Provisional or projected ?

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AMIT (Querist)

15 March 2013
Hi,

I am Really Confused with these, Please Answer in Detail with Example if possible.

A. Difference between Provisional and Projected Balance sheet and its USES ?

B. what are the Basic Ratio to analyses a balance sheet for loan ?

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)

15 March 2013 Provisional Financial Statements are prepared for periods already over.

For e.g, a company may prepare provisional financial statements for period April-12 to December-12 on 31st December 2012.

Projected financial statements are prepared for future periods. Say For 2013-14. Projected FInancial staements are made on assumptions of sales growth, cost inflation etc.

Message likes : 3 times

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

18 March 2013 yes agreed.

ratio like
current ration, liquid ration, sales t/o, fixed assest, debt equity, interest coverage, debt coverage ration etcc

Swati Agarwala

Swati Agarwala (Expert)

17 February 2014 Provisional Balance Sheet is prepared for the period which is over.But for eg: if a balance sheet is prepared for the period Aril'13- March'14 then it will be Provisional Balance sheet as Feb'14 and Mar'14 figures are estimates based on the past.

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