Bharatam Ventures Limited, formerly Pet Plastics Limited, has approved a corporate guarantee of ₹53 crore. The guarantee backs a ₹45 crore loan for its wholly owned subsidiary, Penganga Sakhar Karkhana Private Limited, and an ₹8 crore term loan for director Balasaheb Eknath Gunjal. The approval creates a contingent liability but does not result in an immediate cash outflow unless the guarantee is invoked.
Bharatam Ventures Approves ₹53 Crore Corporate Guarantee
Corporate guarantee approved: ₹53 crore
Guarantee beneficiaries: ₹45 crore for wholly owned subsidiary and ₹8 crore for a director
Reader Takeaway: Supports financing needs but adds contingent liability without immediate cash outflow.
What just happened
Bharatam Ventures Limited, formerly known as Pet Plastics Limited, has approved the issuance of a corporate guarantee worth ₹53 crore at its Board meeting held on September 18, 2026.
The guarantee has been issued in favour of Buldana Urban Co-operative Credit Society Limited to secure two credit facilities.
The first guarantee covers an existing ₹45 crore term loan availed by Penganga Sakhar Karkhana Private Limited, the company's wholly owned subsidiary. The second covers an ₹8 crore term loan for business requirements of director Balasaheb Eknath Gunjal.
Why this matters
A corporate guarantee does not require an immediate cash payment. However, it creates a contingent liability, meaning Bharatam Ventures could become responsible for repayment if the borrowers fail to meet their obligations.
For shareholders, the key implication is the additional balance-sheet exposure linked to the performance of the subsidiary and the guaranteed borrowing.
What changes now
The company stated that the guarantee has been provided in the ordinary course of business and on an arm's-length basis.
Management said the support is intended to facilitate the operational requirements of Penganga Sakhar Karkhana Private Limited, including activities such as sugarcane harvesting and transport advances.
No fresh equity issuance, capital restructuring or immediate financial outflow arises from this approval.
Risks to watch
Investors should monitor:
- The financial performance of Penganga Sakhar Karkhana Private Limited.
- Whether the guaranteed facilities continue to be serviced without default.
- Any future disclosure regarding invocation or modification of the corporate guarantee.
Unless the guarantee is invoked by the lender, the approval remains a contingent obligation rather than an immediate financial expense.