Based on following information of a company as at 31 March, 2017. Answer question.

The Interest Coverage Ratio of the company will be:

10 times

The correct answer is Option (2) → 10 times

Net Profit before Interest = Net Profit before Tax + Interest on Long & Tax term Debts
                                  =3,51,000 + (13% of Rs. 3,00,000)
                                 = 3,51,000 + 39,000
                                = 3,90,000

Interest Coverage Ratio = Net Profit before Interest & Tax / Interest on Long Term Debts
                                   = 3,90,000 / 39,000
                                   = 10 times