SMT Engineering Ltd Extends Corporate Guarantee for Subsidiary's Credit Limit Enhancement with PNB
SMT Engineering Ltd, the parent company, has extended a corporate guarantee in favor of Punjab National Bank (PNB) concerning the enhancement of Cash Credit (CC) facilities provided to its Wholly Owned Material Subsidiary, Sai Machine Tools Private Limited. The transaction secures increased working capital limits for the subsidiary.The guarantee involves increasing the existing Cash Credit limit for Sai Machine Tools Private Limited from Rs 31.25 Crores (Rupees Thirty One Crores Twenty Five Lakhs only) to Rs 45 Crores (Rupees Forty Five Crores only).
The transaction details, as provided by SMT Engineering Ltd, show that the total credit facilities extended to Sai Machine Tools Private Limited through PNB include Cash Credit, Term Loans, and Bank Guarantee (BG) Limit.
| Facility Type | Amount (in Crores) |
|---|---|
| Cash Credit (CC) | 45.00 |
| Term Loans | 7.54 |
| BG Limit | 2.50 |
| Total | 55.04 |
In terms of the transaction, SMT Engineering Ltd confirmed that neither the Promoters nor any Directors of the Company have a financial interest in this business arrangement, ensuring the transaction is conducted on an Arm's Length Basis. The guarantee provided by SMT Engineering Ltd is for the benefit of its Wholly Owned Subsidiary within the consolidated group structure.
To secure these working capital facilities, Mr Ashok Jaiswal, who is both a Promoter and Director of the Company, extended his land bearing Survey no. 27/1 admeasuring 0.759 hectare located at village: Brahman Piplya, Tehsil: Sanwer, District: Indore.
Stock Price Movement
As of 12:29, SMT Engineering Ltd shares are ticking down, trading at ₹381.00, which reflects a decline of 4.99%. The equity has fluctuated within the session, reaching an intraday range between a low of ₹380.95 and a high of ₹384.80.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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