Kranti Industries Limited has been notified by the State Bank of India (SBI) concerning a corporate guarantee provided for credit facilities availed by its associate company, Preciso Metall Private Limited. The notice, issued under the SARFAESI Act, follows a default in loan repayments by the associate company, leading to its credit facilities being classified as non-performing assets. The total amount involved is approximately ₹2.27 crore. Kranti Industries is currently reviewing the notice and its legal options.
Corporate Guarantee Under Scrutiny
Kranti Industries Limited has disclosed receipt of a notice from the State Bank of India (SBI) pertaining to a corporate guarantee. This guarantee was extended by Kranti Industries in support of credit facilities obtained by its associate company, Preciso Metall Private Limited. The notice has been issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
Associate Company’s Default
The State Bank of India’s notice follows a default in the repayment of loan installments by Preciso Metall Private Limited. As a result, the associate company’s credit facilities have been deemed irregular, and the outstanding debt has been classified as non-performing assets (NPAs). The amount involved in this corporate guarantee is stated to be ₹2,27,23,173.02/- (Rupees Two Crore Twenty-Seven Lakh Twenty-Three Thousand One Hundred Seventy-Three and Two Paise Only).
Kranti Industries’ Response
The company is currently undertaking a comprehensive review of the notice’s contents. Kranti Industries is evaluating the legal validity of the notice and exploring all available legal remedies. While the company is assessing the situation, it states that there is currently no immediate material financial impact on its operations. Kranti Industries has assured that it will keep the stock exchange informed of any further significant developments related to this matter.
Source: BSE
