Company enters Inter Corporate Loan Agreement for INR 50 Lac as borrower

Prakash Woollen & Synthetic Mills entered an Inter Corporate Loan Agreement dated October 05, 2026 with Martco Exports Private Limited as Borrower.

Tue 6 Oct 2026

Loan Size

INR 50 Lac

Interest Rate

9.00%

Tenure

6 months (extendable if mutually decided)

What the company has informed the exchange

• Prakash Woollen & Synthetic Mills Limited has entered into an Inter Corporate Loan Agreement dated October 05, 2026 with Martco Exports Private Limited.
• Under this agreement the company is the Borrower and Martco Exports Private Limited is the Lender.
• The purpose stated in the disclosure is to provide temporary financial accommodation (Inter Corporate Loan).

Terms of the agreement

• Size of agreement: INR 50 Lac
• Interest: 9.00%, described in the update as per the prevailing market rate
• Tenure: 6 months, which can be extended as mutually decided if required
• Special rights such as the right to appoint directors, first right to share subscription in case of issuance of shares, or the right to restrict any change in capital structure: recorded as NA

Relationship between the parties

• The update states the parties are not related to the promoter, promoter group or group companies in any manner.
• The related party transaction column is recorded as NA.
• Shareholding, if any, in the entity with whom the agreement is executed is recorded as NA.
• Details of issue price and class of shares, in case of issuance of shares to the parties, are recorded as NA.

What this kind of arrangement means

An inter corporate loan is a borrowing by one company from another company. Here, the company is taking on funds of INR 50 Lac for a stated period of 6 months, at an interest of 9.00%. The company has described the purpose as temporary financial accommodation, which points to a short-term funding need rather than a long-term capital raise.

Because the company is the borrower, the arrangement creates an obligation to repay the amount along with interest as per the terms. The disclosure states that no shares are being issued in connection with this agreement, and no special rights such as board appointment or share subscription rights are attached to it.

What a retail investor can take away

• The arrangement is between the company and a private entity, Martco Exports Private Limited, and is disclosed as an inter corporate loan.
• The key numbers to note are the size of INR 50 Lac, the interest of 9.00% and the tenure of 6 months, with a mutually agreed extension possible.
• The company has stated that the counterparty is not related to the promoter or promoter group, and the transaction is not shown as a related party transaction.

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