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      Question

      XYZ Ltd. is a medium-sized manufacturing company. Its

      summarized Balance Sheet and additional financial information for the year ended 31st March 2024 are given below. Use this data to answer the following independent questions. Balance Sheet of XYZ Ltd. (as on 31st March 2024) Additional Information (from P&L A/c) • EBIT = ₹12,00,000 • Provision for tax = 40% Calculate the Interest Coverage Ratio (ICR) of XYZ Ltd.
      A 10 times Correct Answer Incorrect Answer
      B 12 times Correct Answer Incorrect Answer
      C 15 times Correct Answer Incorrect Answer
      D 16 times Correct Answer Incorrect Answer
      E 18 times Correct Answer Incorrect Answer

      Solution

      ICR = EBIT ÷ Interest = 12,00,000 ÷ 72,000 = 16.67 ≈ 16 times 

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