CMA data showing the projected performance and past performance of a business in financial terms. It is compiled with all the required financial ratios and metrics to help Financial Analysts and Bankers to ascertain the financial health of a business.
CMA Data is the financial report used by lending institutions to appraise and analyse the financial position of a company before lending. Under the present rules, the Reserve Bank of India has mandated all banks to prepare CMA for lending to large borrowers. Hence, CMA data is required for project loans, term loans and for working capital limits.
Part of CMA Data ?
•Existing & Proposed Fund Limits
•Operating Statement
•Analysis of Balance Sheet
•Comparative statement of Current Asset & Current liabilities
•Calculation of Maximum Permissible Bank Finance (MPBF)
•Fund Flow Statement •Ratio Analysis
Existing & Proposed Loan Limits
This report about the present fund & non-fund based credit limits of the borrower. Also, other details like present fund limits along with proposed limits are generally required to be mentioned in this statement.
Operating Statement
Operating Statement indicates the borrower’s business plan showing the Current Sales, profit before & after tax, sales projections, direct & indirect expenses, and profit position for 3 to 5 years. These requirements are case to case specific on the basis of the borrowers working capital request. This is a scientific analysis of existing & projected profit-generating capacity of the borrower.
Analysis of Balance sheet
This statement contains an analysis of the current & projected financial years. It helps in providing a comprehensive analysis of current & non-current assets, current & non-current liabilities and cash & bank position of the borrower. This statement also specifies the net worth position of the borrower for the future projected years. As the name says, it is the analysis of the Balance sheet and gives a complete picture of the financial position of the borrower.
Comparative statement of Current Asset & Current liabilities
This statement is comparative analysis of the movement of the current assets & liabilities. Basically, this analysis helps to decide the capacity of the borrower to meet the working capital requirements and the actual working capital cycle for the projected period.
Calculation of Maximum Permissible Bank Finance (MPBF)
This statement is very important part of CMA Data. This includes a calculation which indicates the Maximum Permissible Bank Finance. It shows the borrower’s capacity to borrow money
Fund flow statement
The next statement is the Fund flow analysis for the current & projected period. In this analysis, it indicates the fund position of the borrower with reference to the projected balance sheets and MPBF (Maximum Permissible Bank Finance) calculations. The main objective of this statement is to capture the movement of the fund for the given period.
Ratio analysis
This statement provides key financial ratios for the Financial Analysts and Bankers use. The basic key ratios are GP (Gross profit) ratio, Net profit ratio, Current ratio, Quick ratio, Stock turnover ratio, Net worth, the ratio of Net worth to Liabilities, DP limit, MPBF, Asset turnover, Current asset turnover, Working capital turnover, Fixed asset turnover, Debt-Equity ratio etc.