CMA Report

A CMA Report (Credit Monitoring Arrangement) is a detailed financial report used by banks to evaluate loan applications. It is prepared as per RBI guidelines and includes financial performance, working capital assessment, and repayment capacity analysis.

Banks require a CMA Report to assess the creditworthiness of a borrower before approving working capital loans (CC/OD limits). It helps banks evaluate the business's financial health, working capital needs, and repayment capacity.

A CMA Report includes: financial performance of last 3 years, current and projected sales, working capital requirements, stock and book debt details, fund flow statement, loan repayment capacity, and ratio analysis.

The basic format is similar across banks as per RBI guidelines, but specific banks may have additional requirements. We customize the report as per your bank's specific format and requirements.

Typically 2-3 working days, provided all required financial documents are submitted on time.

Yes, the CMA Report is prepared and certified by a Chartered Accountant, making it a valid and accepted document for bank submissions.

MPBF (Maximum Permissible Bank Finance) is calculated in the CMA Report as per RBI/ Tandon Committee norms. It determines the maximum working capital limit a bank can sanction based on current assets, current liabilities, and the borrower's contribution margin.

Yes, a CMA Report is commonly required for enhancing existing OD (Overdraft) or CC (Cash Credit) limits. The report demonstrates the business's improved financial performance and increased working capital requirements justifying the higher limit.

A CMA Report is typically valid for 6-12 months depending on the bank's policy. Banks usually require a fresh CMA Report for new loan applications or annual renewals. We prepare updated reports as per the latest financial data available.

We need last 3 years audited balance sheets and P&L accounts, last 12 months bank statements, stock and debtor details, projected sales estimates, existing loan details, and any other financial information relevant to your business.