CMA Report Preparation
CMA or credit Monitoring Arrangement of Data is an essential element for any company to have. It is only through this report, that banks are able to ascertain the financial status of the company and based on that, avail the company some financial assistance. This data is accumulated in the form of the following 7 statements:
- Particular pertaining to existing limits: This is the very first statement of the CMA. This would include the details regarding the current credit limits of the borrower and its history and usage. This is basic information that the borrower provides.
- Operating statement: This statement pertains to the business plan of the borrowers. This includes the current sales, direct and indirect expenses, Profit before tax and after tax, projection of sales, profits and expenses based on the working capital request of the borrower. This is basically a scientific analysis that demonstrates the financial position of the borrower.
- Balance Sheet analysis: the third statement of CMA, this includes all the detailed analysis pertaining to cash and bank position, fixed assets, net worth position, current and past liabilities etc. This statement tells the current financial circumstance of the borrower.
- Statement of current assets and liabilities: This 4th statement is meant to tell the banks about the movement and amount of current assets and current liabilities of the borrower. This statement demonstrates whether or not the borrower is capable of paying back the working capital loans.
- MPBF calculation: This is Maximum Permissible Bank Calculation is a calculation of t he permissible finance about to the company.
- Fund Flow statement: This statement is meant to analyze the fund position of the borrower based on the projected balanced sheets and working capital analysis. This statement provides information about the movement of funds within the borrowers company.
- Ratio Analysis: This statement provides information about all the necessary ratios that include the net worth, current ration, Gross Profit Ration, Fixed asset turnover, current asset turnover and so on. This will provide a more scientific analysis of the current condition of the company.
All the information mentioned above needs to be concise and relevant. To that end, Registrationwala will provide you optimal assistance for generating the most accurate reports that will be fully within the confines of the guidelines set by the RBI.
