CMA Report Preparation Services | Nainit Savla & Associates

CMA Report Preparation

Q: Who should prepare the CMA report — the borrower or a CA?

Banks require CA preparation or certification for credit limits typically above ₹25 lakh to ₹1 crore. CA preparation ensures accuracy, format compliance, and credibility — self-prepared reports frequently contain errors that delay sanction.

Q: How are financial projections in the CMA report verified by the bank?

Banks challenge projections by comparing growth rates against historical CAGR, checking margin assumptions against industry benchmarks, and stress-testing DSCR under conservative scenarios. Overly optimistic projections risk reduced limits or rejection.

Q: What is the fund flow statement in the CMA report?

Form VI shows sources of funds (profits, depreciation, new borrowings, increased creditors) and uses of funds (fixed asset purchases, loan repayments, increased debtors/inventory) — revealing how the business has historically managed its financing.

Q: Can you prepare CMA reports for MSME borrowers under government schemes?

Yes. We prepare CMA and project reports for CGTMSE, PM Mudra Yojana, Stand-Up India, and state MSME schemes — familiar with the specific format and documentation requirements of major public sector banks and SIDBI.

Q: How does the CMA report differ from a project report?

The CMA report provides structured financial numbers in seven prescribed forms. The project report provides the narrative — background, technical feasibility, market assessment, and cost of project. Both are typically required for term loan and project finance applications.

A Credit Monitoring Arrangement (CMA) report is one of the most important documents in any bank loan application in India. It provides the bank's credit team with a structured, standardised view of the borrower's historical financial performance, current financial position, projected financial trajectory, and working capital requirements — all of which the bank uses to determine the creditworthiness of the borrower and the appropriate credit limit to sanction. Our CMA report preparation service produces accurate, complete, banker-ready reports that give your loan application its best chance of approval.

New Loan CMA Report

Complete CMA report for fresh loan applications — covering all seven standard CMA forms, financial projections, MPBF computation, ratio analysis, and a supporting assumption sheet aligned with your business plan.

Annual Renewal CMA

Annual CMA report update for existing credit facility renewals — incorporating the latest audited financials, current year estimates, and refreshed projections for the bank's annual review process.

Credit Limit Enhancement CMA

CMA report prepared to support an application for enhancement of existing working capital limits or term loan — demonstrating the growth in the business and the resulting increase in banking finance requirement.

Multi-Bank CMA Coordination

CMA preparation and coordination for businesses with credit facilities from multiple banks in a consortium arrangement — ensuring consistency across all bank submissions and compliance with consortium reporting norms.

Sector-Specific CMA Reports

CMA reports customised for specific sectors — manufacturing, trading, real estate, construction, hospitality, healthcare, and retail — reflecting the working capital cycle and financial characteristics of each industry.

CA-Certified CMA Report

CMA reports certified by a qualified Chartered Accountant in public practice — meeting the certification requirement imposed by many banks for CMA data submitted in support of credit applications above specified limits.

What Is Covered in a CMA Report?

A standard CMA report covers seven forms — from the statement of existing and proposed credit limits (Form I) through the operating statement, balance sheet analysis, current assets and liabilities comparison, MPBF computation, fund flow statement, and key financial ratios (Form II through Form VII). Each form must be prepared with reference to audited historical financials (typically 2 to 3 years) and projected financials (typically 5 years) — with detailed assumptions documenting the basis for every projection.

Our CMA preparation service works alongside CMA data and project reports for new project applications, and integrates with financial modelling and accounting and tax compliance to ensure projections are grounded in accurate, verified historical data.

For Which Types of Loans Is CMA Data Required?

Cash credit (CC) and overdraft (OD) limits for working capital financing
Term loans for purchase of plant, machinery, vehicles, or commercial property
Project finance for new greenfield or brownfield manufacturing or infrastructure projects
Letter of credit (LC) and bank guarantee (BG) facilities for trade finance
MSME loans — under CGTMSE, PM Mudra Yojana, and other government schemes requiring financial projections
Composite loans combining working capital and term loan components
Annual renewal of existing credit facilities from scheduled commercial banks

Frequently Asked Questions

Who should prepare the CMA report — the borrower or a CA?

While there is no statutory requirement for all CMA reports to be CA-certified, most banks require CMA data to be prepared or at least certified by a practising Chartered Accountant for credit limits above a certain threshold (typically ₹25 lakh to ₹1 crore, depending on the bank and the type of facility). Beyond the certification requirement, CMA preparation by a CA ensures accuracy, consistency with audited financials, compliance with the bank's specific format requirements, and credibility in the eyes of the credit appraisal team. Self-prepared CMA reports frequently contain errors, inconsistencies, or missing forms that delay the loan sanction process.

How are financial projections in the CMA report verified by the bank?

Banks do not independently verify the projections in a CMA report — but they rigorously challenge them. The credit appraisal officer will compare the projected revenue growth rate against the historical CAGR from the audited financials, assess whether projected margins are realistic relative to industry benchmarks, check if working capital assumptions (debtor days, creditor days, inventory days) are consistent with the actual historical cycle, and test whether the DSCR under conservative assumptions remains above the bank's threshold. Projections that are overly optimistic or inconsistent with historical performance will be challenged and may result in a reduced credit limit or rejection.

What is the fund flow statement in the CMA report?

The fund flow statement (Form VI of the CMA) shows the sources from which funds were generated in a financial year and the uses to which those funds were applied. Sources of funds include profits after tax, depreciation (a non-cash charge added back), new term loan borrowings, increase in creditors, and capital introduced. Uses of funds include fixed asset acquisitions, term loan repayments, increase in debtors and inventory, dividend payments, and reduction in other liabilities. The fund flow statement helps the bank understand how the business has historically managed its financing and whether it has been generating or consuming cash — a key signal of credit quality.

Can you prepare CMA reports for MSME borrowers under government schemes?

Yes. We prepare CMA reports and project reports for MSME borrowers applying for credit under government-backed schemes including CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), PM Mudra Yojana, Stand-Up India, and various state government MSME loan promotion schemes. For CGTMSE-covered loans up to ₹2 crore, CMA requirements are relatively simplified — but accurate financial projections and business plan documentation are still essential for timely sanction. We are familiar with the specific documentation and format requirements of the major public sector banks and SIDBI for MSME lending.

How does the CMA report differ from a project report?

The CMA report is a structured financial analysis document in a standardised format prescribed for use by Indian banks — covering historical financials, projected financials, working capital assessment, and financial ratios in seven prescribed forms. A project report is a broader narrative and financial document covering the background of the project, technical feasibility, promoter credentials, industry analysis, market assessment, cost of the project, means of financing, projected financials, and risk factors — submitted for new project or expansion loans. For most term loan or project finance applications, both documents are required: the project report provides the story and context; the CMA report provides the structured financial numbers that back it up.

Get Your Bank Loan Application Right the First Time

CA-prepared, banker-ready CMA reports for fresh loans, renewals, and credit enhancements — accurate, complete, and aligned with your bank's requirements.

Talk to an Expert