Securing project finance or working capital facilities from commercial banks requires presenting structured financial data. Banks evaluate credit worthiness through a credit appraisal process.
The primary document is the Credit Monitoring Arrangement (CMA) data. CMA data includes details of operating statements, balance sheets, working capital analysis, and fund flow statements. It provides banks with insights into debt service coverage ratios (DSCR) and current ratios.
Additionally, promoters must submit a Detailed Project Report (DPR) highlighting technical feasibility, market analysis, cost of project, means of finance, and projected cash flows. Audited financial statements for the preceding 3 years are also mandatory.