Motherson subsidiary faces South African tax penalty

Samvardhana Motherson International Limited (SMIL) announced its indirect wholly-owned subsidiary, MSSL Global RSA Module Engineering Limited (MSSL RSA), received a penalty from the South African Revenue Services (SARS). The penalty, amounting to ZAR 215,152, stems from adjustments made during corporate tax proceedings for the 2023 tax period.

The finalisation of the audit letter from SARS was received on September 25, 2025. SMIL stated there is no material impact on its financials, operations, or other activities as a result of this penalty.

The company plans to evaluate filing an appeal with the SARS authority within the statutory timeline. The delay in disclosing this information was due to the audit letter raising the penalty being under review by various parties and/or advisors.