What do Met, Close and Breached mean?

Met is within the covenant's limit, Close is met but near the limit, and Breached is past it. Each covenant on a certificate has one of these:

  • Met: within its limit, with room to spare.
  • Close: met, but within the warning margin of its limit, 10% unless you changed Warn when within (%). For a minimum cash balance of ₹60,00,000, anything under ₹66,00,000 is Close; for a maximum debt to tangible net worth of 2, anything over 1.80.
  • Breached: past its limit.
  • Can't be worked out: the books can't give the figure yet, and Margin says why, such as the opening balances (or a loan's opening balance) not being in the books yet, no cash or bank account in the books, or a month of the period not locked yet.
  • Not tested: nothing fell due: a DSCR when no interest or EMIs fell due in the period. It doesn't stop the certificate being approved.
  • To check by hand, then Met (checked by hand) or Not met (checked by hand): a covenant you check yourself.

Headroom is how far the figure is from the limit, and that as a share of the limit, such as ₹2,84,995 (4.7%) above a minimum of ₹60,00,000. Past the limit, it's below nothing. Margin compares the exact figures, so a covenant is never Met because of rounding.

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