Professional Documents
Culture Documents
Decision Tree
Decision Tree
1
Situation:
A company named “Renaissance Ltd” belong
to the manufacturing industry which is into
producing fans of every type.
2) To take a debt of complete 10 crores from the Indian Bank @ 11.5% per annum and
repayment will be done in 3 years, there were two conditions in that a) without the
moratorium and b)with the moratorium of 1 year.
3) To take a debt of 7.5 crores from Vivriti Capital Ltd (Non-banking Financial Institution)
@ 9.5% per annum and repayment will be done in 2 years and the remaining 2.5 crores
from Union Bank of India @ 12.5% per annum and repayment will be done in 1 year
without any moratorium.
4) As Renaissance Ltd had a plan of going public after 2 years so coming up with an IPO is
also an option to get the funds, IPO size - 250 crores.
3
Working on Alternative 1 without Moratorium
To take a debt of complete 10 crores from the Bank of Maharashtra @ 13% per annum and repayment will be done in 2 years,
there were two conditions in that a) without the moratorium.
9
THE DECISION TREE ANALYSIS Amount to be Paid
Without Moratorium: 48 Lakhs every month for 2 Years
1
With Moratorium: 10 Lakhs every month for 1 Year and 90
Lakhs every month for next year
3
57 Lakhs every month for 1 Year and 34 Lakhs every
month for the next 2 years
THANK YOU
11