Pet Plastics has approved a corporate guarantee worth ₹53 crore to secure credit facilities for its wholly owned subsidiary and a company director. The Board of Directors ratified the proposal during a meeting held on September 18, 2026.

The guarantee is provided in favor of Buldana Urban Co-operative Credit Society Limited. It covers two distinct financial obligations linked to the operations of Penganga Sakhar Karkhana Private Limited.

Transaction Details

The total exposure of ₹53 crore comprises an existing term loan facility and a newly sanctioned loan. The breakdown of the guaranteed amounts is as follows:

Mr. Balasaheb Eknath Gunjal serves as a director of Pet Plastics. The company disclosed that the loan sanctioned to him is intended for the business requirements of Penganga Sakhar Karkhana Private Limited.

Regulatory Disclosures

The transaction involves related parties. Penganga Sakhar Karkhana Private Limited is a wholly owned subsidiary, and Mr. Gunjal is a director. Pet Plastics stated that the corporate guarantee is being provided to facilitate the ordinary course of business for the subsidiary. The company affirmed that the transaction was conducted on an arm’s length basis.

The disclosure was made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the company referenced SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, regarding the detailed disclosure requirements.

What the Numbers Show

The guarantee creates a contingent liability on the books of Pet Plastics to the extent of ₹53 crore. The company clarified that there is no direct immediate financial impact unless the lender invokes the guarantee. This structure allows the subsidiary to access necessary working capital for sugarcane harvesting without immediately altering the parent company’s cash flow, though it increases off-balance-sheet risk exposure.

Pet Plastics shareholders approved a ₹40 crore convertible warrant issue and the appointment of three new directors at its 41st Annual General Meeting on September 16, 2026. The consolidated scrutinizer’s report confirms that all 11 resolutions passed with 100% voting support, reflecting unanimous backing from participating members.

The Mumbai-based company also secured approval to increase its authorized share capital from ₹50 lakh to ₹40.5 crore and shift its registered office from Mumbai to Pune. The meeting commenced at 12:00 pm and concluded at 12:45 pm at the company's registered office in Chembur. As on the cut-off date of September 9, 2026, the company had 280 members holding 5,00,000 equity shares of ₹10 each.

Voting Results Overview

The scrutinizer, M/s. JK & Associates, consolidated votes cast through remote e-voting and poll. A total of 48 members voted across both modes. While promoter group participation was high for non-conflicted items, interested parties abstained from voting on related resolutions as per SEBI Listing Regulations.

Key Resolutions Passed

Shareholders approved several ordinary and special resolutions during the meeting. The key outcomes include:

• Convertible Warrants: Approval to issue up to 4,00,00,000 convertible warrants at ₹10 per warrant, aggregating up to ₹40 crore, on a preferential basis to promoters and non-promoters. This resolution required exclusion of promoter votes; it was passed based on public shareholder votes alone.
• Authorized Capital Increase: Increase in authorized share capital from ₹50,00,000 (5,00,000 equity shares of ₹10 each) to ₹40,50,00,000 (4,05,00,000 equity shares of ₹10 each).
• Registered Office Shift: Transfer of the registered office from Mumbai to Office No. 503, Marisoft-1, Survey No. 15, Marigold Premises, Pune - 411014, subject to Regional Director confirmation.
• Auditor Appointment: Appointment of M/s. N K Mittal & Associates as statutory auditors for five consecutive financial years from FY27 to FY31.

Board Appointments

The members approved the appointments of three individuals to the board of directors:

• Ketan Ishwarlal Kataria: Appointed as Promoter, Non-Executive Director. He was initially appointed as an Additional Director on August 14, 2026.
• Pravin Shantaram Thigale: Appointed as Professional, Executive Director. He was initially appointed as an Additional Director on August 14, 2026.
• Rahul Chandratre: Appointed as Non-Executive, Non-Independent Director. He was initially appointed as an Additional Director on May 28, 2026.

Strategic Changes

The company also altered its Memorandum of Association to expand its main objects. The new clause enables the business of manufacturing, processing, trading, and dealing in agricultural, horticultural, plantation, and agro-based commodities, including sugar and allied products.

Additionally, the Articles of Association were amended to allow the board to issue securities via preferential offers or private placements in accordance with the Companies Act, 2013 and SEBI regulations.

Related Party Transactions

Shareholders approved material related party transactions for FY27 with entities including Mr. Abhinath Manikrao Shinde, Vyenkatesh Goldcare Private Limited, Vyenkatesh Global Ventures Private Limited, and Bharatam Finotech Private Limited. These transactions are conducted in the ordinary course of business on an arm's length basis. Votes cast by related parties were excluded from the count for this resolution.