HTML is giving 8 cr loan to JHS, which will be paid back after 5 years. Assuming 12% COC to HTML, interest will be close to 6.2 cr, JHS on the other hand agrees to give business to HTML of 10 cr over next 5 years. So, HTML is getting close to 4 cr out of this deal (secured loan type of arrangement).
For JHS, this is a good deal seeing its requirements for marketing. At the end, JHS will be paying 10 cr, for which they have managed to get working capital loan of 8 cr (for next 5 years). Assuming they had raised these from somewhere else at 12%, it would have costed them close to 6.2 cr (interest).
So bottomline - JHS is getting ad space worth 10 cr for next 5 years at mere 3.8 cr.
Correct me if i am wrong.