Determination of material policy


Regulation  30  of  the  Securities  and  Exchange  Board  of  India  (Listing  Obligations  and Disclosure  Requirements)  Regulations,  2015  (the  “Listing  Regulations”),  requires  VARYAA CREATIONS LIMITED (“Company”) to frame a policy for determination of materiality for disclosure of events or information to BSE Limited (the “Stock Exchange”), based on the criteria specified in the Listing Regulations. The   policy   is   also   required   to   be   disclosed   on   the   website   of   the   Company.   The events/information  that  would  be  disclosed would  be  as presently  prescribed by  SEBI vide circular  CIR/CFD/CMD/4/2015  dated  September  9,  2015  and  as  would  be  amended  from time to time.


The Policy will be applicable to all the events which fall under the criteria as disclosed under the section relating to “Disclosure of events or information to Stock Exchanges”. This Policy shall be read along with the Company’s Policy on Code of Practices and Procedures for Fair Disclosure  of  Unpublished  Price  Sensitive  Information  (code  of  fair  disclosure)  framed  in adherence to the principles for fair disclosure as outlined in the SEBI (Prohibition of Insider Trading) Regulations, 2015.


The  Managing  Director,  the  Chief  Executive  Officer,  the  Chief  Financial  Officer  or  the Company Secretary will be the authorized Key Managerial Personnel (“KMP”) to determine the materiality of an event or information and for the purpose of advising on the disclosure to the stock exchanges.


The events or information which will be necessary to be disclosed to the Stock Exchanges are divided into three categories as specified in the Listing Regulations:

(a) Events whose disclosure is mandatory and which would need to be disclosed without any application of the test/guidelines for materiality.

The below events will be disclosed as soon as reasonably possible and not later than twenty  four  hours  from  the  occurrence  of  event  or  information  except  for  events stated  in  item  (d)  below  which  shall  be  disclosed  within  thirty  minutes  of  the conclusion  of  the  Board  Meeting.  In  case  the  disclosure  is  made  after  twenty  four hours  of  occurrence of the event  or information, the rationale for the delay  will be provided along with such disclosures.

(i) Acquisition(s)  (including  agreement  to  acquire),  Scheme  of  Arrangement (amalgamation/  merger/  demerger/restructuring),  or  sale  or  disposal  of  any unit(s),  division(s)  or  subsidiary  of  the  Company  (if  any)  or  any  other restructuring.

Acquisition would mean

(A) acquiring control, whether directly or indirectly; or,

(B) acquiring   or   agreeing   to   acquire   shares   or   voting   rights   in,   a company, whether directly or indirectly, such that –

(1) the  Company  holds  shares  or  voting  rights  aggregating  to five per cent or more of the shares or voting rights in the said company, or;

(2) there  has been a change in holding from the last  disclosure and   such   change   exceeds   two   per   cent   of   the   total shareholding or voting rights in the said company.

(ii) Issuance or forfeiture of securities, split or consolidation of shares, buyback of  securities,  any  restriction  on  transferability  of  securities  or  alteration  in terms  or  structure  of  existing  securities  including  forfeiture,  reissue  of forfeited securities, alteration of calls, redemption of securities etc.

(iii)      Revision in Rating(s).

(iv) Outcome of meetings of the board of directors: The Company shall disclose to the Exchange(s), within 30 minutes of the closure of the meeting, held to consider or decide the following:

(A) dividends  and/or  cash  bonuses  recommended  or  declared  or  the decision to pass any dividend and the date on which dividend shall be paid/dispatched;

(B)       any cancellation of dividend with reasons thereof;

(C)       the decision on buyback of securities;

(D)      the decision with respect to fund raising proposed to be undertaken;

(E)       increase  in  capital  by  issue  of  bonus  shares  through  capitalization including   the   date   on   which   such   bonus   shares   would   be credited/dispatched;

(F)       reissue  of  forfeited  shares  or  securities,  or  the  issue  of  shares  or securities held in reserve for future issue or the creation in any form or manner of new shares or securities or any other rights, privileges or benefits to subscribe to;

(G)      short particulars of any other alterations of capital, including calls;

(H)      financial results;

(I) decision   on   voluntary   delisting   by   the   Company   from   stock exchange(s)

(v) Agreements (viz. shareholder agreement(s), joint venture agreement(s) (to the extent   that   it   impacts   management   and   control   of   the   Company), agreement(s)/treaty(ies)/contract(s) with media companies) which are binding and  not  in  normal  course  of  business,  revision(s)  or  amendment(s)  and termination(s) thereof.

(vi) Fraud/   defaults   by   promoter   or   key   managerial   personnel   (Managing Directors,   Chief   Executive   Officer,   Chief   Financial   Officer,   Company Secretary   etc.)  of  the  Company  or  by   the  Company   or  arrest  of  key managerial personnel or promoter.

(vii) Change  in  directors,  key  managerial  personnel,  Auditor  and  Compliance Officer.

(viii) Appointment or discontinuation of share transfer agent.

(ix) Corporate debt restructuring.

(x) One time settlement (OTS) with a bank.

(xi)      Reference to BIFR and winding-up petition filed by any party/creditors.

(xii) Issuance of notices, call letters, resolutions and circulars sent to shareholders, debenture holders or creditors or any class of them or advertised in the media by the Company.

(xiii)    Proceedings of annual and extraordinary general meetings of the Company.

(xiv) Amendments  to  memorandum  and  articles  of  association  of  Company,  in brief.

(xv) Schedule  of  analyst  or  institutional  investor  meet  and  presentations  on financial results made by the Company to analysts or institutional investors.

(b) Events  which  may  be  disclosed  to  the  Stock  Exchanges  based  on  the  test  of materiality

The events as mentioned below will be disclosed based on the application of the test of   materiality   and   key   principles   for   determination   of   materiality   as   outlined hereunder:

(i) the  omission  of  an  event  or  information,  which  is  likely  to  result  in discontinuity or alteration of event or information already available publicly; or

(ii) the  omission  of  an  event  or  information  is  likely  to  result  in  significant market reaction if the said omission came to light at a later date or

(iii) in  a  case  where  the  criteria  specified  in  (a)  and  (b)  is  not  applicable,  any event/information  which  in  the  opinion  of  the  Board  of  the  Company,  is considered material and needs disclosure.

The KMP authorised under this Policy will determine on the disclosure of events or information to the Stock Exchanges based on the application of the test of materiality as mentioned above. In addition to this, the KMP while determining the materiality will do so on a case to case basis depending on specific facts/circumstances relating to  the  information/event  and  apply  such  other  qualitative/quantitative  criteria  if required and as may be deemed appropriate to the event.

Description of events:

Sr. No

Events / Information

Threshold Criteria


Commencement or any postponement in the date of commencement of commercial operations of any unit/division

No threshold limit


(i) Change in the general character or nature of business brought about by arrangements for strategic, technical, manufacturing, or marketing tie-up, adoption of new line(s) of business; or


(ii) Closure of operations of any unit/division – (entirety or piecemeal)

Impact exceeding 10% of the income of the Company as per the last audited consolidated financial

statements for each transaction


Capacity addition or product launch

Exceeding 10% of existing installed production capacity


Awarding, bagging/receiving, amendment or termination of awarded/bagged orders/contracts, not in the normal course of business

Award or contract amount not

exceeding 10% of the income of the Company as per the last audited consolidated financial statements for each transaction


Agreements (viz. loan agreement(s)

(as a borrower) or any other agreement(s) which are binding and

not in the normal course of business

and revision(s) or amendment(s) or

termination(s) thereof)

Borrowings for a minimum period of 7 years for an amount exceeding 10% of the income of the Company as per the last  audited consolidated financial statements for each transaction


All other agreements which are

entered into not in the normal course of business having a value exceeding 10% of the income as per the last audited consolidated financial statements for each transaction


Disruption of operations of any one

or more units or division of the

Company due to natural calamity

(earthquake, flood, fire, etc.), force

majeure or events such as strikes,

lock-outs etc..

Disruption of operations due to

natural calamity/force majeure, with estimated impact exceeding 10% of the income of the  Company as per the last audited consolidated financial statements for each transaction.


In case of strikes or lock-outs etc.,

complete closure of any branch for a continuous period of at least 15 days.


Effect(s) arising out of change in the

regulatory framework applicable to

the Company

Impact of which exceeds 10% of the income of the Company as per the latest audited consolidated financial statements. Where the impact is 10% or less, the compliance officer will decide the matter in consultation with the key managerial personnel



action(s) with impact

Outcome of any single litigation/dispute determined by

courts of law [(not below the  High Court)] or individual matters with similar case of action (which shall be aggregated) and regulatory action having an impact of not less than 10% of the income of the Company as per the last audited consolidated financial statements.


No threshold limits on all regulatory actions, criminal, environmental matters and matters resulting from the breach of securities laws. However, the above materiality parameters will also apply to the directors, promoter and key managerial personnel of the Company, except where the litigation is of a purely personal nature and unlikely to affect the involved director’s, promoter’s or key managerial personnel’s ability to discharge its responsibilities towards the Company.


For non-quantifiable matters,

Materiality shall be determined on a case to case basis.


Frauds/defaults by directors (other

than key managerial personnel) or

employees of the Company.

Amounts exceeding 10% of the

income of the Company as per the

last audited consolidated financial



Options to purchase securities,

including any Employees Stock

Option Plan/ Employees Stock Purchase Scheme

10% of the issued and outstanding

share capital of the Company, or

which would (along with existing shareholding) result in the person

granted the options holding more

than 10% of the issued and

outstanding share capital of the



Giving of guarantees or indemnity or

becoming a surety for any third party

Amount exceeding 10% of the

income of the Company as per the

last audited consolidated financial



Granting, withdrawal, surrender,

cancellation or suspension of key

licenses or regulatory approvals

Granting, withdrawing, surrender,

cancellation or suspension of key

licenses or regulatory approvals the impact of which would exceed  10% of the income of the Company as per the last audited consolidated financial statements.

(c) The Company will disclose all events or information with respect to subsidiaries (if any) which are material to the Company in accordance with the policy determining material subsidiary (if any) adopted by the Board of Directors of the Company.

(d) Any other event/information that is likely to affect business

Such events may include but not be limited to the following:

(i) Change  in  accounting  policy  that  may  have  a  significant  impact  on  the accounts of the Company.

(ii) Any other event which is in the nature of major development that is likely to affect business of the Company.

(iii)Any  other  information  exclusively  known  to  the  Company  which  may  be necessary  to  be  disseminated  to  enable  the  holders  of  the  securities  of  the Company  to  apprise  its  position  and  to  avoid  the  establishment  of  a  false market in such securities.


5.1 The  events/information  shall  be  said  to  have  occurred  upon  approval  of  Board  of  the Company  in  certain  events,  for  example  further  issue  of  capital  by  rights  issuance  and  in certain  events/information  after receipt  of  approval  of  both  i.e.  Board of  the  Company  and Shareholders of the Company.

5.2 Certain events which are  price  sensitive in nature like declaration of  dividends etc. will  be deemed to have occurred and disclosed on approval of the Board of the Company  pending Shareholder’s approval.

5.3Events  such  as  natural  calamities  or  disruption  can  be  said  to  have  occurred  when  the Company becomes aware of the event/information.


The  Company  shall  disclose  on  its  website  all  such  events  or  information  which  has  been disseminated to the Stock Exchanges under this Policy and such disclosures shall be hosted on the website of the Company for a minimum period of five years and thereafter as per the archival process followed by the Company.


The  KMP  authorised  under  this  Policy  will  review  the  Policy  from  the  perspective  of  the Listing Regulations and determine the events/information for disclosure as may be amended by the Securities and Exchange Board of India from time to time. All such amendments will be informed to the Board and the approval of the Board will be sought to align the policy in line with the Listing Regulations.