building
Plant & Machinery
Equipments
Furniture & Fixtures
Electrical Installations
Preliminary Expenses in case of new business

Total of all such items represent the Project Cost.

 

  1. Sources of Funds: For incurring above expenditure, funds are to be raised through various sources. First is “Capital”e own funds, Second is “Unsecured Loans” raised from Directors of the Company or from Friends & Relatives of the Proprietor / Partners and third is “Bank Loan” which is the amount for which loan is to be requested from Bank. Generally, Banks finance maximum 75% of the “actual cost” required, remaining amount is to be contributed by the applicant through first two methods out of which capital must be more than unsecured loan. The unsecured loans raised by the applicant should not be immediately repayable for which undertaking has to be submitted stating that, the unsecured loans raised shall not be repaid during the currency of Bank Loan. This can be treated as Quasi Equity i.e. part of borrower’s contribution. On finalizing the available sources of funds, the loan amount requirement from Bank can be finalized.  In case of Working capital requirement it depends upon the Current Assets and Current Liabilities of the business / business cycle etc.

 

  1. Requirement of other information / documents:

 

  • Xerox copies of all the required permissions / licenses / registrations e.g. Company / Partnership Firm / Trust registration i.e. identity of the business, Registration under Shops & Establishments Act, SSI Registration or any other registration as per applicable rules in the respective states. License from Foods & Drugs Deptt. In case of eatable items, license related to explosives, license from Pollution Control Board etc. Approved Map and construction permission in case of construction of building / shed. GST registration, PAN card
  • Quotations for the items to be purchased preferably from the actual dealer from whom the items are to be purchased. As far as possible, there should not be much variations in quotations submitted to Bank and dealers from whom the items are purchased.
  • Income tax returns of the persons / business for last 3 years.
  • Bank statements from existing bankers, with details of repayment schedule in case of existing loans if any.
  • Details of Collateral Security proposed to be offered with approximate value.
  • List of prospective customers and arrangements for selling.
  • List of prospective sellers from whom raw material / items will be purchased.
  • Information regarding availability of raw materials / items proposed to be dealt with Govt. restrictions if any particularly in case of imported material.
  • Market study report and strategy to be adopted for achieving the projected levels particularly in case of new business.
  • Assets / Liabilities statements of persons who are going to execute the documents.
  • List of assets available / already purchased with copies of invoices.
  • Availability of infrastructure i.e. Labour, Water, Electricity, transportation with details of requirement and sources.
  • Average period of getting Credit for raw material and minimum economic quantity of purchase, average period of realizing sale proceeds.
  • Detailed manufacturing process in case of Manufacturing industry and time taken for completion of one production cycle.
  • Minimum period of keeping stock of raw material and finished goods.
  1. Detailed Project Report: This is in two parts one is brief write up and second is financial data (CMA Report) CMA stands for Credit Monitoring Arrangement wherein the past and projected financial performance of a business is compiled in a defined format with all the required financial metrics and ratios to help Bankers and Financial Analysts ascertain the financial health of a business.

 In the first part following points are to be covered:  (This is should be in brief covering all the important points: e.g.

  • Brief introduction of the business entity – constitution, activity of the business, name(s) of Proprietor, Partners, Directors, Trustees with their designations and their role in the business, Location / Address of the Regd. Office, working place and outlets where activities of the business will be carried out with name of contact persons and contact numbers.
  • Experience / Qualifications and capabilities of the owners and other related persons with their relations with the business.
  • Nature of Activity and its marketability.
  • Availability of Infrastructure like labour, water, electricity, transportation, raw material and present status.
  • Detailed information regarding various registrations, permissions, licenses with present status and expected time of completion in case of incomplete items.
  • Manufacturing process in brief in case of manufacturing units.
  • Time required for completion of the project and starting commercial production / income generation.
  • List of existing Debtors / Creditors in case of existing business and prospective clients / consumers in case of new business.
  • SWOT analysis of the business.
  • Marketing arrangements.
  • Details of Project cost and existing assets with sources of finance.
  • Present Banking arrangements with details of Accounts maintained.
  • Details of any other services which the unit can avail from the Bank e.g. Staff accounts for salary, personal loans for staff guaranteed by the unit etc.
  • Financial requirement from Bank with purpose.
  • Security proposed to be offered for the loan applied with full details and approximate value.
  • Repayment proposed by the applicant based on the CMA data with proposed moratorium period.
  • Any other relevant information may be included depending upon the business at appropriate place in this report.
  • Request for facility wise sanction of loan..
  • Attach list of documents submitted along with the proposal.

Second part consists of CMA data: In CMA data there are different parts:

In case of existing units, the data should be for current year (estimated) and past 3 years (Audited) and projections for next 5 to 7 years covering the proposed repayment period of Term loan.

  • Operating statement – Profitability statement. In CMA data the expenses are mainly grouped into following categories:
  • Raw Material consumed. (Opening stock + Purchases – Closing Stock)
  • Other Spares
  • Electricity / Power / Fuel
  • Factory / Direct wages
  • Repairs & Maintenance
  • Other overheads

Total of the above expenses plus opening stock of Stock in process and Finished goods Less closing stock of Stock in process and Finished goods is the “Total Cost of Sales”.

 All other office expenses and indirect expenses related to business excluding Interest paid on Bank loan (which is shown separately- for Cash Credit and for Term Loan) are clubbed under the head “ Selling, General &Administrative Expenses”.

 Non operating Income and Expenses are to be shown separately in the CMA data. Detailed format of “Operating Statement” generally required by Banks for CMA data is attached for reference.

  • Balance Sheet – Liabilities: Include following heads

 Current Liabilities:

  • Short Term borrowings from “Banks” with sub limit for Bills Discounting.
  • Short Term borrowings from “others”.
  • Sundry Creditors (Trade)
  • Sundry Creditors (Capital Expenditure)
  • Advance payment from Customers, dealers.
  • Provision for taxation.
  • Dividend payable in case of Companies.
  • Other Statutory liabilities payable within one year.
  • Term Loan installments payable within one year are to be treated as Current Liabilities.
  • Other Current Liabilities and provisions to be specified.
  • Term Liabilities:
  • Part of Term Loan excluding amount payable within one year.
  • Other Term liabilities (Not payable within next one year.)
  • Unsecured Loans not repayable in next one year.

 Total of Current Liabilities and Term Liabilities represent “Total Outside Liabilities”.

 Net Worth: It includes: 

  • Capital invested in the business.
  • Reserves & Surplus in case of Companies
  • Surplus / Deficit in Profit & Loss Account.

 

Sum of Current Liabilities, Term Liabilities and Net Worth is “Total Liabilities”

Balance Sheet : Assets:  includes following heads.

  • Current Assets: 
  • Cash & Bank Balances excluding Term Deposits in Banks
  • Investments in Govt. Securities
  • Investment in Bank Deposits
  • Receivables
  • Expenses receivable including Bills purchased and discounted by Banks.
  • Inventory which includes Stock of Raw Material, Spares, Stock in Process and Finished Goods.
  • Advance to suppliers for supply of Raw Materials and Spares.
  • Advance payment of Taxes
  • Other Current assets to be specified.

Sum of the above items represent “Total Current Assets”

 Fixed Assets: 

  • Gross Block of Fixed Assets Less Depreciation up to date i.e Net Block. (With detailed working of Depreciation)
  • Advance for Capital Expenditure
  • Other investments which are not “Current Assets”
  • Investments in Associates & Subsidiaries.
  • Long term loans & advances
  • Security Deposits.
  • Staff advances
  • Obsolete Stock
  • Other non-current assets to be specified.
  • Preliminary Expenses to the extent of Not written off and other intangible assets.

Sum of Current Assets and Fixed Assets is “Total Assets”

 

Total Liabilities = Total Assets (to be checked)

  

Ratio Analysis & Assessment of Bank Finance:

 From the available and projected financial statements, important ratios are to be calculated which include :

 

LIQUIDITY RATIOS
Current Ratio
Quick Ratio or Acid test Ratio
Absolute Cash Ratio
Interval Measure
CAPITAL STRUCTRE RATIOS
Equity to Total Funds Ratios
Debt Equity Ratio
Capital Gearing Ratio
Fixed Asset to Long Term Fund Ratio
Proprietary Ratios
COVERAGE RATIOS
Debt Service Coverage Ratio
Interest Coverage Ratio
Preference Dividend Coverage Ratio
TURNOVER RATIOS
Capital Turnover Ratio
Fixed Asset Turnover Ratio
Working Capital Turnover Ratio
Finished Goods or Stock Turnover ratio
WIP Turnover Ratio
Debtors Turnover ratio
Creditors Turnover ratio
PROFITABILITY RATOS BASED ON SALES
Gross Profit ratio
Operating profit Ratio
Net profit Ratio
Contribution Sales Ratio
PROFITABILITY RATOS OWNERS VIEW POINT
Return on investment (ROI) or return on capital employed
Return on Equity
Earnings Per Share
Dividend Per Share
Return On Assets
  • Cash Flow statement.
  • Sensitivity analysis

Working Capital assessment:

 Term loan component depends upon the “Project Cost”, but Assessment of Working Capital i.e. Cash Credit / Overdraft limit depends upon various parameters and calculated based on various methods of assessment of Working Capital, which is mainly related to Current Assets and Current Liabilities. It is outcome of two variables:

  • The Volume of Activity : Production and Sales
  • Required level of Current Assets (Inventory and Receivables) to enable the unit to carry on operations smoothly.

Sources of Working Capital include:

  • Own Funds
  • Bank Borrowings
  • Sundry Creditors
  • Advances from Customers
  • Deposits due in one year
  • Other Current Liabilities

Following are various methods of assessment of Working Capital:

  • Operating Cycle Method
  • Traditional Method
  • Projected Balance Sheet Method
  • Cash Budget Method
  • Projected Annual Turnover Method (Nayak Committee)

 

SEGMENT LIMITS (Rs. Cr) SUGGESTED METHOD
SSI Upto 5 Traditional & Nayak Committee (PAT)
Above 5 Project Balance Sheet Method
SBF All loans Traditional & Nayak Committee (PAT)
Trade & Services Upto 1 Traditional &  Nayak Committee (PAT)
Above 1 upto 5 Projected Balance Sheet & Nayak Committee (PAT)
Above 5 Projected Balance Sheet
C & I Industrial Below  0.25 Traditional & Nayak Committee (PAT)
Above 0.25 & over upto 5 Projected Balance Sheet &

Nayak Committee (PAT)

Above 5 Projected Balance Sheet

 

 Operating Cycle Method:

 Time taken between cash outlay (investment) and cash realization through sale of finished goods and realization of receivables is known as “Operating Cycle”

 For Example:

Time taken for different activities is as under:

  • Stock of Raw Material in days 60
  • Stock in Process in days 10
  • Stock of Finished Goods in days 20
  • Bills Receivable in days 30

Length of Operating Cycle                               120 Days

 (i.e. 3 Cycles in a year (365/120)

 Measuring Period for Working Capital components:

  • Raw Material holding period = Stock of R.M. *365 / Annual consumption of Raw Material.
  • Stock in Process holding period = Stock in Process * 365 / Cost of Production.
  • Finished Goods holding period = Finished Goods level * 365 / Cost of Sales.
  • Receivables holding period = Receivables * 365 / Annual Gross Sales
  • Advances paid to suppliers period = Advances paid * 365 / Annual purchases.
  • Trade Creditors holding period = Trade Creditors level * 365 / Annual purchases.
  • Advances received against Sales period = Advances received * 365 / Annual Gross sales.

If Sales of the business are Rs. 2,00,000.00 and operating Expenses are Rs. 1,80,000.00, then the Working Capital required will be Rs. 60,000.00.

 (1,80,000 / 3 – Number of cycles in a year)

    As per this method Working Capital required is influenced by two factors:

  • Level of Operating Expenses
  • Length of Operating Cycle.

Reduction in either will bring down Working Capital Requirement which indicates improved efficiency in Working Capital Management.

  1. Traditional Method:

 

For example:  for unit XYZ:                      (Amount in lakhs)

Anticipated Monthly Sales                                     Rs. 200.00

Cost of Raw Material per month                            Rs.  150.00

Cost of Production per month                               Rs.  190.00

 

Item Stocking

period

WC required Margin (%) Amt Permissible Limit
1 2 3 4 5

(3 * 4)

6 (3 – 5)
Raw Material 30 Days 150 25% 37 113
Work in process 15 Days 95 25% 24 71
Finished Goods 15 Days 95 25% 24 71
Receivable 30 Days 190

(Cost of Production)

33%

of Sale Price)

66 134

(Sale Price – Margin)

Expenses 30 Days 40 100% 40
Total 570 191 389 (a)
Less: Advance Payment 30
          Credit on purchase 80
Working Capital Required 460

 

If Liquid surplus in Balance Sheet at the end of last year =  50, Net Deficit = 410 (b)  (460 Minus 50). 

 

Eligible Working Capital limit under traditional method minimum of a & b = 389  say 390

  

  1. Projected Balance Sheet Method:

 

  • Proper Examination of Performance:

 

  • Profitability
  • Financial Position
  • Financial Management.

 

  • Scrutiny & Validation of Projections:

 

  • Income & Expenses
  • Changes in Financial Positions.

 

  • Acceptability of Liquidity, overall gearing efficiency of operations:

 

Assessment of Working Capital under Projected Balance Sheet Method:

                                                                                            

                                                                                                (Amt in lakhs)

Previous Year Current

Year

Next Year
A     Total CA 75 95 115
B     Other CL 50 60 75
C     Working Capital Gap              (A – B) 25 35 40
D     Net Working Capital (Actual / Projected) 5 10 15
E     Assessed Ban Finance (ABF)    (C – D) 20 25 25
NWC / TCA (%) 6.67% 10.53% 13.04%
Bank Finance / TCA (%) 26.67% 26.31% 21.74%
S. Creditor / TCA (%) 20% 21.05% 21.74%
Other CL / TCA (%) 66.66% 63.17% 65.22%
Inventory to Net Sales (days) 27 32 37
Receivable to Gross Sales (days) 73 73 73
S. Creditor / Purchases (days) 39 50 61

 If

Gross Sales 200 225 250
Sundry Creditors 15 20 25
Purchases 140 145 150
Receivables 40 45 50
Inventory 15 20 25
  1. Cash Budget Method: This is applicable in case of Seasonal and specific industries: e.g. Sugar Industry, Ginning & Pressing, Construction activity, Information & Technology etc.

 

Cash Flow Statement:  Example

 

Month 1 2 3 4 5 6 7 8 9 10 11 12
Sales 540 720 360 360 100 180 300 360 360 240 240 450
Receipts 351 531 657 414 334 147 180 288 351 348 258 261
Cash Sales 54 72 36 36 10 18 30 36 36 24 24 45
Collections 297 459 621 378 324 129 150 252 315 324 234 216
Payments 383 536 633 356 317 172 221 314 381 338 254 311
To Creditors 252 378 504 252 252 70 126 210 252 252 168 168
Wages 81 108 54 54 15 27 45 54 54 36 36 68
Others 50 50 75 50 50 75 50 50 75 50 50 75
Surplus/Deficit -32 -5 24 58 17 -25 -41 -26 -30 10 4 -50
BF Cash 10 -22 -27 -3 55 72 47 6 -20 -50 -40 -36
Cum. Cash -22 -27 -3 55 72 47 6 -20 -50 -40 -36 -86
Cash in Hand 10 10 10 10 10 10 10 10 10 10 10 10
Cum. Surplus

/ Deficit

-32 -37 -13 45 62 37 -4 -30 -60 -50 -46 -96

 

Limit is decided based on peak deficit projected as per Cash Flow Statement.

  1. Projected Turnover Method (Nayak Committee):

 

This method is applicable where FBWC limit is upto Rs. 500.00 lakh (Rs. 5.00 Crore)

 

Under this method Working Capital is decided as 25% of Realistic Projected Annual Turnover Less Min. 5% of turnover to be brought in by the borrowers as their contribution.

 

Computation under annual Turnover method.

 

  1. Annual Turnover as projected by Borrower
  2. Turnover as accepted by Bank
  3. Working Capital Requirement (25% of B)
  4. Minimum margin required (5% of B)
  5. Actual Margin available (CA – CL)
  6. Item C – item D
  7. Item C – item E
  8. WC Finance – F or G, whichever is less

 

Example:

                                                                             (Amt. in lakhs)

A Annual Turnover as projected by Borrower 1500
B Turnover as accepted by Bank 1200
C Working Capital Requirement (25% of B) 300
D Minimum Margin required (5% of B) 60
E Actual Margin Available ( CA – CL) 20
F Item C Minus Item D 240
G Item C Minus Item E 280
H Working Capital Finance F or G whichever is Less 240

 

 

Non Fund based limits e.g. Letters of Credit or Bank Guarantees : Limits are to be decided based upon genuine requirement of the unit.

 

 

Format of CMA Data:  Banks use individual formats of CMA data, however the information required is same.  One of the formats is given below:  The format may be prepared in excel sheet for easy calculations.

Operating Statement:

PARTICULARS Aud Aud Aud Est. Proj
Years 2015-16 2016-17 2017-18 2018-19 2019-20
Operating months 12 12 12 12 12
Operating Statement
1 I. Domestic Sales
ii. Export Sales
1 Total Gross Sales 0.00 0.00 0.00 0.00 0.00
2 Less : Excise Duty
3 Net Sales (1-2) 0.00 0.00 0.00 0.00 0.00
4 Growth in sales 0% 0% 0% 0%
Cost of Sales
5 a. Raw Material (Imported )
b. Raw material (Indigenous)
c. Stores & Spares (Imported)
d. Stores & Spares (Indigenous)
6 Power & Fuel
7 Direct Labour
8 Repairs and maintenance
9 Other Sight Expenses
10 Depreciation
11 Others expenses 0.00 0.00 0.00 0.00 0.00
a
b
c
Sub Total 0.00 0.00 0.00 0.00 0.00
12 Add: Opening Stock in Process
Sub Total 0.00 0.00 0.00 0.00 0.00
13 Deduct : Closing Stock in Process
Cost of Production 0.00 0.00 0.00 0.00 0.00
14 Add: Opening Stock of Finished Goods
Sub Total 0.00 0.00 0.00 0.00 0.00
15 Deduct : Closing Stock Of Finished Goods
Sub Total ( Total Cost of Sales) 0.00 0.00 0.00 0.00 0.00
16 Gross profit 0.00 0.00 0.00 0.00 0.00
Gross Profit / Sales 0.00% 0.00% 0.00% 0.00% 0.00%
17 Selling Expenses
18 Administrative Expenses
Sub Total 0.00 0.00 0.00 0.00 0.00
19 Operating Profit before interest 0.00 0.00 0.00 0.00 0.00
a. Interest on CC.
b. Interest on TL
c. Other interests
20 Total Interest 0.00 0.00 0.00 0.00 0.00
21 Operating Profit after Interest 0.00 0.00 0.00 0.00 0.00
22 Add: Other non operating Income
a Interest/Dividend/Royalties etc..
b commission
c Other income
d
Sub Total 0.00 0.00 0.00 0.00 0.00
23 Deduct other non operating expenses
a Interest/Dividend/Royalties etc..
b Other Expenses
c Intangibles written off
d Directors remuneration
e Exchange loss
Sub Total 0.00 0.00 0.00 0.00 0.00
24 Net of other non operating Income/Expenses 0.00 0.00 0.00 0.00 0.00
25 Profit before Tax /Loss (PBT) 0.00 0.00 0.00 0.00 0.00
26 Provision for Taxes
27 Net Profit/Loss (PAT) 0.00 0.00 0.00 0.00 0.00
28 Cash Accruals 0.00 0.00 0.00 0.00 0.00
29 Dividend paid + IT on Dividend
30 Retained Profit 0.00 0.00 0.00 0.00 0.00
31 Retained Cash Profits 0.00 0.00 0.00 0.00 0.00
32 RM Content in sales 0% 0% 0% 0% 0%
33 PBDIT 0.00 0.00 0.00 0.00 0.00
34 PBDIT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
35 Operating Profits/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
36 PBT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
37 PAT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
38 Cash Accruals/ Sales 0.00% 0.00% 0.00% 0.00% 0.00%
Interest on CC.
Interest on TL
Other interests
Transfer to Reserves (if any)
Depreciation adjustments

 

 

ANALYSIS OF BALANCE SHEET  –  LIABILITIES
Aud Aud Aud Est. Proj
2015-16 2016-17 2017-18 2018-19 2019-20
LIABILITIES
Current Liabilities
1 Short Term loans from Applicant Bank  including BP &BD
Short Term loans From Other banks including BP &BD
Sub Total (A) 0.00 0.00 0.00 0.00 0.00
         
2 Short Term Borrowings from Others
3 Sundry Creditors (Trade)
4 Advance Payment from Customers
5 Net Provision for Taxation (if positive)
6 Dividend Payable
7 Other Statutory Liab. (Due within one Year)
8 Overdue Term Liabilities
9 Installments of term Loan/ DPGs/ Deposits/ debentures due within next year
10 Other Current Liabilities & Provisions (due within one year) 0.00 0.00 0.00 0.00 0.00
a Sundry creditors for expenses
b Provisions
c Due against Land/Plot
d Share Application Money 0.00
11 Sub Total (B) 0.00 0.00 0.00 0.00 0.00
12 TOTAL CURRENT LIABILITIES 0.00 0.00 0.00 0.00 0.00
TERM LIABILITIES
13 Debentures (not maturing within one Year)
14 Preference Shares (redeemable after 1 year)
14 Term Loan from Bank(Less next Year Instalments)
14 Term Loan from Other Banks/Inst. (Excl. Instal. due next Yr.)
15 Deferred Payments Credits (Excl. Instal. due next Yr.)
16 Term deposits (Excl. Instal. due next Yr.)
17 Other term Liabilities 0.00 0.00 0.00 0.00 0.00
a Unsecured loan
b
18 TOTAL TERM LIABILITIES 0.00 0.00 0.00 0.00 0.00
19 TOTAL OF OUTSIDE LIABILITIES 0.00 0.00 0.00 0.00 0.00
NET WORTH
20 Share Capital
21 General Reserve
22 Revaluation Reserve 0.00 0.00 0.00  0.00
23 Adjustments for previous Year costs 0.00
24 Other reserves (excluding Provisions)
25 Others 0.00 0.00 0.00 0.00 0.00
a Share Premium/Application  Account
b
c
26 Surplus (+) or deficit (-) in Profit & Loss a/c 0.00 0.00 0.00 0.00
27 NET WORTH 0.00 0.00 0.00 0.00 0.00
28 TOTAL LIABILITIES (18+24) 0.00 0.00 0.00 0.00 0.00

 

ANALYSIS OF BALANCE SHEET Continued  –  ASSETS
Aud Aud Aud Est. Proj
2015-16 2016-17 2017-18 2018-19 2019-20
ASSETS
Current Assets
1 Cash & Bank Balances
2 Govt. & other Trustee securities
3 Fixed Deposits with Banks
4 Domestic Receivables including BP/BD
5 Export Receivables including BP/BD)
6 Deferred receivables(due within one year)
7 Imported Raw Material
8 Indigenous Raw material
9 Stock in Process 0.00 0.00 0.00 0.00 0.00
10 Finished Goods 0.00 0.00 0.00 0.00 0.00
11 imported Consumables
12 Indigenous consumables
a. Packing Material
13 Advances to Suppliers
14 Net Advance Payment of Taxes (if positive)
15 Other Current Assets (specify major items) 0.00 0.00 0.00 0.00 0.00
a Loans & Advances
b Deposits with clients & others
c
d
16 TOTAL CURRENT ASSETS 0.00 0.00 0.00 0.00 0.00
FIXED ASSETS
17 Gross Block (Land & Building Machinery
18 Add Capital expenditure in work-in-process
19 Depreciation to Date 0.00 0.00 0.00 0.00
20 Net Block 0.00 0.00 0.00 0.00 0.00
21 OTHER NON CURRENT ASSETS
a Investments in Sub. cos./ affiliates
b Investment in Others
c Advance to suppliers of Capital goods & Contractors
d Deferred Receivables(Maturing after a year)
e Other Non-current investments
f Non Consumable Stores & Spares
g Long outstanding dues &Other non Current Assets /dues from Directors
h Deposits
i
TOTAL OTHER NON CURRENT ASSETS 0.00 0.00 0.00 0.00 0.00
22 Intangible Assets
a Preliminary Expenses
b Deffered Revenue expenditures
c Other Intangibles (patents, goodwill, etc.)
d
e
23 Total Intangible Assets 0.00 0.00 0.00 0.00 0.00
24 TOTAL ASSETS 0.00 0.00 0.00 0.00 0.00
49 TANGIBLE NET WORTH (TNW) 0.00 0.00 0.00 0.00 0.00
50 NET WORKING CAPITAL (NWC) 0.00 0.00 0.00 0.00 0.00

 

Movement of TNW
Opening TNW 0.00 0.00 0.00 0.00
Plough back of profit 0.00 0.00 0.00 0.00
Increase in capital/reserves 0.00 0.00 0.00 0.00
Intangibles written off 0.00 0.00 0.00 0.00
Closing TNW 0.00 0.00 0.00 0.00 0.00
Current Ratio 0.00 0.00 0.00 0.00 0.00
Debt/Equity 0.00 0.00 0.00 0.00 0.00
TOL/Equity 0.00 0.00 0.00 0.00 0.00
Current Assets/Tangible Assets 0.00% 0.00% 0.00% 0.00% 0.00%
ROCE (PBDIT incl. Other income/TTA) 0.00 0.00 0.00 0.00 0.00
Inventory + Receivables as days of Net Sales 0 0 0 0 0
ADDITIONAL INFORMATION
a. Arrears of Depreciation
b. Contingent Liabilities
c. Arrears of Cumulative Dividends
d. Gratuity Liability not  Provided for
e. Disputed Custom/Excise/ Tax Liabilities
f. Other Liabilities not provided for
Check Points
Check Points 2015-16 2016-17 2017-18 2018-19 2019-20
1 Difference in Assets & Liabilities 0.00 0.00 0.00 0.00 0.00
2 Increase in cap.& reserves beyond retained profit 0.00 0.00 0.00 0.00
3 Difference in intangibles written off in balance Sheet and shown in P&L account 0.00 0.00 0.00 0.00
4 Reduction in TL is less than TL instalments  plus overdues 0.00 0.00 0.00 0.00

 

COMPARATIVE STATEMENT OF CURRENT ASSETS & CURRENT LIABILITIES
WORKING CAPITAL / BANK BORROWING ASSESSMENTS
Aud Aud Aud Est. Proj
2015-16 2016-17 2017-18 2018-19 2019-20
A. WORKING CAPITAL ASSESSMENT
Stock of Imported RM -Days Consumption 0 0 0 0 0
Stock of Indiginous RM – Days Consumption 0 0 0 0 0
Imported Consumables – (Days Consumption) 0 0 0 0 0
Indiginous Consumables – (Days Consumption) 0 0 0 0 0
Stock in process- (Days of  Cost of Production) 0 0 0 0 0
Finished Goods – (Days Cost of Sales) 0 0 0 0 0
Total Inventory 0.00 0.00 0.00 0.00 0.00
Total Inventory/Sales (days) 0 0 0 0 0
Domestic receivables (Days Gross dom. Sales) 0 0 0 0 0
Export Receivables – (Days Exports) 0 0 0 0 0
Total Receivables 0.00 0.00 0.00 0.00 0.00
Total Receivables/Gross Sales (days) 0 0 0 0 0
Creditors – (days Consumption) 0 0 0 0 0
Total Current Assets 0.00 0.00 0.00 0.00 0.00
Financed by
Sundry Cr. % of Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Other Curr. Liab.% of Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Bank Finance % of Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
NWC % to Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.00% 0.00% 0.00% 0.00%
By PBS Method 2015-16 2016-17 2017-18 2018-19 2019-20
Total Current assets 0.00 0.00 0.00 0.00 0.00
Other Current Liabilities 0.00 0.00 0.00 0.00 0.00
Working Capital gap 0.00 0.00 0.00 0.00 0.00
Net Working capital 0.00 0.00 0.00 0.00 0.00
Bank Finance 0.00 0.00 0.00 0.00 0.00

 

 

 Fund Flow Analysis Aud Aud Aud Est. Proj
 Particulars 2015-16 2016-17 2017-18 2018-19 2019-20
1 LONG TERM SOURCES
Profit after Tax 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 0.00 0.00 0.00 0.00
Intangibles written off 0.00 0.00 0.00 0.00 0.00
Increase in capital and reserves 0.00 0.00 0.00 0.00 0.00
Increase in Term Liability 0.00 0.00 0.00 0.00 0.00
i.  Decrease in Fixed Assets 0.00 0.00 0.00 0.00 0.00
ii. Decrease in Other non current assets 0.00 0.00 0.00 0.00 0.00
Total Long Term Sources  0.00 0.00 0.00 0.00 0.00
2 LONG TERM USES
Net Loss 0.00 0.00 0.00 0.00 0.00
Increase in Intangibles 0.00 0.00 0.00 0.00 0.00
Decrease in Capital .and Reserves/ Share Buybacks 0.00 0.00 0.00 0.00 0.00
Decrease in Term Liabilities 0.00 0.00 0.00 0.00 0.00
i.  Increase in Fixed Assets 0.00 0.00 0.00 0.00 0.00
Increase in non-Current Assets 0.00 0.00 0.00 0.00 0.00
iii. Increase in Intangibles
Dividend paid 0.00 0.00 0.00 0.00 0.00
Total Long Term Uses 0.00 0.00 0.00 0.00 0.00
Surplus/ Deficit 0.00 0.00 0.00 0.00 0.00
Short Term Sources          
Increase in  Bank Borrowings 0.00 0.00 0.00 0.00 0.00
Increase in other Current Liabilities 0.00 0.00 0.00 0.00 0.00
Decrease in Inventory 0.00 0.00 0.00 0.00 0.00
Decrease in Receivables 0.00 0.00 0.00 0.00 0.00
Decrease in Cash/Deposits/Govt Sec. 0.00 0.00 0.00 0.00 0.00
Decrease in Other Current Assets 0.00 0.00 0.00 0.00 0.00
Total Short Term Sources 0.00 0.00 0.00 0.00 0.00
Short Term Uses          
Increase in Inventory 0.00 0.00 0.00 0.00 0.00
Increase in Receivables 0.00 0.00 0.00 0.00 0.00
Increase in Cash/Deposits/Govt Sec. 0.00 0.00 0.00 0.00 0.00
Increase  in Other Current Assets 0.00 0.00 0.00 0.00 0.00
Decrease in Other Current Liab. 0.00 0.00 0.00 0.00 0.00
Decrease in Bank Borrowings 0.00 0.00 0.00 0.00 0.00
Total Short Term Uses 0.00 0.00 0.00 0.00 0.00
Summary of fund Flow Analysis    
Long Term Sources 0.00 0.00 0.00 0.00 0.00
Long Term Uses 0.00 0.00 0.00 0.00 0.00
Surplus /Deficit (i-ii) 0.00 0.00 0.00 0.00 0.00
Short term sources 0.00 0.00 0.00 0.00 0.00
Short term uses 0.00 0.00 0.00 0.00 0.00
Surplus /Deficit (iii-iv) 0.00 0.00 0.00 0.00 0.00

 

CALCULATION OF BREAK EVEN LEVELS
Variable Aud Aud Aud Est. Proj
Particulars % 2015-16 2016-17 2017-18 2018-19 2019-20
BREAK EVEN POINT
Sales 0.00 0.00 0.00 0.00 0.00
Variable Cost
I. Raw Material 100.00% 0.00 0.00 0.00 0.00 0.00
ii. Consumables 100.00% 0.00 0.00 0.00 0.00 0.00
iii. Direct Labour 60.00% 0.00 0.00 0.00 0.00 0.00
iv. Power & Fuel 60.00% 0.00 0.00 0.00 0.00 0.00
v. Selling Expenses 20.00% 0.00 0.00 0.00 0.00 0.00
vi. Other Variable Costs
Total Variable Costs 0.00 0.00 0.00 0.00 0.00
Percent of Sales 0% 0% 0% 0% 0%
Fixed Costs 0.00 0.00 0.00 0.00 0.00
Break Even Level of Sales 0.00 0.00 0.00 0.00 0.00
Percentage to Sales 0% 0% 0% 0% 0%
Cash Break Even of Sales 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0%
 Sensitivity to BEP
When sales go down
Sales (when down by) 5% 0.00 0.00 0.00 0.00 0.00
Variable costs also go down by 0% 0.00 0.00 0.00 0.00 0.00
Contribution 0.00 0.00 0.00 0.00 0.00
Fixed Costs 0.00 0.00 0.00 0.00 0.00
BEP 0.00 0.00 0.00 0.00 0.00
% to Sales 0% 0% 0% 0% 0%
Cash Break Even of Sales 0.00 0.00 0.00 0.00 0.00
% Sales 0% 0% 0% 0% 0%
When RM cost goes up by 5%
% can be passed on to customer
Sales will go up to 0.00 0.00 0.00 0.00 0.00
Variable costs up by 5% 0.00 0.00 0.00 0.00 0.00
Contribution 0.00 0.00 0.00 0.00 0.00
Fixed costs 0.00 0.00 0.00 0.00 0.00
BEP if RM cost goes up by 5% 0.00 0.00 0.00 0.00 0.00
% to Sales 0% 0% 0% 0% 0%
Cash Break Even of Sales 0.00 0.00 0.00 0.00 0.00
% Sales 0% 0% 0% 0% 0%
When Other Variable costs up by 5%
% can be passed on to customer 0%
Sales will go up to 0.00 0.00 0.00 0.00 0.00
Other Variable Cost  up by 5% 0.00 0.00 0.00 0.00 0.00
Contribution 0.00 0.00 0.00 0.00 0.00
Fixed Costs 0.00 0.00 0.00 0.00 0.00
BEP If Variable Expn. Go up by 5% 0.00 0.00 0.00 0.00 0.00
% Sales 0% 0% 0% 0% 0%
Cash Break Even of Sales 0.00 0.00 0.00 0.00 0.00
% Sales 0% 0% 0% 0% 0%

 

Sensitivity to DSCR
When Sales go down
Sales (when down by) 0.05 0.00 0.00 0.00 0.00 0.00
Variable costs also go down by 0.00 0.00 0.00 0.00 0.00 0.00
Fixed cost 0.00 0.00 0.00 0.00 0.00
Total cost 0.00 0.00 0.00 0.00 0.00
Operating Profits 0.00 0.00 0.00 0.00 0.00
Depreciation & non cash charges 0.00 0.00 0.00 0.00 0.00
Cash Accruals 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 0.00 0.00 0.00 0.00
Repayments 0.00 0.00 0.00 0.00
Gross DSCR 0.00 0.00 0.00 0.00 0.00
Average Gross DSCR 0.00        

 

When RM cost goes up by 5%
% can be passed on to customer 0%
Sales 0.00 0.00 0.00 0.00 0.00
Variable costs sales go up to 0.00 0.00 0.00 0.00 0.00
Fixed cost 0.00 0.00 0.00 0.00 0.00
Total cost 0.00 0.00 0.00 0.00 0.00
Operating Profits 0.00 0.00 0.00 0.00 0.00
Depreciation & non cash charges 0.00 0.00 0.00 0.00 0.00
Cash Accruals 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 0.00 0.00 0.00 0.00
Repayments 0.00 0.00 0.00 0.00 0.00
Gross DSCR 0.00 0.00 0.00 0.00 0.00
Average Gross DSCR 0.00

 

 

When Variable costs go up by 5%
% can be passed on to customer 0%
Sales 0.00 0.00 0.00 0.00 0.00
Variable costs sales go up to 0.00 0.00 0.00 0.00 0.00
Fixed cost 0.00 0.00 0.00 0.00 0.00
Total cost 0.00 0.00 0.00 0.00 0.00
Operating Profits 0.00 0.00 0.00 0.00 0.00
Depreciation & non cash charges 0.00 0.00 0.00 0.00 0.00
Cash Accruals 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 0.00 0.00 0.00 0.00
Repayments 0.00 0.00 0.00 0.00 0.00
Gross DSCR 0.00 0.00 0.00 0.00 0.00
Average Gross DSCR 0.00

 

Particulars Aud Aud Aud Est. Proj
Year 2015-16 2016-17 2017-18 2018-19 2019-20
A. Balance Sheet Data
Share Capital
Share Appln. Money
Res.& Surplus Excl. Revaluation Reserve
Surplus / Deficit in P & L Account
Intangible assets
Tangible Networth (TNW)
Installment due within one year
Term Liabilities (Excl. Install)
Unsecured Loans
Capital Employed
Net Block
Non Current Assets
Current Assets  (A)
Current Liabilities   (B)
Net Working Capital   (A – B)
B. Operational Data
Gross Sales
Less : Excise / Sales Tax
Net Sales
Refund of Sales Tax
Other Income
Mfg. Expenses
Admn. & Selling Expenses
Depreciation
Interest
Profit Before Tax (PBT)
Profit After Tax (PAT)
C. Profit Ratios
NP / NS (%)
NP / Cap. Employed (%)
Inv. Turnover (Days)
Debtors Turnover (Days)
PAT / TNW (%)
Current Ratio
DER (TTL / TNW)
DER (TOL / TNW)
DSCR. 0.00

 

Aud. Aud. Aud. Est. Proj.
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20
RATIOS
1 Growth in Sales 0% 0% 0% 0% 0%
2 Gross profit Ratio 0.00% 0.00% 0.00% 0.00% 0.00%
3 PBDIT 0.00 0.00 0.00 0.00 0.00
4 PBDIT/sales 0.00% 0.00% 0.00% 0.00% 0.00%
5 Operating Profits/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
6 PBT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
7 PAT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
8 Cash Accruals/ Sales 0.00% 0.00% 0.00% 0.00% 0.00%
9 Sales/Equity 0.00 0.00 0.00 0.00 0.00
10 Sales / TTA 0.00 0.00 0.00 0.00 0.00
11 Interest Coverage (Interest/PBDIT) 0.00% 0.00% 0.00% 0.00% 0.00%
12 PBDIT / Interest (Times) 0.00 0.00 0.00 0.00 0.00
13 Deferred Debt/ Equity 0.00 0.00 0.00 0.00 0.00
14 TOL/Equity 0.00 0.00 0.00 0.00 0.00
15 Current Ratio (CA / CL) 0.00 0.00 0.00 0.00 0.00
16 Current Ratio excluding TL Installments 0.00 0.00 0.00 0.00 0.00
17 CA / TTA (%) 0.00% 0.00% 0.00% 0.00% 0.00%
18 Inventory +Receivables as days of Net Sales 0 0 0 0 0
19 Bank Borrowings/Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
20 RM content in sales 0% 0% 0% 0% 0%
21 ROCE (PBDIT incl. Other income/TTA) 0.00% 0.00% 0.00% 0.00% 0.00%
 
Debt Service Coverage Ratio Calculations
Cash accruals 0.00 0.00 0.00 0.00 0.00
Any cash inflow (eg. sales tax deferal,  subsidy )
Interest on TL / Deferred Loans 0.00 0.00 0.00 0.00 0.00
Repayment Obligations of TL 0.00 0.00 0.00 0.00
Repayment of other deferred Loans
Total Repayment 0.00 0.00 0.00 0.00 0.00
Net Debt Service Coverage Ratio (DSCR) 0.00 0.00 0.00 0.00 0.00
Gross Debt Service Coverage Ratio (DSCR) 0.00 0.00 0.00 0.00 0.00
Average Net DSCR 0.00        
Average Gross DSCR 0.00        
Security Coverage Ratio
Net Block 0.00 0.00 0.00 0.00 0.00
Term Loan outstanding (including installments) 0.00 0.00 0.00 0.00 0.00
Security Cover available (NB-TL/NB) 0% 0% 0% 0% 0%

 

Security cover including Collateral Security
Security Cover available ((NB+ Collateral-TL)/NB) 0% 0% 0% 0% 0%

 

Key Indicators Aud Aud Aud Est. Proj
2015-16 2016-17 2017-18 2018-19 2019-20
Net Sales 0.00 0.00 0.00 0.00 0.00
Operating Profit 0.00 0.00 0.00 0.00 0.00
(Net) Other income 0.00 0.00 0.00 0.00 0.00
PBDIT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
PBT/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
PAT 0.00 0.00 0.00 0.00 0.00
PAT/Net Sales 0.00% 0.00% 0.00% 0.00% 0.00%
Cash Accruals 0.00 0.00 0.00 0.00 0.00
Cash Accruals/Sales 0.00% 0.00% 0.00% 0.00% 0.00%
Paid up Capital (PUC) 0.00 0.00 0.00 0.00 0.00
TNW 0.00 0.00 0.00 0.00 0.00
Adjusted TNW (TNW-Investment in associates) 0.00 0.00 0.00 0.00 0.00
TOL/TNW 0.00 0.00 0.00 0.00 0.00
TOL/Adjusted TNW 0.00 0.00 0.00 0.00 0.00
C/R 0.00 0.00 0.00 0.00 0.00
C/R excluding T/L installments due in 1 year 0.00 0.00 0.00 0.00 0.00
Net Sales / TTA (Times) 0.00 0.00 0.00 0.00 0.00
PBT/TTA (%) 0.00% 0.00% 0.00% 0.00% 0.00%
Operating costs/sales(%) 0.00% 0.00% 0.00% 0.00% 0.00%
Bank Finance / Current Assets (%) 0.00% 0.00% 0.00% 0.00% 0.00%
Inv + Rec. /N.S. (DAYS) 0 0 0 0 0
NWC / CA (%) 0.00% 0.00% 0.00% 0.00% 0.00%

 

NOTE:

All information in this post are for educational purpose only, some table format are not arranged

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