SMT Engineering extends ₹13.75 Cr corporate guarantee for WOS

SMT Engineering Ltd has extended a corporate guarantee to Punjab National Bank for its wholly-owned material subsidiary, Sai Machine Tools Private Limited. This guarantee facilitates the enhancement of the subsidiary's existing cash credit limit from ₹31.25 Crores to ₹45 Crores, representing an increase of ₹13.75 Crores. The total revised credit facilities for Sai Machine Tools Private Limited now stand at ₹55.04 Crores, encompassing cash credit, term loans, and a bank guarantee limit. While the transaction is at arm's length, a promoter and director, Mr. Ashok Jaiswal, has also provided his land as security. The corporate guarantee will be disclosed as a contingent liability in SMT Engineering's financial statements.