Dynamic Ltd. (paid-up share capital ` 25 Crore) proposes to enter into a contract
with Sunil for the procurement of raw materials for an amount of ` 5 Crore during the
financial year. Sunil is the step brother (father’s second wife’s son) of Anil, who is a
director of Dynamic Ltd. Discuss the compliance requirements in respect of the above
procurement contract.
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