Samvardhana Motherson International Limited , a company headquartered in Noida, Uttar Pradesh, has disclosed that its wholly owned subsidiary, Motherson Auto Solutions Limited (MASL), has received a penalty order of INR 10,20,166 from the Assistant Commissioner in Chengalpattu, Tamil Nadu. The penalty was imposed under section 73(9) read with section 17(5) of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, concerning the eligibility of input tax credit availed during the financial year 2021-22.

Penalty Details

The order, received by MASL on September 15, 2025, was issued by the Assistant Commissioner (ST), Maraimalainagar, Chengalpattu, Tamil Nadu. The penalty amount of INR 10.20 lakh specifically addresses issues related to the eligibility of input tax credit claimed by the company during FY 2021-22.

Company's Response

In a disclosure to the stock exchanges, Samvardhana Motherson International Limited stated that there is no material impact on the financials or operations of the company due to this penalty. However, MASL intends to contest the order and plans to file an appeal against the penalty.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Samvardhana Motherson International Limited promptly informed the National Stock Exchange of India Limited and BSE Limited about the development, adhering to its obligations as a listed entity.

About the Company

Samvardhana Motherson International Limited operates through various subsidiaries, including Motherson Auto Solutions Limited, which is at the center of this recent tax penalty.

As the matter is subject to appeal, stakeholders and investors will likely keep a close watch on further developments and the potential financial implications, if any, on the Samvardhana Motherson group.

Samvardhana Motherson International Limited (SAMIL), a global auto component manufacturer, has unveiled ambitious plans to reach $108 billion in revenue by 2030, marking a significant expansion beyond its traditional automotive roots. The company, celebrating its 50th anniversary, has transformed from a pure-play auto component manufacturer to a design, engineering, manufacturing, and assembly (DEMA) specialist.

Diversification and Growth

SAMIL has made substantial strides in diversifying its portfolio:

• Aerospace: From zero presence five years ago to a $250 million business with over $1 billion in order books.
• Consumer Electronics: Constructing a massive facility in Chennai, equivalent to 33 football fields, to manufacture components for a major global brand.
• Energy: Developing a new vertical focused on renewable energy solutions for the group's operations.

Financial Performance and Acquisitions

Despite global challenges, SAMIL has shown robust growth:

• Revenue grew 2.5 times in the last five years
• EBIT increased 3 times
• PAT (Profit After Tax) grew almost 5 times
• Return on Capital Employed (ROCE) doubled from 10.00% to 18.50%

The company completed 23 acquisitions in the past five years, expanding its global footprint and technological capabilities.

Technological Advancements

SAMIL is investing heavily in technology and innovation:

• Developing camera monitoring systems for vehicles
• Expanding capabilities in AI and automation
• Building an in-house IT team of 3,000 engineers to support global operations

Sustainability Focus

The company has set ambitious sustainability targets:

• Aiming to reduce emissions by 50% by 2030
• Planning to achieve carbon net-zero by 2040
• Increasing renewable energy usage by 24% in recent years

Future Outlook

SAMIL's Vision 2030 includes:

• Maintaining a 40% ROCE target for the group
• Continuing its diversification strategy with no country, customer, or component exceeding 10% of revenues
• Exploring opportunities to assemble complete vehicles for OEMs

Laksh Vaaman Sehgal, Vice Chairman of SAMIL, emphasized the company's transformation: "Motherson has successfully transformed from being a pure play auto component company to being a design, engineering, manufacturing, and assembly specialist."

As SAMIL embarks on this ambitious journey, it remains committed to its founding principles while adapting to new industries and technologies, positioning itself as a globally preferred sustainable solution provider across multiple sectors.