CMA Report Preparation
CMA Report Preparation
Our CMA (Credit Monitoring Arrangement) Report assists bankers and financial analysts in assessing the financial stability and growth potential of a business.
Key Aspects of Our CMA Report Preparation
- Our CMA report is based on various assumptions, so we ensure that these assumptions are both realistic and achievable.
- It primarily focuses on evaluating the working capital requirements of your business.
- This report plays a vital role for both businesses and bankers in determining funding needs.
- A CMA report is required when applying for a loan and must be prepared in the specific format prescribed by the Reserve Bank of India.
- We include a comprehensive financial ratio analysis as a mandatory part of the CMA report. These ratios cover the current ratio of Debtor and supplier cycles, Stock turnover ratio, Sales turnover ratio.
- We attach detailed information on all fixed assets, depreciation, and loan repayment schedules, linking them to the CMA report.
- If your company operates multiple businesses, we present a breakdown of the projected numbers for each business in the CMA report.
- All assumptions and estimates used in preparing the CMA report are clearly outlined for transparency.
Advantages of CMA Report Preparation
- While it's a requirement for loan applications, it also streamlines the process, making it smoother and hassle-free.
- It assesses the business’s projected trajectory, allowing management to understand the company’s direction and take corrective action if any deviations arise.
- It forecasts the business’s working capital needs, helping management plan accordingly.
- It provides a clear picture of the business's financial health, offering valuable insights to investors, shareholders, banks, and other stakeholders.
Details that need to be submitted for CMA report preparation
Current and proposed credit limits
Profits
Current assets and liabilities
Maximum permissible bank finance which has been calculated
Operating Statements
Expenses and other available statements
Fund flow statements
Sales
Past balance sheet and an evaluation previously done
Ratio analysis which has been done
Documents required for CMA report preparation
- Audited financial reports
- Term loan details (if any term loan is currently running)