Date: August 19, 2026

Regulatory Action Disclosure

Nature of Order

  • Motherson Lumen North America Inc., USA (MLNA), an indirect wholly owned subsidiary of Samvardhana Motherson International Limited, received a penalty order from the Department of Treasury - Internal Revenue Service, USA (IRS).
  • The penalty amount is USD 225,000 (US Dollar Two Hundred Twenty Five Thousand only), equivalent to INR 21.53 million.

Details of Alleged Violation

  • The penalty relates to alleged non-reporting of financial transactions between related foreign parties (IRS Form 5472) for financial year 2024.
  • MLNA follows a June 30 financial year for U.S. tax reporting but subsequently changed its U.S. tax year-end to March 31, which was approved by the IRS.
  • While IRS approved the year-end change, its systems were not updated, resulting in an automated penalty notice being generated.

Company Response and Status

  • MLNA has stated that the penalty has been issued in error.
  • MLNA had previously addressed this matter with IRS and received compliance confirmation.
  • MLNA will file an appeal with IRS against the issuance of the erroneous penalty order and seek complete abatement thereof.

Impact Assessment

  • The company states there is no material impact on the financials or on operations or other activities of the company.
  • MLNA will pursue complete abatement of the penalty through the appeal process.

Timeline

  • Penalty order dated: August 10, 2026
  • Order received by MLNA: August 18, 2026
  • Disclosure made to exchanges: August 19, 2026