What Does CA Certification of CMA Mean?
CA certification of a CMA report is a formal professional opinion by a practising Chartered Accountant that:
- The historical financial data in the CMA is consistent with the audited accounts of the borrower
- The projections are based on reasonable and supportable assumptions
- All 6 CMA forms are internally consistent with each other
- The MPBF and DSCR calculations have been independently verified
The CA signs the CMA with their membership number, ICAI firm registration number, and a UDIN (Unique Document Identification Number) — making the document traceable and tamper-evident.
When Is CA Certification Mandatory?
| Scenario | Certification Requirement |
|---|---|
| PSU banks — loans above ₹5 crore | Mandatory — CA sign required at the time of application |
| PSU banks — loans ₹1–5 crore | Strongly preferred — credit officer will ask for CA sign before sanction |
| Private sector banks | Varies by bank policy — most require it for ≥ ₹2 crore |
| NBFC / Finance companies | Usually required for amounts above ₹1 crore |
| Project finance / new entities | Always required — no historical audited accounts to verify against |
| CC limit renewal above ₹5 crore | Most banks require fresh CA-certified CMA at each renewal |
How Banks Treat Certified vs Uncertified CMA
The difference in processing speed and scrutiny is significant:
CA-Certified CMA
Credit officer accepts figures at face value for routine cases. Fewer queries raised. Credit memo prepared faster. Committee approval often in 1 sitting. Rejection rate lower because errors are caught at certification stage, not after submission.
Uncertified / Self-Prepared CMA
Credit officer must independently verify each figure against audited accounts. Multiple query rounds. Potential rejection if inconsistencies found. Sanction takes 2–4 weeks longer on average. Committee may require CA certification before proceeding anyway — adding delay.
In a practical scenario: an uncertified CMA submitted Monday may generate 8–10 queries by Wednesday, requiring a revised submission by Friday — meaning the credit committee sees it the following week at earliest. A CA-certified CMA submitted Monday often reaches the credit committee by Thursday of the same week.
What a CA Reviews Before Signing
A CA certifying a CMA report performs these checks before affixing their signature:
Historical Data vs Audited Accounts
Every line item in Form II and Form III for historical years is verified against the audited Balance Sheet and P&L. Revenue, costs, net worth, fixed assets, and loans must match exactly.
Projection Reasonableness
Revenue growth rates are assessed against industry benchmarks, historical CAGR, and stated business plan. Margin assumptions are compared to historical actuals. Unexplained jumps in profitability are flagged.
Balance Sheet Balance
Assets = Liabilities + Net Worth for every year. Net worth linkage from Form II (retained profit) to Form III is verified. Loan repayment schedules are reconciled against outstanding balances.
MPBF Calculation Accuracy
Form IV working capital days are assessed for industry appropriateness. MPBF under Method 1 and Method 2 is recomputed and compared to the applied limit.
DSCR Formula Verification
Confirms that only TL interest (not total interest) is used. Verifies that depreciation is added back correctly. Checks DSCR against repayment schedule for every projection year.
Fund Flow Reconciliation
Sources equal Uses for every year. Capex is financed from appropriate long-term funds. No short-term funds diverted to capital expenditure.
UDIN — The Authenticity Verification
Since 2019, ICAI mandates that all certificates issued by CAs (including CMA certifications) carry a UDIN — Unique Document Identification Number. UDIN is generated on the ICAI UDIN portal and is tied to the specific document and the CA's membership.
Why UDIN matters for banks:
- Banks can verify the UDIN online to confirm the certificate is genuine and not forged
- The CA cannot deny having issued the certificate — it's on record
- If a CA issues a UDIN for false documents, they face ICAI disciplinary action
A CMA certified without UDIN will not be accepted by most banks today. Always ensure the certifying CA generates and mentions the UDIN on the certificate page.
JS & Co Certification Process
JS & Co offers CA certification of CMA reports prepared using any tool or format — including reports generated by our own CMA Data Tool.
Share your CMA and audited accounts
WhatsApp or email us the completed CMA (PDF or Excel) along with the last 2 years audited Balance Sheet and P&L. Also share the loan application details (bank, amount, purpose).
Review and any corrections
Our CA reviews all 6 forms within 4 business hours. If corrections are needed, we flag them and can make them (with your approval) before certification.
Certified CMA returned within 24 hours
You receive the CA-signed CMA with UDIN as a PDF — ready to submit to the bank. For urgent cases (same-day), call us directly.
For DSAs and Loan Consultants
DSAs handling multiple loan files monthly benefit significantly from bulk CMA certification. Our standard turnaround of 24 hours per report can be compressed to same-day for regular partners. Common use cases:
- Pre-submission review + certification for CC limit renewal files
- Certification of CMA prepared by borrower's accountant (without changing the figures, just reviewing consistency)
- Fresh CMA preparation + certification as a combined service
- Urgent certifications before credit committee deadlines
Get Your CMA Report Certified — ₹699 per Report
CA certification with UDIN. Review of all 6 forms, DSCR, and ratio analysis. Delivered within 24 hours. WhatsApp us to start.
WhatsApp: +91-8019934888 →Get Your CMA Certified — ₹699
JS & Co offers CMA report certification at ₹699 per report — covering review of all 6 CMA forms, DSCR verification, ratio analysis, and CA signature with UDIN. Delivered within 24 hours of receiving your documents.
You can generate your CMA report using the free JS & Co CMA Data Tool and then send it for certification. Or send us any CMA prepared in Excel or any other format.
Contact: +91-8019934888 (WhatsApp or call) info@jsconsultancy.co.in