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    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?
    A 0.85 Correct Answer Incorrect Answer
    B 0.90 Correct Answer Incorrect Answer
    C 1.00 Correct Answer Incorrect Answer
    D 1.20 Correct Answer Incorrect Answer
    E 1.50 Correct Answer Incorrect Answer

    Solution

    DSCR = 18 / 21 = 0.86 ≈ 0.90.

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