Approved Matters

1. Enhancement in Term Loan Limit to Wholly Owned Subsidiary

  • The Board approved enhancing the unsecured Term Loan Limit granted to Paul Merchants Realtors Private Limited (PMRPL) from ₹100 Crores to ₹150 Crores
  • The Executive Committee of the Board holds a delegated buffer to enhance this further by an additional ₹50 Crores if required
  • Significant Terms and Conditions:
  • Rate of interest shall not be lower than the prevailing yield of one year, three year, closest to the tenor of the loan
  • Current applicable Rate of Interest: 11.00% p.a.
  • Interest rate subject to review on the first day of every quarter
  • Repayment tenure maximum of 3 years
  • Moratorium for interest payment may be allowed as finalized by Executive Committee
  • Impact: Monetary impact on Paul Merchants Limited equals the maximum Term Loan Limit of ₹150 Crores, potentially reaching ₹200 Crores if emergency buffer is utilized

2. Modification of Working Capital Interest Payment Terms

  • The Board approved modification of interest payment terms for the existing unsecured Working Capital Limit of up to ₹25 Crores extended to PMRPL
  • Change from monthly interest payment to half-yearly interest payment
  • Significant Terms and Conditions:
  • Maximum financial exposure: Up to ₹25 Crores (no incremental funding limit enhancement)
  • Interest rate: 10% p.a., subject to quarterly review
  • Interest charged on daily outstanding balance

Related Party Considerations

  • PMRPL is a Wholly Owned Subsidiary of Paul Merchants Limited
  • Directors Sat Paul Bansal and Rajneesh Bansal (Paul Merchants Limited) are also Directors in PMRPL
  • Mrs. Sarita Rani Bansal (Director of PML) is a member of the promoter family and is treated as interested
  • The transaction is not considered a Related Party Transaction under Section 188 of Companies Act, 2013 and Regulation 23 of SEBI LODR Regulations
  • Transaction will be entered into on Arm's Length basis with certification from Statutory Auditors and joint certificate from Managing Director and Chief Financial Officer

Disclosure Rationale

Though the matters do not strictly fall under para A or para B of Part A of Schedule III of SEBI Listing Regulations, the disclosure is made as per Para B(11) of Part A of Annexure 18 of SEBI Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.