This full form of CMA means (Credit Monitoring Arrangements) is given by reserve bank of India for arranging working capital finance, information about income, expenses, assets and liabilities is required to be given in a specific format to the bank by applicant. This specific format is referred to as CMA Report/ CMA Data.
It is a critical analysis of current and projected financial statements of a loan applicant by the banker. CMA data is a systematic analysis of working capital management of a borrower and objective of this statement is to ensure the usage of long term and short term fund have been used for the given purpose.
Audited P&L A/c & Balance sheet of at least 1 year, estimates of current year & projections of next at least 2 years are provided to the bank by the applicant along with funds flow statement, Ratio analysis, Comparative statement of current assets & Current liabilities, statement of maximum permissible bank finance number of years for which data is required may vary from bank to bank. Even after getting the finance such data is required to be submitted to the bank periodically.