Related Party

Ramesh Kr Verma

 . A non-executive director of a company should not be considered as a

keymanagement person underAS 18 by virtue of erely his being a director

unless he has the authority and responsibility for planning, directing

and controlling the activities of the reporting enterprise.

4. The requirements of AS 18 should not be applied in respect of a nonexecutive

director even if he participates in the financial and/or operating

policy decision of the enterprise, unless he falls in any of the categories in

paragraph 3 of AS 18.

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