SEBI LODR defines a material subsidiary by reference to its turnover or net worth as a proportion of the listed entity’s consolidated figures for the immediately preceding accounting year. A listed entity may adopt a more conservative threshold, but not a more relaxed one.
The disclosure obligation arising from events or information at a subsidiary is a different question from whether that subsidiary is itself material.
The emphasis is on the materiality of the event or the information. Whether the subsidiary crosses the threshold is not the determining factor.
Managing that distinction across every subsidiary is what disclosure obligation tracking across group entities in Affinisio(DMR) is built for, keeping the related compliances on one record.
