Concept of CMA came into being in 1975 as a result of recommendation of the guidelines given by the Chore committee and Tandon group in 1974. However the CMA was not introduced in the banking system till 1988. The aim of CMA was to prevent delays in loan approval and disbursement. Later on in 1997 MPBF concept was withdrawn by the RBI and consequently the CMA was also scarped. Procedure of Working Capital Limit Assessment has been left at the discretion of the banks, Boards of Banks were given power to device their own policies. Even if MPBF is not mandatory and CMA is not compulsory banks are continuing with the same system which was introduced in 1988.

CMA report known as Credit Monitoring Arrangement report is the report showing the projected performance and the past performance of a business in financial terms. It is compiled with all the required financial ratios and metrics to help Financial Analysts and Bankers to ascertain the financial health of a business.

CMA Report is essentially an assessment of Working Capital Needs of a business.Most of the Banking and Financial Institution request the applicant (Business Loan Applicant) to prepare a Credit Monitoring Arrangement report (CMA report) in order to understand the flow and application of funds in a business. A CMA report which is professionally prepared can enhance the chances of obtaining a bank loan.Under the Credit Monitoring Arrangement (CMA), banks have been permitted for sanctioning credit proposals (of large borrowers) after detailed analysis of the past performance. There is another requirement for the Banks. They need to submit the large credit proposals to the Reserve Bank of India for post-sanction scrutiny.

In case you need to present this to investors, you may get business plan prepared by us as well. Finance experts team at Myeasyfilings.com will undertake preparation of your CMA report considering all RBI/Banking norms and normal Industry Standards. This will ensure that your business gets required working capital funds at the right time and without much hassles.