Which of the following is not included in a Credit

Solution

A Credit Monitoring Arrangement (CMA) report is a structured document prepared to present a borrower’s past performance and projected financials in a format used by banks to assess working capital requirements. It helps bankers analyze the flow and application of funds and determine the borrower’s creditworthiness. A standard CMA report consists of seven forms/statements: 1. Form I – Particulars of Current & Proposed Limits (fund-based and non-fund-based credit limits). 2. Form II – Operating Statement (profit & loss with projections). 3. Form III – Analysis of Balance Sheet (current & projected years). 4. Form IV – Comparative Statement of Current Assets & Current Liabilities. 5. Form V – Calculation of Maximum Permissible Bank Finance (MPBF). 6. Form VI – Fund Flow Statement (movement of funds for the projected period). 7. Form VII – Ratio Analysis (key financial ratios like Current Ratio, Debt–Equity Ratio, Turnover Ratios, etc.).