AS 18

As per AS 18, Key manegerial personnel(Executive Director) is a Related party. Now comes the point of shareholding, from percentage holding 2 figures are there 20%(associate) and 50%(Subsidiary) then only related party comes into picture.

A person, if he is a director a Co. and shareholder in another co. it does not means that both the company will be related. Unless there is a relation ship between two companies they cantbe related party.

Originally posted by : Arvind
	i want to know the % of shareholding of ankit. if ankit is a holder of 20% or more shareholding or exercise significant influence on rahul ltd. then there is a related party relationship between ankit and rahul ltd. according to para 3(c) of AS-18 and also the relationship between rahul and radhee ltd. under para 3 (e).

agree with arvind

Radhee(P)Ltd and Rahul(P)Ltd are not related parties If Ankit is merely Shareholder of Radhee (P) Ltd. 

And

If Ankit is a Significant Shareholder in Radhee (P)Ltd than both the companies are related parties.