Corporate guarantee up to INR 45,09,00,000 approved for subsidiary's term loan

Corporate guarantee to be issued for a term loan taken by subsidiary Clean Max Patagonia Private Limited.

Wed 7 Oct 2026

Guarantee Amount (ceiling)

not exceeding INR 45,09,00,000

Approving Body

Risk Management Committee

Approval Date

7 October 2026

What was announced

The Risk Management Committee of the Board of Directors of the company, on 7 October 2026, approved the issuance of a corporate guarantee for the facility being availed by Clean Max Patagonia Private Limited, which is a subsidiary of the company.

The guarantee will be extended in favour of the lender, as security in respect of the term loan facilities availed by Clean Max Patagonia Private Limited.

How much is the guarantee

• The guarantee is for an amount not exceeding INR 45,09,00,000 (Indian Rupee Forty-Five Crore Nine Lakh only).
• The guarantee covers term loan facilities availed by the subsidiary.

What a corporate guarantee means

In simple terms, a corporate guarantee is a promise by the company that it will stand behind a loan taken by the subsidiary. If the subsidiary does not repay as per the loan terms, the lender can look to the company for repayment. The company itself has not borrowed this money; it has given a commitment covering the subsidiary's borrowing.

What the company says about the impact

• The corporate guarantee provided will be a contingent liability for the company.
• The guarantee has been provided on behalf of a subsidiary of the company which is part of the consolidated group.
• As on date, there is no impact of this guarantee on the company.

Other points the update makes

• The promoter, promoter group and group companies are not interested in this transaction.
• The corporate guarantee will be at arm's length.
• The disclosure will be made available on the company's website.

How a reader can look at this

A contingent liability does not by itself mean an outflow today; the amount becomes payable only in a situation where the subsidiary does not meet its repayment obligations. For an investor tracking the group, the figure to note is the INR 45,09,00,000 ceiling on the guarantee, since that is the maximum exposure the company has committed to under this corporate guarantee.

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