Projected Balance Sheet

A Projected Balance Sheet is an estimated financial statement showing expected assets, liabilities, and equity for future periods. It helps businesses and banks assess future financial health and loan repayment capacity.

Banks require projected balance sheets to evaluate the future financial position of a borrower before sanctioning loans or credit limits. It helps them assess whether the business will generate sufficient cash flows to repay the loan.

We typically prepare projections for 3-5 future years. The exact period depends on the requirement of the bank or the purpose for which the projection is needed.

An Audited Balance Sheet shows actual historical financial data certified by a CA. A Projected Balance Sheet shows estimated future financial position based on assumptions and projections. Both are often required together for loan applications.

Yes, the projected balance sheet is prepared and certified by a Chartered Accountant, making it a valid document for bank submissions and other official purposes.

Typically 2-3 working days, depending on the complexity of the business and availability of required data.

We use realistic assumptions based on historical performance, industry growth rates, economic conditions, and specific business plans. Key assumptions include sales growth rate, profit margins, expense inflation, debtor/creditor periods, and asset utilization ratios.

Yes, we customize projections based on the specific loan amount, repayment tenure, and bank requirements. For example, term loan projections focus on fixed asset creation while working capital projections emphasize current asset management.

Yes, banks require projected balance sheets and CMA data for working capital loan assessment. The projections help banks evaluate the borrower's future financial position, working capital requirements, and loan repayment capacity.

A projected balance sheet is prepared for future periods based on assumptions and forecasts, while an estimated balance sheet is prepared for the current or near-complete period based on actual performance to date and expected results for the remainder of the period.