Saddles International Automotive & Aviation Interiors Pvt Ltd., a subsidiary of Motherson, has received an order from the Employee State Insurance Corporation (ESIC) Pune. The order pertains to a delay in the deposit of contributions for the period September 2020 to January 2022, predating Saddles becoming a Motherson subsidiary. The financial impact is covered by seller indemnity.
ESIC Order Details
Saddles International Automotive & Aviation Interiors Pvt Ltd. (Saddles), now a subsidiary of Motherson, received an order from the Employee State Insurance Corporation (ESIC) Pune on November 20, 2025. This order relates to delays in depositing employer and employee contributions.
Period of Non-Compliance
The ESIC order addresses delays in contributions for the period between September 2020 and January 2022. It is important to note that this period precedes the acquisition of Saddles by Motherson. This means it covers a time before Saddles became a subsidiary of Samvardhana Motherson International Limited (SAMIL).
Financial Implications and Coverage
The ESIC has imposed a penalty of ₹16,05,343 due to delayed payment of the contributions. According to the announcement, there will be no financial impact, as this is covered by seller indemnity and will be recovered accordingly.
Reason for Disclosure Delay
The company stated that the submission of information about the penalty was delayed because it was under review by parties.
Source: BSE