Meaning of CMA Data

All assumptions and estimates used in preparation of CMA should be mentioned separatelyFuture projections should be realistic and not merely arithmetic multiples of current performanceFluctuations in performance should be strongly justifiableAll fixed assets, depreciation and loan repayment schedules should be annexed and linked to CMA DataPast performance and actual numbers should be exactly as per Audited FinancialsThe company should be able to justify the performance and numbers projectedIn case of multiple businesses activity or locations, detailed annexure should be attached showing breakup of how the projected numbers are arrived atCMA Data should represent a viable business performance – over borrowing is unfavourable and cannot be justified through financial ratiosIt is important to note that even though a CMA Data is a very detailed analysis of the Profit and Loss statement and balance sheet of a company, there are only a handful of ratios and indicators on which loan eligibility is decided.The key to preparing a good CMA Data is to present a healthy financial projection, but and at the same time – to communicate that funds are needed for expansion. Hence a perfect balance needs to be achieved and explained through the CMA Data – that the company is healthy enough to repay the loan but not so much that it can expand without availing the loan.