Projected Financials — Projected P&L, Balance Sheet & Cash-Flow Statement

Projected financials are forward-looking financial statements — Profit & Loss Statement, Balance Sheet and Cash-Flow Statement — covering 3-, 5- or 10-year horizons. Virtual Auditor delivers CA-certified projections used for bank-loan applications, investor pitch decks, visa filings (UK Innovator/Founder, Canada SUV, USA E-2/EB-5), government-tender eligibility, government-scheme applications, and statutory filings under the Companies Act and NCLT scheme arrangements.

Source: Schedule III of the Companies Act 2013 (presentation), Ind AS / AS framework (recognition & measurement), Ind AS 7 (Cash-Flow Statement), RBI Master Circular on CMA Data.

Use Cases

Bank-loan: Term loan, working capital, OD/CC, bill discounting, LC and BG facilities. Investor pitch: angel, seed, Series A-D fundraise, family office. Government scheme: PMEGP, MUDRA, Stand-Up India, CGTMSE, PMFME, NABARD AIF. Visa: UK Innovator/Founder, Canada SUV, USA E-2/EB-5, Australia 188. Tender: eligibility filings, EMD/PBG, financial-strength proof. M&A: acquirer DD pack and 5-year strategic roadmap. Statutory: Companies Act schemes, NCLT merger schemes. Internal: budget, board pack, V-CFO, runway planning.

Engagement Scope

3, 5 or 10-year horizons (annual, quarterly or monthly granularity). Schedule III P&L (revenue, COGS, employee, finance, depreciation, tax). Schedule III Balance Sheet (Equity, Non-current liabilities, Current liabilities, Non-current assets, Current assets). Cash-Flow Statement under Indirect Method per Ind AS 7. Ratio analysis: DSCR (avg + min), Interest-Coverage, Current Ratio, Debt-Equity, ROCE, ROE. Breakeven (volume/value/utilisation). Sensitivity (price ±10%, volume ±10%, RM cost +10%, interest +200 bps). IRR / NPV / Payback (capex / project-finance). Working-capital cycle (DSO, DPO, DIO, CCC). CA-certificate with UDIN where required.

Methodology

Revenue: bottom-up build (capacity × utilisation × realisation), with explicit price-escalation assumption tied to CPI/WPI for the relevant sector cluster. Cost: variable, semi-variable, fixed split with three-quote benchmarking on raw materials, full statutory benefits on employee cost (EPF/ESI/gratuity/bonus/leave-encashment under AS 15 / Ind AS 19). Depreciation: Companies Act Schedule II (financials) and Income-tax Section 32 / Rule 5 (tax) — reconciled. Balance-Sheet linkage: Equity from share-issuance assumptions; Term-debt amortised; Working-capital from holding norms calibrated to industry cycle. Cash-Flow: Indirect Method with closing cash reconciled to BS line.

Revenue Build-Up Discipline

Revenue is built bottom-up — capacity (units or revenue-units), capacity-utilisation ramp (typical: year-1 50-60%, year-2 65-75%, year-3 onwards 75-85%), realisation per unit with explicit price-escalation assumption tied to CPI/WPI for the relevant sector cluster, and net-of-discount/return adjustments. SaaS and subscription businesses build off MRR/ARR with cohort retention and net-revenue-retention modelling. Project-led businesses (construction, EPC) follow percentage-of-completion under Ind AS 115. Our model documents which method, why, and how it reconciles to historical actuals.

Cost Structure — Variable, Semi-Variable, Fixed

Raw-material cost is benchmarked against three competing supplier quotations and tracked as percentage of revenue. Employee cost includes gross salary, ESI/EPF (12%+13% employer share), gratuity provision (4.81% per Payment of Gratuity Act 1972), bonus (8.33% statutory minimum where applicable), and leave-encashment provision under AS 15 / Ind AS 19. Finance cost is amortised against term-loan tenor with declining-balance interest. Depreciation is computed under Companies Act Schedule II and Income-tax Section 32 / Rule 5 — these will differ, and reconciliation is shown.

Balance Sheet and Cash-Flow Linkage

The Balance Sheet must reconcile to the rupee with the P&L (retained earnings) and the Cash-Flow (cash & cash-equivalents). Equity capital builds from share-issuance assumptions (primary, ESOP-pool dilution, anti-dilution true-ups). Term-debt amortises against repayment schedule. Working capital builds from holding norms — DSO, DPO, DIO — calibrated to industry cycles. Cash-Flow under Indirect Method (Ind AS 7): Operating CF = PAT + non-cash adjustments ± working-capital changes; Investing covers fixed-asset additions and disposals; Financing covers term-loan drawals/repayments, equity-issue, dividend, interest paid. Closing cash must reconcile to BS line — the discipline that flags 80% of modelling errors before they reach the appraiser.

DSCR, IRR, NPV, Sensitivity

Average DSCR target ≥ 1.50, minimum DSCR ≥ 1.20. IRR / NPV use a discount rate reflecting the project's WACC — typical SME WACC sits in the 14-18% range depending on debt-equity mix. Payback period under both undiscounted and discounted bases. Sensitivity matrix recomputes DSCR/IRR/NPV under: sales-price ±10%, sales-volume ±10%, raw-material cost +10%, interest-rate +200 bps. Tornado-chart visualisation provided for investor decks.

Working-Capital Cycle

Debtor-days (DSO), Creditor-days (DPO), Inventory-days (DIO) and Cash-Conversion-Cycle (CCC = DSO + DIO − DPO) are reported per year of the projection horizon. For capex-heavy SMEs, working-capital optimisation often releases more cash than incremental EBITDA — modelling this explicitly is what separates a real projection from a static template.

Bank-Format Outputs

PNB-59 / SBI CMA-2018 / Canara MSME / BoB MSME / HDFC MSME / ICICI MSME formats — each with its own ratio cuts, sensitivity matrices, and supporting schedules. We deliver in the appraising bank's exact format. For investor pitch, the same source model produces a "founder narrative" version (high-level summary slides) plus a "data-room" version (full Schedule III + assumption sheets) for diligence.

Indicative Fee Structure

Why Virtual Auditor

CA V. Viswanathan (FCA, ACS, CFE, IBBI Registered Valuer — IBBI/RV/03/2019/12333) personally reviews and signs every projection deliverable. Our models have been used in bank-loan appraisals across PNB, SBI, Canara, BoB, HDFC, ICICI, Axis and Kotak; investor pitches that closed angel through Series-D rounds; visa applications under UK, Canada, USA and Australia categories; and government-tender eligibility filings.

Frequently Asked Questions

Get Started — Free 30-Minute Consultation

Call +91 99622 60333 or email support@virtualauditor.in. Fee quote within 24 hours. References available on request.