Samvardhana Motherson International Limited has informed stock exchanges about a penalty order received by its wholly-owned subsidiary SMR Automotive Systems India Limited from Tamil Nadu tax authorities. The disclosure was made under Regulation 30 of SEBI Listing Regulations on December 14, 2023.

Penalty Details and Authority

The Commercial Tax Officer in Kancheepuram (Rural), Tamil Nadu, issued the penalty order dated December 13, 2023. The regulatory action was taken under multiple GST provisions, highlighting compliance issues across different tax categories.

Nature of GST Compliance Issues

The penalty order was issued primarily on multiple grounds related to GST compliance and documentation. The tax authorities identified several areas where the subsidiary allegedly failed to meet regulatory requirements.

The key issues cited in the order include:

• IGST/ITC Discrepancies: Import transactions not appearing in Form 2A/2B
• Service Income Documentation: Non-payment of tax due to missing BRC/FIRC submissions related to service income
• Invoice Linkage Problems: Absence of proper linkage between debit and credit notes with corresponding original invoices
• Export Documentation: Non-consideration of export sales as zero-rated supplies due to non-submission of shipping bills

Company Response and Impact Assessment

Samvardhana Motherson International has clarified that the penalty will not materially affect the company's operations or financial performance. The parent company emphasized that the regulatory action is specific to its subsidiary and does not indicate broader compliance issues.

Legal Recourse and Next Steps

The company has announced its intention to challenge the penalty order through proper legal channels. SMR Automotive Systems India Limited plans to file an appeal against the order to the Appellate Authority within the statutory timeline, indicating the company's confidence in its position regarding the alleged violations.

This regulatory disclosure demonstrates the company's commitment to transparency and compliance with stock exchange requirements, ensuring investors are informed about material developments affecting subsidiary operations.

Samvardhana Motherson International Limited has successfully finalized the purchase of the remaining 10% stake in Motherson Lumen Systems South Africa Pty Ltd, achieving complete ownership of its South African subsidiary. The transaction was completed on December 10, 2025, following the fulfillment of all necessary conditions precedent.

Transaction Overview

The acquisition was executed through Motherson Lumen Holding Ltd, an indirect wholly owned subsidiary of the company. Following this strategic purchase, Motherson Lumen Systems South Africa Pty Ltd has become an indirect wholly owned subsidiary of Samvardhana Motherson International Limited.

Regulatory Compliance

The company had initially announced this acquisition plan through a disclosure dated December 4, 2025. The completion has been duly reported to both BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30(7) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Impact

This acquisition represents a significant step in consolidating Samvardhana Motherson International's ownership structure in its South African operations. The transaction enhances the company's operational control and streamlines its international subsidiary framework.

Key Highlights

The successful finalization of this purchase underscores the company's commitment to optimizing its global subsidiary structure and enhancing operational efficiency across its international network.