Chapter 3: source and coverage limits

# FM3 ratio definitions and source holds
Official full formula sections: https://resource.cdn.icai.org/87739bos280825-ch3.pdf .
Ratios have alternative conventions. Each case states debt/ordinary/proprietary equity, average/closing assets, net credit/all sales, purchases/COGS, operating/PAT returns, days and taxes. No silent substitutions.
Conventional CA-CL working capital distinguished from explicitly requested bank-borrowing-exclusion variant. Current liabilities classification provided; proposed dividend not automatically recognised under every framework.
Post-tax unlevered return uses EBIT(1-t) on explicitly supplied convention, not PAT+gross interest interchangeably. Preference earnings deduction explicit. Cases with no tax/legal assumptions do not establish deductions or statutory payment permissions.
Textbook2:1/1:1/DSCR1.5-2 benchmarks are contextual, not universal safe/mandatory thresholds. Higher-turnover/ROE/Q or market-book ratio not automatically better/overpriced/default verdict. Financial ratios do not guarantee cash timing or replace accounting quality, trends and cash evidence.
Private originals with indicative capped marks only, no official reproduction/live bank completion. No deployment/siteG1/AuthFirestore/spend/old ledger change.