Credit appraisal query
This query is : Resolved
16 June 2018
Hello everyone,
Wanted to ask one question :
While calculating Interest service coverage ratio and dscr for credit assessment, should we consider capitalised interest in denominator?
Suppose total interest is 100, of which 80 is capitalised, so net hit taken to my p & l is 20.
So while calculating iscr and dscr, in denominator should I consider 20 or entire 100, since payment made is for entire 100.
CRISIL suggests non - funded capitalised interest should be considered for iscr and dscr...
So wanted to know what is the industry practice with regard to capitalised interest for project finance cases and normal cases...
Pls guide
Thanks,
Link for CRISIL material : https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.crisil.com/Ratings/Brochureware/RR_ASSES/CRISIL-Ratings-research-approach-to-financial-ratios_2013.pdf&ved=2ahUKEwj2iOGSis3bAhVIPo8KHYG2BCoQFjACegQICRAB&usg=AOvVaw3n9BHx0Oucfi7Y_mPAIEg0
Wanted to ask one question :
While calculating Interest service coverage ratio and dscr for credit assessment, should we consider capitalised interest in denominator?
Suppose total interest is 100, of which 80 is capitalised, so net hit taken to my p & l is 20.
So while calculating iscr and dscr, in denominator should I consider 20 or entire 100, since payment made is for entire 100.
CRISIL suggests non - funded capitalised interest should be considered for iscr and dscr...
So wanted to know what is the industry practice with regard to capitalised interest for project finance cases and normal cases...
Pls guide
Thanks,
Link for CRISIL material : https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.crisil.com/Ratings/Brochureware/RR_ASSES/CRISIL-Ratings-research-approach-to-financial-ratios_2013.pdf&ved=2ahUKEwj2iOGSis3bAhVIPo8KHYG2BCoQFjACegQICRAB&usg=AOvVaw3n9BHx0Oucfi7Y_mPAIEg0
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Long Term Service award taxability in hands of company
- BIS Certificates
- GSTR-4 Annual Return ! Pending Returns for F.Y. 20-21 to 22-23
- Procedure for claiming exemption in Article Ship for CA Course
- ITR 2 Short Term gain & Long term gain
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
