Span Diagnostics LimitedRelatedPartyTransactionsPolicy
1.INTRODUCTION
Span Diagnostics Limited(the"Company")recognizesthatcertainrelationshipscanpresentpotentialoractualconflictsofinterestandmayraisequestionsaboutwhethertransactionsassociatedwithsuchrelationshipsareconsistentwithCompany’sanditsstakeholders'bestinterests.
TheCompanymustspecificallyensurethatcertainRelatedPartyTransactions(asdefinedbelow)aremanagedanddisclosedinaccordancewiththestrictlegalandaccountingrequirementstowhichtheCompanyissubject.
Therefore,thisPolicyregardingthereviewandapprovalofRelatedPartyTransactionshasbeenadoptedbytheCompany'sBoardofDirectorsinordertosetforththeproceduresunderwhichcertaintransactionsmustbereviewedandapprovedorratified.
Theequity listingagreementwith stockexchanges mandates formulationof a policyon transactionswithRelatedPartiesanddealingwithRelatedPartyTransactions.Aspartofitscorporategovernancepractices,theBoardofDirectors(the“Board”)ofSpan Diagnostics LimitedhasadoptedthefollowingpolicyandprocedurewithregardtoRelatedPartyTransactions.
2.PURPOSE
ThisPolicyisframedbasedonrequirementsoflistingagreemententeredbytheCompanywiththestockexchangesandalsotocomplywiththeprovisionsofSection188oftheCompaniesAct,2013andisintendedtoensurethegovernanceandreportingoftransactionsbetweentheCompanyanditsRelatedParties.
3.DEFINITIONS
“Act”shallmeantheCompaniesAct2013andtheRulesframedthereunder,includinganymodifications,amendments,clarifications,circularsorre-enactmentthereof.
“Arm’sLengthbasis”meansatransactionbetweentworelatedpartiesthatisconductedasiftheywereunrelated,sothatthereisnoconflictofinterest.FordeterminationofArm’sLengthbasis,guidancemaybetakenfromprovisionsofTransferPricingunderIncomeTaxAct,1961.
“AssociateCompany”meansanyothercompany,inwhichtheCompanyhasasignificantinfluence,butwhichisnotaSubsidiarycompanyoftheCompanyhavingsuchinfluenceandincludesajointventurecompany.
Explanation—Forthepurposesofthisclause,“significantinfluence”meansControlofatleasttwentypercentoftotalsharecapital,orofbusinessdecisionsunderanagreement.
“AuditCommittee”or“Committee”means“AuditCommittee”oftheBoardofDirectorsoftheCompany.
“BoardofDirectors”or“Board”meanstheBoardofDirectorsoftheCompany.
“Company”meansSpan Diagnostics Limited.
“KeyManagerialPersonnel”meansKeyManagerialPersonneloftheCompanyintermsoftheCompaniesAct,2013andtheRulesmadethereunder.
“Policy”meansRelatedPartyTransactionPolicyoftheCompany.
“RelatedParty”meansapersonoranentity:
(i)whichisarelatedpartyundersection2(76)oftheCompaniesAct,2013;or
(ii)whichisarelatedpartyundertheapplicableaccountingstandards.
Relatedpartyundersection2(76)oftheCompaniesAct,2013andrulesmadethereunderareasfollows-
(i)adirectororhisrelative;
(ii)akeymanagerialpersonnelorhisrelative;
(iii)afirm,inwhichadirector,managerorhisrelativeisapartner;
(iv)aprivatecompanyinwhichadirectorormanagerisamemberordirector;
(v)apubliccompanyinwhichadirectorormanagerisadirectororholdsalongwithhisrelatives,morethantwopercentofitspaid-upsharecapital;
(vi)anybodycorporatewhoseboardofdirectors,managingdirectorormanagerisaccustomedtoactinaccordancewiththeadvice,directionsorinstructionsofadirectorormanager;
(vii)anypersononwhoseadvice,directionsorinstructionsadirectorormanagerisaccustomedtoact:
Providedthatnothingin(vi)and(vii)aboveshallapplytotheadvice,directionsorinstructionsgiveninaprofessionalcapacity;
(viii)anycompanywhichis—
(a)aholding,subsidiaryoranassociatecompanyofsuchcompany;or
(b)asubsidiaryofaholdingcompanytowhichitisalsoasubsidiary;
(ix)DirectororKeyManagerialPersonneloftheholdingcompanyorhisrelative;or
(x)suchotherpersonsasmaybeprescribedbyCentralGovernment.
“RelatedPartyTransaction”meanstransactioninthenatureofcontractinvolvingtransferofresources,servicesorobligationsbetweentheCompanyandtheRelatedParty,regardlessofwhetherapriceischarged.
“Relatives”“Relative’’,withreferencetoanyperson,meansanyonewhoisrelatedtoanother,if—
(i)theyaremembersofaHinduUndividedFamily;
(ii)theyarehusbandandwife;or
(iii)onepersonisrelatedtotheotherpersonas:
(a)Father(includingstep-father)
(b)Mother ( including step-mother)
(c)Son(includingstep-son)
(d)Son’swife
(e)Daughter
(f)Daughter’shusband
(g)Brother(includingstep-brother)
(h)Sister(includingstep-sister)
4.POLICY
AllRelatedPartyTransactionsmustbereportedtotheAuditCommitteeandreferredforapprovalbytheCommitteeinaccordancewiththisPolicy.
5.1.Identificationofpotential RelatedParty Transactions
1.Span Diagnostics LimitedGroupCompanies:
Allthecompaniesin Span Diagnostics LimitedwillbeconsideredasRelatedParties.
2.KeyManagerialPersonnelandconnectedRelatedParties:
EachDirectorandKeyManagerialPersonnelshalldisclosetotheCompanyitsRelatedParties.TheBoardshallrecordthedisclosureofInterest.
TheCompanyshallalsoidentifyRelatedPartyTransactionswithDirectorsorKeyManagerialPersonneloftheholdingcompany/iesortheirrelatives.
3.TheCompanywillidentifythepotentialtransactionswiththeRelatedParties.
5.2.ReviewandapprovalofRelatedPartyTransactionsAuditCommittee:
EveryRelatedPartyTransactionshallbesubjecttotheapprovaloftheAuditCommitteewhetheratameetingorbyresolutionsbycirculation.However,theAuditCommitteemaygrantomnibusapprovalforRelatedPartyTransactionsproposedtobeenteredintowiththeCompanywhicharerepetitiveinnatureandareintheordinarycourseofbusinessandonatArm’sLengthbasis,subjecttocomplianceoftheconditionscontainedinclause49ofthelistingagreement.
AnymemberoftheCommitteewhohasapotentialinterestinanyRelatedPartyTransactionshallabstainfromdiscussionandvotingontheapprovaloftheRelatedPartyTransaction.
ToreviewaRelatedPartyTransaction,theCommitteeshallbeprovidedwiththenecessaryinformation,totheextentrelevant,withrespecttoactualorpotentialRelatedPartyTransactionsand/orprescribedundertheCompaniesAct,2013andRulesthereunder,andtheListingAgreementwiththeStockExchanges.
TransactionsenteredintobetweenaholdingcompanyanditswhollyownedsubsidiarywhoseaccountsareconsolidatedwithsuchholdingcompanyandplacedbeforetheshareholdersatthegeneralmeetingforapprovalshallnotrequirepriorapprovaloftheAuditCommittee.
Board:
IftheCommitteedeterminesthataRelatedPartyTransactionshouldbebroughtbeforetheBoard,oriftheBoardinanycasedecidestoreviewanysuchmatteroritismandatoryunderanylawforBoardtoapprovetheRelatedPartyTransaction,thentheBoardshallconsiderandapprovetheRelatedPartyTransactionandtheconsiderationssetforthaboveshallapplytotheBoard’sreviewandapprovalofthematter,withsuchmodificationasmaybenecessaryorappropriateunderthecircumstances.
Shareholders:
AllthematerialRelatedPartyTransactionsshallrequire to be approved as per the requirement of the Companies Act, 2013 and rules made thereunder or any amendements thereofandtheRelatedParty/ieswithwhomtransactionistobeenteredshallabstainfromvotingonsuchresolution.
Allthetransactions,otherthantheMaterialRelatedPartyTransactions,withtheRelatedPartieswhicharenotintheordinarycourseofbusinessoratArm’sLengthbasisshall required to be approved as per the requirement of the Companies Act, 2013andtheRelatedPartiesshallabstainfromvotingonsuchresolution.
5.3.MATERIALRELATEDPARTYTRANSACTIONS
AtransactionwithaRelatedPartyshallbeconsideredmaterialifthetransaction/transactionstobeenteredintoindividuallyortakentogetherwithprevioustransactionsduringafinancialyear,exceedstenpercentoftheconsolidatedannualturnoverasperthelastauditedfinancialstatementsoftheCompany.
5.RELATEDPARTYTRANSACTIONSNOTAPPROVEDUNDERTHISPOLICY
IntheeventtheCompanybecomesawareofaTransactionwithaRelatedPartythathasnotbeenapprovedunderthisPolicypriortoitsconsummation,themattershallbereviewedbytheCommittee.TheCommitteeshallconsideralloftherelevantfactsandcircumstancesregardingtheRelatedPartyTransaction,andshallevaluatealloptionsavailabletotheCompany,includingratification,revisionorterminationoftheRelatedPartyTransaction.TheCommitteemayexaminethefactsandcircumstancesofthecaseandtakeanysuchactionitdeemsappropriate.
6.GENERALPRINCIPLES
i)ItshallbetheresponsibilityoftheBoardtomonitorandmanagepotentialconflictsofinterestofmanagement,boardmembersandshareholders,includingabuseinRelatedPartyTransactions.
ii)TheIndependentDirectorsoftheCompanyshallpaysufficientattentionandensurethatadequatedeliberationsareheldbeforeapprovingrelatedpartytransactionsandassurethemselvesthatthesameareintheinterestoftheCompany.
iii)TheAuditCommitteeshallhavethefollowingpowerswithrespecttoRelatedPartyTransactions:
-Toseekinformationfromanyemployee.
-Toobtainoutsidelegalorotherprofessionaladvice.
-Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary
-ToinvestigateanyRelatedPartyTransaction.
iv)TheMD/CFOoftheCompanyisauthorisedtoissuenecessaryguidelines/instructionsforimplementationofthisPolicy.
v)TheCompanywhileenteringintoanyRelatedPartyTransactionshallensurethatsuchRelatedPartyTransactionisinthebestinterestoftheCompanyandadherestothisPolicy.
7.DISCLOSURES
DetailsofallmaterialtransactionswithRelatedPartiesshallbedisclosedtostockexchangesquarterlyalongwiththecompliancereportoncorporategovernance as may be required.
TheCompanyshalldisclosethepolicyondealingwithRelatedPartyTransactionsonitswebsiteandweb-linkshallbeprovidedintheAnnualReport as per required under the act and the rules made there under, if any..
8.AMENDMENTSINLAW
Anysubsequentamendment/modificationinthelistingagreementand/orotherapplicablelawsinthisregardshallautomaticallyapplytothisPolicy.The provisions of this policy shall, to the extent to which it is repugnant to the provisions of the Companies Act, 2013 or rule made thereunder be void as the case may be.