CMA Report stands for Credit Monitoring Arrangement report. In this, past, present and projected figures are put in a defined format (prescribed by RBI) with all the required financial analysis and ratios. This helps Bankers and Financial Analysts to ascertain the financial health of a business. All Bankers request all loan applicants to prepare and present a realistic CMA report to understand the flow and application of funds in a business. Since CMA report is prepared based on various assumptions, it is very imperative that the assumptions used are realistic and viable.
CMA Report is essentially an assessment of Working Capital Needs of a business. Bankers take into account various factors while funding the working capital needs. There are certain industry standard Ratios which need to be in place for a bank to be comfortable to grant working capital (Cash Credit) against Stock and / or Debtors balance.
In case you need to present this to investors, you may get business plan prepared by us as well. Finance experts team at Auditbuzz will undertake preparation of your CMA report considering all RBI/Banking norms and normal Industry Standards. This will ensure that your business gets required working capital funds at the right time and without much hassles.
Credit monitoring arrangement analysis:
Mandatory For Loans
You would need a professionally drafted CMA report for all loans that you apply for with the banks. It is a format mandated by Reserve Bank of India. It is adopted by all nationalized, co operative banks and private sector banks in India. No working capital loans can be sanctioned without an appropriately drafted CMA report.
Ratio Analysis
Among other things, a typical CMA report also includes a detailed Ratio analysis of your business. Financial Ratios are quick indicators of your business’s health. Major Ratios included are Current Ratio, Sales turnover Ratio, Stock Turnover Ratios, Debtor and Supplier working cycles, among others.
Norms
RBI has set certain norms for assessing the working capital needs of a business. Also, there are certain set Industry Standards, which various banks take into consideration. Auditbuzz Compliance Manager takes care of all RBI mandates and usual Industry Standards to prepare an accurate CMA report.
FAQs
Frequently Asked Questions
In this service, we help you end-to-end with respect to the preparation of a complete CMA data online as per the format for the bank loan along with covering letter for the purpose of submission to the bank. Approval depends on bankers and their norms.
You can get a business plan prepared from us. Machinery loan will be a term loan repayable in a period of up to 7-10 years mostly.
Yes absolutely. You will be dealing with a professional team of MBAs and CAs for getting your CMA prepared. We ensure complete security and confidentiality of your data.
We have a team of MBAs and CAs working for you. This team is very much conversant with RBI norms and also bank-specific norms. However, approvals entirely depend on various factors such as your CIBIL score, your repayment capacity, your business outlook etc.
We provide Accounting services, ensuring financial transparency and regulatory compliance for your peace of mind.
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