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 ₹10 crore (₹100 million) on behalf of its subsidiary, Aceware Fintech Services Private Limited, to secure credit facilities availed from IDFC FIRST Bank Limited. The guarantee was issued on 24th September 2025, following board approval from May 2025. The promoters/promoter group have interest only to the extent of equity held and nominee directorships in the subsidiary, and the transaction is conducted at arm's length basis. This guarantee will appear as a contingent liability in the company's standalone financial statements, while the subsidiary's actual borrowings will be reflected in the consolidated financials.
This is a parent company standing as guarantor for its subsidiary's borrowing, which increases contingent liabilities on the standalone books. While it supports the subsidiary's growth and working capital needs, shareholders should monitor the subsidiary's ability to service this debt, as any default would fall back on Radiant Cash Management Services.