profitibity statement
Singh Kamboj (401 Points)
31 July 2018
what is profitibity statement for taking bank loan
Singh Kamboj (401 Points)
31 July 2018
Pranjali
(intern)
(2216 Points)
Replied 01 August 2018
Your financial statements is what the bank wants to see before extending a loan to have a thorough insight into your assets, liabilities etc.
CA Dhruva Kalamanji
(Chartered Accountant )
(1996 Points)
Replied 03 August 2018
Dear Sing,
Generally for taking new term loan bank will ask for project report in that one component will be profitability statement
It generally includes follwoing statements :
1. Balance Sheet. ( audited and projected)
2. Profit and Loss statement.(audited and projected)
3 Fund Flow statment ( Audited and projected)
4 DSCR ratio statement.
4. Operation performace statement ( this includes various ratios like Current Ratio, FACR, GP, NP, EBIT/ Sales quick ratio, etc
A statement or file comprising all these is called profitability statement.
Regards
CA Dhruva
drukal.123 @ gmail.com
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