Kajaria Ceramics Limited has provided a Standby Letter of Credit (SBLC) of ₹3.75 crore (equivalent to NPR 6 crore) through the State Bank of India. This SBLC is in favor of Everest Bank Limited, the Lead Bank of the Consortium of Nepalese Banks, and is against a Term Loan of NPR 12 crore (equivalent to ₹7.50 crore) being availed by Kajaria Ramesh Tiles Limited, Nepal, a joint venture company. Mr. Chetan Kajaria, Vice Chairman, and Mr. Rishi Kajaria, Managing Director, who are members of the Promoter Group, also serve as directors of Kajaria Ramesh Tiles Limited, Nepal. The company has obtained prior approval from its Audit Committee for providing the SBLC, and the transaction has been conducted at an arm's length basis. While there is no immediate financial impact on Kajaria Ceramics Limited, there is a potential contingent liability to the extent of the SBLC amount.
