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CMA Report Preparation – Complete Process and Benefits
What is a Credit Monitoring Arrangement (CMA) Report
A CMA Report (Credit Monitoring Arrangement Report) is a detailed financial statement required by banks and financial institutions before approving loans or credit facilities for businesses. It provides lenders with a clear picture of a company’s past performance, current financial status, and future projections. At Mr Brandy, we specialise in CMA report preparation that is accurate, reliable, and presented in the format required by banks. This increases your chances of loan approval and ensures transparency in your funding process.
What is a Credit Monitoring Arrangement (CMA) Report?
A Credit Monitoring Arrangement (CMA) report is a standardized financial statement required by banks and financial institutions when you apply for business loans or seek enhancements in working capital limits. This document provides a holistic view of your business’s past, present, and projected financial performance. Lenders use it to assess your loan eligibility, repayment capacity, and economic health.
At MrBrandy, we provide end-to-end service & support to make the process quick, accurate, and stress-free.
Key Components of a CMA Report
- Statement of Current & Proposed Limits: Details all credit facilities, usage history, and any proposed enhancements.
- Operating Statement: Shows historical and projected sales, profits, expenses, and tax data for 3 to 5 years.
- Balance Sheet Analysis: Includes current and forecasted assets, liabilities, and net worth.
- Comparative Statement of Current Assets & Liabilities: Evaluates working capital needs.
- Cash Flow & Fund Flow Statements: Illustrate the movement of funds for planning and assessment.
- Maximum Permissible Bank Finance (MPBF): Calculates the highest loan amount the borrower can borrow as per RBI norms.
- Ratio Analysis: Covers critical financial ratios to highlight business strength and stability.
Benefits of CMA Report
- Improves Loan Approval Chances: A clear and accurate report builds lender trust and speeds up loan approvals.
- Facilitates Financial Due Diligence: Banks use it to understand fund application, creditworthiness, and potential repayment risks.
- Helps Business Planning: The report encourages a thorough review of your finances, aiding in strategic planning and long-term growth.
Documents Needed for CMA REPORT-
- Audited financial statements (last 2–3 years)
- Provisional current year financials
- Projected financials (3–5 years)
- Details of current & proposed credit limits
- Term loan schedules (if applicable)
- Latest sanction letters for ongoing facilities
- Company PAN, KYC, and relevant business licenses
Contents of a CMA Report
- A professionally prepared CMA data includes:
- Past 2–3 years audited financial statements
- Current year’s performance details
- Projections for the next 5 years
- Details of working capital requirements
- Ratio analysis (current ratio, debt-equity ratio, profitability ratios)
- Fund flow statements
- Breakup of liabilities and assets
Process of CMA Report Preparation with MrBrandy
Step 1 – Collection of Financial Data
We gather your past financial statements, tax returns, and business details.
Step 2 – Analysis & Projections
Our experts prepare financial projections in line with banking norms.
Step 3 – Drafting CMA Report
We prepare the CMA report in the prescribed bank format, ensuring accuracy and compliance.
Step 4 – Final Review & Submission
The final CMA report is delivered, ready to be submitted to your bank
Why Choose Mr Brandy for CMA Report Preparation?
- Experienced financial professionals with expertise in CMA reporting.
- Customised projections based on your industry and loan requirements.
- Error-free and bank-ready CMA reports.
- Affordable and transparent pricing.
- Trusted by 500+ businesses across India for loan-related compliances.
FAQs On CMA Report
Can I create a CMA report myself, or should I hire a professional?
While it is possible to prepare on your own, a professionally created report minimizes errors and maximizes your chances of approval.
What is the Maximum Permissible Bank Finance (MPBF) in a CMA report?
MPBF refers to a calculation that determines the maximum credit a bank can extend to a borrower based on their financial strength and working capital needs. It ensures that businesses do not borrow beyond their repayment capacity.
What happens if the data in my CMA report is inconsistent with my actual performance?
Inconsistency can lead to delays, rejection, or greater due diligence scrutiny by the lender.
What is the full form of CMA in banking?
CMA stands for Credit Monitoring Arrangement, a report required by banks before approving loans.
Is a CMA report mandatory for loans?
Yes. Most banks and financial institutions require CMA reports for working capital, term loans, or loan renewals.
How many years of projections are required in a CMA report?
Usually, banks require projections for the next 5 years.
Can startups also apply for CMA report preparation?
Yes. Startups applying for loans or credit facilities also need a CMA report to demonstrate financial planning.
How long does it take to prepare a CMA report?
With proper documents, a CMA report can be prepared within 5–7 working days.
Get Your CMA Report
Need a CMA report for bank loan approval? MrBrandy provides professionally drafted CMA data that meets bank requirements and maximizes your chances of securing funds. Let us handle the financial details while you focus on growing your business.