An energy company,Yantra Harvest Energy Private Limitedhas sought a term loan of INR100 million to finance its expansion and growth. The Small Industries Development Bank of India, though convinced of the company's credit worthiness, is worried about the fact that the loan will probably be utilized to develop assets at the site of YHEPL and its clients, has mortgaged all its assets to Urban Cooperative Bank towards working capital.
Thinking about the nature of other issues and YHEPL's cash flow, the bank needs to design a suitable lending product and discover whether financing energy efficiency projects like YHEPL's is a great company strategy. M Manickaraj is affiliated with National Institute of Bank Management.
PUBLICATION DATE: December 19, 2014 PRODUCT #: W14615-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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