CMA data

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Prateek Biyani (Querist)
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13 December 2009 What do you mean by CMA data and what is the utility of it. Who can prepare it and what are the statutory requirements in respect of it.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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13 December 2009 CMA data means Credit Monitoring Assessment.

With the help of this, financial institutions decide how much to ge given as Credit Facilities to the borrower.

In CMA data, projections are prepared by the Expert/Borrower and on the basis of certain financial and operating ratios like DSCR (debt service coverage ratio), leverage ratio (percentage of loans in the capital employed) etc. ( on the basis of performance of past, present and projection- to the extent applicable); bankers provide loans (credit facilities) to the borrower.

These CMA data are generally prepared by Experts who are engaged in providing Financial Services like CA, CS,ICWA or other recognized persons (MBA in Finance).

A borrower himself can prepare CMA data with/without the help of bankers.

There is no statutory restrictions that CMA data should be prepared by professionals only. However, banks prefer data prepared by professionals.

CMA data are just prepared by professionals on the basis of information and explanations supplied by the prospective borrower. These data are not certified by them.

There are certain norms fixed by the bankers on which they work.

CA Rakhecha
Surat

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