Liqvd Digital relies on demand loans and promoter guarantee

Liqvd Digital relied on demand-payable facilities for its Rs 9.7643 crore of parent-company borrowings outstanding on July 31, 2026. The balance included Rs 3.6345 crore under a State Bank of India cash-credit line secured by receivables and stocks, alongside a Rs 4.15 crore personal guarantee from promoter Arnab Mitra.

How much demand-payable borrowing did Liqvd Digital have?

Liqvd Digital had all of its Rs 9.7643 crore parent-company borrowing balance repayable on demand on July 31, 2026. The amount comprised a Rs 3.6345 crore State Bank of India cash-credit facility, a Rs 3.8952 crore unsecured loan from Concept Communication Limited and a Rs 2.2346 crore unsecured loan from Kenyote Finicorp Limited. Demand repayment means the disclosed facilities do not carry a fixed instalment schedule in the borrowing table.

The company had Rs 12.65 crore of sanctioned parent-company facilities, of which 77.19% was outstanding on July 31, 2026. Secured borrowing represented Rs 3.6345 crore, or 37.22% of the outstanding amount, while unsecured borrowing was Rs 6.1298 crore, or 62.78%. No parent-company term loan, non-convertible debenture, bank guarantee or vehicle loan was reported as outstanding in the July 2026 indebtedness schedule.

Which lenders account for Liqvd Digital's demand loans?

Concept Communication was Liqvd Digital's largest disclosed corporate lender, with Rs 3.8952 crore outstanding against a Rs 5.00 crore sanction on July 31, 2026. The facility carried interest of 9% a year, was classified as a loan from a related party, and was stated to be for business purposes. Both its tenure and repayment terms were listed as repayable on demand.

Kenyote Finicorp had Rs 2.2346 crore outstanding against a Rs 2.50 crore sanction, with interest of 15% a year and the stated purpose of business. The company classified this balance under borrowings from others, including inter-corporate deposits, which are deposits or loans between corporate entities. The Rs 6.1298 crore combined balance of these two lenders was Rs 2.4953 crore larger than the State Bank of India cash-credit balance.

The disclosed rates on the two unsecured corporate loans differed by 6 percentage points, from 9% at Concept Communication to 15% at Kenyote Finicorp. Liqvd Digital states that interest on a majority of its facilities typically ranges from 9% to 15% a year. It also says that certain loans from directors of subsidiaries are interest-free, a category distinct from the two parent-company corporate loans.

What secures Liqvd Digital's working-capital bank line?

Liqvd Digital's Rs 4.15 crore State Bank of India cash-credit facility is secured primarily against the company's receivables and stocks and had Rs 3.6345 crore outstanding on July 31, 2026. Cash credit is a working-capital facility used for operating requirements. The facility carried a stated 10.15% annual interest rate, was renewable every 12 months and was repayable on demand.

The facility also had Credit Guarantee Fund Trust for Micro and Small Enterprises, or CGTMSE, cover and a personal guarantee from Arnab Mitra. The guarantee schedule records Rs 4.15 crore, equal to the full sanctioned cash-credit amount, for a 12-month period. If Liqvd Digital defaults, the disclosure says Arnab Mitra is liable for outstanding amounts, interest, costs, charges, expenses and other monies due.

The facility's continuing availability therefore depends on annual renewal and compliance with its terms, while the underlying security is tied to receivables and stocks. Liqvd Digital says hypothecation, a charge over assets while the borrower retains possession, is typical for its facilities. The guarantee table separately records that no security is available for Arnab Mitra's guarantee itself.

What could create repayment pressure or lender action?

Liqvd Digital says certain facilities prescribe penalties for repayment default, delayed creation of stipulated security or other events of default, with penalties typically ranging from 2% per month. The company may prepay outstanding amounts after giving prior notice, although prepayment may be subject to penalties. Demand repayment does not remove the obligation to meet interest, security and covenant conditions.

The company's indicative list of default events includes non-payment when due, winding up, insolvency, bankruptcy, dissolution, and legal proceedings or investigations that may have a material adverse effect. The list also includes a substantial change in constitution or management without lender consent, or management ceasing to enjoy the lender's confidence. Individual arrangements may contain additional terms that amount to an event of default.

Following default, lenders may declare security enforceable, take possession of hypothecated assets, sell them and apply proceeds to outstanding amounts. Promoter guarantors may become obligated to pay outstanding amounts on demand. Liqvd Digital also discloses restrictive covenants requiring lender consent or prior notification for changes including capital structure, material shareholding, directors or management.

How did the July 2026 debt balance compare with March 2026?

Liqvd Digital reported total borrowings of Rs 9.7930 crore in its capitalization statement at March 31, 2026, compared with Rs 9.7643 crore in the July 31 parent-company borrowing schedule. The July balance was Rs 2.87 lakh lower. The March statement included Rs 9.6745 crore of short-term borrowings and Rs 11.85 lakh of long-term borrowings, including current maturities.

The two disclosures classify debt differently and do not establish a like-for-like movement by facility. The March 31, 2026 capitalization statement was based on restated financial statements and separated short- and long-term debt, while the July 31, 2026 schedule grouped borrowing by security and lender type. March equity was Rs 34.1866 crore and total borrowings-to-equity was 0.29, while the July schedule does not provide an updated equity figure.

At subsidiary level, AdLift Marketing had Rs 55.37 lakh of borrowings on July 31, 2026, including an interest-free Rs 45 lakh demand loan from Rishant Puri and Rs 10.37 lakh under an ICICI Bank vehicle loan. The vehicle loan had a 9.15% annual interest rate, a 60-month tenure beginning in September 2023 and monthly instalments. AdLift Inc had no secured or unsecured borrowings according to the July disclosure.

Conclusion

Liqvd Digital's July 2026 parent-company debt was concentrated in three demand-payable facilities totalling Rs 9.7643 crore. Unsecured corporate loans of Rs 6.1298 crore exceeded the Rs 3.6345 crore bank cash-credit balance, while the bank line linked working-capital borrowing to receivables, stocks, annual renewal and Arnab Mitra's Rs 4.15 crore guarantee.

The disclosed next points to watch are renewal of the 12-month State Bank of India facility and compliance with repayment, security and covenant terms across the demand facilities. Liqvd Digital says it obtained lender consents required for offer-related activities, including changes to capital structure, but lenders may enforce security and call on guarantors if an event of default occurs.