guidlines to prepare CMA Data

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 kindly inform me what is basic condtion/criteria to be consider while preparing CMA Data & in CMA where to show OD balance against FDR lien from other bank.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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09 August 2010 CMA Data refers to the Credit Management Anaysis Data. CMA data contains information about the financial statemnts of the firm. Generally different banks have different formats and different methods to evaluate the loan applications based on the Financial Status of the company. Some points which are generally considered while preparing CMA Data > - The current ratio should be at least greator than 1.33. - The sales should be generally 4 or 5 times of the amount of loan. - There should be sufficient stock to act as collaterally to the loan amount. - In case, there is another loan, the bank requires the status of the loan and defaults made, if any. - The loan payback capacity of the firm identified by the cash and bank balance, debtors collection period etc. - Various ratios are to be computed related to working capital and assets. - The capital contribution in relation to the loans and liabilities.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2010 To,

Mr.Sanat Pyne

Thanks for your guidlines, as you have mentioned there are various ratios, kindly inform me about that

CA Sanat Pyne

CA Sanat Pyne (Expert)
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13 August 2010 CURRENT RATIO
TOL/TNW
PBIDT/INTT.
PAT/NET SALES (%)
ROCE (%)
INV.+REC./SALES (DAYS)

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2010 To,

Mr.Sanat Pyne

Thanks again, but what is the full form of INTT.

However you have informed earlier that Current ratio must be grater than 1.33, can you give me the details like what is the percentage ratio for each above, which has to be maintained

CA Sanat Pyne

CA Sanat Pyne (Expert)
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14 August 2010 CURRENT RATIO - 1.33
TOL/TNW - 3 times
PBIDT/INTT. - 3 times
PAT/NET SALES (%)- 5.5
ROCE (%) - 15%
INV.+REC./SALES (DAYS - 150 days

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