CMA report preparation services in Ahmedabad

CMA Report preparation services:

In CMA (credit monitoring arrangement) report past, present and projected figures are put in with all the financial analysis and ratios to enable bankers and financial analyst to evaluate the financial health and growth of a business.

Key Aspects of CMA report Preparation:

• It is based on various assumptions, so it is necessary to evaluate that the assumptions are realistic and achievable,
• It is essentially an evaluation of working capital needs of a business,
• This report is extremely helpful for businesses and bankers for funding evaluation for the business.
• A CMA report is mandatory for a business to present when applying for a loan. The CMA report must be prepared in a format which is prescribed by the Reserve Bank of India.
• Financial ratio analysis is an integral and mandatory part of CMA report. These ratios include:
  • Current ratio,
  • Debtor and supplier cycles,
  • Stock turnover ratio,
  • Sales turnover ratio.
• All fixed assets, depreciation and loan repayment schedules must be annexed and linked to CMA report,
• Breakup of projected numbers as per businesses (if multiple businesses are run by the company) should be presented in the CMA report,
• All assumptions and estimates used in preparing the CMA report should be mentioned separately.

CMA report Preparation services provided at K M Gatecha & CO LLP:

• Consultation and meetings,
• Evaluating need for CMA report,
• Studying and evaluating past and present financial statements,
• Projecting future figures,
• Drafting CMA report,
• Evaluation of CMA report with business,
• Finalization and completion of CMA report.

Details that need to be submitted for CMA report preparation:

• Current and proposed credit limits,
• Operating Statements:
  • Sales,
  • Profits,
  • Expenses and other available statements.
• Past balance sheet and an evaluation previously done,
• Current assets and liabilities,
• Fund flow statements,
• Ratio analysis which has been done,
• Maximum permissible bank finance which has been calculated.

Documents required for CMA report preparation:

• Audited financial reports,
• Term loan details (if any term loan is currently running).

Advantages of CMA report Preparation:

• Not only is it mandatory for applying for loans, but it also makes the process smoother and hassle-free,
• It evaluates the business for it projected path, so the management knows which path the business is moving on and if any deviation is there then steps can be taken to rectify it,
• Projects the working capital requirements of business, so it helps management plan for the same,
• Shows and projects the financial health of the business for investors, shareholders, banks, and all parties connected to the business.