CMA Data is a financial report simply to determine the financial position of any company before providing any loan and meet the funding requirements of the entity. Here, an entity represents a company or organization. It has a specific format.
Project Report, as the name suggests, is simply a document that provides details about the project such as manufacturing process, machinery and equipment, the requirement of raw materials, etc. and information regarding economic, technical, financial, production aspects, etc. It does not have a specific format.
Difference between CMA Data and Project Report
|CMA Data||Project Report|
|It mainly focuses on determining the borrowing capacity of an entity.||It mainly focuses on determining the viability of a project i.e. its ability to work successfully.|
|Factors affecting CMA Data include time complexity, improper analysis, fund-related issues, complex paperwork, etc.||Factors affecting project reports include time complexity, difficulty in understanding, improper risk management, etc.|
Its benefits include effective use of funds, analysis of both current and non-current assets, liabilities, determining financial position, etc.
|Its benefits include identifying risks, cost management, control of projects, increasing project success, etc.|
Its main objectives is to provide a financial blueprint of the performance of a company or organization and ensure that funds are used effectively.
|Its main objective is to current track the progress of the project and then compare it with the original plan so that risks can be identified and corrective action can be taken.|
It includes information such as operation statement, ratio analysis, comparative statement of current asset and current liabilities, fund flow statement, etc.
|It includes the manufacturing process, requirements of power and water, need of manpower, machinery, and equipment, prices and specifications, etc.|
It is generally submitted to bankers, venture capitalists, PE investors, etc.
|It is generally submitted to bankers by an organization or company.|
It is more difficult to understand and handle than a project report.
|It is less difficult to understand and handle than CMA data.|
What is the Cover in CMA Data and Project Report
Coverage in CMA Data
. 2 years past data and 5 years future projections;
· Fund flow statement;
· Changes in the working capital report;
· Ratio analysis; and
· Maximum permissible bank finance (MPBF) report.
Coverages in Project Report
Introduction of the firm
• Manufacturing process
• Man-power requirement projections
• Costing of the product and project
• Requirement of land and building and construction cost
• Capital investments
• Term Loan and Working Capital requirement
• Profitability analysis
• IRR and Break-even analysis
• Depreciation chart
• Loan amortization schedule during the tenure of the loan
• DSCR calculation
• Project viability analysis
• SWOT Analysis
• Profit and Loss Account & balance sheets, as per banks requirements
• Any other data/report depending upon the nature of the project