In accordance with the Regulation 16(1)(c) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated this policy for determining material subsidiary of the Company.
This policy sets out the criteria for determining material subsidiary (ies).
The company has the following policy for determining Material Subsidiaries:
- A subsidiary shall be a “Material” subsidiary, if :
- Investment of the Company in the subsidiary exceeds 20% of its consolidated net worth, as per the audited balance sheet of the previous financial year; or
- The Subsidiary has generated 20% of the consolidated income of the Company during the previous financial year.
- The Company, without the prior approval of the members by Special Resolution in its General Meeting, shall not:
- Dispose shares in Material Subsidiary that reduces its shareholding (either on its own or together with other subsidiaries) to less than 50% or cease the exercise of control over the subsidiary except in cases where such divestment is made under a scheme of arrangement duly approved by a Court/Tribunal; or
- Sell, dispose or lease of assets amounting to more than 20% of the assets of the Material Subsidiary on an aggregate basis during financial year unless the sale/disposal/lease is made under a scheme of arrangement duly approved by a Court/Tribunal.