Poonawalla fincorps
Poonawalla fincorps

Debt service coverage ratio

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 April 2013 a business concern always wants to use some debt capital within the statutory upper limit i.e 2:1 debt equity ratio.therefore,a firm may plan to repay one long term loan by tapping another long term source.in that case the denominator used in the debt service coverage ratio seems to be unreasonably high


plz explain this paragaph
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C A S.S.Agarwal, M.Com.,LL.B,

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C A S.S.Agarwal, M.Com.,LL.B, (Expert)
28 May 2013 you increase the creditors and partly take another T/L

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