Credit Monitoring Arrangement Report Professional

CMA report refers to the Credit Monitoring Arrangement report. In this report, financial analysis and ratios of past, present, and estimated data are put in a well-defined format that has been prescribed by the RBI. This helps Bankers and financial analysts to determine the financial health of a company. To understand the flow and application of finances in business, bankers request all loan applicants to develop and present realistic CMA reports. Considering that the CMA report is prepared based on various assumptions,. Significantly, these assumptions are reasonable and realistic.

A CMA report is the evaluation of a company’s working capital requirements. While funding the capital requirements, bankers consider various factors. Certain industry standard ratios need to be placed for a bank to be comfortable to grant working capital (cash credit) against stock and or debtor’s balance.