Related party disclosure

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vivek

vivek (Querist)
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29 November 2013 A pvt company receiving loan from its directors. is it a related party transaction as per AS-18?

Hitendra Jain

Hitendra Jain (Expert)
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29 November 2013 clause (d) of para 3 of AS 18 is re-produced below:

(d) key management personnel and relatives of such personnel;
and

Directors are Key Management personnel hence any transaction with directors is fall under the sweep of AS 18.

For further reference please visit:

https://220.227.161.86/27284asb-as-18.pdf

Charu Srivastava

Charu Srivastava (Expert)
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29 November 2013 As per AS-18 related party includes Key Managerial Person

Key management personnel are those persons who have the authority
and responsibility for planning, directing and controlling the activities
of the reporting enterprise. For example, in the case of a company, the
managing director(s), whole time director(s), manager and any person in
accordance with whose directions or instructions the board of directors of
the company
is accustomed to act, are usually considered key management personnel.
Explanation:
A non-executive director of a company is not considered as a key
management person under this Standard by virtue of merely his being a
director unless he has the authority and responsibility for planning, directing
and controlling the activities of the reporting enterprise. The requirements
of this Standard are not applied in respect of a non-executive director even

Ajay Mishra

Ajay Mishra (Expert)
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29 November 2013
As per AS-18, Related Party Transaction covers:

1. Salary to Director
2. Advance against share capital given
3. Lease Rent on equipment received
4. Securities Deposit Receipt-Refunded
5. Unsecured Loan (taken/given/returned)
6. Loan & Advances
7. Share application money invested
8. Share Application money received
9. Shares Issued.

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