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Enter ten figures from the balance sheet, the profit and loss account and the loan schedule, and see the five ratios a bank reads in a CMA file and the working-capital ceiling under Method II. Each ratio is compared only with the figure your own bank sets, if you enter it: for a borrower preparing or checking a CMA submission.
Written by Subham Jhunjhunwala · Reviewed by CA Sundram Gupta ·
Your ratio sheet
Figures as entered for one year. Your bank's sanction terms decide what each ratio must be; this sheet is not a certificate.
After the ratios
A bank does not sanction on a borrower's own ratio sheet. It asks for the CMA data in its own format, drawn from the signed accounts and the projections, with the ratios worked and explained, and signed by a chartered accountant.
It wants the CMA data prepared and certified for the bank: the past years from the audited accounts, the current year's estimate, the projected years on stated assumptions, the working-capital assessment with the MPBF computation, and every ratio above worked from those statements and read against the bank's own terms. The sheet on this page is where that work starts, not a substitute for it.
Calculate the ratios first. The button to talk to a CA appears with your result.
The arithmetic
Five ratios from ten figures. Each one is a plain division; what differs is which lines go on top and which below, and that is where most CMA sheets go wrong.
Total current assets÷Total current liabilities
How far the assets that turn into cash in the year cover what falls due in the year. Current liabilities include the working-capital borrowing, so a drawn cash-credit limit sits below the line.
Total debt÷Tangible net worth
Borrowed money against the proprietors', partners' or shareholders' own. Total debt is term loans plus working-capital borrowing; trade creditors are not debt for this ratio.
Total outside liabilities÷Tangible net worth
Everything owed to outsiders, creditors and provisions included, against own funds. It is always at least the debt-equity ratio, usually higher, and a bank reads the two together.
PAT + depreciation + interest÷Interest + annual instalment
The cash the year generates before debt service, against what the term loan takes out of it in the year. Depreciation is added back because it is a book charge, not a payment; interest is added back because it is then counted below the line.
PAT + depreciation + interest÷Interest
The same cash against interest alone, with the principal left out. It answers a narrower question than DSCR: can the business carry the interest, before asking whether it can also repay.
This page does not say, and no page should without knowing your bank. A current ratio is read against the figure in your bank's sanction terms or credit policy, and that figure differs by bank, by facility and by borrower. Type the figure your bank sets into the rail above and the sheet says whether your ratio meets it or sits below it. Without that figure the sheet shows the ratio and nothing else.
The rupee ceiling
Maximum permissible bank finance is not a ratio but a rupee figure: how much of the current assets a bank would finance under the method it applies. The calculator works Method II, a method some banks use. Your sanction terms decide which method, if any, applies to your limit.
Inventory, receivables, cash and bank, other current assets: the figure from the balance sheet, as entered.
Under Method II the bank's share stops at three-quarters of the current assets; the rest is expected from long-term sources, the borrower's own funds among them.
Creditors, advances, provisions and other dues already fund part of the current assets, so they come off before the bank's share is sized. The working-capital borrowing itself is left out of this line.
The ceiling. When step 3 is larger than step 2 the result is nil or negative, and the sheet shows ₹0 with the reason: the other current liabilities already cover more than the bank would finance.
It is one input to the bank's assessment of a working-capital limit. It is not the limit: the sanction letter sets that, after the bank reads the projections, the holding periods and the security on offer. A ceiling above the limit you asked for does not mean the limit will be given; a ceiling below it means the file has explaining to do.
Checked by CA Sundram Gupta, 31 October 2026.
Example
Invented figures for one year, to show where each line goes. Load them into the calculator, press Calculate, and compare the sheet with the working below.
The cash available for debt service is ₹6,00,000 + ₹2,00,000 + ₹3,00,000 = ₹11,00,000. No bank figure is entered in this illustration, so no ratio carries a verdict. Type 1.33 as the bank's minimum current ratio and the sheet says 1.43 meets it; type 1.50 and it says 1.43 is below it.
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