Related Party Transactions - ROC Compliance- CS Dhaval G.

  Mr.B is the MD and CEO of ABC Limited which is a subsidiary of AB Limited. Whether Mr.B is the related party of AB Limited?

• Yes, Mr.B is the related party of AB Limited

• No, Mr.B is not the related party of AB Limited

ABC Limited and PQR Limited both are Subsidiary of the same Company XYZ Limited. Both the company are completely run by different directors and management and having no inter-company shareholding. Whether ABC Limited and PQR Limited are related parties?

• Yes , ABC Limited and PQR Limited are related parties

• NO , ABC Limited and PQR Limited are not at all related parties

Mr.A is the promoter of ABC Limited and holding 49% of shares in ABC Limited. He is not holding any position in the company. Whether Mr.A is the related party of ABC Limited?

• Yes, Mr.A is the related party of ABC Limited

• NO, Mr.A is NOT the related party of ABC Limited

Mr.A is the Director of ABC Limited. He is appointed as a software expert in the holding company of ABC Limited at the monthly remuneration of Rs.5,00,000/-. Whether this transaction is related party transaction?

• Yes, Under Companies Law this transaction is related party transaction

• NO, this transaction is not a related party transaction

Whether giving loans to subsidiary company amounts to related party transaction?

• Yes

• NO

ABC Limited are holding 1000 shares in PQR Limited. Mr.A, the brother of the CFO of ABC Limited acquired the shares from ABC Limited. Whether this transaction is Related Party transaction?

• YES, This is a related party transaction

• NO, This is Not a related party transaction

ABC Limited allotted shares to Mr.A director of the company on preferential allotment basis. Whether such transaction is related party transaction?

• Yes, Allotment of shares to director , is covered under related party transaction

• NO, this is not a related party transaction

ABC Limited hires a relative of a director with a monthly salary of Rs.5 Lakh. Whether this transaction is related party transaction?      

• Yes

• No

ABC Limited is a Listed Company with a consolidated turnover of around Rs.15,000/- crores. ABC Limited has formed many subsidiaries to procure various raw-material from the market. XYZ Limited being one of the subsidiary of ABC Limited has supplied raw material worth of Rs.2000 crores in a series of tranches over a year in the ordinary course of business and at arm’s length basis. Whether any approval is required or not or if yes, then what all approvals are required?

i.      Audit Committee Approval

ii.     Board Approval

iii.   Shareholders’ Approval

iv.   No Approval is required

•  i only

• i and ii only

• i, ii, iii only

• iv

1. Mr. A is the Independent Director of ABC Limited which has subsidiary company namely XYZ limited. Whether Mr.A is the related party of XYZ Limited?

• Yes, A is a related Party

• NO, A is not a related party