Samvardhana Motherson International Limited (SMIL) has disclosed to the stock exchanges, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the receipt of a penalty order from the Income Tax Department (Ministry of Finance). The penalty pertains to the erstwhile Samvardhana Motherson International Limited for the financial year 2019-20, which was later merged into the Company with effect from January 21, 2022.

Details of the Penalty Order

The Income Tax Department has levied a penalty under Section 270A of the Income Tax Act for an amount of ₹6,11,65,180/- on the erstwhile Samvardhana Motherson International Limited. The order was issued on March 26, 2025, and the company downloaded the order on March 27, 2025, at 1:50 PM.

Merger and Subsequent Implications

The erstwhile Samvardhana Motherson International Limited had merged with the current entity effective from January 21, 2022. Post-merger, any actions or penalties imposed on the erstwhile entity automatically apply to the merged entity, necessitating regulatory compliance and disclosure.

Vivad se Vishwas Scheme 2024 Resolution

Samvardhana Motherson had filed an application under the Vivad se Vishwas Scheme 2024 (VSV), an amnesty scheme initiated by the Income Tax Department to resolve pending litigation. The application was accepted by the Income Tax Department, thereby nullifying the penalty under the VSV scheme. Consequently, the Company asserts that the penalty amount is no longer leviable and no financial burden is expected due to this action.

Financial and Operational Impact

The Company has categorically stated that there is no foreseeable financial impact resulting from the penalty order, as the penalty was nullified under the Vivad se Vishwas Scheme 2024. However, the Company plans to file an appeal against the order as a precautionary measure and remains confident of a favorable outcome based on the merits of the case.

Delay in Disclosure and Review with Advisors

The Company clarified that the delay in disclosure was due to the ongoing review process with legal and tax advisors, ensuring accurate and compliant reporting to the stock exchanges. The disclosure was made after a thorough assessment of the situation, ensuring transparency in line with SEBI regulations.

Compliance and Disclosure under SEBI Regulations

The disclosure has been made in accordance with Regulation 30 of SEBI Listing Regulations, read with Clause 20 of Para A, Part A of Schedule III and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The Company’s prompt action and compliance with disclosure norms reflect its commitment to maintaining corporate governance standards and ensuring transparency with stakeholders.

Summary of the Disclosure:

• Penalty Issued By: Income Tax Department, Ministry of Finance.

• Penalty Amount: ₹6,11,65,180/- for FY 2019-20.

• Order Date: March 26, 2025; Download Date: March 27, 2025.

• Resolution through VSV Scheme 2024: Penalty no longer applicable.

• Financial Impact: No financial impact due to resolution under the scheme.

• Next Steps: Company to file an appeal against the order.

Conclusion

Samvardhana Motherson International Limited has effectively handled the penalty order issued by the Income Tax Department and ensured that there is no financial impact due to the successful application of the Vivad se Vishwas Scheme 2024. The Company has disclosed the information as per SEBI norms and remains committed to ensuring transparency and corporate compliance.

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