Kajaria Ceramics Provides ₹3.75 Cr Standby Letter of Credit

Kajaria Ceramics Ltd has provided a Standby Letter of Credit (SBLC) of INR 3.75 crores (NPR 6 crores) through State Bank of India. This SBLC is in favor of Everest Bank Limited, the lead bank for a consortium of Nepalese banks, on behalf of its joint venture company, Kajaria Ramesh Tiles Limited, Nepal. The SBLC is against a Term Loan of NPR 12 crores (INR 7.50 crores) being availed by the joint venture. While there is no immediate financial impact, there is a potential contingent liability for Kajaria Ceramics. The company's Audit Committee has approved this arrangement, confirming it was done at an arm's length.