XYZ Limited is having three subsidiaries X Ltd., Y Ltd., and Z Ltd. The consolidated income of XYZ Limited is ₹ 300 crore and net worth is ₹ 600 crore. The income and net worth of X Ltd., Y Ltd., and Z Ltd. are as follow

Definition of Material Subsidiary: As per Regulation 16(1)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a "material subsidiary" shall mean a subsidiary whose income or net worth exceeds 10% of the consolidated income or net worth, respectively, of the listed company and its subsidiaries in the immediately preceding accounting year. Given Consolidated Figures for XYZ Limited: Consolidated Income = ₹ 300 crore Consolidated Net Worth = ₹ 600 crore Threshold for Materiality (10%): 10% of Consolidated Income = 10% of ₹ 300 crore = ₹ 30 crore 10% of Consolidated Net Worth = 10% of ₹ 600 crore = ₹ 60 crore Analysis of Subsidiaries: Company Income (₹) Net Worth (₹) Materiality Check (Income > ₹ 30 Cr or Net Worth > ₹ 60 Cr) Status X Ltd. 10 crore 65 crore Income (₹ 10 Cr) < ₹ 30 Cr Net Worth (₹ 65 Cr) > ₹ 60 Cr Material Subsidiary (due to Net Worth) Y Ltd. 45 crore 14 crore Income (₹ 45 Cr) > ₹ 30 Cr Net Worth (₹ 14 Cr) < ₹ 60 Cr Material Subsidiary (due to Income) Z Ltd. 10 crore 18 crore Income (₹ 10 Cr) < ₹ 30 Cr Net Worth (₹ 18 Cr) < ₹ 60 Cr Not Material Subsidiary Conclusion: X Limited is a material subsidiary because its net worth (₹ 65 crore) exceeds 10% of the consolidated net worth of XYZ Limited (₹ 60 crore). Y Limited is a material subsidiary because its income (₹ 45 crore) exceeds 10% of the consolidated income of XYZ Limited (₹ 30 crore). Z Limited is not a material subsidiary as neither its income nor its net worth crosses the 10% threshold of the consolidated figures.