Yaksha Motors Ltd. is a listed company. It had a turnover of ₹ 450 crore on standalone basis as per the latest audited financial statements. It also has only one subsidiary/ associate company Yaksha Auto Components Ltd.

As per Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a transaction with a related party shall be considered material, if the transactions to be entered into individually or taken together with previous transactions during a financial year, exceeds rupees one thousand crore or ten per cent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity, whichever is lower. Further, w.e.f. July 01, 2019 a transaction involving payments made to a related party with respect to brand usage or royalty shall be considered material if the transactions to be entered into individually or taken together with previous transactions during a financial year, exceed 5% of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity. The consolidated turnover of the listed company Yaksha Motors Ltd. amounts to (₹ 450 + ₹ 70) i.e. ₹ 520 crores as per the latest audited financial statements. The threshold for material related party transaction, would be lower of ₹ 1000 crore or 10% of annual consolidated turnover (i.e. ₹ 52 crore) of Yaksha Motors Limited. Therefore, it would be ₹ 52 crore. For royalty transaction, the threshold for material related party transaction, would be 5% of annual consolidated turnover of Yaksha Motors Limited. Therefore, it would be ₹ 26 crore. Purchase of goods amounting to ₹ 60 crores is a material related party transaction as it exceeds 10% of the annual consolidated turnover of the listed entity (i.e. ₹ 52 crore). Payment of royalty amounting to ₹ 30 crores is a material related party transaction as it exceeds 5% of the annual consolidated turnover of the listed entity (i.e. ₹ 26 crore). Payment of ₹ 15 crores towards supply of service is not a material related party transaction as it is below 10% of the annual consolidated turnover of the listed entity (i.e. ₹ 52 crore).