06 July 2016
Is Dislosure in CARO required if we have entered transaction with the related party which is relative during the year, but not at the closing of the financial year and at the date of signing of the audit report?
For Example, Wife of director is partner in ABC firm, During the year 2015-16 purchase of Rs. 5 lacs is made from Firm, but in the february 2016, She is retired from the firm. So now the firm is not in the term of relative u/s 2(77) of the Companies Act 2013. But during the year , Firm is relative. So please guide whether we have to disclose in CARO and Audit Report or not?
13 July 2016
Transactions with related parties is during the year and not at the end of the year. Thus if during the year, any person has been related, the transactions with such party has to be reported in CARO
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