SEBI LODR defines ‘material subsidiary’ as a subsidiary whose turnover or net worth exceeds ten percent of the consolidated turnover or net worth of the listed entity in the immediately preceding accounting year. The explanation allows listed entities a more conservative threshold but not a more relaxed one.
However, management of the disclosures required in relation to events or information from subsidiaries that are material to the listed entity is different.
The emphasis here is on the materiality of the event and/or the information in question. Whether the subsidiary in itself exceeds the 10% threshold is not the determining factor, even assuming it is not material as highlighted above.
Affinisio(DMR) enables you to manage the disclosure obligations across these variations to maintain all related compliances centrally.
