Explain the reasons in brief for the following statements in the context of practices prevailing under the banking : (v) DSCR of less than 1 is not considered good for sanction of Term Loans (generally the norm is 2: 1).

DSCR is the ratio of annual cash accruals to the amount of term loan instalments and DPG instalments payable in the year. Cash accruals should be adequate to provide for fluctuations in business, increased margin for working capital, etc. If it is less than 1, the cash accruals are not sufficient to meet term loan instalments and DSCR is not adequate, thereby the repayment will be affected.