Question
A company shows cash available for debt service of ₹18 crore next year. Term loan repayment due is ₹15 crore and interest payable is ₹6 crore. The bank wants to compute DSCR strictly as per standard definition. What is the DSCR?
Solution
DSCR = 18 / 21 = 0.86 ≈ 0.90.
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