Project Report/ CMA Data

Introduction

As per RBI guidelines, credit monitoring arrangement data is required for project loans, term loans and working capital limits.

You have to provide the CMA Data Bank every year to renew the existing bank loan. CMA data is a systematic analysis of working capital management. The purpose of CMA data is to ensure the use of funds effectively.

CMA data are prepared according to the occupation and their business nature and size. Similarly, CMA data is prepared according to facilities borrowed from the bank.

Preparing CMA data does not just mean filling data in RBI format. An in-depth knowledge of finance is required to prepare a credit monitoring arrangement.

The following statements are included in this report to help the banker understand the financial health of the company.

1. Description of bank facilities – Details about current and proposed bank facilities. Will show both fund-based and non-fund based limits.

2. Profit and Loss Statement – The profit and loss statement of the last 2 years are included to know the past performance of the company. Projected profit and loss statement of the next 10 years is present to know the future performance. The earning cycle is also shown for the show’s capability to pay expenses.

3. Balance Sheet – A study of the balance sheet is present to know the financial situation.  The last 2 years’ balance sheet is included in the CMA report. In the report, the balance sheet for the next 10 years is present in a comparative way.

4. Cash flow statement – Cash flow statement is also included in CMA data to understand the flow of bank and cash funds. Whether the company is using its funds properly, this can be identifying from the cash flow statement.

5. Working capital – Current assets and current liabilities are differential working capital. The working capital report helps to know the short-term solvency of the company. If the company has enough money to pay its current liabilities, then it can be assumed that the company will not misuse long term resources.

6. Ratio Analysis – Ratio analysis are present in the CMA data report. Ratio analysis allows banks to understand the company’s position more clearly within minutes.

7. MPBF – Maximum permissible bank finance (MPBF) obtain as per RBI’s formulas. Banks are not able to provide loans for working capital more than MPBF. This calculation shows the borrower’s maximum ability to borrow money.

Information and documents required to prepare CMA data report: –

1. Financial Statements for the last 2 years

2. Provisional Financials for the current year

 3. Latest sanction letter (in case of renewal)

4. Term loan repayment schedule, if any

5. Details of proposed enhancements (if any) with terms and conditions

6. CMA data report previously received from CA

CMA Data Preparation

Normally your CA prepares CMA data. He takes a lot of time to prepare CMA data and charges high for the same. Despite this, the banks are not satisfied with the CMA prepared by your CA. The more difficulties you face, the bank raises many questions involving CMA.

Do you feel the need for an expert who can produce a well-detailed and valid CMA data? Help you avoid a long list of questions from the bank. Based on the estimates given in the CMA data, the bank decides on the need for limits for the next year as well.

Through our portal, you can troubleshoot these problems as well as get the right and low cost solutions.

CMA Data: –

CMA data required by the bank. We will provide CA certified data to you without any extra charge we prepare the following CMA data reports.

• I Form (Details of existing / proposed limits)
• II Form (Operating Statement)
• III Form (Balance Sheet Analysis)
• IV Form (Comparative Statement of Current Assets and Liabilities)
• V Form (Calculation of MPBF)
• VI Form (Fund Flow Statement)
• Cash flow statement
• Financial and valuation parameters (separate ratio analysis report with calculations)
• DSCR (consolidated and standalone)

FAQs for Project Report/ CMA Data:

What is a project report?

A project report is a comprehensive document that provides detailed information about a specific project, including its objectives, methodology, financial analysis, risk assessment, and projected outcomes. It is typically prepared for internal or external stakeholders to evaluate the feasibility and viability of the project.

What is CMA data?

CMA data refers to the financial information and analysis provided by a borrower to a bank or financial institution as part of the credit assessment process. It includes details such as projected financial statements, ratios, cash flow analysis, working capital requirements, and other relevant financial data.

What are the key components of a project report?

A project report generally includes the following components:

Executive summary, Introduction and background of the project, Objectives and scope of the project, Methodology and approach, Market analysis and demand assessment, technical details and implementation plan, financial analysis and projections, Risk assessment and mitigation strategies, Conclusion and recommendations, Annexures or supporting documents.

Tag's regarding Project Report/ CMA Data:

Here are some Tag's related to Project Report and CMA Data:

Project objectives, Methodology, Market analysis, financial analysis, Risk assessment, Feasibility study, Project scope, Implementation plan, Cash flow analysis, Profit and loss statement, Balance sheet, Return on investment (ROI), Cost estimation, Revenue projections, Capital expenditure, Debt repayment schedule, Sensitivity analysis, Projected outcomes.