Related parties

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2012 Sir
I want to know what types of transactions are required to be disclosed as per Section 301 of Companies Act, 1956 and As per AS -18 (Related Party Disclosure).

CS Richa Sharma

CS Richa Sharma (Expert)
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16 October 2012 Section 301:Register of Contracts, Companies and Firms in which directors are interested:-
Every Company keeps one or more such register to enter particulars of all contracts or arrangements to which section 297 or section 299 applies.
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AS 18: Related Party Disclosures:-
The object of this is to disclose relationship and transaction with related party.
AS 18 deals only with related party relationships described in (a) to (e) below:
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.