Dixon Technologies (India) Limited has informed the Exchange about giving of guarantees or indemnity or becoming a surety for any third party
DIXON · price
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Dixon Technologies has issued a corporate guarantee of up to USD 10 million (around ₹83-84 crore) in favor of Foxlink India Electric Private Limited on behalf of its wholly owned subsidiary Padget Electronics Private Limited (PEPL). The guarantee will only be triggered if PEPL defaults on invoice payments to Foxlink for raw material purchases. PEPL is an unlisted material subsidiary of Dixon, and the transaction has been carried out at arm's length. The guarantee will be recorded as a contingent liability in Dixon's books.
This is an internal group-level guarantee with no immediate financial impact on Dixon. However, it exposes the parent company to a contingent liability of up to USD 10 million if its subsidiary fails to pay Foxlink. Shareholders should note this as an off-balance-sheet exposure tied to PEPL's raw material purchase obligations.