20 March 2010
Reoporting period is the period wherein the transactions has been occured.
Related parties means the relatives of directors as given in companies act and the companies wherein directors directly or indirectly through relatives hold 25% or more of the shares or holds managerial powers ie directorship.
Reported enterprise is the enterprise for which you are reporting.
20 March 2010
The following Chk list may help: Particulars Yes / No. Remarks A. Applicability 1. Is the enterprise a Level 1 enterprise? B. Related Party Relationships and Transactions 1. Has a list of Related Parties in each of the following relationships been prepared? a. Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries) b. Associates and joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or a joint venture c. Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual d. Key management personnel and relatives of such personnel; and e. Enterprises over which any person described in (c) or (d) is able to exercise significant influence. This includes enterprises owned by directors or major shareholders of the reporting enterprise and enterprises that have a member of key management in common with the reporting enterprise. 2. Have the related party transactions, which are a transfer of resources or obligations between related parties, regardless of whether or not a price is charged, been ascertained? C. Disclosure 1. Does the element of "Control" exist in the related party relationships listed above? 2. If yes, have the following been disclosed, irrespective of whether or not there have been transactions during the year? a. Name of Related Party b. Nature of Related Party relationship 3. Have there been transactions between related parties during the existence of the RP relationship? 4. Have the following types of transactions been disclosed? a. Purchases or sales of goods (finished or unfinished) b. Purchases or sales of fixed assets c. Rendering or receiving of services d. Agency arrangements e. Leasing or hire purchase arrangements f. Transfer of research and development g. License agreements 5. Have the following been disclosed in respect of every such transaction? a. The name of the transacting related party b. A description of the relationship between the parties c. A description of the nature of transactions d. Volume of the transactions either as an amount or as an appropriate proportion e. Any other elements of the related party transactions necessary for an understanding of the financial statements f. The amounts or appropriate proportions of outstanding items pertaining to related parties at the Balance Sheet date and provisions for doubtful debts due from such parties at that date g. Amounts written off or written back in the period in respect of debts due from or to related parties. Note : a. Items of a similar nature may be disclosed in aggregate by type of related party. b. Exceptions to disclosure: (i) No disclosure is required where providing such disclosures would conflict with the Reporting Enterprises' duties of confidentiality as specifically required in terms of a statute or by any regulator or similar competent authority. (ii) No disclosure is required in consolidated financial statements in respect of intra-group transactions. (iii) No disclosure is required in the financial statements of state-controlled enterprises as regards related party relationships with other state-controlled enterprises and transactions with such enterprises
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