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Difference between CMA Data and Project Report
Basic Difference between CMA Data and Project Report
Generally, project report and CMA Data are prepared to meet the funding requirement of any entity. In common parlance, the end use of both CMA Data and Project Report is same and hence, always a confusion with many people. Below we have prepared a chart which will help to understand both and will enable you to identify the need of it at various stages of funding:-
CMA Data Project Report What is it? / Meaning CMA Data means credit monitoring arrangement data. It enables to identify borrowing capacity of the entity. Project report includes several aspects other than financial analysis. It generally enables to determine viability of the project. When it is required? / Periodicity Annually or at the time of enhancement or renewal of limits whichever is earlier Generally, at the initiation of project Is there any Specific Format? Yes No Entity to which it is applicable? / To be prepared by? Generally an existing entity, (more than 2 years) will require it A newly incorporated company or project generally requires it Required to be submitted to?? / End User Generally bankers Bankers, Venture Capitalist, PE investor or any person investing in the project. Coverage · 2 years past data and 3 years future projections; · Fund flow statement;
· Changes in working capital report;
· Ratio analysis; and
· Maximum permissible bank finance (MPBF) report.
Introduction of the firm
• Manufacturing process
• Man-power requirement projections
• Costing of the product and project
• Requirement of land and building and construction cost
• Capital investments
• Term Loan and Working Capital requirement
• Profitability analysis
• IRR and Break even analysis
• Depreciation chart
• Loan amortization schedule during tenure of loan
• DSCR calculation
• Project viability analysis
• SWOT Analysis
• Profit and Loss Account & balance sheets, as per banks requirements
• Any other data/report depending upon the nature of the projectDisclaimer: We tried to put down basic differences however there are several combinations involved in funding. We request you to consult a professional before taking any decision on the above.
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is it necessary for new entrepreneur CMA data if yes how he will bring past two years balence sheet
In case of start ups, one needs to prepare a project report.