XYZ(P) ltd is a share holder of PQR(P)Ltd and also XYZ (P) ltd is a director of ABC(P)Ltd.
Is Related party relation exists between PQR(P)Ltd & ABC(P)Ltd?
Regards
Radhee
CA. Bhavin Bhagat
(Head - Corporate Finance and Accounts)
(57 Points)
Replied 24 July 2010
For determining related party transactions, two major parameters are fulfilled.
Control and or Significant Influence in operating policies and decision making.
Further if XYZ (p) Ltd holds more than 20% holding in PQR Ltd and or director of XYZ has significant influence over the operating policies in the management of ABC (P) Ltd then , PQR ( P) Ltd and ABC (P) Ltd are related parties of XYZ (P) LTD.
Regards,
Bhavin
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
