transfer pricing

dear sir,

In want to have clarification on transfer pricing. our head office in italy and we have susibdary independent comapny in banglaore and we are geting parts from italy and we manufature vavle etc in bangalaore and sell the same in india and export it outside .

i want to know following;;;;

whether trf princing applicalble to our company ?

is we have to exeucte transfer pricing agreement between bangalore company and italy compnay. please gudie me