Documents Needed to Accompany CMA Data Report Submissions

 

For a borrower to submit CMA Data (Credit Monitoring Arrangement) to a bank, the following documents are typically required to provide a comprehensive financial overview and support the loan assessment process:

1. Financial Statements

  • Audited Balance Sheet: A statement of the borrower’s financial position, detailing assets, liabilities, and equity.
  • Profit & Loss (P&L) Statement: A statement that outlines the company’s revenues, expenses, and profit over a specific period.
  • Cash Flow Statement: A report showing the inflows and outflows of cash within the business, which helps in evaluating liquidity.

2. Tax Returns

  • Income Tax Returns (ITR): Copies of the last 2–3 years of tax returns filed by the business and its directors. This provides additional verification of income.

3. Project Report (if applicable)

  • Detailed Project Report (DPR): If the loan is intended for a specific project or capital expenditure, a detailed report outlining the objectives, expected outcomes, and financials is required.

4. Debt Schedule

  • List of Outstanding Loans/Debts: A detailed schedule showing all existing loans, including term loans, working capital loans, overdrafts, etc., along with their outstanding amounts, interest rates, and repayment schedules.

5. Bank Statements

  • Recent Bank Statements: Typically, the last 6–12 months of the borrower’s bank statements to assess cash flow and transaction patterns.

6. Stock Statement (for working capital loans)

  • Inventory Report: A detailed statement of inventory (raw materials, finished goods, etc.) and the corresponding valuation to assess working capital requirements.
  • Receivables and Payables: Detailed aging reports of accounts receivable (outstanding customer payments) and accounts payable (due payments to suppliers).

7. Tax Audit Report (if applicable)

  • If the borrower is required to undergo a tax audit, the tax audit report for the past 2–3 years needs to be submitted.

8. CMA Data Report (Financial Projections)

  • Projected Financials: Estimated income statement, balance sheet, and cash flow projections for the next 2–5 years to show future financial health and repayment ability.

9. Company Incorporation Documents

  • Certificate of Incorporation: Proof of the legal existence of the business.
  • Memorandum and Articles of Association (if applicable): Outlining the structure and objectives of the business.

10. Collateral Documents (if applicable)

  • Valuation Reports: For assets offered as collateral (property, machinery, etc.), a recent valuation report from an authorized appraiser.
  • Title Documents: Proof of ownership of the collateral offered.

11. Director/Owner Personal Documents

  • Personal Financial Statements: If the loan is secured by the personal guarantee of the owner or directors, their personal financial statements may be required.
  • KYC Documents: Know Your Customer (KYC) documents for the directors or owners, including identification and address proof.

12. Other Business Documents

  • Partnership Deed/Shareholding Pattern: If applicable, details of ownership structure and any partnership agreements.
  • Trade License: For verification of business operations.
  • GST Returns: Recent GST returns if applicable.

13. Loan Application Form

  • A filled-out loan application form that includes all necessary borrower and business details.

Conclusion:

By submitting these documents, the borrower. It needs ongoing monitoring and can be done with experts help, like BankKeeping, CA or other professionals. To know how to prepare a CMA data for the bank loan and renewal please refer our blogs on how to prepare CMA data for banks.

helps the bank analyze the financial health, debt servicing ability, and risk associated with the loan.

Yes bank RBL IOB Indusind Central Bank Standard Chartered Union bank Canara Kotak DBS BNP Paribas HDFC ICICI SBI BOB Bank of India Bank of Maharashtra Axis Bank PNB Citi Bank IDBI bank HSBC

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