CMA report is expanded as a Credit Monitoring Arrangement report. It is the report, which displays the projected performance and the past performance of a business in financial terms. CMA Report is to help Financial Analyst and Bankers which compiled of all the required financial ratios and metrics to ascertain the financial health of a business. Normally, the Bankers and Financial Institutions ask the Business Loan Applicant to prepare a Credit Monitoring Arrangement report (CMA report) in order to study the flow and application of funds in a business. A Professionally prepared CMA report can enhance the chances of obtaining a bank loan.
After a detailed analysis of the past performance of the company through the Credit Monitoring Arrangement (CMA) Report, banks permit for sanctioning credit proposals of large borrowers. The Banks require to submit the large credit proposals (involve working capital limits of Rupees 5 crores and above and/or term loan in excess of Rupees 2 crores) to the Reserve Bank of India for post-sanction scrutiny.