Please be informed that the Company has paid the financial guarantee amount of USD One Million to CITI Bank N.A., Dubai in respect of Standby Letter of Credit (SBLC) issued by Citi Bank, ....
GREENPLY · price
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Greenply Industries has paid USD 1 million (approximately Rs 9.48 crores) to Citi Bank N.A., Dubai as a financial guarantee payment for a Standby Letter of Credit (SBLC) issued for its overseas subsidiary Greenwud Panel Limited (formerly Greenply Middle East Limited) in Dubai. The guarantee was issued during the period May 2025 to May 2026. Due to adverse geo-political conditions in the Middle East, the subsidiary's business performance fell short of approved budgets over a sustained period, impacting recoverability of the guarantee. The company has recorded an impairment provision of Rs 9.48 crores for FY2026 and states it has no further liability against this guarantee.
This is a negative development as the company had to honour a financial guarantee for a struggling overseas subsidiary, resulting in a Rs 9.48 crore charge to its books. While the liability is now fully extinguished, it signals stress in the company's overseas operations and highlights contingent liability risks from group entities.