CMA Report
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Since October 1988, the Credit Monitoring Arrangement report (CMA), has been in use. The Credit Authorisation Scheme was the main instrument of credit control between 1965 and 1988. The RBI uses CAS to regulate bank credit exceeding the credit limit.Credit above certain limits required approval from the RBI under the Credit Authorization Scheme (CAS). These conditions and credit limits were periodically revised. The Credit Authorisation Scheme (CAS), at first, was viewed as a way to stop large borrowers from using scarce credit resources. The recommendations of Tandon Group and the Chore Committee were later incorporated into the CAS inspection of credit proposals by banks. The authorisation by RBI was generally frowned upon by banks and customers. Their system of monitoring bank credit disbursement was also a problem.
frequently asked questions
What is CMA report?
CMA report, also known as “Credit Monitoring Agreement report” or Credit Monitoring Report, is a report that shows the financial performance of a business. It includes past and projected performance. It contains all financial metrics and ratios that are required by Financial Analysts and Bankers in order to assess the financial health of a company.
Many banks and financial institutions require that a Business Loan Applicant prepares a Credit Monitoring Agreement report (CMA) to help them understand how funds are being used in their business. Professionally prepared CMA reports can increase your chances of getting a bank loan.
Credit Monitoring Arrangement (CMA) allows banks to approve credit proposals for large borrowers after a thorough analysis of their past performance. The Banks must also comply with another requirement. The Banks must submit large credit proposals to Reserve Bank of India to be subject to post-sanction scrutiny. These proposals include working capital limits exceeding Rupees 500 crores (5 crores), and/or term loans in excess of Rupees 200,000,00s (2 crores).
What actually covered under CMA Report?
- Particulars of current & proposed limits
- Operating statement
- Analysis of Balance sheet
- Calculation of Maximum Permissible Bank Finance (MPBF)
- Fund flow statement
- Ratio analysis
- Comparative statement of Current Asset & Current liabilities
What documents are required to prepare CMA Report?
- Latest Sanction letter (in case of renewal)
- Previous 2 years Audited Financials
- Provisional Financial for the current year
- Term Loan Repayment Schedule,( if any)
- Details of proposed enhancement (if any) along with the terms and conditions
Process to prepare CMA Report
- Fill up our online application form
- Mail documents at info@indiataxhub.in
- Choose payment option from list
- Our team will reach you soon to prepare CMA Report.