1. Corporate Guarantee for Saudi Subsidiary
The Board approved extending a corporate guarantee (bank guarantee) to Likhitha HAK Arabia Contracting Company, a subsidiary in the Kingdom of Saudi Arabia. This guarantee is to secure working capital limits from banks up to an amount of ₹50,00,00,000 (Rupees Fifty Crores Only) for the financial year 2026-27.
Key Details from Annexure-I:
- None of the promoters, members of the promoters group, or directors of the company have any interest in this transaction
- The transaction will be done in the general course of business at arm's length price
- Corporate guarantee to the lender for an amount not exceeding ₹50 crores for FY 2026-27 to secure working capital limits
- The guarantee is provided on behalf of the subsidiary, which is part of the consolidated group
- At this point, there is no impact of this guarantee on the company other than disclosure in the financial statements
- Subject to compliance with regulatory norms if any
2. Corporate Guarantee for UAE Branch
The Board approved extending a corporate guarantee (bank guarantee) to Likhitha Infrastructure Limited-Abu Dhabi, Branch, UAE. This guarantee is to secure working capital limits from banks up to an amount of ₹100,00,00,000 (Rupees One Hundred Crores Only) for the financial year 2026-27.
Key Details from Annexure-II:
- None of the promoters, members of the promoters group, or directors of the company have any interest in this transaction
- The transaction will be done in the general course of business at arm's length price
- Corporate guarantee to the lender for an amount not exceeding ₹100 crores for FY 2026-27 to secure working capital limits
- The guarantee is provided on behalf of the branch office
- At this point, there is no impact of this guarantee on the company other than disclosure in the financial statements
- Subject to compliance with regulatory norms if any
3. Investment/Loan Limits for International Operations
The Board approved making investment/grant loan/provide advance/transfer/sell/lease of asset/equipment to Likhitha HAK Arabia Contracting Company (Saudi subsidiary) and Likhitha Infrastructure Limited-Abu Dhabi (UAE branch) up to the limits of ₹100,00,00,000 (Rupees One Hundred Crore Only) in one or more tranches.
Key Details from Annexure-III:
- Target entities: Likhitha HAK Arabia Contracting Company, Subsidiary, KSA and Likhitha Infrastructure Limited-Abu Dhabi, Branch, UAE
- Nature of relation: Subsidiary (KSA) and Branch Office (UAE)
- Nature of transaction: Investment, loan, advance, transfer, sale, or lease of asset/equipment
- This transaction qualifies as a related party transaction
- None of the promoter/promoter group are interested in the transactions
- The transaction will be done in the general course of business at arm's length price
- Object and effect: To expand the business activities
- Subject to compliance with regulatory norms if any
- Amount of consideration: Up to ₹100,00,00,000 (Rupees One Hundred Crore Only) in one or more tranches