Intimation on execution of Memorandum of Entry for Deposit of Title Deeds by Material Subsidiary "SAI MACHINE TOOLS PRIVATE LIMITED"
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SMT Engineering Ltd's wholly-owned material subsidiary, Sai Machine Tools Private Limited, has executed a Memorandum of Entry for Deposit of Title Deeds with Standard Chartered Bank to secure credit facilities of Rs. 7.30 Crores. The facility is a Business Working Capital Limit comprising an Overdraft Facility and a Working Capital Demand Loan, sanctioned on 11 December 2025. The security is a mortgage on agricultural/land property at village Bhanwarasala, District Indore, owned by promoter Mr. Ashok Jaiswal. The transaction is classified as a related party transaction since the subsidiary shares common directors and promoters with the parent, and has been carried out at arm's length basis.
The credit facility will boost working capital availability for the subsidiary to fund its business operations. However, it adds to the group's debt obligations and the security is backed by a promoter's personal property, which signals leveraged growth at the subsidiary level.