Organic Recycling Guarantees ₹30 Cr for Subsidiary Solapur Bioenergy
Organic Recycling Systems Limited's Board of Directors has approved providing a corporate guarantee of ₹30.00 crore to Bank of Baroda for credit facilities sanctioned to its wholly owned subsidiary, Solapur Bioenergy Systems Private Limited (SBESPL). Additionally, the company will execute a Deed of Indemnity in favour of Kiwi General Insurance Limited to support SBESPL's project contracts. The guarantee covers fund-based facilities of ₹20.00 crore and non-fund-based facilities of ₹10.00 crore, intended for SBESPL's working capital and project execution. The promoter, Mr. Sarang Bhand, has an interest as a director in SBESPL, but the transactions are conducted at arm's length. The corporate guarantee introduces a contingent financial exposure for Organic Recycling Systems Ltd.
Key Highlights
- Board approved ₹30 Cr corporate guarantee for subsidiary Solapur Bioenergy.
- Guarantee is for credit facilities from Bank of Baroda.
- Deed of Indemnity to be executed with Kiwi General Insurance.
- Transactions are at arm's length despite promoter interest.
- Creates contingent financial exposure for the parent company.
Price Impact
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