CMA data follows a set structure — seven interlocking statements banks read in the same order every time. Here's each form, what it must contain, and how they add up to your working-capital limit.
Banks appraise hundreds of proposals, so they standardise. When your CMA follows the familiar Form I–VII sequence, the credit officer can move straight to the numbers that matter. A non-standard or reshuffled report just slows appraisal and invites doubt. Format here is substance, not decoration.
| Form | Name | Purpose |
|---|---|---|
| I | Existing & proposed limits | Current facilities and what you now seek. |
| II | Operating statement | Projected P&L — sales, costs, profit, year by year. |
| III | Analysis of balance sheet | Classified assets & liabilities across years. |
| IV | Comparative current assets & liabilities | Build-up of stock, receivables, creditors — the working-capital cycle. |
| V | Computation of MPBF | The eligible working-capital limit — the core output. |
| VI | Fund flow statement | Sources and uses of funds over the period. |
| VII | Ratio analysis | Current ratio, turnover, and other key ratios. |
Form V is where the limit is set. Under the commonly-used method, the bank looks at your working-capital gap (current assets needed, less current liabilities other than bank borrowing) and expects you to fund a margin from your own funds; the balance is the Maximum Permissible Bank Finance. A widely-applied benchmark is a current ratio of about 1.33:1, which effectively means you contribute roughly a quarter of the current-asset build-up and the bank funds the rest. The exact method and margin follow the bank's own policy.
The forms interlock: sales in Form II drive the receivables in Form IV; the balance sheet in Form III must tie to the current-asset build-up; the ratios in Form VII fall out of all of it. If the operating statement is optimistic but the balance sheet doesn't reflect it, or the ratios don't hold, the report contradicts itself — and that is exactly what a credit officer looks for. Consistency across the seven forms, and with your DPR, is what makes CMA data credible.
Seven — Form I (limits), II (operating statement), III (balance-sheet analysis), IV (current assets & liabilities), V (MPBF), VI (fund flow) and VII (ratios).
Form V — the computation of Maximum Permissible Bank Finance. It converts your working-capital gap and margin into the eligible bank limit.
A common benchmark is around 1.33:1, reflecting the expectation that the borrower funds part of the current-asset build-up. Individual banks apply their own policy.
A template gives the structure, but the numbers must be your own, consistent across all seven forms and with your DPR. A template filled with unrealistic figures is easy for a bank to spot.
We'll build all seven forms so they interlock, hold the ratios, and produce a defensible MPBF that matches your DPR. The first assessment is free.
Related reading: What is CMA Data? · CMA Data Excel Format · CMA Data for Cash Credit · Common Mistakes in CMA Data · DPR Format for an MSME Loan
CA Nikhil Gupta prepares CMA reports in the standard seven-form format, with a defensible MPBF and ratios that hold. Free assessment, no upfront fee.
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