Key Quantitative Figures
- Corporate guarantee amount: ₹13,75,00,000 (Rupees Thirteen Crores and Seventy Five Lakhs only)
- Revised cash credit (CC) limit: ₹45.00 crores (enhanced from ₹31.25 crores)
- Total revised credit facilities: ₹55.04 crores
- Term loans: ₹7.54 crores
- BG limit: ₹2.50 crores
Parties Involved
- Guarantor: SMT Engineering Limited
- Beneficiary: Sai Machine Tools Private Limited (Wholly Owned Material Subsidiary)
- Bank: Punjab National Bank
- Additional security provider: Mr. Ashok Jaiswal (Promoter and Director of the Company)
Security Details
Mr. Ashok Jaiswal provided additional security by extending his land bearing Survey no. 27/1 admeasuring 0.759 hectare at village: Brahman Piplya, Tehsil: Sanwer, District: Indore to secure the facilities.
Transaction Nature
- Arm's length basis transaction
- None of the Promoters or Members of Promoters Group or Directors of the Company are interested in this transaction
Financial Impact
Total guarantee has been provided on behalf of a Wholly Owned Subsidiary of the Company which is part of the consolidated group. At this point, there is no impact of this guarantee on the Company other than disclosure in the Financial Statements as a Contingent Liability.
Purpose/Rationale
The corporate guarantee is being extended to enhance the existing cash credit limit facility from Punjab National Bank for the wholly-owned material subsidiary.