CMA Report Preparation

As per RBI guidelines, CMA (Credit Monitoring Arrangement) data is required for Project Loans, Term Loans and Working Capital Limits. This data 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.

CMA gives a financial blueprint of a company performance year-on-year. The overall financial health, eligibility for loan, repayment capacity etc can be determined with the use of CMA data. The banks rely very much on this report and carefully evaluate CMA data for eligibility of funding.


Bankers compare ratios and financial metrics reported in CMA report vis-à-vis acceptable industry standards and also with internal credit parameters set by the bank. Accurate and precise CMA Report helps business in justifying their loan requests along with operational and financial justifications for the financial projections reported in CMA.

CMA data generally include 2 years Audited Financials and future years Financial Projection of company, Fund flow statement, Changes in Working Capital report, Ratio analysis and Maximum Permissible Bank Finance (MPBF) report.

Features of CMA

The key to preparing a good CMA Data is to present a healthy financial projection and at the same time - to communicate that funds are needed for expansion. Hence a perfect balance needs to be achieved and explained through the CMA Data - that the company is healthy enough to repay the loan but not so much that it can expand without availing the loan.

The 7 statements in a CMA which help the Banker to understand the financial health of the company:

  • Particulars about the present limit and the proposed limit: It will show both Fund and Non-Fund based limits of the borrower and usage limit or current balance.
  • Operating Statement/ Profit and loss account statement: Banks check the performance of the company. It is also helpful to know earning cycle for paying the expenses.
  • Fund Flow Statement: Banks check the flow of funds. Is company wasting their fund or applying fund for growing? Is the short-term funds used for long term purpose? etc.
  • Maximum Permissible Bank Finance (MPBF) working: This is the amount the company is looking out to borrow from the bank. Banks use a set of formula to calculate this.
  • Ratio Analysis: Banks will understand the position of company more clearly. Every Bank has its own set of benchmark ratios. The basic key ratios are GP (Gross profit) ratio, Net profit ratio, Current ratio, Quick ratio, Stock turnover ratio, Debt-Equity ratio etc.
  • Changes in Working Capital Report: This helps banks to understand the changes in current assets and current liabilities. It will also be helpful to know short term solvency of company. If it has enough money to pay current liabilities, it cannot misuse its long-term resources.
  • Balance sheet: Banks get to know about the financial position. Is it sound or not? Do company has own assets or all assets on debt? CMA Data will have 2 years Audited balance sheet and projected balance sheet. So, analyst can make comparative balance sheet for knowing the changes in the balance sheet’s position.

Steps for Preparation of CMA Report

Step 1: Information and Data Collection

Our team will have detailed discussion on your business, background, credit requirements and procure necessary documentation and details of your business for preparation of CMA Reports. Documents such as Last two years Audited Financials, Loan Repayment Schedule (if any), sanction letter of loans (if any), GST Returns, Orders in Hand will be examined so that future projections are realistic and not merely arithmetic multiples of current performance.

Step 2: Draft CMA Report

Based on the inputs received from you and first hand discussions, we will prepare Draft CMA Report which will contain all assumptions and estimates used in preparation of CMA , justifications for fluctuations in performance if any, Schedule of Fixed Assets, depreciation, loan repayments, etc, in case of multiple businesses activity or locations, detailed annexure showing breakup of how the projected numbers are arrived at. The said Draft CMA will be sent for your approval and modifications will be discussed as per requirement

Step 3: Final CMA Report

On receipt of approval from you and based on final discussion, our experts will finalise CMA report and issue Final CMA Report duly verified for accuracy and completeness

Key Aspects for Drafting CMA Data

  1. All assumptions and estimates used in preparation of CMA should be mentioned separately
  2. Future projections should be realistic and not merely arithmetic multiples of current performance
  3. Fluctuations in performance should be strongly justifiable
  4. All fixed assets, depreciation and loan repayment schedules should be annexed and linked to CMA Data
  5. Past performance and actual numbers should be exactly as per Audited Financials
  6. The company should be able to justify the performance and numbers projected
  7. In case of multiple businesses activity or locations, detailed annexure should be attached showing breakup of how the projected numbers are arrived at
  8. CMA Data should represent a viable business performance - over borrowing is unfavourable and cannot be justified through financial ratios
  9. Although CMA Data is a very detailed analysis of the Profit and Loss statement and Balance Sheet of a company, there are only a handful of ratios and indicators on which loan eligibility is decided.

CMA data is generally required for Project Loans, Working Capital & Term Loans availed for business purposes. Retail Loans does not require submission of CMA Data.

Submission of CMA Data does not guarantee approval of loans. However, a professionally prepared CMA Data reduces the chances of rejection. Further approvals entirely depend on various factors like CIBIL Score, your repayment capacity, your business outlook, etc.

Yes, CMA Data captures both Fund Based & Non-Fund Based Facilities.

Yes absolutely, we ensure complete security and confidentiality of your data.

It takes 2 days post receipt of all the documents/ information. If required CMA Data can be prepared on urgent basis.

What’s Included

  • Consultation with our Experts
  • Drafting of the CMA Report
  • Discussion of the Report
  • Replies to Bank queries

Documents Required

  • Previous 2 years Audited Financials
  • Latest Sanction letter (in case of renewal)
  • Provisional Financial for the current year
  • Term Loan Repayment Schedule (if any)
  • Details of proposed enhancement (if any) along with the terms and conditions.
  • Copy of GST Returns (if applicable)

CMA Report Preparation

CMA Report is the primary document required while applying for or renewing any loan from any bank. It contains important financial information which enables bankers in making decisions. Get your CMA Report preprared with Filecrat at best price in India.

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