PIC CARD of OME FOR WEDDING Service...
Key Transaction Details
Olympic Cards Limited has fully repaid and closed its existing bank loan facilities availed from HDFC Bank. The outstanding bank loan amount was ₹8.40 Crores.
The company is in the process of obtaining a "No Due Certificate" from HDFC Bank. The process to release the charges on the assets pledged for this loan is underway.
Replacement Financing
To facilitate the bank loan repayment, the company has availed interest-free unsecured loans from its directors:
- Mr. N. Mohamed Faizal, Managing Director: ₹4.00 Crores
- Mrs. S. Jarina, Non-Executive Director: ₹4.40 Crores
Total director loans: ₹8.40 Crores
Governance and Compliance
The terms and conditions of the loans received from the directors are stated to be in compliance with the provisions of the Companies Act, 2013 and the rules made thereunder.
Since these transactions are with related parties, they have been reviewed and approved by the Audit Committee and the Board of Directors in their respective meetings. The approvals ensure the transactions are at arm's length and in the ordinary course of business.
Financial Impact
The disclosure indicates a shift from secured bank debt to unsecured director loans, eliminating interest expenses on the ₹8.40 Crore facility. The financial impact of interest savings is not quantified in the disclosure.