CMA DATA
Introduction: Credit Monitoring Arrangement (CMA) data is a very important area to understand a person who deals with finance in an organization. This is a critical analysis of current and projected financial statements of a loan applicant by the banker. Data CMA is a systematic analysis of working capital management of the borrower and the purpose of this statement is to ensure the use of long-term and short-term funds have been used . for the particular purpose . In this article I want to discuss the content database CMA CMA Basically contains data that, following the seven states.
1. particular existing and proposed limits: It is the first statement in the CMA data that contains this fund and fund based limits of non-borrower credit limits and their use and history. With the current limitations of funds, which is the limit proposed or the borrower will be mentioned in this statement is a basic document information provided by the borrower, the banker.
2. operating Declaration: This is the second statement provided by the borrower, it indicates that the business plan of the borrower gives the current sales, direct and indirect costs, pre-and after tax, as well as projections of sales, expenses and profit situation for 3-5 years based on the borrower's working capital demand. This statement is a scientific analysis of the capacity of production and financial current and projected income of the borrower.
3. analysis of balance: balance sheet analysis for current and projected statement is the third in the CMA data. This statement gives a detailed analysis of current and non-current assets, fixed assets, cash and bank, the current position and long-term debt of the borrower. Moreover, this declaration indicates the position of the net worth of the borrower for the projected years. budget analysis gives a complete financial situation of the borrower and the generating capacity cash over the planned exercises.
4. Comparative table of current assets and liabilities: . Fourth statement which gives a comparative analysis of current assets and current liabilities of the borrower movement This basically decides the cycle capital of actual work for the projection period and ability of the borrower to meet their working capital needs.
5. Calculate MPBF: This is a very important statement and calculation that indicates the M Aximum P ermissible B ank F inance. This statement, which calculates the borrower working capital GAP and finance eligible in two methods loan, the first method of loan will enable MPBF 75% of the work GAP net capital is Current assets less current liabilities, Second method loan will enable MPBF 75% of current assets less current liabilities. As limit MPBF is the credit component of cash the borrower generally known drawing power (DP Limit). So it is very important statement that decide the borrower `s borrowing limit of the bank.
6. fund cash flow: cash flow analysis statement for the current period and projected is one of the states in the CMA data. fund this position analysis of the borrower's account with reference to the analysis of capital given in the calculations MPBF and projected balance sheets. Objective basis of this statement capture the movement of funds to the borrower for the period.
. 7 Ratio Analysis: This is the last statement that gives the key ratios for the bank on the basis of data from the AMC prepared and presented to the bank financing. Ratios basic gross margin rate net margin, current ratio, limit DP MPBF, net worth, the ratio of the net value of liabilities, the liquidity ratio, inventory turnover, asset turnover, fixed asset turnover, the number of current business assets, working capital turnover, Debt Equity ratio etc.
8. Conclusion: In this article, I tried to give a basic idea of a CMA data and content. Hopefully this will be useful for readers.
1. particular existing and proposed limits: It is the first statement in the CMA data that contains this fund and fund based limits of non-borrower credit limits and their use and history. With the current limitations of funds, which is the limit proposed or the borrower will be mentioned in this statement is a basic document information provided by the borrower, the banker.
2. operating Declaration: This is the second statement provided by the borrower, it indicates that the business plan of the borrower gives the current sales, direct and indirect costs, pre-and after tax, as well as projections of sales, expenses and profit situation for 3-5 years based on the borrower's working capital demand. This statement is a scientific analysis of the capacity of production and financial current and projected income of the borrower.
3. analysis of balance: balance sheet analysis for current and projected statement is the third in the CMA data. This statement gives a detailed analysis of current and non-current assets, fixed assets, cash and bank, the current position and long-term debt of the borrower. Moreover, this declaration indicates the position of the net worth of the borrower for the projected years. budget analysis gives a complete financial situation of the borrower and the generating capacity cash over the planned exercises.
4. Comparative table of current assets and liabilities: . Fourth statement which gives a comparative analysis of current assets and current liabilities of the borrower movement This basically decides the cycle capital of actual work for the projection period and ability of the borrower to meet their working capital needs.
5. Calculate MPBF: This is a very important statement and calculation that indicates the M Aximum P ermissible B ank F inance. This statement, which calculates the borrower working capital GAP and finance eligible in two methods loan, the first method of loan will enable MPBF 75% of the work GAP net capital is Current assets less current liabilities, Second method loan will enable MPBF 75% of current assets less current liabilities. As limit MPBF is the credit component of cash the borrower generally known drawing power (DP Limit). So it is very important statement that decide the borrower `s borrowing limit of the bank.
6. fund cash flow: cash flow analysis statement for the current period and projected is one of the states in the CMA data. fund this position analysis of the borrower's account with reference to the analysis of capital given in the calculations MPBF and projected balance sheets. Objective basis of this statement capture the movement of funds to the borrower for the period.
. 7 Ratio Analysis: This is the last statement that gives the key ratios for the bank on the basis of data from the AMC prepared and presented to the bank financing. Ratios basic gross margin rate net margin, current ratio, limit DP MPBF, net worth, the ratio of the net value of liabilities, the liquidity ratio, inventory turnover, asset turnover, fixed asset turnover, the number of current business assets, working capital turnover, Debt Equity ratio etc.
8. Conclusion: In this article, I tried to give a basic idea of a CMA data and content. Hopefully this will be useful for readers.
