Question
A company shows Profit after Tax ₹14 crore,
Depreciation ₹10 crore, Increase in Working Capital ₹6 crore and Term Loan repayment due next year ₹15 crore. What is the Cash available for Debt Service?Solution
Cash accrual = PAT + Depreciation = 14 + 10 = 24 Less increase in WC = 24 – 6 = ₹18 crore
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