Overview
A Detailed Project Report (DPR) sets out the technical, commercial and financial basis of a project: what will be produced or built, what it will cost, how it will be financed and whether the projected cash flows can support the proposed borrowing. Banks, financial institutions, development authorities and investors commonly ask for one before considering a proposal.
CMA data (Credit Monitoring Arrangement data) is a structured set of historical and projected financial statements that banks in India commonly use to assess working capital and term loan requirements. It sits alongside the DPR or the loan application and has to reconcile with the borrower's audited accounts.
The firm prepares these reports and the supporting projections from information and assumptions provided by the promoters, and presents them in the formats lenders and authorities typically request. Projections are only as reliable as the assumptions behind them, so the assumptions are documented and agreed with the client before the report is finalised.
When it is typically needed
- Applying for a term loan to set up a new unit, expand capacity or acquire equipment
- Seeking, renewing or enhancing working capital limits such as cash credit or overdraft facilities
- Applying for an industrial plot or other allotment where a project report is part of the application
- Submitting documentation for a capital or interest subsidy under a government scheme
- Presenting a project to investors, joint venture partners or a board
- Testing the viability of a project before committing capital
Scope of work
Project reports and feasibility
- Detailed Project Reports
- Project feasibility reports
- Business viability reports
Financial projections
- Projected balance sheet, profit and loss statement and cash flow statement
- Ratio analysis, including debt service coverage and liquidity ratios
- Sensitivity of projections to key assumptions, where requested
Bank finance documentation
- CMA data
- Working capital assessment
- Term loan proposals
- Bank loan documentation
Project costing and funding
- Project cost estimates
- Means of finance and funding structure
- Subsidy documentation
Sector-specific reports
- Manufacturing
- Healthcare and pharmaceuticals
- Education
- Food processing
- Real estate
- Export units
- Startups and MSMEs
Information and deliverables
Information usually needed
- Constitution documents and details of the promoters
- Quotations or estimates for land, building, plant, machinery and other project costs
- Audited financial statements for recent years, for an existing business
- Proposed means of finance, including the promoters' contribution
- Operating assumptions: capacity, production, pricing, costs and credit periods
Typical deliverables
- Project report in the format required by the lender or authority
- Projected financial statements with schedules and ratio analysis
- CMA data in the bank's prescribed format
- A note of the key assumptions used
Terms explained
For readers less familiar with Indian tax and regulatory terminology.
- DPR
- Detailed Project Report — a document describing a project's technical, market and financial aspects, used to support finance or approval applications.
- CMA data
- Credit Monitoring Arrangement data — historical and projected financial statements in a standard format used by Indian banks to assess credit proposals.
- DSCR
- Debt Service Coverage Ratio — cash available for debt servicing divided by the principal and interest due; lenders use it to judge repayment capacity.
- Means of finance
- How a project's cost will be funded, typically a mix of promoters' contribution, term loans, subsidies and other sources.
Scope and limitations
- Decisions to sanction a loan, release a subsidy or allot land are made solely by the bank, institution or authority concerned. A project report does not guarantee sanction, disbursement or any project outcome.
- Projections are based on information and assumptions provided or approved by the client.