Debt service Coverage Ratio
It provides the value in terms of the number of times the total debt service obligations consisting of interest and repayment of principal in installments are covered by the total operating funds. During the year 2001, the debt service coverage ratio is low due to repayment of term loans from bank of Rs. 1400 crs. In the absence of information, the repayment amount is derived by comparing the amount of two consecutive years. Different tax rates have been considered as per the law prevalent during the respective year.
The Company has maintained the coverage ratio of around 2 times which is generally considered satisfactory by the lending financial institutions and thus would benefit in raising more funds
It provides the value in terms of the number of times the total debt service obligations consisting of interest and repayment of principal in installments are covered by the total operating funds. During the year 2001, the debt service coverage ratio is low due to repayment of term loans from bank of Rs. 1400 crs. In the absence of information, the repayment amount is derived by comparing the amount of two consecutive years. Different tax rates have been considered as per the law prevalent during the respective year.
The Company has maintained the coverage ratio of around 2 times which is generally considered satisfactory by the lending financial institutions and thus would benefit in raising more funds