CMA reports

This query is : Resolved

Share Report Follow Query Ask a Query

CA Miss Naamah

CA Miss Naamah (Querist)
Follow

13 January 2011 What is CMA reports? Why they are prepared? Where are they used?

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

14 January 2011 CMA means Credit Monitoring Arrangements. This full form of
CMA is as given by Reserve Bank of India. For arranging
working capital finance information about income, expenses,
assets & liabilities is required to be given in a specific
format to the bank by applicant. This specific format is
referred to as CMA Report / CMA Data. Audited P & L A/c &
Balance Sheet of at least last 1 year, estimates of current
year & projections of next at least 2 years are provided to
bank by the applicant along with Funds Flow Statement,
Ratio Analysis, Comparative Statement of Current Assets &
Current Liabilites & Statement of Maximum Permissible Bank
Finance. Number of years for which data is required may
vary from bank to bank. Even after getting the finance such
data is required to be submitted to the bank periodically.

Message likes : 11 times

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

14 January 2011 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.

Link for some formats is given below. also check the files section for more.

https://www.caclubindia.com/share_files/cma-data--20547.asp

https://www.caclubindia.com/share_files/cma-data-19315.asp

Message likes : 16 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhairya Sanghvi

mohammad.asraf

sriram deven

mahendra zaveri

nilesh

Subscribe Now

CMA reports

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior execiutive

GST CONSULTANT

CA Final

Accountant

GST CONSULTANCY

Article Assistant

Manager- Finance and Compliance