ilmscore | Prediction Details
"You can imagine something like this long implementation period let's take an example of three years for an implementation period so when is the project going to be completed after three years but they have taken a short-term financing for this which has to be repaired let's say within a year because as you can see the figures short-term borrowing is way higher than the long-term borrowings, now could this lead to a mismatch what sort of mismatch they have to pay the liability within a year let us say but they may get a major chunk of money from the project let's say after three years now could that lead to a cash Crunch and answer is yes and that is the reason why the company also mentions in the RHP that a failure to renew the arrangements for existing funding or obtain additional financing on acceptable terms in a timely manner it could have an adverse impact on any planned capital expenditure and ultimately it could also impact the revenue of the company."
By CA Rachana Phadke Ranade | August 25, 2023 | Pending
From video
Vishnu Prakash R Punglia Limited IPO Summary | CA Rachana Ranade 00:11:27 - 00:12:13
Interpreted Prediction
There's a risk of a mismatch between short-term financing and long-term project implementation periods, which could lead to a cash crunch and adversely impact capital expenditure and revenue if funding arrangements are not renewed or new financing is not obtained on acceptable terms.

Prediction Details

Topic
Financing Mismatch Risk

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