One of India’s largest industry house Chairman has warned his CEOs of the impending recession and has suggested them to consider following measures:
- Draw down all loans/lines of credits from banks and institutions to max. extent possible
- Conservation of cash to max. extent possible
- Expeditiously finalize pending loan and funding agreements, even if they involve accepting higher interest rates.
- Put on hold any plans for acquisition (unless strategically critical)
- Aggressively implement restructuring of internal cost framework
- Defer non-essential capex and capacity extension.
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While it’s not really important to disclose the company name, the only context about them is that they have the ability to raise funds in no minutes – and the chairman is now talking about lines of credits/difficulty in raising funds/defer acquisition plans etc.
Startups – brace yourself for some tough times!