Dear sir/madam,
Hope you are doing well.
I have a query to ask you.
Actually one of my uncle is applying for cash credit, as required I have given PL and BS. But that bank is asking about to calculate Debt service coverage ratio, internal assets covege ratio and last one is Debt assets ratio.
It's a retail hardware business. My uncle's business is at very small level where he did not have any existing debt/loan/any other financial obligations. That means he is applying for first time for any loan.
Now my question is that, how can I calculate the above ratio if there is no existing debt. Or is there any other way to calculate, which you may fallow to do?
Please help me to solve this issue.
Thanking you.
Regards
Sandeep Gupta
CAclubindia
