09 May 2011
Dear tanushree, "Group Companies" is very broad term. You need to go to the respective acts to get the definition of the same. For companies act, it is related parties and for defination you need to refer the AS- 18- RPD. So check the respective acts to get the definition.
some acts requires only disclosures for RPD like income tax.
10 May 2011
Thanks for your assistance sir(s). My further query is,
if the companies are closely held Indian companies and are not directly involved in any business transactions with each other but having some of directors & their relatives in others, as directors or shareholders who have indirectly power to control. Then-
Can we conclude them ‘group companies’?
If among two directors one is common, then also shall it consider in ‘group’?
If all directors in one company are common shareholders in other and two of them are directors in other also then what shall be the criteria?
Are there any specific percentage criterias of shareholding to categorize them as Group Companies?
In this regard what should be consider as base to define group companies, AS-18 or any other like definitions as given in Foreign Trade Policy, MRTP Act or under income tax Act?
what should be consider as base to define group companies, AS-18 or any other like definitions as given in Foreign Trade Policy, MRTP Act or under income tax Act?
CAclubindia
