Committee Meeting Updates

Gravita India's Finance Committee has approved a corporate guarantee for its material subsidiary, Rashtriya Metal Industries Limited (RMIL). This guarantee is for up to 100 Crore, supporting RMIL's credit facilities which can be up to 600 Crore.

Although RMIL's Managing Director is the daughter of Gravita's Chairman, the company states the guarantee is at arm's length.

This action creates a contingent liability for Gravita, meaning the company would be responsible for the guaranteed amount if RMIL is unable to meet its repayment obligations to lenders.

This move helps secure financing for the subsidiary.