Depreciation/ Amortisation refers to non-cash accounting charge that allocates the cost of tangible or intangible assets over their useful life. It affects profit but is added back in cash-accrual and EBITDA-related analysis. In MSME underwriting, it is read as part of the financial assessment and is usually compared across periods, peers, banking conduct and management explanations. For example, the figure should be compared across years and reconciled with audited financials, GST data, bank statements and management explanations before it is used in a credit view. It matters because the number can influence eligibility, limit sizing, repayment comfort, leverage view and early-warning assessment. The common mistake is to use it mechanically; seasonality, accounting treatment, one-off items and data mismatches can change the credit interpretation.