30 August 2017
Dear Experts.,
A Assessee want Machinery loan. He move to "Syndicate Bank". The bank ask 2years IT and Business related details. We prepared the required documents.
Now, The bank asks "Projected Balance Sheet and DSCR" (The assessee write a small paper).
What is DSCR....?
Please reply Dears.....
Thanks & Regards
RAJA P M
30 August 2017
DSCR means Debt Service Coverage Ratio. The ideal yardstick of DSCR is 1.75 to 2.3. The earnings of the Unit should adequately cover the loan instalment as well as interest on such loan. Gross DSCR =(Net profit after tax+ Depreciation / Principal repayment ) Calculate this ratio for all the years of loan. Another method is Net DSCR= (Net profit + Dep+Int on loan) / ( Instalment of principal + Interest on loan)
30 August 2017
DSCR means Debt Service Coverage Ratio. The ideal yardstick of DSCR is 1.75 to 2.3. The earnings of the Unit should adequately cover the loan instalment as well as interest on such loan. Gross DSCR =(Net profit after tax+ Depreciation / Principal repayment ) Calculate this ratio for all the years of loan. Another method is Net DSCR= (Net profit + Dep+Int on loan) / ( Instalment of principal + Interest on loan)
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