The term of related party transaction and
materiality of the same with reference to this
Company shall be recognized as is defined under
clause 49 and the provisions of the Companies
Act 2013 as on date and any amendment thereto
from time to time.
All the transaction with the related parties
would be entered into with the prior approval of
the Audit Committee unless such transactions
entered into are under omnibus approval of the
Audit Committee due to repetitive transactions
of the same nature and with the same related
All the related party contracts/ arrangement
shall be entered into on Arm's length basis.
In case the market price of any transactions/
arrangements are not available or cannot be
ascertained and could not be executed with
outsiders due to secrecy of formula or the
nature of products, such transactions shall be
done as far as possible to the nearing market
price and after citing justification to the
Audit Committee for such transaction and
All contracts/ arrangements shall adhere to the
requirement of the Listing Agreement, provisions
of the Companies Act 2013 and rules made
thereunder and the Accounting Standards.
A maximum sum of Rs. 5.00 Crore during the financial
year has been capped under the omnibus approval
by the Audit Committee for the transactions of
repetitive nature and with the same related
party. All such transactions shall be reviewed
by the committee on quarterly basis. Such
omnibus approvals shall be valid for a period
not exceeding one year and shall require fresh
approval after the expiry of one year.
If any contract or arrangement is entered into
by a Director or any employee without the
consent of the Board or without Special
Resolution in General Meeting due to some
urgency, it shall be ratified by the Board or
General Meeting by way of Special Resolution
within 3 months, as may be required.
In case of contracts/ arrangements with related
party that are not in the ordinary course of
business or at Arm's Length, the Company would
comply with the respective provisions of the
Companies Act 2013 and rules made thereunder.
All the material related party transactions
above threshold limits, other than with exempted
wholly owned subsidiary shall be with the
approval of the respective authority as may be
required from time to time.