We wish to inform that the Company has issued the Corporate Guarantee for an amount of Rs. 4 Crores (Rupees Four Crore) in favour of State Bank of India, on behalf M/s. Fibcorp Polyweave Private Limited, a subsidiary of the Company.
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Aeroflex Neu Limited has issued a corporate guarantee of Rs. 4 Crores in favour of State Bank of India on behalf of its subsidiary, Fibcorp Polyweave Private Limited. The guarantee is to help the subsidiary secure an export credit and cash credit facility. The transaction was carried out at arm's length basis, and none of the promoters or promoter group have any interest in the deal. The company has stated that this guarantee will only show up as a contingent liability in its financial statements, with no other material impact at present.
For shareholders, this is a routine inter-group support act and does not directly affect the listed company's financials beyond a contingent liability disclosure. Investors should note that the subsidiary's borrowing capacity is now indirectly backed by the parent, which slightly increases Aeroflex Neu's off-balance-sheet exposure.