Company has informed the Exchange providing corporate guarantee to Energy In Motion Limited.
RELTD · price
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Ravindra Energy Limited (REL) has provided a corporate guarantee to Tata Capital Limited (TCL) to secure outstandings payable by its associate entity Energy In Motion Limited (EIM). The guarantee covers lease of electric commercial vehicles with a maximum lease value of INR 20 crores, capped at 50% of that amount (INR 10 crores). EIM is 49.50% owned by REL, and promoter Mr. Narendra Murkumbi serves as a common director on both boards. The transaction is disclosed as an arm's length arrangement with no immediate financial impact on REL since it is a non-fund based contingent liability. REL states the guarantee is in its overall interest as it helps expand EIM's business operations.
The corporate guarantee represents a contingent liability exposure of up to INR 10 crores for REL. While the company states there is no immediate financial impact, shareholders should monitor this related party transaction as it involves associate entity financing with promoter interest.