Cash flow Related Covenants Homework Help

Cash flow Related Covenants

Which are intended to restrain cash outflows of the borrowers include:

Restriction on new projects/expansion without prior approval of the financial institution.

 Limitation on dividend payment to a certain amount/rate and prior approval of the financial institutions for declaration of higher amount/rate.

Arrangement to bring additional funds as unsecured loans/deposits to meet overrun/she and,

Ceiling on managerial salary and perks.

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