Board Approves Standby Letter of Credit up to Rs. 30,00,00,000 for China Subsidiary; Audit Committee Reconstituted

Board approved issuing a Standby Letter of Credit of up to Rs. 30,00,00,000 in favour of overseas bank(s) in China, for credit facilities to wholly owned subsidiary Guangzhou Jiawo Import & Export Co. Ltd.

Thu 1 Oct 2026

Standby Letter of Credit Amount

Rs. 30,00,00,000

Beneficiary

Guangzhou Jiawo Import & Export Co. Ltd.

Audit Committee Member Appointment

Mr. Chandru Kalro appointed in place of Mr. Rajendra Gandhi

Audit Committee Chair

Mr. Natrajan Ramkrishna, Non-Executive Independent Director

What was approved

The Board approved issuing a Standby Letter of Credit (SBLC) for an amount not exceeding Rs. 30,00,00,000 in favour of overseas bank(s) in China. The SBLC supports credit facilities for Guangzhou Jiawo Import & Export Co. Ltd., a wholly owned subsidiary in China.

An SBLC works like a backstop guarantee: if the subsidiary fails to pay the lending bank, the bank can call on the parent company. It helps the subsidiary borrow locally on better terms.

Disclosed details

• Promoter / promoter group / group companies are not interested in this transaction.
• The company states that presently there is no impact of this guarantee on the Company.

Audit Committee reconstitution

Mr. Chandru Kalro was appointed as a member of the Audit Committee in place of Mr. Rajendra Gandhi, with immediate effect. Post reconstitution the committee is:

• Mr. Natrajan Ramkrishna, Non-Executive Independent Director, Chairperson
• Mrs. Shuba Rao Mayya, Non-Executive Independent Director, Member
• Mr. Anup Sanmukh Shah, Non-Executive Independent Director, Member
• Mr. Chandru Kalro, Non-Executive Vice Chairperson, Member

How investors may read it

The SBLC signals continued support for the China subsidiary's working capital needs, while creating a contingent obligation of up to Rs. 30,00,00,000 for the parent. The committee change keeps a majority of independent directors on the Audit Committee.

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