CMA data preparation and presentation is necessary for bank loan or working capital loan or for seeking CC limit . Do you know what is CMA data? Why the banks require it? What are the components of it? What is benefits of presenting CMA data? To answer all these questions, I have written this post.
GET PREPARED CMA DATA BY CA
CMA DATA PREPARATION FOR BANK LOAN: 5 IMPORTANT THINGS TO KNOW
CMA DATA MEANING:
Full form of CMA data is Credit Monitoring Arrangement data. It is the report to be presented to bank to show your past financial history, current financial position and future financial planning.It covers 7 statements related to finance.
WHY DOES BANK REQUIRE CMA REPORT?
We all know that banks are require to follow RBI guidelines to run finance business. RBI suggests not to only rely on CMA data for granting loan. Still almost all banks are asking for CMA data. Even for small loans like 4 lakhs to 6 Lakhs submitting CMA report is required. The reason is that by analyzing it, banks can understand the flow of funds ( Past and proposed) of borrower and viability of projects.
GET PREPARED CMA DATA BY CA
WHAT REPORTS ARE COVERED ?
It covers following statements:
Details of existing and proposed fund limit: In this report, details about your current financial condition, borrowed fund and proposed fund are covered.If the business is new, proposed data is required to be given.
Operating statement: You are required to show past 2 years and future 3 years ( Proposed) operating statements. There may be some changes as per loan needed and business nature.The profit and loss account should be presented here.
Analysis of balance sheet: Details about your balance sheets of past years are required to show. It is also required to show proposed balance sheet data to show a picture of your future business plan. Details about current assets, fixed assets, current and long-term liabilities are presented in this statement.
Comparative statements of current assets and liabilities: This statement describes the viability of your working capital cycle.
Calculation of MPBF: Calculation of maximum permissible bank finance. This statement shows the capacity of the borrower to borrow money. It depends on two methods which are dependent on working capital.
Fund flow statements: This statement shows the fund flow statements for current and future years. It shows the fund utilisation and sources of funds.The statement is important because it highlights the utilization of fund. To make sure the bank that you are using the fund for the purpose you have borrowed.
Ratio analysis: This is also one of the long and important statements of CMA data.It covers key ratios. Some ratios are the current ratio, MPBF, Net worth ratio, quick ratios, turnover ratios, debt-equity ratios, DSCR etc.
NO SAME REPORT FOR ALL BUSINESSES:
There are different business types and according to their business nature and size, CMA report is prepared. It is not similar for all businesses. Similarly, CMA report is prepared as per nature of the borrowed funds. The data is different for the working capital loan or for CC or for CMA data for the bank guarantee.
WHAT IS THE BENEFIT OF SUBMITTING CMA REPORT?
By submitting CMA data report with right ratios and proper presentation of usage of funds, your chances of getting the loan has been increased. Provided you follow other procedures and requirements of banks.
CMA ( Credit Monitoring arrangement) data preparation does not mean only filling data but it requires deep knowledge of finance. You get prepared CMA data report by CA by using our online services. It is easy and fast. Are you interested in saving time by using expert’s service?
Now get your CMA Data prepared from our highly qualified and experienced team of CAs and Experienced Bankers in just 3 days, in 3 easy steps, handling all queries related to CMA from your Bank, Most Reasonable Fees and No Advance Payment
As you know, Working Capital Limits sanctioned to your Company are renewed every year by your Bank and with other documents, your Bank requires CMA Data or projections for the renewal. Don’t you think, this leads to many monotonous renewal-related formalities every year.
Generally your CA prepares the CMA Data for your Company but many a times, he takes lots of time in providing the CMA Data and also charges high fees for the same. Despite that Bank raises lots of queries on the CMA prepared by CA adding more difficulties to you.
Don’t you feel a desperate need of an expert in Banking & Corporate Finance who can prepare a well-detailed and validated CMA data and help you avoid long list of queries from your Bank to smoothen the cumbersome renewal process. As based on projections provided in CMA data, Bank decides on requirement of the limits for next year.
We are here to help you with these problems by providing the perfect and low cost solutions to the same.
Ours is the first Indian portal providing online CMA Data preparation Services by Corporate Finance Banking Professionals (CA & Experienced Bankers). The portal was promoted in the year 2011 by three dynamic professionals and technocrats – a Senior Banker, an IIM-Kolkata Alumni & a Chartered Accountant, having an industry experience of over 15 years in many prestigious Indian Banks in Credit related functions.
Since our inception in 2011, we have been catered to over 200 companies in India. We are also recognized for our innovative idea and execution capabilities throughout the world.
Being managed by a team of professionals hailing from reputed institutes and having relevant work experience with many premiere Indian banks, we assure clients confidentiality of their data and reports at all the times.
We specialize in offering online CMA Data preparation services in just 3 days. These are offered in 3 easy steps, where all queries related to CMA from your Bank are addressed on real time basis (if any). Rates quoted are very reasonable and No Advance Payment is required.
Leading-edge solutions provided by Corporate Finance Banking Professionals & qualified CAs
Effective handling of all queries related to CMA data
Timely services, 3 days TAT
Nominal pricing policy and No Advance Payment
Complete confidentiality of your Balance Sheet and personal data
CMA Data pertaining to renewal and new sanction of Bank Limits prepared by seasoned Corporate Finance Banking Professionals (CA & Experienced Bankers). A covering letter is also prepared for your bank with proper analysis & write-up briefing last years performance of your Company. This letter covers core strengths of the company for your Bank, also containing answers to all possible queries a Bank may ask.
Other Bank finance related services:
Detailed Information Memorandum for sanction of Working Capital Bank Limits
Project Report for Term Loans
Company presentation for the Lenders
Credit Rating related advisory services
We look forward to having an opportunity to serve you. We also assure you complete peace of mind as all payments related to CMA Data are to be made only after the project is executed as per your expectations.
Standalone feeding and auto linking of CMA Data with Project finance Software. If CMA is linked with the project finance software, then there is a facility to import actual and projected data of Balance Sheet and Revenue Statement.
If CMA is not linked with the project finance software, then two other methods are available to estimate the amount of projected years.
First Method: Percentage Basis
Second Method: Ratio Basis
The following CMA Reports can be generated from our software:
Form – I (Particulars of the Existing/Proposed Limits)
Form – II (Operating Statement)
Form – III (Analysis of Balance Sheet)
Form – IV (Comparative Statement of Current Assets & Liabilities)
Form – V (Computation of MPBF)
Form – VI (Fund Flow Statement)
Cash Flow Statement
Financial and Appraisal Parameters (Different Ratio Analysis Report with calculation)
DSCR (Consolidated and Standalone)