Educational guide · Published October 2026 · Illustrative examples in Indian rupees
What is CMA data?
CMA (Credit Monitoring Arrangement) data is a structured presentation of historical and projected financial information used in many bank credit assessments. The exact forms, periods and formats depend on the lender, facility and applicable policy. It is not a substitute for audited financial statements or supporting records.
Common CMA components
- Existing and proposed credit facilities, including limits and outstanding balances.
- Operating statement: revenue, cost of goods sold, operating expenses, depreciation, interest and profit.
- Balance sheet: current and non-current assets, liabilities, borrowings and net worth.
- Current assets and current liabilities analysis for working capital assessment.
- Fund flow or cash flow projections and key financial ratios.
Illustrative projected operating statement
Assume an MSME manufacturer forecasts the following for Year 1 (₹ lakh). These are hypothetical figures, not prescribed bank norms.
| Particulars | ₹ lakh |
|---|---|
| Net sales | 200 |
| Cost of goods sold | 150 |
| Gross profit | 50 |
| Operating expenses (excluding depreciation) | 22 |
| EBITDA | 28 |
| Depreciation | 6 |
| EBIT | 22 |
| Interest expense | 8 |
| Profit before tax | 14 |
Checks: Gross profit = 200 − 150 = ₹50 lakh; EBITDA = 50 − 22 = ₹28 lakh; EBIT = 28 − 6 = ₹22 lakh; PBT = 22 − 8 = ₹14 lakh. Taxes and extraordinary items are omitted for simplicity.
Link the operating statement to the balance sheet
Projected sales should connect to receivables; purchases and production to inventory and trade payables; capital expenditure to fixed assets and borrowings; and retained earnings to net worth. A projection can look profitable yet be inconsistent if these linkages are missing.
For example, projected receivables of ₹40 lakh on ₹200 lakh annual credit sales imply roughly 73 days of collection (40 ÷ 200 × 365), assuming all sales are on credit. Explain why that period is reasonable using past collections and customer terms.
Working capital assessment and ratios
For illustration, projected inventory ₹35 lakh + receivables ₹40 lakh + other operating current assets ₹5 lakh − trade payables ₹20 lakh − other operating current liabilities ₹5 lakh = ₹55 lakh operating working capital gap. This is not automatically the sanctioned cash credit limit: margin, eligibility, exclusions, available bank finance and the bank’s assessment method must be considered.
Current ratio = current assets ÷ current liabilities. Debt-equity and DSCR should be assessed using consistent definitions and relevant financial data.
Checks before submitting CMA data
- Reconcile opening balances with finalized financial statements.
- Match sales assumptions to production capacity, orders and market demand.
- Explain inventory and debtor holding periods.
- Ensure term-loan repayments and interest flow through projected cash flow.
- Distinguish GST-inclusive from GST-exclusive figures consistently.
- Check that the projected balance sheet balances and funding gaps are explained.
Frequently asked questions
Is one CMA format compulsory for every MSME loan?
No. Banks may request different information depending on their internal policy and the nature of the facility.
Can projected profits alone justify a higher limit?
No. Banks also examine operating cycle, actual transactions, repayment record, promoter contribution and overall risk.
Official reference portals
For up-to-date rules and scheme details, refer to Reserve Bank of India, SIDBI and CGTMSE. These links are general reference portals, not endorsements of this article.