CMA Data stands for “Credit Monitoring Arrangement Data”. Which prepare by borrower as per RBI guidelines for Long Term and Short Term Loans and Working Capital Limits .
Every Businessman wants grow and earn huge profit. Every entrepreneur wants growth and goodwill for their business. Finance is very much essential for growth of business. IT`s plays a role as life blood of business. Finance require by business for purchase of new set up like purchase of land , purchase of machinery , pay to creditors , pay salaries of staff , pay for expense which is require of running a business .Every business man can raise funds through proper project report containing a valuable CMA Data . This CMA Data summit to Banks and NBFC . CMA Data important to checks ups and down of financial health of business to determine sanction limit for loan and feature performance of business
PARTS OF CMA DATA
1. Particulars of Current & Proposed Limits: This is first part of CMA Data it tells about present and feature limit of organization it speaks about fund base and non fund base limit if business and new proposes data to be summit
2. Operating Statement: It is Profit And Loss account of business which includes sales, purchase, direct and indirect income, direct and indirect expense, tax before profit and tax after profit. This state supports to working capital loan proposal. After checking this statement credit officers of a bank come to know profitability of business current as well projected
3. Analysis Of Balance Sheet: This third statement of CMA Data which includes analysis of Current asserts and Current liability, Fix Assets, Investments . cash balance , bank balance , capital invested , reserve and surplus , secured and unsecured loans, net worth of a business. Business debts, present and projected cash flow of subsequent years. This statement indicates net worth of business
4 Comparative Statement of Current Asset & Current Liabilities: This statement speaks about working capital position of business. It is easy to verify the eligible loan amount of borrower. This report also tells us working capital cycles in current and projected period of borrower
5 Calculation of MBPF: MBPF IS “ Maximum Permissible Banking Finance “ with the help of this statement borrower come to know how much working capital applicable for him This is very important statement for him There are many methods to calculate MBPF
6 Fund Flow Statement: This is the six statements of CMA Data this statement shows the flow of the fund for current years as well as projected future years. This statement is important to determine how much fund use for borrowed purpose by business
7. Ratio Analysis: This is seventh statement of CMA Data which indicates of real position business in form of ratio Some of ratios are gross profit ratio, net profit ratio, current ratio, DP limit, MPBF, Net worth, ratio of net worth with Liabilities, quick ratio, stock turnover, asset turnover, fixed asset turnover, current asset turnover, working capital turnover, Debt Equity ratio etc.
Whatever we discuss above short summary of CMA data . For different business CMA Data prepare as per business nature and size
