Vinu: Manu, I'm preparing CMA data for a borrower. They have made some long-term investments in shares. Where should I show this in the CMA format?

Manu: Good question, Vinu. Long-term investments in shares should be shown under the “Non-Current Assets” section in the CMA data.

Vinu: Okay. Is there a specific heading or subheading for that?

Manu: Yes. In most CMA formats, especially the one used by banks, there’s a line item called “Investments” under the Non-Current Assets section. That’s where you’ll include long-term investments in shares.

Vinu: What if the company also holds some shares for short-term trading purposes?

Manu: Those would be shown under Current Assets, typically under “Current Investments” or “Other Current Assets” depending on the bank’s template. But remember, for long-term investments meant to be held beyond one year, they always go under Non-Current Assets.

Vinu: Got it. And do I need to break it down or just show a lump sum figure?

Manu: If possible, break it down into quoted and unquoted investments. Some banks also ask for details of each significant investment separately. It helps during credit assessment.

Vinu: Thanks, Manu! That clarifies it.

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