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Question no . 2 : Recently, Avon Pvt . Ltd has taken a TL of 1 7 1 lakh to expand their organic chemical unit
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Recently, Avon Pvt Ltd has taken a TL of lakh to expand their organic chemical unit with a new set of plant and machinery at a total project cost of Rs Laks. The interest rate for the Term Loan is pa The loan will be repaid in years, starting with lakh in the first year of operation and an additional lakh every year after that. The depreciation rate shall be applied with the WDV method pa and tax
The estimated EBITDA for the expansion unit is as follows.
tableEBDIT
You have to complete the Ialculation 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 at any point, are there any incidents, of noncompliance with the covenants?
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