Dscr calculation

This query is : Resolved 

15 September 2011 sir,


in respect of calculation of DEBTSERVICE COVERAGE RATIO wheather DEFERRED TAX liability added or not please give reason for the same if addedd.

15 September 2011 Debts Service Coverage Ratio:
The ability of an enterprise to meet its liabilities by way of payment of installments of Term Loans and Interest thereon from out of the cash accruals and forms the basis for fixation of the repayment schedule in respect of the Term Loans raised for a project.

Deferred Tax liability arising from timing difference or temporary from accounting and tax calculating angle.

Deferred Tax Liability is not a Term Loan (liability) the same need not be added while calculating DSCR (Debts Service Coverage Ratio)

15 September 2011 AGREED WITH MR.HARI, DSCR IS MAINLY FOR CALCULATING ABILITY TO SERVE INTEREST AND PRINCIPAL REPAYMENT.




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