Cc loan from bank

A person want to take a cash credit loan from sbi.the limit is 6 lacs.the bank manager want a provisional and estimated and projected p and l and balance sheet (finicial statements)
How to prepare financial statements for bank loan purposes.

Hey, @Aishwarya_Shah can you help?

Hey @Sundaraiah_Kollipara

Provisional financial statements are unaudited financial statements and prepared on the amount incurred till date. Basically,
• Consider the actual income/ expenses earned/ incurred till date
• Take the actual balances of all ledgers

Estimated financial statements are prepared for period which has been started but not completed.
• Take the latest financial statements as a base to estimate the data for the rest of the period

Projected financial statements are prepared for the period which has not yet started. Banks usually required 3-5 year projected financial statements
• All the figures mentioned here are not actual and will not have incurred yet.
• Consider future growth and projections based on your industry

Example: Let’s consider FY 2021-22 and 2022-23.

  1. Financial statements prepared from 01/04/2021 - 01/06/2021 (till date) are provisional financial statements as the amounts have been incurred but the financial statements are not audited.
  2. Financial statements prepared from 01/04/2021 - 31/03/2022 are estimated financial statements
  3. Financial statements prepared from 01/04/2022 - 31/03/2023 are projected financial statements

Hope this helps!