Summary of Key Information:
Reporting Period (Quarter/Year): Not Applicable
Nature of Filing / Announcement: Outcome of Board Meeting and disclosure under Regulation 30 of SEBI LODR Regulations
Audit Opinion:
Not Specified
Key Financial Highlights:
Not Specified
Corporate Actions:
The Board approved providing Security and Corporate Guarantee in favor of AU Small Finance Bank Ltd. to secure a Dropline Overdraft facility of INR 2.50 crore (Indian Rupees Two Crore Fifty Lakhs only) to be availed by Ten 11 Hospitality Private Limited (formerly known as Ten 11 Hospitality LLP).
The guarantee covers the principal amount along with all interest, additional/enhanced interest, fees, commissions, charges, costs, expenses and legal costs payable in connection with the facility.
The Company will provide:
- A Letter of Guarantee
- A Fixed Deposit of INR 1 crore (Indian Rupees One Crore only) as collateral
- The collateral arrangement is for an initial period of one year, with an auto-renewal provision until the tenure of the loan
The Company shall charge a guarantee commission to Ten 11 Hospitality Private Limited, which shall be benchmarked at the end of the financial year.
The Company shall be entitled to recover from the borrower all amounts paid or liability incurred pursuant to such Guarantee, as per Agreement to be executed between the parties.
Other Significant Information:
Impact Assessment: The proposed arrangement constitutes a contingent liability and does not result in any immediate cash outflow. Based on the current financial position and expected cash flows of the subsidiary, the Company does not foresee invocation of the Corporate Guarantee. Except for the temporary restriction on the utilisation of the fixed deposit placed as collateral, the Company does not expect any material impact on its financial position or liquidity.