CMA means Credit Monitoring Arrangements. This full form of
CMA is as given by Reserve Bank of India. For arranging
working capital finance information about income, expenses,
assets & liabilities is required to be given in a specific
format to the bank by applicant. This specific format is
referred to as CMA Report / CMA Data. Audited P & L A/c &
Balance Sheet of at least last 1 year, estimates of current
year & projections of next at least 2 years are provided to
bank by the applicant along with Funds Flow Statement,
Ratio Analysis, Comparative Statement of Current Assets &
Current Liabilites & Statement of Maximum Permissible Bank
Finance. Number of years for which data is required may
vary from bank to bank. Even after getting the finance such
data is required to be submitted to the bank periodically.
credit monitoring analysis. The banks requires this to see
the performance of the company. The report shows the
performance done last 3 years & projected report for next
two years. By judging the figures the banks can sanction
loan to the company.
The fullform of CMA is Critical Monetary Analysis. It is
required by Banks and other financila institutions, to
ntrospect or study the minutes of balancesheet and other
financial statements of a body corporate for financing
their projects. In other words it is the detailed
explaination of the balancesheet and other financial ratios
of the Firm or any other Body corporate.
RBI introduced Credit Monitoring Arrangement (CMA) after
discontinuing Credit Authorisation Scheme (CAS) in 1988.
Under CMA system, RBI prescribed two sets of formats viz
(i) Assessment of working capital requirements and (ii)
Monitoring through Quarterly Information System (QIS), to
cover borrowers i.e. ‘General Category’ and ‘Traders &
Merchant Exporters’. The Credit Monitoring Arrangement
(CMA) under which banks were required to report to RBI the
details of credit facilities sanctioned to large borrowers
from the banking system for post sanction scrutiny was also
discontinued in December 1997 and in lieu thereof a new
reporting system was put in its place.
Where assessment of working capital limits is done as per
Simplified Turnover method (Nayak Committee), information
on Credit Monitoring Arrangement (CMA) data base forms is
not required.In order to avoid unnecessary paper work which
causes delay in sanction of credit facilities including
SMEs, it is required that where assessment of working
capital limits is done as per Simplified Turnover method
(Nayak Committee), information on Credit Monitoring
Arrangement (CMA) data base forms shall not be obtained.
it is data used to monitor and analyse the credit rating of any customer.. it is generally for the purpose of granting the Cash Credit or can be also called for Working capital grant..
it is a detail study of the financial position of the customer and is based on the tandon committee report for the purpose of grant of working capital..
it is a systematic format which reveals the actual position of the customer in relation to his credit rating.it is based upon an actual year, an estimated running year and two projected year \balance sheet and activity records.
CMA stands for Credit Monitoring Arrangements. CMA reports is used by the Banks for sanctioning the loans to company. CMA report shows the performance of company during last 3 years and projected report for next two years. CMA report consist the data used to monitor and analyse the credit rating of customer applying for the purpose of granting the Cash Credit from banks.
CMA data means Credit Monitoring Arrangements. CMA reports
is used by the Banks for sanctioning Cash Credit limit to
company. CMA report shows the performance of company during
last 3 years and projected report for next two years. CMA
report consist the data used to monitor and analyse the
credit rating of customer applying for the purpose of
granting the Cash Credit limit from banks.
CMA data means Credit Monitoring Arrangement. It is a tool used by the banks to assess the performance of a company based on the projections of the previous three years and projections for the next 4 years in order to grant a working capital limit/term loan for a company. It avoids unnecessary paper works and a very useful tool for assessing the credit limit to be given to new borrowers.
CMA is Credit Monitoring Analysis, which is used by banks
for analyzing amount of loan should be sanctioned. It is a
type of report which contain details regarding fund flow
statement, term loans,vehicle loans,unsecured loans, ratio
analysis(mainly DSCR-Debt Service Coverage Ratio)and
manpower details(e.g. Principal 1, Teachers 50 and other
staff 20 with their salary details)in terms of Lakhs.
Audited Balance Sheet and P&L are also required for at least
one year. on the basis of past audited data and current and
future estimates this CMA report is made. Full details
regarding source of income is required to be given(for
example- in case of school, detail regarding fees to be
collected from students and other income and details
regarding no. of students). In other words full details of
future source of income and amount of income is required.
4) What is Journal Entry of 1) Credit Sales.
2) Credit sales
3) Credit sales
5) Credit Purchase.
standing wages paid.
7) Bank over draft
8) bank charges
9) Dishonor check
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