Kajaria Ceramics Limited — Others, 12-11-2024: Giving guarantees/indemnity/ becoming a surety for third party

Kajaria Ceramics Limited has announced a board meeting to discuss the sanction of a working capital facility of NPR 86 crores (INR 53.75 crores) for its joint venture, Kajaria Ramesh Tiles Limited, Nepal. The company has provided a Standby Letter of Credit of INR 20 crores (NPR 32 crores) via State Bank of India to support this facility with Everest Bank Limited, the lead bank in the consortium. While there is no immediate financial impact on Kajaria Ceramics, shareholders should be aware of a potential contingent liability linked to the SBLC, which adds a layer of financial risk. This move may enhance operational stability for the joint venture, suggesting a positive outlook for its ongoing projects.