Samvardhana Motherson International Limited has made a disclosure under Regulation 30 of SEBI Listing Regulations regarding a regulatory order received by its indirect wholly owned subsidiary.
Details of the Order
Authority: Department of Enterprise and Labour, Spain (Labour Department)
Penalty Amount: Euro 65,000 (equivalent to INR 7.08 million)
Order Date: July 6, 2026
Receipt Date: July 6, 2026 (received by SMRC Spain)
Violation Details
The penalty notice states that during 2025, SMRC Spain entered into temporary agency employment contracts with temporary employment agencies that did not correspond to short-term needs but to structural needs.
Company Response and Impact
SMRC Spain has filed an appeal with the Labour Department against the penalty order. The company states that if the appeal is dismissed, they intend to file a further appeal with the courts in Spain.
Financial Impact: The disclosure explicitly states there is no material impact on the financials, operations, or other activities of the company.
Disclosure Timing Explanation
The delay in disclosure (order received July 6, disclosed July 30) is explained as being due to internal review and assessment, including evaluation of the nature and basis of the notice, potential implications for the entity, and preparation of the appeal filed.