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
| Service | Fee |
|---|---|
| 3-year Projection (P&L + BS + CF) | Starts from ₹25,000 + 18% GST + govt fees |
| 5-year Projection (full Schedule III) | Starts from ₹45,000 + 18% GST + govt fees |
| 5-year + DSCR + Sensitivity + IRR/NPV | Starts from ₹70,000 + 18% GST + govt fees |
| CA-Certificate with UDIN | Starts from ₹10,000 + 18% GST + govt fees |
| Free 30-min Consultation | No obligation |
All fees above are indicative and subject to change based on turnover.
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.
Engagement terms for projected financial statements — reviewed 25 October 2026
- Fee: 3-year projected P&L, balance sheet and cash flow from ₹25,000 + 18% GST; 5-year projections in Schedule III format from ₹45,000 + 18% GST; CA certificate with UDIN on the projections ₹10,000 + 18% GST.
- Extra / not included: One round of revisions after the bank's or investor's comments is included; further rounds quoted.
- Turnaround: 7 working days from receipt of complete information and the advance payment.
- Who signs: The certificate is signed by V. Viswanathan FCA or another qualified Chartered Accountant of the practice, depending on the engagement.
- Entity: Engagement letter and invoice are issued by Virtual Auditor Private Limited.
- What to send first: Send the purpose and recipient (bank, investor, visa, tender), last two years' accounts or ITRs where the business exists, planned capital expenditure and the key assumptions (sales, margins, loan terms).
- Next step: Send your enquiry on WhatsApp to +91 99622 60333; we confirm the scope, fee and timeline in writing before work starts.
Frequently Asked Questions
What's the difference between projected financials and a DPR?
Projected financials are P&L+BS+CF only. A DPR contains projected financials plus market study, technical feasibility, regulatory analysis, SWOT.
Are CA-certified projections required for bank loans?
Most banks accept CA-certified projections or those with an independent professional opinion. CA-certification with UDIN reduces appraisal questions.
Can projections be used for visa applications?
Yes — UK Innovator/Founder, Canada SUV, USA E-2/EB-5 and Australia 188 routinely accept CA-certified 5-year projections.
How long do projections take?
3-5 working days for 3-5 year projection from receipt of inputs and historicals.
How can I build defensible projections and understand the cash and funding consequences?
Build revenue from drivers you can evidence, such as customers, volumes, prices and conversion rates, rather than a growth percentage. Split costs into variable, semi-variable and fixed. Model working capital in days, capital expenditure with depreciation, and the repayment schedule of any debt. Link the profit and loss account, balance sheet and cash flow so the balance sheet balances every period. Then run scenarios and sensitivities on the assumptions that matter most, and read off the funding gap, runway and debt-service cover. Keep an assumptions register that says where each number comes from. You receive the model, the assumptions register and a short note on the results and risks.
Get Started — Free 30-Minute Consultation
Call +91 99622 60333 or email support@virtualauditor.in. Fee quote within 24 hours. References available on request.