Samvardhana Motherson International Limited , a global design and manufacturing specialist in the automotive industry, has announced the establishment of the Motherson ESOP Trust. This irrevocable employee welfare trust has been set up to administer the company's Employee Stock Option Scheme 2025 (ESOP 2025).

Key Details of the Trust

• Trust Name: Motherson ESOP Trust
• Trust Deed Execution Date: September 30, 2025
• Initial Corpus: Rs. 10,000
• Trustees: Arjun Puri and Gautam Mukherjee

Purpose and Authorization

The trust is authorized to acquire company shares through both primary issuance and secondary acquisition. It will be responsible for transferring these shares to eligible employees upon the exercise of their stock options. This move is in compliance with the Securities and Exchange Board of India (SEBI) regulations for share-based employee benefits.

Implications for Employees

The establishment of this trust signifies Samvardhana Motherson International's commitment to:

1. Attracting top talent
2. Retaining valuable employees
3. Providing incentives for long-term performance

By offering equity-based compensation, the company aims to align employee interests with those of the shareholders, potentially leading to improved company performance and employee satisfaction.

Recent Financial Activity

In addition to the ESOP Trust news, Samvardhana Motherson International has recently engaged in other financial activities. On November 7, 2025, the company issued Commercial Paper worth INR 250 crores.

This commercial paper issuance suggests that the company is actively managing its short-term financing needs, which could be indicative of ongoing operational requirements or strategic initiatives.

The establishment of the ESOP Trust, coupled with the recent commercial paper issuance, demonstrates Samvardhana Motherson International's multifaceted approach to financial management and employee engagement. As the company continues to navigate the global automotive market, these moves may help in maintaining its competitive edge and fostering a motivated workforce.

Samvardhana Motherson International Limited , a prominent player in the automotive component industry, has received a penalty order of ₹38.82 lakh from the Joint Commissioner (ST), GST Appeals, Chennai. The penalty pertains to an alleged non-payment of Goods & Service Tax (GST) on guarantee commission disclosed in the company's consolidated financial statements for the fiscal year 2021-22.

Penalty Details

The penalty order specifically relates to corporate guarantees provided by Samvardhana Motherson to its wholly owned subsidiaries. The details of the penalty are as follows:

Company's Response

Samvardhana Motherson has stated that it had already discharged the applicable GST under its Uttar Pradesh GST registration, which is the place of issuance for the corporate guarantees. The company maintains that this action was in accordance with the GST Act, 2017, and therefore, no further GST or penalty should be levied.

Impact and Future Action

The company has asserted that there is no material impact on its financial or operational activities due to this penalty order. However, Samvardhana Motherson plans to file an appeal against the order within the statutory timeline, given that the GST liability was already addressed under the Uttar Pradesh GST registration.

Investor Relations

The company has scheduled several investor meetings in the coming weeks:

These meetings, while not directly related to the GST penalty issue, demonstrate the company's ongoing engagement with its investors and commitment to transparency.

As the situation develops, stakeholders will be keeping a close eye on the appeal process and any potential implications for Samvardhana Motherson International Limited's financial statements and tax compliance practices.