Adoption of policy on Determination of Material Subsidiary
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The Board of Directors of SMT Engineering Ltd (formerly Adarsh Mercantile Limited, scrip code 538563) adopted a 'Policy for Determining Material Subsidiaries' at its meeting held on August 12, 2025. The policy has been framed in line with SEBI's Listing Regulations (Regulation 16(1)(c)) and outlines how the company will identify material subsidiaries and govern them. A subsidiary will be treated as 'material' if its income or net worth exceeds 10% of the consolidated income or net worth of the company. The policy also lays down governance measures such as audit committee review of unlisted subsidiary financials, placing subsidiary board minutes before the parent's board, mandatory independent director representation on material unlisted subsidiaries (at the 20% threshold), and shareholder approval via special resolution for certain disposals or asset sales. The policy has been uploaded on the company's website.
This is a routine regulatory compliance filing required by SEBI and does not signal any business change, expansion, or restructuring. There is no immediate impact on shareholders or the stock price, though it strengthens governance discipline around how any future subsidiaries would be monitored.