Kajaria Ceramics Limited — Others, 15-05-2025: Giving guarantees/indemnity/ becoming a surety for third party

Kajaria Ceramics has extended a standby letter of credit of INR 6.87 Cr via State Bank of India to support the working capital facility of its Nepalese joint venture, Kajaria Ramesh Tiles Limited. This SBLC secures a working capital limit of NPR 86 crores (approx. INR 53.75 Cr) from a consortium led by Everest Bank. The promoters serve as directors in the JV, and the deal was approved by the Audit Committee at arm’s length. While there is no immediate financial impact, this arrangement creates a contingent liability for Kajaria Ceramics.