21-Mar-2023 01:57 PM
Material Related Party Transaction is entering into transaction which exceeds rs 1000 crore or 10% of turnover whichever is lower, but does that mean equal to or more than in 10% case? Example: company's turnover is 1000 crore, transaction entered is 100 crores, so turnover's 10% would be 100 crore. Will this transaction be material ? As it does not exceed 10% it is equal to 10%?
If something exceeds a particular amount or number, it is greater or larger than that amount or number. So, in this provision it means more than in 1000 crore or 10% of turnover whichever is lower. Hence, in this example transaction is not material.
Answer given by Shubhamm Sir at 27-Mar-2023 06:55 PM