On April 26, 2025, SBEC Systems (India) Limited officially informed BSE Limited that it has entered into a Term Loan Agreement with SVC Co-operative Bank Limited. This development has been disclosed in compliance with Regulation 30 and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR, 2015), along with the latest SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

According to the intimation submitted by the Company, SBEC Systems (India) Limited has availed a Corporate Term Loan facility amounting to ₹2.62 Crores (Rupees Two Crores Sixty-Two Lakh Only). The loan facility will be utilized specifically for setting up a Solar Power Generation unit, underlining the company’s shift towards renewable energy initiatives.

Key Details of the Term Loan Agreement:

• Name of Lender: SVC Co-operative Bank Limited

• Purpose: To establish a Solar Power Generation Unit.

• Loan Amount: ₹2.62 Crores.

• Company’s Holding in Bank: 50,750 equity shares at ₹10 each.

• Date of Execution: 24th April, 2025.

• Nature of Loan: Secured Corporate Term Loan.

• Security Provided: Includes Mono-Crystalline Modules (530-545 Wp), 100-110 KW Solar String Inverters (9 Nos), Module Mounting Structures, and other ancillary parts associated with the setup of the solar plant. Additionally, a Personal Guarantee by Mr. Umesh Kumar Modi has been furnished.

It is important to highlight that there are no special rights like the right to appoint directors, first right to share subscription, or restrictions on changes in the capital structure as per this agreement. The agreement does not qualify as a related party transaction, and thus, is considered at arm’s length.

Moreover, the disclosure confirms that there is no issuance of shares or nominee appointments associated with this loan transaction, and no potential conflicts of interest have been identified.

Brief on Security Details:

The loan is backed by tangible assets, specifically:

• Mono-Crystalline Solar Modules (530-545 Wp).

• Solar String Inverters (9 Nos., each 100-110 KW capacity).

• Complete Module Mounting Structure (MMS).

• Other supporting and ancillary components required for solar plant setup.

• Personal Guarantee provided by Mr. Umesh Kumar Modi, ensuring additional security for the loan.

These securities ensure that the loan remains well-protected, mitigating the lender’s risk and affirming SBEC Systems' commitment towards the project.

Strategic Significance:

This move towards investing in solar power generation represents a strategic advancement for SBEC Systems as it diversifies into the renewable energy sector. This investment is likely to help the company in:

• Reducing its operational energy costs.

• Achieving greater sustainability.

• Aligning with global trends promoting clean energy usage.

• Possibly unlocking government incentives associated with renewable energy projects.

Conclusion:

With this latest financing arrangement, SBEC Systems (India) Limited reiterates its commitment to innovation and sustainability. This disclosure ensures transparency and provides critical insight into the company’s operational and financial planning to its stakeholders.

Investors and stakeholders should view this update as a positive long-term initiative, considering the growing importance of renewable energy integration into corporate operations. However, it remains crucial to monitor the progress and successful commissioning of the solar project, as well as the efficient utilization of the borrowed funds.

For complete transparency, the company has shared the loan agreement details, securities provided, and confirmed compliance with SEBI LODR regulations, demonstrating a strong corporate governance framework.

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