Project Finance and Government Incentives - Chartered Accountants in Delhi

Two things decide whether a business gets the money it is entitled to: whether the proposal put to the bank stands up to appraisal, and whether the incentive claim is filed before the deadline that governs it. We handle both.

Project reports and CMA data

We prepare project reports and credit monitoring arrangement data for term loans and working capital limits, in the format the lender's appraisal team expects. A proposal is assessed on the reasonableness of its projections against the industry and against the borrower's own history, so we build the figures from the books rather than from the requirement.

Term loan and working capital proposals

We assemble the documentation a lender asks for, work through the queries raised during appraisal, and advise on the security and covenant terms offered.

Credit guarantee schemes

We advise on collateral-free lending under the Credit Guarantee Fund Trust for Micro and Small Enterprises, whose cover now extends to substantially larger limits than when the scheme began, and on the other guarantee schemes available to micro, small and medium enterprises.

State and central incentive schemes

Most incentive schemes turn on a deadline and a document rather than on the merit of the project. An eligibility assessment done before the application is worth more than help with the claim afterwards, because almost every disqualification we see is a timing failure rather than a substantive one.

We advise on and certify claims under state industrial and micro, small and medium enterprise policies in Uttarakhand, Uttar Pradesh, Haryana, Himachal Pradesh, Chhattisgarh, Odisha and Bihar, and under central schemes.

Uttarakhand Tourism Policy 2023

The policy offers a capital subsidy on eligible capital assets, at a rate that varies with the district in which the project is built, and runs to 31 March 2030. It requires eight separate certificates across the life of a project, each verified and countersigned by a chartered accountant: project cost at the in-principle stage, then capital expenditure, marketing expenditure, training expenditure, online travel agent revenue, premium hospitality, foreign tourist turnover, and MICE and heli transport.

Two deadlines decide everything. In-principle approval must be obtained before the commercial operation date, and a property that has already opened cannot apply retrospectively. Claims must then be filed within 150 days of the close of the financial year, and subsidy later found inadmissible is recovered with penal interest.

Land is not an eligible capital asset, and nor are intangibles, pre-construction and consultant costs, capitalised interest or working capital.

Export incentives

We advise exporters on the interest subvention available under the Export Promotion Mission and on the documentation sequence it requires, where a unique identification number must exist before the loan is disbursed rather than afterwards.

Questions and answers for this page

What is CMA data and why does a bank ask for it? Credit monitoring arrangement data is a standard set of statements — past and projected balance sheets, profit and loss, fund flow, and the working capital assessment — that a lender uses to appraise a credit proposal. It lets the bank test the borrower's projections against its own norms and arrive at a permissible limit.

Who certifies capital subsidy claims under the Uttarakhand Tourism Policy 2023? A chartered accountant. The policy requires eight separate certificates across the life of a project, covering project cost, capital expenditure, marketing expenditure, training expenditure, online travel agent revenue, premium hospitality, foreign tourist turnover, and MICE and heli transport, each verified and countersigned by the statutory auditor or a chartered accountant.

When must in-principle approval be obtained under the Uttarakhand Tourism Policy? Before the commercial operation date. A property that has already begun operations cannot apply retrospectively and there is no condonation route. Claims must then be filed within 150 days of the close of the financial year.

Can a business claim capital subsidy on buying an existing factory? Generally not. Capital investment subsidy attaches to new investment evidenced by purchase invoices in the claimant's own name, so the price paid for a going concern does not qualify, and second-hand plant is excluded under most schemes. Fresh invoiced capital expenditure after acquisition may qualify as an expansion if it is filed before commissioning and clears the threshold the scheme sets. Stamp duty concession is the one head that does often attach to an acquisition.