Carborundum Universal Limited has informed the Exchange about issuance of Corporate Guarantee in favour of a Subsidiary of the Company.
CARBORUNIV · price
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Carborundum Universal Limited has issued a corporate guarantee to Citibank N.A. on behalf of its South African subsidiary, Foskor Zirconia Pty Ltd (FZL). The guarantee covers up to RAND 50 Million (approximately INR 25.55 Crores) as security for FZL's working capital facility. The guarantee is valid until 18th September 2026 and is treated as a contingent liability in the company's books. Promoters and group companies have no interest in the transaction, and the guarantee is issued at arm's length terms.
This is a routine support for the company's subsidiary operations and represents a contingent liability of about INR 25.55 Crores, which is relatively small compared to a large company like Carborundum Universal. Shareholders are unlikely to see a material impact on the stock unless FZL defaults on its working capital obligations, which would trigger the guarantee.