10% Long term Loan (SBI) = ₹10,00,000
Net profit after tax = ₹2,10,000
Tax rate = 30%

On the basis of the above details, Interest Coverage Ratio and Net Profit Before Interest and Tax will be:

4 times, ₹4,00,000

The correct answer is Option (4) - 4 times, ₹4,00,000.

Interest on long term debts = 1000000 x 10/100
                                        = ₹100000

Profit after tax = ₹210000
Tax rate = 30%
Profit before tax = 210000 x 100/70
                        = ₹300000

Profit before interest and tax = profit before tax + interest on debts
                                          = 300000 + 100000
                                          = ₹400000

Interest Coverage Ratio = Net Profit before Interest and Tax / Interest on long-term debts
                                   = 400000/100000
                                   = 4 times