SMR Hyosang Automotive Ltd., an indirect wholly owned subsidiary of Samvardhana Motherson International Limited, has successfully reached a settlement regarding a subcontracting dispute. Following mediation with the Subcontracting Dispute Mediation Committee, the subsidiary has agreed to a settlement payment of KRW 360,000,000 (approximately INR 22.18 million). The company confirmed that this resolution is expected to have no material impact on its overall financial health or business operations.
Settlement Agreement Details
On April 06, 2026, SMR Hyosang Automotive Ltd. formally entered into a mediation agreement to resolve outstanding claims related to subcontracting transactions. The settlement follows a process facilitated by the Subcontracting Dispute Mediation Committee of the Korea Fair Trade Mediation Agency.
Financial Implications
Under the terms of the agreement, SMR Hyosang is required to pay a total sum of KRW 360,000,000. This equates to approximately INR 22,179,600, based on current exchange rates. The payment, which excludes Value Added Tax, is scheduled to be completed by April 27, 2026.
Business Impact
The company has clarified that this settlement is a result of successful mediation, effectively closing the matter. It has been confirmed that this agreement will not result in any material financial impact or negatively affect the operational activities of SMR Hyosang or the parent company, Samvardhana Motherson International Limited.
Source: BSE
