Future Lifestyle to cut guarantee amount for group firms

Future Lifestyle Fashions Ltd (FLFL), part of the Kishore Biyani-led Future group, plans to reduce the limit of guarantee amount provided for group firms to Rs 1,000 crore from Rs 4,000 crore at present.
The company is seeking approval from its shareholders through a postal ballot.
In a notice to its shareholders, FLFL said it proposed to revise the existing limit for providing or giving any guarantee or security, in one or more tranches, to any bodies corporate within Future Group within aggregate limit of an amount not exceeding Rs 4,000 crore at any point of time to Rs 1,000 crore under Section 186 of the Companies Act, 2013.

"The company is proposing to use this limit for making investment in the new businesses or brands, for lending to and providing thereof guarantees and securities for loans, credit facilities availed by any or all body corporate including subsidiary, investee, vendor, joint venture company and alliance partner," it said.