JCT Associates Pvt. Ltd.

Debt-to-Equity Ratio Certificate

Assessment of Financial Leverage & Capital Structure Stability

A developer’s Debt-to-Equity Ratio is a crucial financial indicator that reflects the level of borrowing in relation to owned capital. Excessive leverage increases financial risk, especially in large redevelopment projects where sustained cash flow and capital discipline are essential.

We ensure procurement and evaluation of a Debt-to-Equity Ratio Certificate assessing the developer’s financial leverage, borrowing exposure, and overall risk profile, thereby ensuring a balanced and sustainable capital structure.

Objective

• To evaluate borrowing dependency

• To assess financial leverage and exposure

• To identify risk of over-indebtedness

• To ensure balanced capital structure

• To minimize financial distress risk during execution

Scope of Our Services

1. Certificate Verification

We ensure that the Debt-to-Equity Ratio Certificate:

• Is issued by a Chartered Accountant

• Is based on audited balance sheet data

• Clearly states total debt and shareholder equity

• Reflects latest financial year figures

• Complies with NIT financial eligibility criteria

2. Financial Leverage Analysis

We assess:

• Total secured and unsecured borrowings

• Shareholder funds and reserves

• Ratio calculation accuracy

• Year-on-year leverage trend

• Comparison with industry norms (if applicable)

3. Risk Profile Evaluation

We evaluate whether:

• The developer is over-leveraged

• Borrowing levels are proportionate to equity

• Debt servicing risk may affect project execution

• Financial commitments exceed safe thresholds

• Capital structure reflects long-term stability

4. Comparative Financial Review

We assist in:

• Comparing D/E ratios of multiple developers

• Identifying financially conservative vs aggressive profiles

• Integrating findings with turnover, revenue, and net worth data

• Supporting structured financial scoring

5. Risk Mitigation Support

We help in:

• Highlighting high-risk leverage cases

• Flagging excessive debt exposure

• Supporting informed shortlisting decisions

• Documenting evaluation observations

Benefits to the Society

Reduced risk of financially stressed developers
Better understanding of borrowing exposure
Structured financial due diligence
Stronger redevelopment risk management
Enhanced long-term project security

Our Assurance

We ensure that the Debt-to-Equity Ratio Certificate is thoroughly verified and analyzed to confirm that the selected developer maintains a balanced capital structure, controlled borrowing exposure, and a sustainable financial risk profile, thereby safeguarding the Society’s redevelopment project.