CMA Report Generator for Bank Loans (MPBF, DSCR)

About the CMA Report Generator for Bank Loans (MPBF, DSCR)

Banks in India assess a working capital or term loan from CMA data (credit monitoring arrangement data): the borrower’s audited figures for the last two or three years, the provisional figures of the year just ended and projections for the years ahead, in a fixed set of forms. This tool builds them from your numbers:

• Form I existing and requested limits, Form II operating statement, Form III analysis of balance sheet, Form IV comparative statement of current assets and current liabilities with holding levels, Form V maximum permissible bank finance (MPBF) and Form VI fund flow;
• MPBF by the first and second methods of lending and by the turnover method, key ratios, DSCR, the term-loan repayment schedule and a stress test;
• a PDF in the order bank officers read it, and an Excel workbook in which totals, ratios, MPBF and the fund flow are live formulas.

The projections are your assumptions: the tool never adjusts them to meet any bank’s benchmark. Figures and saved clients stay in your browser.

Without a pass the result is a free preview: every form as a page image marked as a preview, with the first rows of each form readable and the later figures hidden, and the MPBF, the bank finance it needs, the ratios, the DSCR and the stress test hidden in full; the PDF, the Excel workbook and Copy summary unlock with a Premium pass.

Common uses

• Prepare CMA data for a new or enhanced cash credit limit, with the turnover method for an MSE.
• Support a term-loan proposal with projected statements, the repayment schedule and DSCR.
• Check how a planned capital expenditure or a slower collection period changes the bank finance needed.
• Run the bank’s usual sensitivities before the meeting, from the same assumptions.

What the forms contain

• Form II, operating statement: sales, the cost of sales (materials, stores, power, labour, other manufacturing expenses and depreciation, adjusted for the stocks of stock-in-process and finished goods), selling and administrative expenses, interest, non-operating items, tax, dividend and retained profit.
• Form III, analysis of balance sheet: current liabilities (bank borrowings for working capital first), term liabilities, net worth, current assets, fixed assets, other non-current and intangible assets, with tangible net worth, net working capital, the current ratio, TOL ÷ TNW and term liabilities ÷ TNW.
• Form IV: each current asset and current liability with its holding level in months — stocks against consumption, cost of production or cost of sales, receivables against sales and creditors against purchases.
• Form V: the maximum permissible bank finance. Form VI: long-term sources and uses, the change in the working capital gap and the change in bank borrowings, which add up.

Banks’ own CMA formats number and group some rows differently; the totals and the methods are the same. Check your bank’s format before you file.

MPBF: the three methods

The working capital gap is total current assets less current liabilities other than bank borrowings. The Tandon Committee’s first method expects the borrower to fund 25% of that gap from long-term sources; the second method expects 25% of the total current assets — which is why it asks for a current ratio of at least 1.33. In both, MPBF is the lower of the gap less that margin and the gap less the actual net working capital; a shortfall in net working capital shows up as excess borrowing. An option leaves export receivables out of the base of the 25% — use it if your bank’s format does.

The turnover method comes from the Nayak Committee: RBI’s MSME FAQs note that working capital limits of small units are computed on a minimum of 20% of their estimated turnover, for limits up to ₹5 crore. The form takes 25% of the projected turnover as the requirement, 5% as the borrower’s margin, and the lower of 20% of turnover and (25% less the actual net working capital). RBI leaves the method to each bank’s board-approved policy, so ask which one your bank applies.

How the projections are built

Each projected year starts from the year before. Sales grow at your rates; each cost line is a share of net sales; stocks, receivables and creditors follow the holding levels in months (stock-in-process on the cost of production and finished goods on the cost of sales, solved together with the costs they depend on). Depreciation is a WDV rate on the opening net block and the year’s additions (half a year on additions unless you choose a full year), or an amount you enter. Term loans follow their repayment schedules, and the instalments due in the next year sit in current liabilities as Form III requires.

Bank finance for working capital is the balancing figure: whatever the balance sheet needs after the cash balance you choose. Its interest changes the profit, which changes the need, so each year is solved until the two agree. If you enter the limit you are applying for, any surplus is held as cash and a larger need is flagged.

DSCR, ratios and the stress test

DSCR = (net profit after tax + depreciation + interest on term loans) ÷ (term-loan principal repaid + interest on term loans), for each projected year; the average is the total of the first over the total of the second. Banks set their own minimum DSCR, current ratio and TOL ÷ TNW in their loan policies, so the tool shows the figures and their formulas without a pass mark.

The stress test re-runs every projected year with lower selling prices (costs unchanged), a lower sales volume (materials, stores, power and other manufacturing expenses move with it), dearer raw materials, and higher interest on bank finance and term loans — one at a time and all together — and compares the DSCR, current ratio, TOL ÷ TNW, profit and the peak bank finance needed.

Files, saved clients and the workbook

• Excel template: one row per line of the forms and one column per year; the first column holds the line’s key, so a filled template reads back exactly. Any sheet with “FY 2024-25” style column headings and the usual row names can be read too.
• Saved clients stay in this browser only. Download client file gives you a .cma.json file to keep or move to another device; drop it in to open it.
• The workbook has a cover and one sheet per form. Totals, sub-totals, holding levels, MPBF, the fund flow, ratios and DSCR are formulas, so a change to a figure flows through; Excel recalculates them when the file opens.

Limitations

• Projections cover one business and one entity — no consolidation, no group companies.
• Tax is a percentage of the profit before tax that you choose; losses are not carried forward and deferred tax is not projected.
• Holding levels are worked out on year-end balances, as in Form IV; seasonal peaks within a year are not modelled.
• New term loans use one interest rate for their whole life; existing loans are repaid in equal yearly amounts.
• Bank formats vary: compare the row numbering with your bank’s CMA format, and add anything it asks for that is not here.
• The tool does not check whether your assumptions are reasonable — a banker will.

Privacy

Everything is calculated in your browser. The borrower’s figures, saved clients and files you import are never uploaded. The client on screen is kept in this browser as you type, so it is still there when you come back (New blank client replaces it); saved clients are kept only in this browser until you delete them.