Appendix 12 — GFR

APPENDIX - 12 [See Rule 279 (1).] Ministries/Departments are required to undertake risk assessment of the proposals received from CPSUs before sending them to Ministry of Finance. Following ratios may be calculated for assessing the risk: i) Debt Service Coverage Ratio: It indicates the ability of a company to use its operating income to repay all its debt obligations, including repayment of principal and interest on both short-term and long-term debt. Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) Category A Category B More than or equal to 1.25 Less than 1.25 ii) Current Ratio (CR): It depicts the ability to meet short-term liabilities from selling short-term assets, and calculated as under: Total liabilities Shareholders’ equity

DSCR* D/E* CR* Calculation= Average of (Ratings Assigned) **** Overall risk rating Company 1 1.75 0.25 2.10 = 1 (1+1+1)/3) Category A Company 2 1.20 1.20 1.50 = 1.67(2+2+1)/3) Category B Company 3 0.90 1.80 0.80 = 2 (2+2+2)/3) Category B

Note: Overall Risk Rating shall be calculated by taking simple mean of all the ratios by assigning 1 and 2 values to ‘A or ‘B’ category. *Three years’ average ratio may be considered for calculating the overall risk rating. [Updated vide DoE’s OM No.8(18)/2021/E.II.A dated 20.07.2022 in view of DEA OM F.No.12(13)-B(SD)/2020- Parl dated 10.06.2022]

APPLICATION FOR AN ADDITIONAL APPROPRIATION, YEAR……………………………… FOR DEPARTMENT Budget Head Original Appropriation Major and Minor Heads Amount Necessary as years modified by competent up to the month for remaining of Account and Primary month unit of Appropriation authority