My assumption is that since Indian Bank has first charge of almost every property of the company(present & future) as a security for the secured term loan, its not easy for a small company to get another secured loan on the same set of assets from another bank. Whether anybody else would be willing to lend the sum at lower interest rate is the question that needs to be answered before deciding that its a red flag. 3 years ago the yearly profit was 4 crores . I would say that for a company based in far flung Solan , it would not be very easy to get an unsecured 7 crores from anyone else .
Disc: Invested and I have no degree in finance or accounting.
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