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Corporate Clients

Our general frequently asked question service

Financial forecasts and projections are a critical tool during the bank charter application process. For most businesses, bank financing is essential for growth. Obtaining a line of credit, term loan, equipment loan or real estate mortgage for your business will require substantial documentation to demonstrate the strength of your business, use of the funds and your ability to repay the loan.

Projections can be a tricky business as you try to anticipate expenses while trying to predict how quickly your business will grow. With a quick outline and some forethought, though, you can easily get a handle on your business’ financial projections.

Key Elements of Financial Projections:

  1. Income Statement-which includes information regarding revenue, expenses, total income, Income taxes, Net Income
  2. Cash Flow Projections-which includes information regarding cash revenues, cash disbursements, Reconciliation of cash revenues to cash disbursements 
  3. Balance Sheet- which includes information regarding assets, liabilities and equity
  4. Ratio Analysis- which includes information regarding current ratios, solvency ratios, liquidity ratios, debt equity ratio, return on capital employed ratio etc
  5. Repayment capability assessment- which includes information regarding how the business will repay the debt obligations within the scheduled time using the available sources of money.

Net worth of an individual or an Enterprise is the total assets of the individual or Enterprise less total liabilities. Net worth thus gives a good indication of the total financial worth of a person at a point in time. Positive net worth that is growing year on year shows good financial health; conversely, a negative net worth or net worth decreasing year on year shows poor financial health. Net worth is used as an indicator of financial health in various processes.

Net worth certificate is a document that is compiled and certified usually by a Chartered Accountant taking into consideration all the assets and liabilities of the individual or Enterprise. Net worth Certificate maybe required as a part of an application for the decision maker to gauge the financial health of the applicant. Net worth certificate from a Chartered Accountant is commonly required as a part of visa application, bank loan application, franchisee application and more.

PAN (Permanent Account Number) is an identification number assigned to all taxpayers in India. No two tax paying entities can have the same PAN.



Key Elements of Financial Projections:

  • Individual
  • HUF-Hindu undivided family
  • Company
  • Firms/Partnerships
  • Trusts
  • Society
  • Foreigners
  1. Allotment- PAN requires two types of documents. Proof of address (POA) and Proof of Identity (POI). Any two of the following documents should meet the criteria
  2. Modification- Any changes in the information updated in the PAN database can be modified anytime with submission of the required supporting documents in relation to the change required.
  3. Cancellation- The PAN is required to be surrendered in many circumstances such as death of the assessee, dissolution of partnership firm, closure of company/ LLP, duplicate PAN issued for the same assessee etc.

In India, the Income Tax department of the Central Government issues a 10-digit alphanumeric number to all persons who bear the responsibility of collecting tax at source (TCS) or deducting tax at source (TDS). This number is unique and is known as the TAN. Under Section 203A of the IT Act of 1961, the TAN number has to be quoted on all TDS returns filed.
The acronym ‘TAN’ stands for Tax Deduction and Collection Account Number.
This number is an essential part of the tax compliance mechanism under Indian laws.

  1. Allotment- TAN Number can be applied for online as well as offline. The Payment can be made by Demand Draft/Cheque/ Credit Card/Debit Card/Net Banking. For making a TAN Application online, a person shall file his application in Form No. 49B
  2. Modification- Any changes in the information updated in the TAN database can be modified anytime with submission of the required supporting documents in relation to the change required.
  3. Cancellation- The TAN is required to be surrendered in many circumstances such as death of the assessee, dissolution of partnership firm, closure of company/ LLP, duplicate TAN issued for the same assessee etc.

The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT. In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies.

The nature of the firm obtaining an IEC may be any of the follows- "Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society." Consequent upon introduction of GST, IEC number is the same as the PAN of the firm. The IEC would be separately issued by DGFT.


When IEC is needed:
  • When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
  • When an importer sends money abroad through banks then it’s needed by the bank.
  • When an exporter has to send his shipments then it’s needed by the customs port.
  • When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.

For IEC Code Registration, the following documents are required:
  • Individual’s or Firm’s or Company’s copy of PAN Card.
  • Individual’s voter id or Aadhar card or passport copy.
  • Individual’s or company’s or firm’s cancel cheque copies of current bank accounts.
  • Copy of Rent Agreement or Electricity Bill Copy of the premise.
  • A self-addressed envelope for delivery of IEC certificate by registered post.

 

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Few Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally.

Physical documents are signed manually, similarly, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate

A certified digital signature is an electronic signature that meets the highest legal standards. It also guarantees that the contents of the document haven’t been altered after it’s been sent.

With a digital signature, you can encrypt your document by using a public and private key that only you can access. That private key is what guarantees the validity of that document, and it makes it stronger than just using an eSignature.