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Prepare Project report as the CMA Data sheet which you can download from CA Club India.
Debt-Service Coverage Ratio - DSCR
In general, it is calculated by:
A DSCR of less than 1 would mean a negative cash flow. A DSCR of less than 1, say .95, would mean that there is only enough net operating income to cover 95% of annual debt payments. For example, in the context of personal finance, this would mean that the borrower would have to delve into his or her personal funds every month to keep the project afloat. Generally, lenders frown on a negative cash flow, but some allow it if the borrower has strong outside income.
Thank You Sir. Can u provide link for the same.
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