Question

If a project has annual cash accruals of ₹18 crore and its annual term loan obligation, including principal and excluding interest is ₹10 crore. The cost of debt per annum is ₹2 crore. What is the DSCR? What does this DSCR imply?  

A 1.2 – Just adequate
B 1.5 – Comfortable
C 1.0 – Break even
D 9.0 – Excellent
E 1.8 – Comfortable
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