Contact Us

Overview

Advantage

Procedure

Documents

FAQ's

CMA Report Preperation

A Credit Monitoring Arrangement (CMA) report is a crucial financial document that provides past, present, and projected figures in a prescribed format set by RBI, along with necessary financial analysis and ratios. This report helps Bankers and Financial Analysts to evaluate the financial health of a business. To understand the flow and application of funds in a business, all loan applicants must provide a realistic CMA report as requested by bankers. It is essential to ensure that the assumptions used in the CMA report are both viable and realistic since the report is based on various assumptions.
Businesses Served
0 +
Years Experience
0 +
Google Rating
0 /5

Get Started

Mayank Wadhera

Expert in CMA Report Preperation

Call Now
Whatsapp

Best Compliance Firm For Your Company

Free Legal Advice

Experts Team

On-Time Delivery

Overview
Advantages
Procedure
Documents
Faq's

Overview of CMA Report Preperation

A CMA report is a vital evaluation of a business’s working capital needs, which is considered by bankers when funding those needs. To grant working capital, such as Cash Credit against Stock and/or Debtors balance, bankers consider various factors, including industry-standard ratios that must be in place for their comfort. The Credit Monitoring Arrangement (CMA) report, also known as the Credit Monitoring Report, is a comprehensive financial document that provides a projected and past performance overview of a business. It includes all necessary financial ratios and metrics required to assess the financial health of a business, making it a crucial report for financial analysts and bankers.
Most banks and financial institutions require a professionally prepared CMA report from loan applicants to understand the flow and application of funds in their business.

  • A well-prepared CMA report can increase the chances of obtaining a bank loan, making it a valuable asset for businesses.
  • Under the CMA, banks are allowed to sanction credit proposals for large borrowers after a detailed analysis of their past performance.
  • In addition, banks are required to submit large credit proposals with working capital limits of Rs. 500 lakhs (5 crores) and above, and/or term loans exceeding Rs. 200 lakhs (2 crores) to the Reserve Bank of India for post-sanction scrutiny.

Advantages of CMA Report Preperation

Helps Determine Working Capital NeedsIt helps businesses determine their exact working capital requirements and assists bankers in assessing their creditworthiness.
Offers Financial ClarityThe CMA report provides an accurate picture of a business’s financial health and helps identify areas that need improvement. This report enables businesses to make informed decisions about investments, growth, and expansion plans.
Simplifies the Loan Application ProcessCMA reports are widely used by bankers and financial institutions to evaluate a business’s creditworthiness. By presenting a comprehensive and realistic CMA report, businesses can simplify the loan application process and increase their chances of getting their loan application approved.
Facilitates Better NegotiationsThe CMA report provides a detailed analysis of a business’s financials, enabling businesses to negotiate better loan terms, interest rates, and repayment schedules.

Registration Process

Step 1: To prepare a viable and realistic CMA data report online, it’s essential to have a thorough understanding of your business. At Legal Suvidha, our Compliance Manager will reach out to you to gain a comprehensive understanding of your business, taking into account all its unique aspects.

Step 2: After understanding your business, our Compliance Manager will prepare a draft CMA report based on various assumptions such as sales growth, expense projections, cash inflow and outflows, and assets and liabilities estimations.

Step 3: Once the draft CMA report is ready, our Compliance Manager will discuss it with you. After any required iterations, you will receive the final CMA report, which is ready to be submitted to your bank. We provide up to two iterations to ensure any queries from bankers are resolved.

Required Documents

1. Last two years’ audited financial statements newest sanction letter (in case of renewal)

2. Current-year Provisional Financial Information

3. Schedule for Repayment of Term Loans ( if any)

4.Specifications of any proposed improvements, together with their terms and conditions

FAQ's CMA Report Preperation :-

The financial report used by lending institutions to evaluate and analyse a company’s financial status prior to financing is called a Credit Monitoring Arrangement, or CMA Data. The Reserve Bank of India has mandated that all banks prepare CMA for lending to large borrowers under the current regulations.
The word “CMA” refers to a prepared report that contains all the relevant financial ratios and measurements to help bankers and financial analysts assess a company’s financial health.
We are all aware that banks must operate their finance operations in accordance with RBI regulations. RBI advises against only basing loan decisions on CMA data. Even Nevertheless, practically all banks are requesting CMA information. Even for modest loans between 4 and 6 lakhs, submitting a CMA report is necessary. The rationale is that by studying data, banks can determine the profitability of projects and the flow of funds (past and planned) from borrowers.
Your chances of securing the loan have increased by producing a CMA data report with the appropriate ratios and a clear explanation of the use of funds.

Get Started

1. Application

Fill out the application form & other details.

2. Payment

Make the payment through online mode.

3. Process

We will process your application.

4. Confirmation

A mail will be send on completion.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

All Blogs
Contact us and grow your business
Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

  • Registration/Incorporation for all companies
  • Income Tax Filings
  • GST Registration & Filing
  • Company Annual Filings
  • Trademark Registration
  • Licencing
Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.

Legal Suvidha has been a one-stop Compliance Provider for all start-ups and entrepreneurs.

 

Start a Business

Annual Filings

Tax Filings

IPR Services

Facebook Twitter Youtube Linkedin Instagram
Legal Suvidha :

Want to Setup your business in India? Connect with the best Online Registration, Licenses and Return filing solution providers for business across India. Since 2007, LegalSuvidha has been a one-stop shop for all startups or entrepreneurs looking for a chartered accountant, company secretary or lawyer. We have been ensuring Startups and SMEs are fully compliant with India’s legal system. Over the past 15 years, the depth of our offerings has increased and that too at affordable prices and customer satisfaction has made our standing different and we are giving a tough competition to other online facilitators of legal services in India. We have the best team for Company incorporation, Trademark Registration, Auditing, Advisory and Tax Filing for large, medium, small businesses and Startups in India.

Starting a Business :

Most of the budding entrepreneurs are in dilemma about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship? Each of these has its advantages and disadvantages. The type of entity should be chosen only after one round of consultation with our experts, as they will be in a better position to guide on the same. For example, Registering as a private limited company would be a good fit for any venture that will look for funding at a later stage. You can contact Legalsuvidha for any type of registration and advice you need for your business transactions. We assure you of great professional service at a reasonable price. You can connect with us for a free check on the Company name availability.

Intellectual Property :

The importance of intellectual property is very much but most of the businesses are not aware of the same. We at LegalSuvidha simplify the process for you to register a Trademark for your brand, to get copyright for your artistic, creative ability and will also help you in patenting the process after a proper patent search patents which will ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. At Legalsuvidha, we are very well equipped to handle all your IP requirements. We facilitate trademark applications in just two days, copyright registration for all your software, pictures, audio, and video content, and can connect you to patent attorneys to conduct a patent search and file your patent applications.

Government Registrations :

To do any business in India, you need a license for almost everything. Started a manufacturing business? You need a GST Registration and a Trade License. For a food business, you need an FSSAI license. In case you have employees, You need a Professional Tax registration and Shops & Establishments Act Registration. If that’s not enough, you also need to file GST Returns and Professional Tax Returns.

Legal Documentation :

There is a lot of importance of legal documentation when you start your business, whether with your Investors, partners/co-directors, employees and any vendors you deal with. By getting a lawyer to draft contracts or agreements with new vendors, employees, and investors, you’re ensuring that you have all the downsides covered. At LegalSuvidha, we connect you to lawyers who will deliver complex documents, from shareholders’ agreements and founders’ agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days.

Mandatory Compliance :

It’s not enough to have started a private limited company or an LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs, Central Board of Indirect taxes and Central Board of direct taxes once you register your business. You need to inform them of every relevant change you make, whether it is adding a director, removing a partner or increasing authorized share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. At LegalSuvidha, we facilitate all these services completely online. This means you can engage a professional on retainer for the year and we’ll ensure that all the formalities are completed for you while you focus on your business.

ITR portal for Salaried employees and Businesses :

We are Authorized e-return Intermediaries and have recently launched our own ITR filing platform, this will help the salaried employees and businesses to get their ITR filed within the time and at a reasonable price. Through the use of automation, the system is highly effective and will help in filing ITR in up to 10 minutes for Salaried employees. We have on-boarded the best Chartered Accountants who will provide consultation for both Salaried employees and Businesses to file proper taxes to the government of India. This will help in avoiding legal notices in the future and will also help in getting the returns processed at the earliest. We are the first in the market to launch the ITR filing facility for FY 2018-19.

Legal Suvidha © 2013-2024. All Rights Reserved.