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DSCR Certificate Format — Debt Service Coverage Ratio (CA Issued, Word)

A CA-issued certificate computing the Debt Service Coverage Ratio — net operating income against annual debt service (principal + interest) — for term-loan applications, restructuring proposals, or covenant testing.

Free · CORAA original — SA-aligned
Updated 27 Jul 2026
Type
Certificate (not an audit opinion)
Computes
DSCR = Net operating income ÷ Total debt service
Issued for
Term loan / restructuring / covenant testing
UDIN
Required on every CA certificate
Share this template
Your firm — letterhead
Appears at the top of the document as the audit firm letterhead.
Used as the letterhead block.
Engagement details
The client and period this document is for.
Typically EBITDA, or profit before interest, depreciation and tax — state the basis used in the certificate.
What’s inside

An excerpt from the template.

CERTIFICATE OF DEBT SERVICE COVERAGE RATIO

This is to certify the Debt Service Coverage Ratio (DSCR) of:

as at ___, computed as set out below, based on the audited / provisional financial statements and loan repayment records produced before us and the information and explanations given to us.

DSCR Computation for the Year Ended ___

↑ Excerpt only — the full template is what you download as Word
About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

What DSCR figure do banks typically expect?
Lenders commonly look for a DSCR of at least 1.2x-1.5x, though the exact threshold is set in each bank's own credit policy or the specific loan covenant, not by a uniform statutory rule — check the sanction letter or covenant terms for the specific threshold that applies, rather than assuming a standard figure.
Should DSCR be computed on EBITDA or on cash profit?
Both bases are used in practice — some lenders specify EBITDA, others specify cash accruals (profit after tax plus depreciation) as the numerator. State clearly which basis was used for "net operating income" in the certificate, since the two can produce materially different ratios for the same entity.
What happens if debt service was zero during the period (e.g. a moratorium year)?
The ratio is mathematically undefined when total debt service is zero, and this certificate leaves the DSCR line blank in that case rather than showing a misleading zero or an error — the certificate should instead narrate that the period fell within a sanctioned moratorium and no scheduled repayment fell due.
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