A penalty of €74,592 (approximately INR 79.4 lakhs) has been imposed on SMRC – France, an indirect subsidiary of Samvardhana Motherson, related to social contribution calculation adjustments. The penalty follows an audit for the periods 2022, 2023, and 2024. The company is currently appealing the decision and considering further action, which could reduce the final amount.
SMRC – France Faces Penalty
SMRC Automotive Modules France SAS (SMRC – France), an indirect wholly-owned subsidiary of Samvardhana Motherson International Limited, has received notice of a penalty. This penalty is related to adjustments in social contribution calculations that occurred after an audit. The audit covered the fiscal periods of 2022, 2023, and 2024.
Penalty Details
The imposed penalty amounts to €74,592, which is equivalent to approximately INR 79.4 lakhs (INR 7,940,617). The penalty has been issued by Unions for the Recovery of Social Security Contributions and Family Allowances in France (URSSAF).
Company Response
SMRC – France has initiated an appeal process to reduce the assessment. As a result of the appeal, the reassessment has been reduced to €74,592. The company is also evaluating an additional matter before the Amicable Recourse Commission, which, if successful, could potentially decrease the penalty amount to €70,924.80.
Impact Assessment
The announcement indicates that the penalty is not expected to have a material impact on the financials or operations of SMRC – France or the wider Samvardhana Motherson group.
Source: BSE
