CMA Report Format: All 5 Forms Explained with Real Examples
Every bank loan above a certain threshold requires CMA data in a specific 5-form format. This guide walks through each form with real examples, explains what goes where, and shows how the forms interconnect.
Why CMA Data Has a Specific Format
Banks receive thousands of loan applications. Without a standardised format, every credit officer would have to interpret financials differently, making comparison and appraisal inconsistent. The CMA format solves this by providing a uniform structure that every bank in India recognises.
The format consists of five interlinked forms, typically covering 2 years of audited historical data, the current year's estimated figures, and 2-3 years of projections.
Form I: Particulars of Existing and Proposed Limits
Form I is the opening page of the CMA report. It captures the borrower's complete banking relationship.
What Goes Into Form I
Part A - Fund Based Limits:
| Facility | Existing Limit | Outstanding | Proposed Limit |
|---|---|---|---|
| Cash Credit | 50.00 | 42.00 | 75.00 |
| Term Loan I | 100.00 | 60.00 | 60.00 |
| Term Loan II (proposed) | - | - | 80.00 |
| Bill Discounting | 20.00 | 12.00 | 25.00 |
| Total Fund Based | 170.00 | 114.00 | 240.00 |
Part B - Non-Fund Based Limits:
| Facility | Existing | Proposed |
|---|---|---|
| Letter of Credit | 30.00 | 40.00 |
| Bank Guarantee | 15.00 | 20.00 |
| Total Non-Fund Based | 45.00 | 60.00 |
Why It Matters
Form I tells the credit officer the total exposure — existing and proposed. It reveals whether the borrower is over-leveraged across multiple banks.
Form II: Operating Statement (Profit & Loss Account)
Form II presents the P&L in a banker's format — different from the Companies Act format.
Structure
| Particulars | FY23 (Audited) | FY24 (Audited) | FY25 (Estimated) | FY26 (Projected) | FY27 (Projected) |
|---|---|---|---|---|---|
| Gross Sales | 500.00 | 580.00 | 650.00 | 750.00 | 860.00 |
| Less: Excise/GST | 75.00 | 87.00 | 97.50 | 112.50 | 129.00 |
| Net Sales | 425.00 | 493.00 | 552.50 | 637.50 | 731.00 |
| Raw Material Consumed | 212.50 | 246.50 | 276.25 | 318.75 | 365.50 |
| Manufacturing Expenses | 63.75 | 73.95 | 82.88 | 95.63 | 109.65 |
| Gross Profit | 148.75 | 172.55 | 193.38 | 223.13 | 255.85 |
| Administrative Expenses | 21.25 | 24.65 | 27.63 | 31.88 | 36.55 |
| Selling Expenses | 12.75 | 14.79 | 16.58 | 19.13 | 21.93 |
| Operating Profit | 114.75 | 133.11 | 149.18 | 172.13 | 197.37 |
| Interest | 18.00 | 20.00 | 22.00 | 28.00 | 26.00 |
| Depreciation | 15.00 | 16.00 | 17.00 | 22.00 | 21.00 |
| Profit Before Tax | 81.75 | 97.11 | 110.18 | 122.13 | 150.37 |
| Tax | 20.44 | 24.28 | 27.54 | 30.53 | 37.59 |
| Net Profit | 61.31 | 72.83 | 82.63 | 91.59 | 112.78 |
Key Points
- Growth assumptions must be realistic and consistent with industry trends
- Raw material to sales ratio should remain stable unless there's a justified reason
- Operating profit margin should show improvement or stability, not wild swings
Form III: Analysis of Balance Sheet
Form III restructures the balance sheet into the classification banks need for credit appraisal.
Format
The balance sheet is split into:
Sources of Funds:
- Share Capital
- Reserves & Surplus
- Unsecured Loans from Promoters
- Term Liabilities (term loans, debentures)
- Current Liabilities
- Bank Borrowings (CC/OD)
Uses of Funds:
- Net Fixed Assets
- Investments
- Current Assets (detailed break-up)
- Intangible Assets
- Non-current Assets
The critical derivation from Form III is Net Working Capital (NWC):
NWC = Current Assets - Current Liabilities (including bank borrowings)
NWC must be positive and should show an increasing trend in projections.
Form IV: Comparative Statement of Current Assets and Current Liabilities
Form IV provides a detailed break-up with holding period analysis.
What Banks Extract from Form IV
| Current Asset | Amount | Holding Period (Days) | Industry Norm |
|---|---|---|---|
| Raw Materials | 45.00 | 65 | 60 |
| WIP | 12.00 | 18 | 15 |
| Finished Goods | 28.00 | 40 | 30 |
| Debtors | 75.00 | 85 | 60 |
| Observation | All above norm |
If holding periods exceed industry norms, the bank will scale down the current assets for assessment purposes. This directly reduces the MPBF.
Holding period formulas:
- Raw Material: (RM Stock / RM Consumed) x 365
- WIP: (WIP Stock / Cost of Production) x 365
- Finished Goods: (FG Stock / Cost of Sales) x 365
- Debtors: (Debtors / Net Sales) x 365
- Creditors: (Creditors / Purchases) x 365
Form V: Assessment of Working Capital Requirements (MPBF)
Form V is the culmination — where all the previous forms converge to determine the permissible bank finance.
Method II Computation (Standard)
| Particulars | FY25 (Est.) | FY26 (Proj.) | FY27 (Proj.) |
|---|---|---|---|
| Total Current Assets | 165.00 | 195.00 | 225.00 |
| Less: Current Liabilities (excl. bank) | 55.00 | 65.00 | 75.00 |
| Working Capital Gap | 110.00 | 130.00 | 150.00 |
| Less: 25% of Current Assets | 41.25 | 48.75 | 56.25 |
| MPBF | 68.75 | 81.25 | 93.75 |
| Actual/Proposed Bank Finance | 65.00 | 75.00 | 85.00 |
The proposed bank finance should be at or below the MPBF.
How the 5 Forms Interconnect
- Form II (P&L) feeds into Form III (Balance Sheet) via retained profits
- Form III feeds into Form IV (Current Asset/Liability detail)
- Form IV holding periods are validated against Form II sales and cost data
- Form V (MPBF) pulls current assets from Form III/IV and validates against Form I (proposed limits)
- All forms must be internally consistent across all periods
A single inconsistency — like net profit in Form II not matching the increase in reserves in Form III — will get flagged by the credit officer.
Automating the Format
CMA Report generates all five forms from a single data entry workflow. Enter your financials once, and the system populates every form, ensures cross-form consistency, computes all ratios and MPBF, and exports the complete CMA report as a professional PDF ready for bank submission.