CMA Report Preparation

CMA data preparation and presentation is necessary for bank loan or working capital loan or for seeking CC limit. By submitting CMA data report with right ratios and proper presentation of usage of funds, your chances of getting the loan has been increased. Provided you follow other procedures and requirements of banks.

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WHAT IS CMA REPORT?

CMA means Credit Monitoring Arrangements. This full form of CMA is as given by Reserve Bank of India. For arranging working capital finance information about income, expenses, assets & liabilities is required to be given in a specific format to the bank by applicant. This specific format is referred to as CMA Report / CMA Data. It is a critical analysis of current & projected financial statements of a loan applicant by the banker. CMA data is a systematic analysis of working capital management of a borrower and objective of this statement is to ensure the usage of long term and short term fund have been used for the given purpose.

What Includes in CMA Report ?

The current ratio should be at least greator than 1.33. The sales should be generally 4 or 5 times of the amount of loan. There should be sufficient stock to act as collaterally to the loan amount. In case, there is another loan, the bank requires the status of the loan and defaults made, if any. The loan payback capacity of the firm identified by the cash and bank balance, debtors collection period etc. – Various ratios are to be computed related to working capital and assets.

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CMA Report Contains following Information

  • Audited P & L A/c & Balance Sheet of at least last 1 year, estimates of current year & projections of next at least 2 years are provided to bank by the applicant along with Funds Flow Statement, Ratio Analysis, Comparative Statement of Current Assets & Current Liabilities & Statement of Maximum Permissible Bank Finance. Number of years for which data is required may vary from bank to bank. Even after getting the finance such data is required to be submitted to the bank periodically.

FOLLOWING STATEMENTS

  • Operating Statement
  • Analysis of Balance sheet
  • Comparative statement of Current Asset & liabilities
  • Calculation of MPBF (Maximum Permissible Bank Finance)
  • Fund Flow Statement
  • Ratio Analysis

FAQS

What is CMA Report ?

CMA data is Credit Monitoring Arrangement data. It is the report to be presented to bank to show your past financial history, current financial position and future financial planning.It covers 7 statements related to finance.

What is the use of CMA Report ?

Credit Monitoring Arrangement data. As per RBI guidelines, CMA data is required for Project Loans, Term Loans and Working Capital Limits. Thisdata is to be provided by a company to bank for getting the loan from bank and every year, for renewing or enhancing their existing Bank loan.