Related Party Transactions Quiz

Who is a related party?

• Only a person who has connection with the company

• A person or entity that has a relationship with the company

• A customer of the company

• A supplier of the company

Who is NOT considered a Key Managerial Person (KMP)?

• Company Secretary

• Senior Manager

• Chief Financial Office

• A Director or CEO

What is the shareholding percentage for significant influence?

• 50% or more

• 100%

• 20% or more

• Less than 20%

What is a subsidiary?

• A company owned more than 50% by another company

• A company owned more than 20% by another company

• A company with no owners

Which of the following is NOT a related party?

• A parent company

• A fellow subsidiary

• Subsidiary

• An associate company

• None of the given options

What is a joint venture (JV)?

• A joint arrangement with shared control

• A company owned by one person

• A major supplier

• A type of customer

Which family member is NOT considered a close family member?

• Spouse

• Parent

• Child

• Cousin

What is the shareholding percentage for a joint venture?

• More than 75%

• Usually 50%

• 50% or more

• Less than 20%

CTIER is an associate of FMPL. In FY 2023-24, FMPL had one more associate named Trasmec India Pvt Ltd. Are CTIER & TIPL related parties?

• No, CTIER and Trasmec India Pvt Ltd are not related parties.
• Yes, but only CTIER is a related party.
• Yes, CTIER and Trasmec India Pvt Ltd are related parties.
• No, only FMPL is a related party.

X Ltd and Y Ltd are two companies with no shareholding in each other. However, X and Y are directly controlled by Mr. Z. Are X Ltd & Y Ltd related parties?

• Yes, X Ltd and Y Ltd are related parties.
• No, X Ltd and Y Ltd are not related parties.
• Yes, but only if they share common customers.
• No, they are competitors in the same industry.