Citing the relevant provision as per SEBI (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2024 (December 12, 2024) {SEBI notification dated December 12, 2024 vide No. SEBI/LAD-NRO/GN/2024

CS Professional · Compliance Management, Audit and Due Diligence · PYQS · December 2025
Citing the relevant provision as per SEBI (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2024 (December 12, 2024) {SEBI notification dated December 12, 2024 vide No. SEBI/LAD-NRO/GN/2024/218} answer the questions below; Out of following Unlisted subsidiary companies, how many companies will be counted as Material subsidiary for JKT Limited (Listed Entity) for the Financial Year 2024-25. JKT Limited Consolidated Turnover-550 Crore (₹) Turnover of Subsidiary Companies : A Limited-45 Crore (₹) B Limited-54 Crore (₹) C Limited-70 Crore (₹) Your answer should be based on the provision of the law.

Answer & Explanation:

According to Regulation 16(1)(c) of SEBI (LODR) regulations, 2015; 'Material Subsidiary' means a subsidiary, whose Turnover or net worth exceeds ten per cent (10%) of the consolidated Turnover or net worth, respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year. Hence, C Limited will be counted as Material Subsidiary because 10% of the Consolidated Turnover will be ₹55 Crore & Only C Limited has Turnover ₹70 Crore.

Topics: SEBI (LODR) Regulations

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic