Policy for Identification of 'Material' Litigation
In terms of the SEBI ICDR Regulations, the Issuer shall disclose all the litigations involving the Issuer, its directors, promoters, Group Companies and subsidiaries, related to:
- All criminal proceedings;
- All actions by statutory / regulatory authorities; and
- Taxation - Separate disclosures regarding claims related to direct and indirect taxes, in a consolidated manner giving details of number of cases and total amount.
Besides the abovementioned litigations, other material pending litigations, as per policy of materiality defined by the Board shall also be disclosed in the Offer Documents.
In this regard, all other pending litigation involving the Issuer, its directors, promoters, group companies and subsidiaries, other than criminal proceedings, statutory or regulatory actions and taxation matters, would be considered ‘material’ for the purpose of disclosure in the Offer Documents, if:
- The monetary amount of claim by or against the entity or person in any such pending matter(s) is in excess Rs. 20 million; or 5% of the net profits after tax of the Company for the most recent audited fiscal period whichever is higher
- Such pending cases are material from the perspective of the Issuer’s business, operations, prospects or reputation.