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For taking loans from the Bank (CC limit/ Overdraft loan) of your startup business, every Bank demands a Project report for a bank loan. This project report (also known as the CMA report or CMA data) includes

So Project report is Upcoming numbers of your Business in future. Figures of the project report are decided on estimated values & this report is prepared for a period of 3 years, 5 years & 10 years, as the bank demands.

Format of project report for bank loan varies from Business to business. For manufacturing unit, format & information in the project report is different & for trading business, project report format for a bank loan is different but project report for small scale industry for a bank loan or project report for other business have common aspects.

We will discuss about both format & information.

Components of projects report

For project report of manufacturing business, we have to explain our product processing, wastage management & all other aspects which the manufacturing process includes.

For project report for trading business, we explains the purchases, transportation & other trading process activity.

Now, we will tell you about each common component of project report.

First, we have to introduce our Business in the mudra loan project report model in a unique way. We should explain every aspect of our project with proper Government Data & Facilities. we should focus on the following things while making a project report for a loan in introduction para-

Cost of the project

This column includes the entire project cost for which the loan is getting applied. Here we have two aspects, Operational cost & means of finance. Both options have information like-

1. Operational cost- Assets to be acquired, Deposits & interest
2. Means of Finance- Promoter’s Contribution & Bank loan amount

Projections & Profitability Statement

Here we define Income & expenses from the projects. We show income & percentage increase in income every year. In the expenses heading, we show our expenses related to business-like

1. Material purchase cost
2. Salary
3. Power charges
4. Interest
5. Tax & other expenses

Cash Flow Statement

In the project report, we also prepare a cash flow statement like how Cash will inflow in Business & its outflow in business. Whether cash flow is in negative figure or positive figure. If it is in negative figure, reason & measures to overcome it.

Balance Sheet

This statement is a backbone of project report. It shows the Closing value of Assets & Liabilities. In liability section, we shows,

1. Capital of promoters,
2. Reserve & surplus
3. Loans

 Meanwhile in assets sections, we shows our assets like

1. Fixed assets like Land & Building, Plant & Machinery
2. Current Assets
3. Cash & Bank
4. Deposits

Break-even Analysis

Manufacturing Business have more statements than the trading business. For manufacturing unit, we have to show Break even analysis by showing cost like

1. Variable cost
2. Fixed cost
3. Contribution
4. P.V. ratio

Interest Schedule

In this Statement, we shows the information like

1. opening balance of the loan
2. Installment
3. Principal
4. Interest
5. Closing Balance of loan

Project Feasibility Ratio

We should also mention the various ratios like Liquidity ratios, leverage ratios, Efficiency ratios, Profitability ratio & market value ratio. Some of the common ratios are-

1. Current ratio
2. Quick Ratio
3. Debt- Equity ratio
4. Cash ratio
5. Debt to assets ratio etc.

Fund Flow Statement

A fund flow statement is prepared to analyze the reasons for changes in the financial position of a company between two balance sheets. It portrays the inflow & outflow of funds i.e. sources of funds & application of funds.

FREQUENTLY ASKED QUESTION ON CMA REPORT (Project Report for bank loan)

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