Kirloskar Electric Board Approves ₹100 Crore Overdraft Facilities from Kotak Mahindra Bank

Mumbai: Kirloskar Electric Company Limited on Monday announced that its board of directors approved securing overdraft facilities amounting to ₹100 crore from Kotak Mahindra Bank Limited.

Overdraft Facilities

The company will avail an overdraft facility of ₹50 crore from Kotak Mahindra Bank. This facility will be secured by a lien on a fixed deposit held by Kirloskar Power Equipments Limited, which is a related party transaction.

Drop Line Overdraft

In addition to the first facility, Kirloskar Electric will also avail a separate 'Drop Line Overdraft' facility of up to ₹50 crore from Kotak Mahindra Bank Limited.

Indemnity Agreement

The board approved the execution of a deed of indemnity in favour of Vijay R Kirloskar, the Executive Chairman and promoter of the company. This indemnity relates to his personal guarantee sought by Kotak Mahindra Bank Limited to secure the company's obligations under the proposed Drop Line Overdraft facility.

Audit Committee Approval

The proposed transactions received approval from the Audit Committee before being recommended to the Board of directors.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.