Nilachal Carbo Metalicks updates related party transaction policy
Nilachal Carbo Metalicks Limited updated its Policy on Related Party Transactions on May 30, 2026, to comply with SEBI regulations. The policy sets materiality thresholds of 5% of consolidated turnover for royalties and ₹50 Crore or 10% turnover for other transactions. Audit Committee and Board approvals are mandated based on the nature and value of the transactions.
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nilachal carbo metalicks Limited approved and updated its Policy on Related Party Transactions on May 30, 2026, aligning with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors adopted the revised policy on the recommendation of the Audit Committee to ensure proper reporting, approval, and disclosure processes for transactions with related parties. The policy is effective from July 5, 2024, and was last amended on May 30, 2026.
The revised framework establishes specific materiality thresholds to determine when shareholder approval is required. The policy defines material modifications as any change exceeding 20% of the originally approved transaction value or any alteration in nature, scope, duration, or counterparty that impacts financial position.
Materiality Thresholds
The company has set the following limits for related party transactions:
| Transaction Type | Threshold Limit |
|---|---|
| Brand usage or royalty payment | 5% of the annual consolidated turnover as per last audited financial statements |
| Other transactions (individual or aggregate in a financial year) | ₹50 Crore or 10% of the annual consolidated turnover, whichever is lower |
Approval Framework
Prior approval of the Audit Committee is mandatory for all related party transactions and subsequent material modifications, irrespective of whether they are at arm's length or in the ordinary course of business. The Audit Committee may grant omnibus approval for repetitive transactions for a period of one year, subject to quarterly reviews. Unforeseen transactions not exceeding ₹1 Crore per transaction may also receive omnibus approval.
Transactions not in the ordinary course of business or not at arm's length require prior approval from the Board of Directors. Shareholder approval through an ordinary resolution is necessary if a transaction exceeds the prescribed materiality thresholds. Related parties are barred from voting on such resolutions. The policy will be reviewed by the Board at least once every three years.
Historical Stock Returns for Nilachal Carbo Metalicks
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.41% | +14.53% | +10.54% | -6.94% | +37.96% | +37.96% |
How will the new materiality thresholds impact the frequency of shareholder approvals required for Nilachal Carbo Metalicks' ongoing operations?
What specific types of repetitive transactions are likely to receive omnibus approval under the revised policy?
How might the stricter disclosure requirements affect the company's relationships with its existing related parties?
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