S.P. Apparels Limited has issued a corporate guarantee of ₹27.96 crores to HSBC Bank as security for a term loan facility availed by its associate company. The textile manufacturer made this disclosure under Regulation 30 of SEBI regulations on April 6, 2026.

Corporate Guarantee Details

The company issued the guarantee to The Hongkong and Shanghai Banking Corporation Limited for an amount of ₹27,96,26,400. This guarantee serves as security for the term loan facility availed by Jumeirah Lanka Pvt Limited, which is an associate company of S.P. Apparels Limited.

Related Party Transaction

The transaction involves a related party interest, as disclosed by the company. Mr. P. Sundararajan, who serves as Chairman & Managing Director of S.P. Apparels Limited, also holds a directorship position in Jumeirah Lanka Pvt Limited. This creates a connection between the guarantor and the beneficiary company through common management.

Financial Impact Assessment

According to the company's disclosure, the corporate guarantee will have minimal operational impact on S.P. Apparels Limited. The primary effect will be the recognition of this guarantee as a contingent liability in the company's financial statements, as required under accounting standards.

Regulatory Compliance

The disclosure was made in compliance with SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company secretary K. Vinodhini signed the disclosure document, ensuring proper regulatory compliance for this corporate guarantee transaction.

S.P. Apparels Limited has successfully completed its postal ballot process, with shareholders approving two important special resolutions through remote e-voting. The company declared the voting results on March 23, 2026, following the conclusion of the e-voting period on March 21, 2026.

Postal Ballot Process Overview

The postal ballot notice was issued on February 11, 2026, with the cut-off date for determining eligible shareholders set as February 13, 2026. The company had 17,054 shareholders as of the cut-off date. The remote e-voting period remained open from February 20, 2026, at 9:00 AM to March 21, 2026, at 5:00 PM.

Resolution 1: Executive Director Re-appointment

The first special resolution concerned the re-appointment and remuneration of Mrs. S. Latha (DIN: 00003388) as Whole-Time Director designated as Executive Director of the company. This resolution received overwhelming shareholder support with 95.92% votes in favour.

Resolution 2: Loan Guarantee Authorization

The second special resolution sought approval for advancing loans, providing guarantees, or offering security in connection with loans availed by persons specified under Section 185 of the Companies Act, 2013. This resolution also passed with substantial majority support, securing 82.93% votes in favour.

Scrutinizer Report and Compliance

Mr. M.D. Selvaraj, FCS, Managing Partner of MDS & Associates LLP, Company Secretaries, Coimbatore, served as the appointed scrutinizer for the postal ballot process. The scrutinizer confirmed that both resolutions were passed with the requisite majority in compliance with the Companies Act, 2013, and SEBI regulations.

The voting process was conducted in accordance with:

• Sections 108 and 110 of the Companies Act, 2013
• Companies (Management and Administration) Rules, 2014
• Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• MCA General Circular No. 3/2025 dated September 22, 2025

The company utilized the services of MUFG Intime India Private Limited as the authorized agency for providing remote e-voting facilities. Both resolutions are deemed to have been passed on March 21, 2026, the last day of the remote e-voting period. The company has submitted the scrutinizer report and voting results to both BSE and NSE as per regulatory requirements under Regulation 30 & 44 of SEBI listing regulations.