04 December 2012
please help in preparing bank projections for my client who require 20lcas of working capital what are the conditions should i follow in preparing the statements, out auditor says that turnover should be 5 time of the requirement for each 3 projected years and you should check the current ration.
04 December 2012
Turnover should be not less than 1 crore for getting 20 laks w/c loan.Current assets /Current liabilities not less than 1.33.See that the Capital is MORE than 5 laks(Morethan 25%).Prepare estimated Profit and loss a/c and Balance Sheet for 2012-13 with ending balances of Capital morethan 5 laks,W/c Loan of Rs.20.00 laks and similarly currents assets of not less than 26.60 lakhs( 1.33 ratio).Stocks should be PAID stocks only.For next year Projected P&L,Balance Sheet as at 31.3.2014 shall also to be given with reasonable estimates in Expenses,Income and Balance Sheet items.If possible take from the Bank their Application form.It will be a good guide to follow the model.But parameters are as above.
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