Worth Peripherals Extends ₹1 Crore Guarantee for Joint Venture's Working Capital
Worth Peripherals Limited will provide a ₹1 crore guarantee for its Joint Venture, M/s Yash Packers, to renew its working capital facility with Federal Bank. The facility has a 12-month tenure and an 8.30% interest rate.
The guarantee is for a relatively small amount compared to the company's overall operations and is a contingent liability. The announcement does not suggest any immediate financial strain or significant benefit to the company.
The company is extending a guarantee for its joint venture's working capital. While it's a financial commitment, it's a contingent liability and currently has no direct impact on the company. The terms are standard for such arrangements.
Worth Peripherals Limited has announced its decision to extend a Co-Obligancy (Guarantee) for its Joint Venture, M/s Yash Packers. This guarantee is in support of the renewal of a working capital (Cash Credit) facility amounting to ₹1,00,00,000 (Rupees One Crore only).
The facility has been sanctioned by The Federal Bank, as detailed in their Sanction Letter dated 20th August 2026. The guarantee is for a period of 12 months and carries an interest rate of 8.30% per annum, with a 25% margin on stock and book debts.
The company has confirmed that this transaction is conducted on an arm's length basis, and none of the Promoters, Promoter Group, or Directors of Worth Peripherals Limited have any interest in this transaction. The extension of this guarantee is considered a contingent liability for the company and is part of the consolidated group. At present, there is no direct impact on the company from this guarantee.
A plain-language summary of a public exchange filing by Worth Peripherals Limited. Read the original for the full detail.