Question no$.2$:

Recently, Avon Pvt$.$ Ltd has taken a TL of $171$ lakh to expand their organic chemical unit with a new set of plant and machinery at a total project cost of Rs$.250$ Laks. The interest rate for the Term Loan is $15\%$ p$.$a$.$ The loan will be repaid in $9$ years, starting with $15$ lakh in the first year of operation and an additional $1$ lakh every year after that. The depreciation rate shall be applied with the WDV method $15\%$ p$.$a$.$ and taxo$+25\%.$

The estimated EBITDA for the expansion unit is as follows.

Rs$.$ In Lakh

$\backslash$table$[[,1,2,3,4,5,6,7,8,9],[$EBDIT$,60,61,62,60,65,70,72,72,74]]$

You have to complete the calculation of the Debt Service Coverage ratio of the project till the complete repayment of the TL$.$ Also, if the bank has stipulated that the minimum DSCR should not be under $1\mathrm{.}5$ at any point, are there any incidents of non$-$compliance with the covenants?

$[20]$