Clause 49 of the Listing Agreement with Stock Exchange requires that the company shall formulate a policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions.
This policy is framed as per the requirement of Clause 49 of the Listing Agreement entered into by the Company with the Stock Exchange.
The company has the following policy on materiality of Related Party Transactions:
Material Transactions will be determined as per the following rules:
|Sl. No.||Category of Transactions||Material Related Party Transactions - Companies Act 2013||Material Related Party Transactions – Clause 49 of the Listing Agreement|
|1||Sale, purchase or supply of any goods or materials;||Exceeding 10% of turnover or Rs. 100 crore, whichever is lower||If the transaction or transactions exceeds 10% of annual consolidated turnover.|
|2||Selling or otherwise disposing of, or buying property of any kind;||Exceeding 10% of net worth or Rs. 100 crore, whichever is lower|
|3||Leasing of property of any kind;||Exceeding 10% of net worth or 10% of turnover or Rs. 100 crore, whichever is lower|
|4||Availing or rendering of any services;||Exceeding 10% of turnover or Rs. 50 crore, whichever is lower|
|5||Such Related Party’s appointment to any office or place of profit in the company, its subsidiary company or associate company||At a monthly remuneration exceeding Rs. 2.5 lakh|
|6||Underwriting the subscription of any securities or derivatives thereof, of the company||Exceeding 1% of net worth|
All Related Party Transactions, except those entered into by the Company with its wholly owned subsidiaries, shall require prior approval of the Audit Committee.
The Audit Committee may grant omnibus approval for Related Party Transactions proposed to be entered into by the company subject to the following conditions:
All kinds of transaction specified under section 188 of the Companies Act and which are not in the ordinary course of business and at arm’s length basis, will be placed before the Board for its approval before it is implemented.
All material related party transactions, except those entered into by the Company with its wholly owned subsidiaries (for which no approval is required), shall be entered into only after the approval of the Shareholders of the Company through a special resolution.