The full form of CMA data is credit monitoring arrangement data. As per RBI guidelines, credit monitoring arrangement data is required for project loans, term loans and working capital limits.
You have to provide the CMA Data Bank every year to renew the existing bank loan. CMA data is a systematic analysis of working capital management. The purpose of CMA data is to ensure the use of funds effectively.
CMA data are prepared according to the occupation and their business nature and size. Similarly, CMA data is prepared according to facilities borrowed from the bank.
Preparing CMA data does not just mean filling data in RBI format. An in-depth knowledge of finance is required to prepare a credit monitoring arrangement.
The following statements are included in this report to help the banker understand the financial health of the company.
1. Description of bank facilities – Details about current and proposed bank facilities. Will show both fund-based and non-fund based limits.
2. Profit and Loss Statement – The profit and loss statement of the last 2 years are included to know the past performance of the company. Projected profit and loss statement of the next 10 years is present to know the future performance. The earning cycle is also shown for the show’s capability to pay expenses.
3. Balance Sheet – A study of the balance sheet is present to know the financial situation. The last 2 years’ balance sheet is included in the CMA report. In the report, the balance sheet for the next 10 years is present in a comparative way.
4. Cash flow statement – Cash flow statement is also included in CMA data to understand the flow of bank and cash funds. Whether the company is using its funds properly, this can be identifying from the cash flow statement.
5. Working capital – Current assets and current liabilities are differential working capital. The working capital report helps to know the short-term solvency of the company. If the company has enough money to pay its current liabilities, then it can be assumed that the company will not misuse long term resources.
6. Ratio Analysis – Ratio analysis are present in the CMA data report. Ratio analysis allows banks to understand the company’s position more clearly within minutes.
7. MPBF – Maximum permissible bank finance (MPBF) obtain as per RBI’s formulas. Banks are not able to provide loans for working capital more than MPBF. This calculation shows the borrower’s maximum ability to borrow money.
Information and documents required to prepare CMA data report: –
1. Financial Statements for the last 2 years
2. Provisional Financials for the current year
3. Latest sanction letter (in case of renewal)
4. Term loan repayment schedule, if any
5. Details of proposed enhancements (if any) with terms and conditions
5. CMA data report previously received from CA
Why does the bank need CMA data?
You are aware that banks are required to follow RBI instructions to run finance business. RBI suggests that CMA data see for lending. Almost all banks require CMA data. Even for small loans ranging from five lakh to 10 lakh, banks ask to submit CMA report. By performing CMA data analysis, banks can easily understand the flow of borrowers and the feasibility of projects.
Are CMA data reports helpful in getting loans quickly?
The correct ratio and proper presentation of the use of funds are show through CMA data reports. By presenting your financial information appropriately, the chances of getting a loan early is increase. Banks also agree to give loans at low interest rates due to proper presentations.
CMA Data Preparation
Normally your CA prepares CMA data. He takes a lot of time to prepare CMA data and charges high for the same. Despite this, the banks are not satisfied with the CMA prepared by your CA. The more difficulties you face, the bank raises many questions involving CMA.
Do you feel the need for an expert who can produce a well-detailed and valid CMA data? Help you avoid a long list of questions from the bank. Based on the estimates given in the CMA data, the bank decides on the need for limits for the next year as well.
Through our portal, you can troubleshoot these problems as well as get the right and low cost solutions.
Our Online Services:
You can get CMA data prepared by experienced CA & experienced bankers using our online services. If you are interested in good work in a short time, then you can be confident that you are in the right place. You can get CMA data within 48 hours only. We assure you of the confidentiality of their data and reports at all times.
Professionals CAs prepare CMA data. A profile letter is also prepared along with the report. The profile shows an analysis of past years performance of your company. This letter introduces your bank to the core strengths of the company. The profile also includes answers to all possible questions asked by the bank.
In addition, we want to distill you that the CMA prepared by us will surely fulfill all the expectations of the bank. However, if for any reason the bank wants to change the data, then we will do it. You will not have to pay any additional charges for any kind of change in the report.
We hope that you will definitely provide us an opportunity of service. You will definitely benefit from our services. We also assure you of providing peace of mind.
CA Certified CMA Data : –
CMA certified CMA data required by the bank. We will provide CA certified data to you without any extra charge we prepare the following CMA data reports.
Form-I (Details of existing / proposed limits)
Form II (Operating Statement)
Form III (Balance Sheet Analysis)
Form IV (Comparative Statement of Current Assets and Liabilities)
Form – V (Calculation of MPBF)
Form VI (Fund Flow Statement)
Cash flow statement
Financial and valuation parameters (separate ratio analysis report with calculations)
DSCR (consolidated and standalone)
Company profile including answers to all possible queries of the bank
In conclusion, banks rely on this report. The CMAs carefully evaluate the data to determine creditworthiness.