Saraogi Manav & Co.
Chartered Accountants
Project reports and CMA data for term loan applications.
Business financing broadly falls into two categories: Cash Credit (CC) for working capital, and Term Loans for acquiring long-term assets like machinery, land, or building infrastructure.
Banks require documentation showing how a financed asset will generate revenue before sanctioning a Term Loan.
Saraogi Manav and Co. prepares Project Reports and CMA (Credit Monitoring Arrangement) Data to support loan applications.
A Project Report typically includes:
An overview of the business, expansion objectives, and how the loan will be utilized.
Evaluation of target demographic, demand-supply dynamics, and competition.
A description of the management team's structure and experience.
A breakdown of how loan proceeds will be allocated.
Identification of potential business risks and proposed countermeasures.
CMA Data shows projected cash flow available for loan repayment. We prepare 5-to-7-year financial models, including:
Calculations of Land, Building, Plant, Machinery, and ancillary fixed assets, with equity contribution shown separately from the loan component.
Estimates of projected annual revenue, raw material procurement, payroll expenses, and working capital requirements.
Projected Statements of Profit and Loss, Gross Profit (GP) and Net Profit (NP) margins, Break-Even Point Analysis, and Cost-Benefit Analysis.
Repayment schedules showing principal and interest, along with Debt Service Coverage Ratio (DSCR) and Debt-to-Equity analysis.
Documentation typically required for a loan application:
Official quotations or civil engineer estimates for the assets or infrastructure intended to be acquired.
Certificate of Incorporation, Partnership/Trust Deeds, PAN, Udyam Registration, and standard Government-issued proofs.
For existing businesses: last 3 years of audited financials and ITRs, last 12 months of GST returns, and recent bank statements.
Documentation for the assets being hypothecated/mortgaged, plus any additional collateral provided.
Services related to loan sanction and disbursement:
Identification and application assistance for applicable government subsidies and interest subvention schemes (e.g., PMEGP, Mudra, CGTMSE, Startup India, Stand-up India, KVIC, CLCSS, AIF).
Ongoing yearly compliance, including submission of audited financials, stock statements, and utilization certificates as required by lenders.
Contact our office to discuss this service for your business.
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