Joshi Ltd. is a listed entity entered into a transaction with related party, namely Hosh Ltd., for an amount of ₹ 59 crore and simultaneously made a payment of ₹ 10 crore for brand use. The turnover of Joshi Ltd. is ₹ 48

CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
Joshi Ltd. is a listed entity entered into a transaction with related party, namely Hosh Ltd., for an amount of ₹ 59 crore and simultaneously made a payment of ₹ 10 crore for brand use. The turnover of Joshi Ltd. is ₹ 480 crore on standalone basis and after considering consolidation of subsidiary & associate is ₹ 610 crore. You, being a company secretary of the company, advise on the following: Whether the transaction is a related party transaction or not?

Answer & Explanation:

Yes, the transaction between Joshi Ltd. and Hosh Ltd. for an amount of ₹59 crore is a related party transaction , assuming Hosh Ltd. falls under the definition of a 'related party' as per the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Topics: Related Party Transactions

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