Related party transactions

Pls reply

In respect of Related Party Transaction AS-18 have to be followed. Disclosure about Related Party Transaction mention in Notes to Account part of auditor report. That amount should be taken into account.

As per AS 18 share application money received, shares issued and salary paid to key management personnel is to be considered under Related Party Transaction.

Dear Shridhi,

You can take these items for calculation of related party transaction but please remember in Form 23AC you can fill only those items which are Capital in nature and in form 23ACA revenue items.

Yes Aman,

That i already know. Well, thanks.

Pls tell me that wat to do if the B/S of subsi. co. is not prepared at the time of AGM of holding co. Wat is to be done in that case?

Dear Shridhi,

If not prepared then according to me go with section 212(8) of CL Act, 1956.

Other views are solicited.

Section 212(8) is about CG approval. 

Is that possible that we qualify our director report to that effect and state that subsi. b/s is not ready.

Do auditor require to qualify their report to that effect?

Dear Shridhi,

if  30 September is your AGM date then you have already lost your option to go with CG u/s 212(8). If company is late for filling then best is that prepare subsi company financials or if you don’t want then get compound this default.

Others views are solicited.

Should all related parties be reported irrespective of whether there is any txn or not ?

Yes, information should be regarding all related parties.