Policy for Determination of Materiality of Event / Information

In terms of Reg. 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the policy is framed for determination of materiality of event / information.

The term materiality of contract should be determined with reference to both qualitative and quantitative criteria as follows:

• Quantitative criteria – where the value of contract / order exceeds
  • 2% of turnover, as per the last audited consolidated financial statements of the Company; or
  • 2% of net worth, as per the last audited consolidated financial statements of the Company, except in case the arithmetic value of the net worth is negative; or
  • 5% of the average of absolute value of profit or loss after tax, as per the last three audited consolidated financial statements of the listed entity
• Qualitative criteria:
  • the omission of such information is likely to:
    • result in a discontinuity or alteration of information already available publicly; or
    • result in significant market reaction if the said omission came to light at a later date;
  • if in the opinion of the Board, the event / information is considered material.
• Further, in circumstances where ‘quantitative’ criteria may not be applicable, qualitative criteria may be applied to determine materiality.

Following employees of the Company shall severally have the authority to determine Materiality of any event or information and ensure disclosures of the same are made to stock exchange(s), subject to the provisions of this Policy.