Board approves unsecured short-term loan of up to Rs. 10 crores to promoter Andrew Yule for FY 2026-27

Veedol's Board approved giving an unsecured short-term loan of up to Rs. 10 crores to its promoter, Andrew Yule & Company Limited, for the promoter's working capital needs.

Mon 28 Sep 2026

Loan Amount

up to Rs. 10 crores

Interest Rate

12% p.a. simple interest

Repayment Date

31st March, 2027

Promoter Stake

24.30% of Veedol

Security

Unsecured / No security taken

What was decided

At its 356th Board Meeting held on 28th September, 2026, the Board of Veedol Corporation Limited approved providing an unsecured short-term loan not exceeding Rs. 10 crores to Andrew Yule & Company Limited during the financial year 2026-27.

Key terms

• Purpose: short-term unsecured loan for the borrower's working capital
• Interest: simple rate of 12% p.a.
• Repayment: outstanding loan with interest repayable not later than 31st March, 2027
• Security: none

The relationship

Andrew Yule & Company Limited is the Promoter of Veedol and holds 24.30% of Veedol's shares. Veedol does not hold any shares in Andrew Yule. There are 2 common Directors on the boards of both entities. The company states the transaction falls within related party transactions and is done at arm's length.

Status of the loan

Only an enabling resolution has been passed at this stage. Proper documents will be executed later, at the time the loan is actually provided, and details of the amount outstanding will be furnished then. The company notes that the previous loan taken in 2025-26 has been repaid by Andrew Yule & Company Limited.

How investors may read it

This is money the company can lend out of its own funds to its promoter without security, so the perception depends on how comfortable investors are with unsecured lending to a related party. On the other hand, the loan carries a defined interest rate of 12% p.a., a fixed repayment date within the same financial year, and a track record of the earlier year's loan being repaid. The update states the arrangement has no impact on the management or control of the listed entity and imposes no restriction or liability on it.

The meeting began at 2:30 P.M. and concluded at 3:20 P.M.

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