Does calculation of DSCR in Project Financing take into account Cash Surplus of previous years also? Why?

The project financing calculations of DSCR, The lenders are interested in debt service coverage to judge the firm ability to pay off current interest and instalment.. The debt service coverage Ratio is calculated as the available of debt service / divided by interest plus instalment. So it does not available of cash surplus in previous year.

No it doesn't. It is based on given period EBITD or cashflows depending on the term sheet definition of DSCR.

 

Future cashflows are taken into account when estimating LLCR

Debt Service Coverage ratio (DSCR), one of the leverage / coverage ratios, calculated in order to know the cash profit availability to repay the debt including interest. Essentially, DSCR is calculated when a company / firm takes loan from bank / financial institution / any other loan provider. This ratio suggests the capability of cash profits to meet the repayment of the financial loan. DSCR is very important from the view point of the financing authority as it indicates repaying capability of the entity taking loan. Just a year’s analysis of DSCR does not lead to any concrete conclusion about the debt servicing capability. DSCR is relevant only when it is seen for the entire remaining period of loan.

a surplus cash account is taken into consideration when DSCR is calculated under 'cash release income cover test'.

Hello is necessary to take into account the surplus in the coming years, and the interview when the funding for any project Tjnob entry in the company's capital