The CMA refers to (Credit Monitoring Arrangement report) the report
shows the previous performance and projected performance of any
business in financial terms. The CMA report helps the financial
analysis and bankers to ascertain and predict the financial position
of a business entity.
The financial institutions or the banks
request the applicant when they want to take business loan bank
request to prepare a credit monitoring arrangement report CMA report
in order to understand the flow and application of the funds in
their business. This is why CMA reports are so essential. The CMA
report increases the chances of securing a bank loan.
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Operating statement: - This operating statement shows the Current Sales, profit before tax & after-tax, sales projections, direct & indirect expenses, and profit position for 3 to 5 years.
Balance sheet: - A balance sheet is a statement of a business's assets, liabilities, and owner's equity (capital). Ratio analysis: - It ratio compares two-line items in a company's financial statements. Cash flow statement: - The main purpose of the cash flow statement is to capture the movement of the fund for the given period. Few other documents required for CMA
Its purpose is to determine the viability of the project its ability to work successfully.
It involves manufacturing process, requirements of manpower, power and water, machinery and equipment, and prices etc.
It has specific format
Project report is submitted to banks by the company.
It is less difficult to understand.
It mainly focuses on determine the borrowing capacity of company.
It covers the last 2 years past data and 3 years future prediction.
It doesn't have specific format.
CMC report can be submitted to bankers, venture capitalist, PE investor, etc.
It is more difficult to understand.
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