Banking · Financial Ratio Analysis

An infrastructure firm is seeking a term loan. The projected financials for the first year of operations are (in Lakhs): Profit After Tax (PAT) = ₹500; Depreciation = ₹200; Interest on Term Loan = ₹300; Yearly Principal Installment = ₹400. Calculate the Debt Service Coverage Ratio (DSCR) for the firm.

Verified Solution4 OptionsUpdated: October 2026👁️1 View

12.00
21.67
31.25
41.43✓

Correct answer

1.43

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