Radiant Cash Management Services Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
RADIANTCMS · price
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Radiant Cash Management Services Limited has issued a corporate guarantee of ₹12 crore (₹120 million) on behalf of its subsidiary, Aceware Fintech Services Private Limited, to secure credit facilities availed from The Federal Bank Limited. The guarantee was approved by the Board on 11th February 2026 and formally issued on 10th March 2026. The transaction has been carried out at arm's length, and promoters are interested only to the extent of their shareholding in the company and nominee directorships in the subsidiary. The guarantee will be shown as a contingent liability in the company's standalone financial statements, while the actual borrowings will appear in the consolidated financials.
This creates a contingent liability of ₹12 crore for Radiant Cash Management Services, meaning shareholders bear indirect risk if the subsidiary defaults on its obligations. However, it also enables the subsidiary to raise growth capital, which could benefit consolidated earnings if utilised effectively.