Banker-Grade Credit Monitoring Arrangement (CMA) Data
Form I to Form VI preparation containing audited past actuals, current year provisional figures, and 5 to 7 years forward projections engineered to satisfy commercial bank credit committees.
Why CMA Data Rejections Stall Working Capital Limits
CMA data is the mathematical language of Indian banking credit underwriting. When borrowers submit CMA sheets with mathematical discrepancies between Form I and Form II, unrealistic inventory holding days, or current ratios below 1.33, credit officers immediately decline limit renewals or enhancements.
Mathematical discrepancies between Profit & Loss (Form I) and Balance Sheet (Form II)
Failure to maintain the minimum 1.33 Current Ratio required under Tandon Committee Method II
Unexplained spikes in projected turnover that violate bank turnover growth caps
Inability to justify working capital gap, leading to heavy deductions from drawing power
Who Needs CMA Data Preparation?
Mandatory for all business borrowers applying for or renewing credit limits above ₹25 Lakhs.
Cash Credit & Overdraft Borrowers
Applying for fresh CC/OD limits or annual renewal of existing banking facilities.
Enterprises Seeking Limit Enhancement
Expanding sales turnover and requiring proportional enhancement in working capital.
Borrowers Under Multiple Banking / Consortium
Requiring synchronized CMA data submission across multiple member banks.
The Six Standard Indian Banking CMA Forms
We engineer fully integrated Form I to VI statements with zero mathematical inconsistencies.
Form I: Operating Statement
Gross sales, excise/GST deductions, net sales, cost of production (raw materials, power, wages), gross profit, SGA expenses, depreciation, interest, and profit before & after tax.
Form II: Analysis of Balance Sheet
Detailed categorization of Liabilities (Net Worth, Term Liabilities, Current Liabilities, Bank Borrowings) and Assets (Fixed Assets, Non-Current Assets, Current Assets).
Form III: Comparative Statement of CA & CL
Granular breakdown of Raw Materials, WIP, Finished Goods, Sundry Debtors, Cash/Bank, and Sundry Creditors with holding period in months.
Form IV: Calculation of MPBF (Method I & II)
Working Capital Gap calculation under Tandon Committee Method I (75% of WCG) and Method II (75% of Current Assets less other current liabilities) with minimum 1.33 current ratio.
Form V: Fund Flow Statement
Long-term and short-term sources of funds vs. deployment/utilization of funds, highlighting diversion of short-term funds for long-term purposes.
Form VI: Key Financial Ratios
Computation of Current Ratio, Quick Ratio, Debt-Equity Ratio, TOL/TNW, DSCR, Interest Coverage Ratio (ISCR), Gross & Net Profit Margins, and ROCE.
Our CMA Preparation Process
A disciplined, milestone-driven execution process ensuring every technical, financial, and statutory parameter is banker-ready.
Historical Financials Ingestion
Auditing past 2 to 3 years audited balance sheets, profit & loss accounts, and tax audit reports.
Operating Cycle & Ratio Benchmarking
Analyzing historical debtor, creditor, and inventory holding days to establish realistic projection baselines.
Form I–VI Mathematical Engineering
Formulating integrated financial schedules, MPBF calculations, and fund flow statements in Excel.
CA Review & Final Dossier
Chartered Accountant cross-verification, ratio testing, and delivery of final print-ready and Excel formats.
Documents Required for CMA
To initiate your advisory engagement efficiently, our desk requires verified primary records. All documents are handled under strict non-disclosure terms.
Past Actuals & Audits
- Audited balance sheets, P&L statements, and audit reports for the past 2 to 3 years
- Provisional financial statements for the current financial year (if year-end is pending)
- GSTR-3B filings for the trailing 12 months (to verify sales figures)
Current Limits & Projections
- Existing bank sanction letter specifying current limits and margin conditions
- Estimated sales growth and capex plans for the next 5 years
- Current stock and book debt position with aging analysis
CMA Deliverables
Every deliverable is crafted to institutional banking standards, complete with dynamic calculation sheets, executive briefs, and certified dossiers.
Complete CMA Data Dossier
Standardized Form I to Form VI with comparative historicals and 5 to 7 years forward projections.
Dynamic CMA Calculation Sheet
Fully linked Excel workbook with zero hardcoded formula errors, ready for bank credit analyst review.
Financial Ratio Analysis Report
Executive summary explaining ratio movements, MPBF justification, and fund flow movements.
Engagement Workflow
Transparent, structured progression showing actions and concrete outcomes at every stage.
Stage 1: Ingestion
Stage 2: Modeling
Stage 3: CA Verification
Frequently Asked Questions
Institutional insights regarding appraisal standards, banking requirements, and advisory methodology.
Why do banks mandate a Current Ratio of at least 1.33:1 in CMA data?
Under Tandon Committee Method II, borrowers are required to finance at least 25% of their total Current Assets from long-term funds (Net Working Capital). Mathematically, (Current Assets) / (Current Liabilities) must be at least 1.33:1 to satisfy this condition and demonstrate liquidity safety.
Can I use CMA data to apply for a term loan as well as working capital?
Yes. CMA data contains comprehensive balance sheet projections, fund flow statements, and debt service coverage ratios (DSCR), making it an integral component of both term loan and working capital credit appraisal dossiers.
Related Services
Advisory capabilities frequently engaged alongside CMA Data for comprehensive credit and statutory readiness.
DPR Preparation
Bankable, institutional-grade 40 to 70 page Detailed Project Reports (DPR) prepared in strict compliance with IBA, SIDBI, and commercial bank credit appraisal standards.
Working Capital Advisory
Strategic structuring and enhancement of fund-based (Cash Credit, Overdraft) and non-fund-based (Letters of Credit, Bank Guarantees) working capital facilities.
Ratio Analysis
Comprehensive diagnostic benchmarking of key credit and operational ratios (DSCR, ISCR, Current Ratio, TOL/TNW, ROCE) against Indian commercial banking standards.
Financial Projections
Integrated 5 to 10-year dynamic financial projections (P&L, Balance Sheet, Cash Flow) with variable capacity utilization, inflation adjustments, and tax modeling.
Engage With Our Project Finance & Advisory Desk
Connect with our senior financial analysts and advisory professionals to structure your credit proposal, review project feasibility, or prepare bankable documentation.
Statutory & Regulatory Notice
CMA Data preparation represents a mathematical and financial compilation based on borrower-provided historical accounts and future estimates. It does not constitute an audit, loan sanction, or guarantee of credit facility renewal by banks. VS Project & Financial Advisory Private Limited provides professional project advisory, financial modelling, and document readiness services. We do not claim guaranteed bank sanction or guaranteed funding. Approval is solely at the discretion of the relevant financial institution, bank, NBFC, or government subsidy authority.