Samvardhana Motherson International Limited has issued a corporate guarantee to Mizuho Bank, Ltd. This guarantee is in favor of a credit facility availed by its wholly-owned subsidiary, Motherson Digital Technologies Limited (MDTL). The facility aggregates up to INR 700,000,000 (₹70 crore). The company states there is no material impact on its financial operations or other activities.
Corporate Guarantee Issued for Subsidiary
Samvardhana Motherson International Limited has announced the issuance of a corporate guarantee. This guarantee has been provided to Mizuho Bank, Ltd., supporting a credit facility secured by the company’s wholly-owned subsidiary, Motherson Digital Technologies Limited (MDTL).
Details of the Guarantee
The credit facility availed by MDTL aggregates up to INR 700,000,000, equivalent to Indian Rupees Seven Hundred Million. Samvardhana Motherson International Limited’s corporate guarantee is in place to secure this aforementioned credit facility. The potential liability for the company under this guarantee is capped at the facility amount, plus any accrued interest.
Subsidiary Operations
Motherson Digital Technologies Limited (MDTL) is engaged in the business of software development and related professional services. Its operations encompass web housing, web designing, marketing, internet training, and integrated service provision within the electronics and telecommunication sectors.
Financial Impact Assessment
The company has assessed that there will be no material impact of this corporate guarantee on the financial performance, operations, or any other activities of Samvardhana Motherson International Limited.
Source: BSE
