Projected Balance Sheet Format for Bank Loan 2026 with CA Certificate
REPORT ON EXAMINATION OF PROJECTED FINANCIAL STATEMENTS
To,
The Board of Directors / Partners / Proprietor
{{client_name}}
{{client_address}}
1. We have examined the accompanying projected financial statements of {{client_name}} (PAN: {{client_pan}}) — the Projected Profitability Statement and the Projected Balance Sheet for the financial years {{proj_year_1}}, {{proj_year_2}} and {{proj_year_3}}, together with the Statement of Significant Assumptions (Annexures A to C, each signed by the management and initialled by us for identification) — in accordance with the Standard on Assurance Engagements (SAE) 3400, The Examination of Prospective Financial Information, issued by the Institute of Chartered Accountants of India.
2. The management of {{client_name}} is responsible for the projected financial statements, including the assumptions set out in Annexure C on which they are based. The projected financial statements were approved by the management on {{pfi_date}}.
3. The projection has been prepared for submission to {{bank_name}} in connection with {{facility_description}}. It has been prepared using a set of assumptions that include hypothetical assumptions about future events and management's actions that are not necessarily expected to occur, namely ____________ [state or refer to the hypothetical assumptions — e.g. that the facility is sanctioned and disbursed by a stated date and the new capacity is commissioned by a stated date]. Consequently, readers are cautioned that this projection may not be appropriate for purposes other than that described above.
4. Our examination included obtaining an understanding of the business and of the process by which the projection was prepared, considering the evidence supporting the assumptions, checking that the projection has been properly computed from the assumptions, and considering its consistency with the historical financial statements for {{base_year}} and the accounting policies followed in them. We have obtained written representations from the management on the intended use of the projection, the completeness of the significant assumptions and its acceptance of responsibility for the projection.
5. Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the projection, assuming that ____________ [repeat or refer to the hypothetical assumptions in paragraph 3]. Further, in our opinion the projection is properly prepared on the basis of the assumptions and is presented in accordance with ____________ [the accounting policies normally adopted by the entity / the applicable financial reporting framework].
6. Even if the events anticipated under the hypothetical assumptions described above occur, actual results are still likely to be different from the projection since other anticipated events frequently do not occur as expected, and the variation may be material. We do not express any opinion on, and do not vouch for, whether the results shown in the projection will be achieved.
7. This report is issued at the request of {{client_name}} solely for submission to {{bank_name}} for the purpose stated in paragraph 3. It is not to be used for any other purpose or distributed to any other person without our prior written consent. We have no responsibility to update this report for events and circumstances occurring after its date.
Place: __________________
Date: 1 October 2026
For {{firm_name}}
Chartered Accountants
Firm Registration No.:
_______________________________
{{engagement_partner}}
Partner
Membership No.: {{icai_membership_no}}
UDIN: ____________________
- Drafting hint: paragraphs 3, 5 and 6 are worded for a projection (hypothetical assumptions — the usual case for a new loan or a start-up). Where every assumption is management's best estimate of what it expects to happen, the statement is a forecast: delete paragraph 3's second and third sentences, end paragraph 5's first sentence at "reasonable basis for the forecast", and open paragraph 6 with "Actual results are likely to be different from the forecast since anticipated events frequently do not occur as expected".
- Drafting hint: if a significant assumption does not provide a reasonable basis, the standard leaves two courses — an adverse opinion or withdrawal. Softening the report is not one of them.
Annexure A — Projected Profitability Statement
{{client_name}} — amounts in ₹ ____________ [lakh / crore]
| Particulars | {{base_year}} (Audited / Provisional) | {{proj_year_1}} (Projected) | {{proj_year_2}} (Projected) | {{proj_year_3}} (Projected) |
|---|
| Installed capacity / capacity utilisation (%) | | | | |
| Revenue from operations | | | | |
| Other income | | | | |
| Total income (A) | | | | |
| Cost of materials consumed / purchases of stock-in-trade | | | | |
| Changes in inventories of finished goods and work-in-progress | | | | |
| Employee benefits expense | | | | |
| Power, fuel and other manufacturing expenses | | | | |
| Selling, administrative and other expenses | | | | |
| Total operating expenses (B) | | | | |
| Profit before interest, depreciation and tax (A − B) | | | | |
| Interest on term loans | | | | |
| Interest on working capital borrowings | | | | |
| Depreciation and amortisation | | | | |
| Profit before tax | | | | |
| Provision for tax | | | | |
| Profit after tax | | | | |
| Drawings / dividend | | | | |
| Retained profit | | | | |
| Cash accruals (profit after tax + depreciation) | | | | |
Annexure B — Projected Balance Sheet
| Particulars | {{base_year}} (Audited / Provisional) | {{proj_year_1}} (Projected) | {{proj_year_2}} (Projected) | {{proj_year_3}} (Projected) |
|---|
| SOURCES OF FUNDS | | | | |
| Share capital / partners' or proprietor's capital | | | | |
| Reserves and surplus | | | | |
| Net worth (I) | | | | |
| Term loans from banks and financial institutions | | | | |
| Unsecured loans from promoters, relatives and others | | | | |
| Other long-term liabilities | | | | |
| Long-term borrowings (II) | | | | |
| Working capital borrowings from banks | | | | |
| Trade payables | | | | |
| Term loan instalments due within one year | | | | |
| Other current liabilities and provisions | | | | |
| Current liabilities (III) | | | | |
| TOTAL (I + II + III) | | | | |
| APPLICATION OF FUNDS | | | | |
| Gross block | | | | |
| Less: Accumulated depreciation | | | | |
| Net block | | | | |
| Capital work-in-progress | | | | |
| Non-current investments, deposits and advances | | | | |
| Non-current assets (IV) | | | | |
| Inventories | | | | |
| Trade receivables | | | | |
| Cash and bank balances | | | | |
| Loans, advances and other current assets | | | | |
| Current assets (V) | | | | |
| TOTAL (IV + V) | | | | |
Key indicators derived from the above
| Particulars | {{base_year}} (Audited / Provisional) | {{proj_year_1}} (Projected) | {{proj_year_2}} (Projected) | {{proj_year_3}} (Projected) |
|---|
| Current ratio | | | | |
| Total outside liabilities / tangible net worth | | | | |
| Debt service coverage ratio | | | | |
| Net profit to revenue (%) | | | | |
Annexure C — Statement of Significant Assumptions
| Item | Assumption | Best estimate or hypothetical | Basis / supporting evidence |
|---|
| Sanction and disbursement of the facility | | Hypothetical | Loan application dated ____________ |
| Date of commissioning / commencement | | | Supplier quotations / implementation schedule |
| Capacity utilisation | | | Past utilisation / orders in hand |
| Selling prices and sales volume | | | Current price list / contracts |
| Raw material cost and consumption | | | Current purchase prices / past consumption ratio |
| Employee, power and other operating costs | | | |
| Rate of interest and repayment schedule | | | Indicative terms from the Bank |
| Depreciation method and rates | | Best estimate | Accounting policy followed in audited accounts |
| Income-tax rate and regime | | Best estimate | Law in force on the date of preparation |
| Receivable, inventory and creditor holding periods | | | Past holding levels |
| Capital to be introduced / unsecured loans to be retained | | | Promoters' undertaking |
The projected financial statements in Annexures A and B and the assumptions above were prepared and approved by the management of {{client_name}} on {{pfi_date}}. The management confirms that the assumptions are appropriate as of that date and accepts responsibility for the projected financial statements.
For {{client_name}}
_______________________________
Authorised Signatory (name and designation): ____________
Usage Notes
- The statements and assumptions are management's documents. Have them signed by management before the report is signed; initial them only for identification.
- Classify every assumption as best estimate or hypothetical. Evidence need not be obtained for a hypothetical assumption, but it must be consistent with the purpose of the projection and disclosed as hypothetical.
- Keep the period short enough to be supportable. Assumptions become more speculative as the period lengthens; where the Bank wants projections for the full loan tenor, say in Annexure C which later-year figures simply extend the earlier trend.
- Check the base-year column against the audited or provisional accounts and carry the same accounting policies forward; disclose any change in policy and its effect.
- Obtain the written representations referred to in paragraph 4 and an engagement letter before starting. Keep the evidence for each assumption on file.
