Concise chart on Related Party Transactions
| Particulars | Company Law Requirement | Listing Agreement Requirement | Remarks |
|
Sale, Purchase or Supply of any goods, Material, etc |
10% of turnover OR Rs. 100 crores, whichever is less |
1. All Related Party Transactions upto 10% of CFS turnover per related party 2. Material Related Party Transactions beyond 10% of CFS turnover per related party |
1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit 2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote |
| Selling or Buying of Property | 10% of networthOR
Rs. 100 crores, whichever is less |
1. All Related Party Transactions upto 10% of CFS turnover per related party 2. Material Related Party Transactions beyond 10% of CFS turnover per related party |
1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit 2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote |
| Leasing of any Property | 10% of turnoverOR
10% of networth OR Rs. 100 crores, whichever is less |
1. All Related Party Transactions upto 10% of CFS turnover per related party 2. Material Related Party Transactions beyond 10% of CFS turnover per related party |
1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit 2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote |
| Rendering / Availing any Services | 10% of turnoverOR
Rs. 50 crores, whichever is less |
1. All Related Party Transactions upto 10% of CFS turnover per related party2. Material Related Party Transactions beyond 10% of CFS turnover per related party | 1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote |
Note:
1. The reference of financials is as per last audited financial statements.
2. Proposal needs previous approval of Audit Committee.
3. Thereafter proposal needs previous approval of Board Meeting in terms of approval of Audit Committee.
(Compiled by ACS Deep Vaghela)
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