Intimation regarding Issuance of Corporate Guarantee
BALAJEE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Shree Tirupati Balajee Agro Trading Company Limited has issued a corporate guarantee of Rs. 4.09 Crores to Bank of Baroda. The guarantee secures an Additional Working Capital Term Loan facility taken by its material subsidiary, Jagannath Plastics Private Limited. The company's promoter, Mr. Binod Kumar Agrawal, has disclosed interest as he is a director and shareholder of the subsidiary. The company states there is no immediate impact except contingent liability if the subsidiary defaults on its loan repayment obligations.
Shareholders face potential contingent liability of Rs. 4.09 Crores if the subsidiary fails to repay the loan. This increases the company's off-balance sheet exposure and cross-default risk, though the company has characterized the transaction as arm's length.