S. P. Apparels Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
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S.P. Apparels Limited has issued a corporate guarantee of Rs. 27.96 crores to HSBC Bank as security for a term loan facility taken by Jumeirah Lanka Pvt Limited, which is an associate company. The guarantee was provided on April 6, 2026. The company's Chairman and Managing Director, Mr. P. Sundararajan, is also a director on the board of Jumeirah Lanka, making this a related party transaction. The company has clarified that there is no direct financial impact other than the guarantee being disclosed as a Contingent Liability in the financial statements.
The guarantee does not have a direct impact on the company's financials in the short term, but it represents an off-balance sheet contingent liability that shareholders should monitor, especially given the related party nature of the transaction.