Antony Waste subsidiary gets ₹2.83 Crore guarantee from parent
Antony Waste Handling Cell Limited has provided a corporate guarantee of ₹2.83 Crore to its subsidiary, Mumbai Eco Solutions Private Limited. This guarantee is for credit facilities availed by the subsidiary from ICICI Bank Limited. The guarantee represents 51% of the subsidiary's total principal amount.
The guarantee amount of ₹2.83 Crore is significant relative to the subsidiary's debt, and it represents a contingent liability for the parent company. While not an immediate financial impact, it could become material if the subsidiary defaults on its obligations.
The announcement is a standard corporate action where a parent company provides a guarantee for its subsidiary's debt. While it introduces a contingent liability, it does not immediately impact the company's financials unless the subsidiary defaults.
Antony Waste Handling Cell Limited has issued a corporate guarantee in favor of ICICI Bank Limited on behalf of its subsidiary, Mumbai Eco Solutions Private Limited. The guarantee is for credit facilities availed by the subsidiary, amounting to 51% of the total principal sum of ₹2,82,83,388 (Rupees Two Crore Eighty-Two Lakh Eighty-Three Thousand Three Hundred and Eighty-Eight Only).
This corporate guarantee represents the company's proportionate share of the aggregate guarantee extended for the subsidiary's facilities. The promoter/promoter group/group companies have no interest in this transaction, and the guarantee is issued at arm's length.
The issuance of this corporate guarantee is not expected to have an immediate impact on Antony Waste Handling Cell Limited, except in the event that Mumbai Eco Solutions Private Limited is unable to meet its repayment obligations to the lender. The guarantee constitutes a contingent liability for the company.
A plain-language summary of a public exchange filing by Antony Waste Handling Cell Limited. Read the original for the full detail.