Related Party Transaction Between Materilal Subsidiaries of the Company, i.e. M/s. Butterfly Ayurveda Private Limited & M/s. Health Care Energy Foods Private Limited
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Sai Capital Ltd has informed that its material subsidiary Butterfly Ayurveda Private Limited will provide a Corporate Guarantee of ₹25 crore to HDFC Bank, to secure credit facilities for another material subsidiary, Health Care Energy Foods Private Limited. Both entities are material subsidiaries of Sai Capital, and the arrangement is between the two subsidiaries, with promoters having no interest and the deal done at arm's length. The proposal has been approved by the Board of Butterfly Ayurveda but still requires clearance from the Audit Committee, Board, and Shareholders of Sai Capital. The company has stated there is no direct financial impact or liability on Sai Capital Ltd itself.
While the guarantee is between two subsidiaries and Sai Capital claims no direct financial exposure, shareholders should note that a ₹25 crore guarantee is a contingent liability — if Health Care Energy Foods defaults on its loans, Butterfly Ayurveda's finances would be impacted, which could affect Sai Capital's consolidated position.