Popular Vehicles and Services Limited has filed a regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding the continuation of corporate guarantees for its wholly-owned subsidiaries.
The company is continuing to extend two corporate guarantees in favor of State Bank of India:
- Corporate guarantee of ₹30,00,00,000 (Rupees Thirty Crores only) for Popular Mega Motors (India) Private Limited, a wholly owned material subsidiary, relating to renewal of Credit Facility under Electronic Dealer Funding Scheme
- Corporate guarantee of ₹18,50,00,000 (Rupees Eighteen Crores Fifty Lakhs only) for Popular Autoworks Private Limited, a wholly owned subsidiary, relating to renewal of Credit Facility under Electronic Dealer Funding Scheme
Annexure I Details (Popular Mega Motors)
Party Details: Popular Mega Motors (India) Private Limited
Promoter/Group Interest: Popular Mega Motors is a Wholly Owned Subsidiary of Popular Vehicles and Services Limited. Mr. Naveen Philip, Managing Director of the Company, is also the Managing Director of Popular Mega Motors. Mr. Jacob Kurian, Independent Director of the Company, serves as an Independent Director of Popular Mega Motors. The transaction is done at Arm's Length basis.
Guarantee Details: Corporate Guarantee in favor of State Bank of India for renewal of Credit Facility under Electronic Dealer Funding Scheme up to ₹30,00,00,000/
Impact: The guarantees are provided on behalf of the wholly owned subsidiary which are part of the consolidated group. At this point, there is no impact on the Company other than disclosure in the Financial Statements.
Annexure II Details (Popular Autoworks)
Party Details: Popular Autoworks Private Limited
Promoter/Group Interest: Popular Autoworks is a Wholly Owned Subsidiary of Popular Vehicles and Services Limited. Mr. Naveen Philip, Managing Director and Mr. John Kuttukaran Paul, Whole-time director of the Company, serve as Directors on the board of Popular Autoworks. Mr. Francis Kuttukaran Paul, Promoter of the Company, also serves as a Director of Popular Autoworks. The transaction is done at Arm's Length basis.
Guarantee Details: Corporate Guarantee in favor of State Bank of India for renewal of Credit Facility under Electronic Dealer Funding Scheme up to ₹18,50,00,000/
Impact: The guarantees are provided on behalf of the wholly owned subsidiary which are part of the consolidated group. At this point, there is no impact on the Company other than disclosure in the Financial Statements.
Total Guarantee Amount
₹48,50,00,000 (Forty-Eight Crores Fifty Lakhs)