Credit Monitoring Arrangement, commonly known as 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.
The format of CMA Data is generally fixed, and it contains preceding two years actual performance, ongoing year estimated figures and next five years projections.
It contains detailed
- Profit and Loss Account.
- Cash Flow Statement.
- Ratio Analysis.
- Balance Sheet.
- Fund Flow Statement.
- Analysis of Maximum Permissible Bank Finance.