Bank charges treatment for DSCR


This query is : Resolved 

31 August 2022 For calculation of DSCR to arrive operating profit, bank charges paid to be added along with interest charges?

06 July 2024 Bank charges are typically considered as part of operating expenses and are not added back to calculate operating profit for DSCR.
• Interest charges should be added back to arrive at EBITDA, as they are part of the total debt service.

This methodology ensures an accurate assessment of the company’s ability to cover its debt obligations.


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