Shree Tirupati Balajee Agro Trading Company Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
BALAJEE · price
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The Board of Directors approved issuance of a corporate guarantee of Rs. 4.09 Crores to Bank of Baroda. This guarantee serves as security for an Additional Working Capital Term Loan facility availed by Jagannath Plastics Private Limited, which is a Material Subsidiary of the company. A promoter, Mr. Binod Kumar Agrawal, has an interest in this transaction as he is a Director and shareholder of the subsidiary. The company states the guarantee is provided on an arm's length basis. In the event the subsidiary fails to meet its repayment obligations to the bank, the parent company would be liable for the guaranteed amount.
Shareholders face potential contingent liability of Rs. 4.09 Crores if the subsidiary defaults on its loan repayment. While the company states there is no immediate impact, this represents a risk exposure that investors should monitor.