Cash flow statement

This query is : Resolved

J Priyanka (Querist)
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20 October 2012 PLSSSSSSSS HELP!!!! URGENT !!!1
HOW DO V PREPARE A PROJECTED CASH FLOW STATEMENT FOR 5 YEARS??
THE ABOVE STATEMENT IS TO BE PREPARED FOR VEHICLE LOAN PURPOSE AND SUBMITTED TO BANK.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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22 October 2012 AS I Understand since its for bank purpose so basically you have to make Sources and Application of Funds in their prescribed format

Gurcharan

Gurcharan (Expert)
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22 October 2012 Whatever is the purpose of a projected cash flow statement, it must indicate clearly your sources of cash e.g. salary for the salaried employees, estimated business income for the enterprises etc which means it involves some assumptions of business growth, salary increases etc. These assumptions should be defendable and realistic otherwise the users may reject these. Then you need to estimate the regular cash outflows including repayment of old loan EMIs etc. This will give you a net surplus, deficit for each of the years. Once the basic information is availble, the format can be as you may desire.

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Jagga Rao Malipeddi

Jagga Rao Malipeddi (Expert)
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22 October 2012 Vehicle loan for commercial purpose - projected cash flow statement mainly depends on the sources of funds and application of funds. Sources of funds in vehicle loan for commercial purpose are mainly the charges per kilometer, estimated run per month, income per month/year out of such estimated run of the vehicle. Application of funds mainly, the fuel, salaries, toll gate charges, Road tax and other taxes, depreciation, depreciation/replacement of tyres, garage charges, interest on the capital (funds raised apart from bank loan). The surplus should be more than the interest and instalments and also some profit left to the owner of the vehicle for his family maintenace. The above are tips, you should work out in your own method. If the cashflow is not sufficient to meet the interest and instalments, banks will not consider the loan proposal.