Lecture 61: Debt service coverage ratio (DSCR) - formula, calculation & practical examples- In Hindi
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- เผยแพร่เมื่อ 21 ม.ค. 2022
- How does banks compute debt service coverage ratio?
What is formula of DSCR or Debt service coverage ratio?
What incomes and expenses are considered for calculation of DSCR?
What is the treatment of internal accruals i.e. payments within the family in calculation of DSCR?
How to compute the loan obligations in DSCR formula? Which loans to be considered in obligation while calculating DSCR?
What should be ideal Debt service coverage ratio or DSCR?
Let us answer all above questions and learn a lot more about debt service coverage ratio i.e. DSCR through this video in Hindi language. I will also make 2nd part of this video next video in which we shall make a DSCR calculator on excel sheet and learn the calculations with practical examples.
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बैंक ऋण सेवा कवरेज अनुपात की गणना कैसे करते हैं?
DSCR या ऋण सेवा कवरेज अनुपात का सूत्र क्या है?
DSCR की गणना के लिए किन आय और व्यय पर विचार किया जाता है?
डीएससीआर की गणना में आंतरिक उपार्जन अर्थात परिवार के भीतर भुगतान का क्या उपचार है?
DSCR फॉर्मूले में ऋण दायित्वों की गणना कैसे करें? DSCR की गणना करते समय किन ऋणों को दायित्व में माना जाना चाहिए?
आदर्श ऋण सेवा कवरेज अनुपात या डीएससीआर क्या होना चाहिए?
आइए हम उपरोक्त सभी प्रश्नों के उत्तर दें और ऋण सेवा कवरेज अनुपात यानी DSCR के बारे में हिंदी भाषा में इस वीडियो के माध्यम से बहुत कुछ जानें। मैं इस वीडियो का दूसरा भाग अगला वीडियो भी बनाऊंगा जिसमें हम एक्सेल शीट पर डीएससीआर कैलकुलेटर बनाएंगे और व्यावहारिक उदाहरणों के साथ गणना सीखेंगे।
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Dear sir, you have explained the topic in-depth and also brought our attention to the shortcomings of the DSCR ratio in the case of credit sales.
Thank you for sharing your knowledge.
👍
Thank you sir for making such video and helping other to gain knowledge. I appreciate your efforts for spreading in-depth knowledge.
Thank you
Best channels for bankers working in credit
Thank you
Thank you sir for explaining in simple words....
Your welcome
Great work brother.....all the best
Thank you
Thanks for sharing
👍
Awesome 😍
Thank you 👍
Very helpful....
Thank you
In DSCR..sales / Income is calculated as per projected or provisional financial ?
Obligation we are considering proposed term loan
We can take projected income as well
Borrower is in textile manufacturing business... Borrower is rented some part of property for rented
Is rent income is operating income or non operating income?
Non operating
Non operating
Sir you are considering future EMI but not considered future income to be generated from Future loan. Please clarify.
Yes when we prepare cma, the dscr is calculated on future income
Sir have you made any video on valuation report how to read and understand plans layout and remarks if technical to be considered while credit underwriting
Thank you sir
Your welcome
Many time client approaches for CC limit when they have taken excess BL in running FY & while assessing we check PBDIT of last ABS is less than EMIs payable and with track of no EMI bouncing.
What validate we should check if it is to be funded.
This could funded out of fresh borrowing as well, i mean enhanced funding used to clear old debts, or business done out of books of account
Can you pls tell how we will cross check credit sales and credit exp from cash flow statement by practical case study
Hi Mohit, in cash flow statement, impact is already considered of credit sales and credit expenses since we adjust debtors and creditors in cash flow statement. I will prepare separate lecture on cash flow statements itself
@@AnkushJain thanks
1)why interest is added back in numerator and denominator as well is it for just better presentation purpose? and what is the impact if we dont add interest in numerator and only pricipal in denominator...
2) we do charge depreciation to replace asset at the end of life of asset so what is the rationale in adding in caluclation if that amount has dedicated use .
1. It's our call... Not much impact if we ignore adding back and obligating if facility amount is same... However when utilisation is low in previous year then added back interest is low while in denominator we obligate considering full utilisation then eligibility will reduce.
2. Depreciation is a non cash expense and it does not involve cash outflow due to which it is added back
Sir kindly ans me that int of cash credit will also be added back with depreciation or only int on term loan will be added??
If you add interest of cash credit then pl also take its obligation in denominator. Otherwise ignore to take it and consider only TL interest
Any video on ISCR?
Yeah pl check interest coverage ratio. Have already made it
Gud
Thank you
Sir can u explain why deferred tax provisions and mat credit is added back to arrive NCA's
Please
Please consider tax amount as per ITR only. No need to be confused between deferred and mat
@@AnkushJain thank u so much sir 🙏
👍👍
@Ankush sir Namaste🙏.. please ek session Budget pe🙏✨
😊 budget aane k baad bna dunga apne views ka uspe.
If credit or cash sales is not being factored then cash flow se cash flow from operating activites can be considered aginst loan obligations??
Yeah can be
Sir isme interest repayment ya EMI. As Principal also part of EMI so what actually you are saying
Main samjha nahi.. obligations ka keh rhe ho?
Sir, if principal is also being repaid from the Cash Profit then why does the expense of Principal portion not forms part of the Expense in P&L.
Just a View:
Kyuk Pay to krna hi hai, to other expense and the Principal portion of the loan ko pay krne k baad jo PAT aaye usko hi actual income maane aur usko fir BS me, if retained, then us income ko Capital me add back kre to get a relaistic view of Capital account.
No, profit and loss account is prepared on accrual basis where in actual cash generated is not equal to profits and thus both are separate. Further loan is a balance sheet item like capital. If we go by that logic, if someone withdraws capital and that money is also taken out of cash generated by business and that way it should also be charged in profit and loss account?
@@AnkushJain
Sir for a better clarity and my understanding can u elucidate by a hypothetical scenario
Loan availed of Rs 10 payable in 1 yr
Expense: Rs
Raw Material: 40
Other Misc: 20
Interest: 10
Principal: 10
Tax: 05
Revenue: 100
Profit should be: 15
But if Principal is not taken as part of Expenses then Profit is : 25
So, sir Does it imply that Principal portions shall be repaid by PAT.
Pl understand that principle repayment of loan is not an expense. If the principle amount is charged as expense then disbursement of loan should also be treated as income
Is tax audit report is essential for assessment?? What information are we get from tax audit report??
Actually my case is not logged in, just because of client is not able to share tax audit report..
It is essential. I will cover the relevance of it in a separate video
Ok sir
👍
What are different scenarios there, if company debtors are more than the sales of the company??
Means company has not able to realise past years sales also. Which means in actual cash generation is not there in business
Ok sir, thanks
👍
Sir
While calculating dscr why we are adding tax while calculating cash operating profit
Some other teachers consider PAT for calculating the dscr
Please clear
Both ways are correct in their own way. Please just follow whatever method your bank follows. I am not in particular favor of any of these. However ideally tax payment should be deducted while calculating DSCR as tax is mandatory cash outflow and While calculating ISCR, PBT should be picked.
Sir need one more clarification
Which type of loans considered for calculating dscr
Like should unsecured loans / cc limit etc be considered
Every loan should be counted unless until there is definite other source of income available other than business income which is sufficient to repay other loans
@@AnkushJain sir how much principal amount will be considered in case of cc limit or other wc loans while calculating dscr
For cc limit and other revolving facilities, only interest amount to be considered
@@AnkushJain thnk u sir
Sir is there any other way to have conversation with u
👍 I would suggest if u ask queries here since it will help other people also
Dear sir,
I have 2 queries
Please help
IF PBDIT 10.40 lac ,DEP 0.25 lac , PBT 10.15 lac , tax - 3.73 , PAT 6.73
& customer requesting loan of Rs. 150 lac EMI 180805
What would be the DSCR ?????
0.03
8.38
Or kuch
2. PBDIT/ (interest + Existing Pos of loans/5 + proposed eligible loan Amt)
Sir kya ye formula thik hai matlab why we are dividing by 5 & why we are considering proposed loan amount
For query 1, DSCR shall be PBDIT/180805*12
For query 2, by dividing 5, you are assuming loan tenor of 5 years although formula is incorrect since you have added proposed eligible loan amount in it instead of only its annual obligation
Thanks sir 🙏 for clarification
& happy guru Purnima sorry sir thoda late ho gya….
Thank you. I am your friend not guru 😊
What is director report??
Prepared in case of companies only. Contain information about the company's results. Taken usually in logins
I am mba in finance and ca final -group 1 ,i want to work in the credit analyst how to get a job
th-cam.com/video/DfhceeuPGkc/w-d-xo.html
Pl watch this video
One lecture on mudra loan please
Ok noted
@@AnkushJain thanks
👍
Can we consider the rental income for DSCR??
No since it is not part of main business. However outside DSCR, you may derive comfort from rental if they are arriving from concrete sources. You can calculate adjusted DSCR by including these rentals
Even if rental income shows on ITR also??
Yes, I have already mentioned that if it is from concrete and reliable source then for the purpose of deriving comfort, you can calculate adjusted dscr
If it's receieved on cash basis and not shown in itr then can we add??@@AnkushJain
No
Practice in co-op banks: Tax amount is not added back while arriving at funds available to service debt obligations.
Also, they are not making adjustments for nonoperating incomes & expenses.
Tax amount is sometimes not considered by many banks. But non consideration of non operating income and expenses is totally incorrect
@@AnkushJainagree 👍
अब आपका स्वास्थ्य कैसा है sir?
I am fine thank you 👍
Sir, what we need to pick up from the financials to calculate the DSCR? EBIDTA/Total Obligation? Plz explain🙏
Is video mein explained to hai
Ismein sb btaya hai