How to Prepare a explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A CMA (Credit Monitoring Arrangement) report is a financial projection lenders require for working-capital and term loans. Here is how to prepare one.
What a CMA report contains
- Past and projected profit & loss and balance sheet
- Working-capital assessment and fund-flow statement
- Ratio analysis and the maximum permissible bank finance (MPBF)
How to prepare it
- Compile 2–3 years of actual financials
- Make realistic projections for the loan period
- Compute working-capital needs and ratios
- Present it in the bank's CMA format
Tip
Keep projections realistic and consistent with your business plan — inflated numbers get rejected.
Frequently Asked Questions
What is a CMA report?
A financial projection statement lenders use to assess working-capital and term loans.
What does a CMA report contain?
Past/projected financials, working-capital assessment, fund flow and ratios.
Who prepares a CMA report?
Usually a CA or finance professional.
Why do banks need a CMA report?
To assess repayment capacity and the permissible loan amount.
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