Dixon Technologies (India) Limited has issued an unconditional guarantee for its wholly owned subsidiary, Padget Electronics Private Limited. The guarantee is in favor of Quanta Computer Inc. for an aggregate limit of US$ 7,000,000. This contingent liability will become effective if Padget becomes a defaulting party on invoice terms with Quanta for the purchase of materials, parts, and components. The company stated there is no immediate impact on Dixon, other than the contingent liability.
Dixon Technologies Issues Subsidiary Guarantee
Dixon Technologies (India) Limited (Dixon) has disclosed the issuance of a guarantee for its unlisted material wholly owned subsidiary, Padget Electronics Private Limited. This guarantee is provided in favor of Quanta Computer Inc. The disclosure is made in compliance with SEBI Listing Regulations and a relevant SEBI Circular.
Guarantee Details
The unconditional guarantee is for an aggregate limit of US$ 7,000,000 (United States Dollars Seven Million only). This guarantee will become effective should Padget Electronics become a defaulting party concerning the invoice terms with Quanta Computer Inc. for the purchase of materials, parts, and components.
Dixon Technologies has confirmed that other than Padget, its Promoter/ Promoter group/ group companies do not hold any interest in this transaction, and the guarantee is provided on an arm’s length basis. The company further stated that there is no immediate impact on Dixon, except for the contingent liability amounting to the guarantee value.
Subsidiary Information
Padget Electronics Private Limited is identified as an unlisted material wholly owned subsidiary of Dixon Technologies (India) Limited.
Source: BSE
