ECHO Enterprises Ltd., a listed company has following subsidiaries. The details of income of ECHO Enterprises Ltd. and its subsidiaries are as under: Holding Company ₹ in Crore ECHO Enterprises Ltd. 1,000.00 Subsidiaries

The provisions of Regulation 24 of SEBI (LODR) Regulations states as under: At least one independent director on the Board of Directors of the listed entity shall be a director on the Board of Directors of an unlisted material subsidiary, whether incorporated in India or not. Explanation - For the purposes of this provision, notwithstanding anything to the contrary contained in Regulation 16, the term "material subsidiary" shall mean a subsidiary, whose income or net worth exceeds twenty percent of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year. The Audit Committee of the listed entity shall also review the financial statements, in particular, the investments made by the unlisted subsidiary. The minutes of the meetings of the board of directors of the unlisted subsidiary shall be placed at the meeting of the board of directors of the listed entity. The management of the unlisted subsidiary shall periodically bring to the notice of the board of directors of the listed entity, a statement of all significant transactions and arrangements entered into by the unlisted subsidiary. Explanation - For the purpose of this Regulation, the term "significant transaction or arrangement shall mean any individual transaction or arrangement that exceeds or is likely to exceed ten percent of the total revenues or total expenses or total assets or total liabilities, as the case may be, of the unlisted subsidiary for the immediately preceding accounting year. A listed entity shall not dispose of shares in its material subsidiary resulting in reduction of its shareholding (either on its own or together with other subsidiaries) to less than or equal to fifty percent or cease the exercise of control over the subsidiary without passing a special resolution in its General Meeting except in cases where such divestment is made under a scheme of arrangement duly approved by a Court/Tribunals, or under a resolution plan duly approved under section 31 of the Insolvency Code and such an event is disclosed to the recognized stock exchanges within one day of the resolution plan being approved. Selling, disposing and leasing of assets amounting to more than twenty percent of the assets of the material subsidiary on an aggregate basis during a financial year shall require prior approval of shareholders by way of special resolution, unless the sale/disposal/lease is made under a scheme of arrangement duly approved by a Court/Tribunals, or under a resolution plan duly approved under section 31 of the Insolvency Code and such an event is disclosed to the recognized stock exchanges within one day of the resolution plan being approved. Where a listed entity has a listed subsidiary, which is itself a holding company, the provisions of this regulation shall apply to the listed subsidiary in so far as its subsidiaries are concerned. ANCHOR Batteries Ltd. has income of ₹ 200.00 Crores which does not exceed 20% of consolidated income of ECHO Enterprises Ltd., the holding Company and all its subsidiaries. Therefore, ANCHOR Batteries Ltd. is not required to comply with the provisions which are specifically applicable with respect to material subsidiaries, other provisions which are applicable in general to all subsidiaries need to be complied. EAZY Chemicals Ltd. has income of ₹ 250.00 Crores which does not exceeds 20% of consolidated income of ECHO Enterprises Ltd., and all its subsidiaries. Therefore, EAZY Chemicals Ltd. is not required to comply with the provisions which are specifically applicable with respect to material subsidiaries, other provisions which are applicable in general to all subsidiaries need to be complied. REAL Power Ltd. has income of ₹ 400.00 Crores which exceeds 20% of consolidated income of ECHO Enterprises Ltd., and all its subsidiaries. Therefore, REAL Power Ltd. has to comply with all the requirements stipulated above. ECHO Enterprises Ltd, holding Company, will also need to ensure compliance with all the provisions mentioned above with respect to its subsidiaries.