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Need help

Sweety sharma (article assistant) (107 Points)

14 September 2013

Dear CCI Members, i want to know how to prepare project report. What are the steps to prepare projected balance sheet, profitability, cash flow, fund flow & cash flow dscr. After Profitability, if i prepare Balance Sheet according to dscr , then problem creates in preparing cash flow & fund flow. Which has to be prepare first & How is to be balance sheet prepared accordingly cash flow/ dscr/fund flow.

I have prepared the same but i have doubts on the same & what dscr ratio is to be maintan for getting loan. Is it 1.5. Please help.

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3 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 14 September 2013

Prepare Project report as the CMA Data sheet which you can download from CA Club India.

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Studentsca (CA Practice ) (3577 Points)
Replied 14 September 2013

Debt-Service Coverage Ratio - DSCR

In general, it is calculated by:

Debt-Service Coverage Ratio (DSCR)

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.

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