• CMA Data

    CMA Data means Credit Monitoring Arrangement data. As per RBI guidelines, CMA 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 Data is a systematic analysis of working capital management of the borrower and the purpose of this statement is to ensure the use of funds effectively.

    CMA data generally include 2 years Audited Financials and 3 future years Financial Projection of company, Fund flow statement, Changes in Working Capital report, Ratio analysis and Maximum Permissible Bank Finance (MPBF) report.

    The banks rely very much on this report and carefully evaluate CMA data for eligibility of funding. Our experts help to highlight the potential of your business in CMA data to be submitted to the bankers at the time of sanction and renewal.

    It basically contains 7 statements which help Banker to understand the financial health of the company:

    1. 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.

    2. Operating Statement/Profit and loss account statement, bank will know performance of company. It also helpful to know earning cycle for paying the expenses.

    3. Balance sheet, bank will know the financial position. Is it sound or not? Do company has own assets or all assets on debt. So, to study balance sheet is must. CMA Data will have 2 years Audited balance sheet and 3 years projected balance sheet. So, analyst can make comparative balance sheet for knowing the changes in the balance sheet’s position.

    4. With fund flow statement, bank can know the flow of fund. Is company wasting their fund or applying fund for growing.

    5. Changes in working capital report – helps to understand the changes in current assets and current liabilities. It will also helpful to know short term solvency of company. If it has enough money to pay current liabilities, it cannot misuse its long term resources.

    6. With ratio analysis, bank will understand the position of company more clearly within few minutes.

    7. Banks ask the maximum permissible bank finance (MPBF) working. That is – The amount company is looking out for borrowing from bank? It should not more than 75% of working capital or 20% of Sales.

    DOCUMENTS/INFORMATION REQUIRED TO PREPARE CMA:

    1. Past 2 years Audited Financials
    2. Provisional Financial for the current year; in the absence of provisional financials, details of the top line shall be essential
    3. Latest Sanction letter (in case of renewal)
    4. Term Loan Repayment Schedule, if any
    5. Details of proposed enhancement (if any) along with the terms and conditions

13 Responsesso far.

  1. V.J.Patel says:

    Sir ,
    I have gone through the credit monitoring arangment data as per RBI guide lines in reality perticularly in sugar industries operating on cooperative base did not follow also all norms are on paper and factories running in loss controling autharities forge all data’s with the help of consulting agencies top from ministers to loan sanctioning authorities &bankers working under influence chains of polititions keeping all things aside & loans were passed once twice thrice but the plants conditions not improving finally the goverment & banking autherities liquidate and ther poor share holder loose their sugar plant & a salgoanl goerment By the people, Of ghe people & For thr people come to force sale out the sugar plant at very mayor cost purchase by the influence polititions private bissiness keeping public crying behond demostrating for thier roghts & even seen case that plant can servive but for polititians banifits sale out behind telling this story I mean tosay things to be followed strictlly by RBI & nationalise banks after giving loans how cooperative sugar plants salr out after defaulting bank & government representative to be deputed to check the activities before stage of liquidation let RBI work for farmers betterment elect bodies & chairmans to be brought under scanning the investent limit to be fixed they shoud come instrictly obervation of goverment responsible officials sir then & then your cma shall be banificial I have been heart by central & state goverment policiees also banks to work with responsibility to save the cooperative sector I mean RBI cross chech bank doings before cocperstive sugar factories go to the stage of liquidation for servival of farmers cooperative sugar dairies textiles papers industries do well porvided proper control by governent officials on cocperative bodies time to time telling them about CMD you will find cooperative growing during old days cooperative performing well what happen now its only political misuse of power by polititians &not working in national interest farmers are back bone & for growth all should work in interest of Agro Industies growth only

  2. FIFA 17 says:

    Maintain the good work and generating the crowd!

  3. RJ says:

    Really good stuff….good website.

  4. ig says:

    Very good article. I am experiencing some of these issues as well..

  5. SOWMYA(FCA) says:

    IT IS REALLY GOOD.

  6. Tarun Wadhwa says:

    I need to get CMA data report for a business proposal that I need to submit to the bank.

  7. Annu says:

    Great Article! well i find this page much informative as i visit your page which i feel very helpful . Thank you for sharing.

  8. Harphool Singh Saini says:

    It is really very good article.

  9. Naveen Kumar avusali says:

    Simply explained

  10. B R SINGH says:

    Its a very good explanation to understand the concept very clearly.

    Best Regards
    B.R.Singh
    Pune

  11. Vipul Singh Rana says:

    Sir,
    I have taken a Machinery loan of Rs. 50 lakhs and want another Working capital loan of RS.10 lakhs
    Please suggest what CMA data with be made data.10Lacs/50lacs/60lacs

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