Corporate Guarantee Approval
The Board approved providing a corporate guarantee in favour of Bank of Baroda for credit facilities aggregating ₹30.00 crore sanctioned to Solapur Bioenergy Systems Private Limited (SBESPL), a wholly owned subsidiary. The sanction letter was dated October 6, 2026.
Facility-wise Details:
- Working Capital Demand Loan/Overdraft for Raipur BPCL project: ₹9.50 crore
- Working Capital Demand Loan/Overdraft for Mysuru BPCL project: ₹9.50 crore
- Overdraft for existing business: ₹1.00 crore
- Bank Guarantee facility for BPCL projects: ₹10.00 crore
Aggregate Sanctioned Facilities:
- Fund-based facilities: ₹20.00 crore
- Non-fund-based facilities: ₹10.00 crore
- Total: ₹30.00 crore
Promoter Interest Disclosure:
Mr. Sarang Bhand, Promoter and Managing Director of the Company, is also Promoter Director of SBESPL and is interested in the transaction to that extent. The transaction is conducted at arm's length.
Impact Assessment:
The guarantee creates a contingent financial exposure for the Company. In the event of default by SBESPL and invocation of the guarantee, the Company may be required to discharge the guaranteed obligations. The facility is intended to support the subsidiary's working capital and project execution requirements.
Deed of Indemnity Approval
The Board approved execution of a Deed of Indemnity in favour of Kiwi General Insurance Limited in connection with Insurance Surety Bonds issued or proposed to be issued on behalf of SBESPL for meeting performance-security requirements of its project contracts.
Underlying Projects:
- Mysuru CBG project awarded by Bharat Petroleum Corporation Limited (BPCL)
- Raipur CBG project awarded by Bharat Petroleum Corporation Limited (BPCL)
- Gorakhpur project with work order from Indian Oil Corporation Limited (IOCL)
Financial Details:
- Aggregate contract value: Approximately ₹101.55 crore (including GST)
- Aggregate EPC performance security: Approximately ₹10.80 crore
Promoter Interest Disclosure:
Mr. Sarang Bhand, Promoter and Managing Director of the Company, is also Promoter Director of SBESPL and is interested in the transaction to that extent. The transaction is conducted at arm's length.
Impact Assessment:
The indemnity creates a contingent financial exposure for the Company. If a claim is made under the Insurance Surety Bonds and the indemnity is invoked, the Company may be required to discharge its obligations. The arrangement is expected to help SBESPL preserve working capital and cash flow for project execution.
Meeting Details
The Board meeting commenced at 4:15 PM and concluded at 5:01 PM on October 12, 2026.
Compliance Officer
Manoj Kumar, Company Secretary & Compliance Officer (Membership No.: A56992) signed the disclosure.