As a general rule, company directors and senior management personnel shall avoid conducting company business with related parties and the employment of related parties in positions having financial influence. Should the company need to enter into any contract or arrangement with a Related Party, it will be with the prior approval of the Audit Committee.
Transactions with related party shall be conducted adopting normal system & procedure of the company applicable on that transaction as if they are entered with unrelated party.
If need for related party transactions cannot be foreseen, transactions upto Rs. 1 cr. between two audit committee meetings may be entered, complying with normal S&P of that transaction and such transactions will be placed in next Audit Committee meeting for approval as per normal practice.
In the event such contract or arrangement is not in the ordinary course of business or at arm's length, the company shall comply with the provisions of the Companies Act 2013 and the Rules framed thereunder and obtain approval of the Board and/or shareholders, as applicable, for such contract or arrangement.
All material related party transactions, as per applicable provisions of the Companies Act, 2013/Listing Agreement, will be placed for approval of the shareholders of the company.
Shriram Pistons & Rings (SPR) has an exceptional lineage of the Shriram Group, one of India’s oldest and most reputed industrial houses.