Investment in Associated Company and Related Party Transactions

INVESTMENT IN ASSOCIATED COMPANIES / UNDERTAKINGS AND RELATED PARTY TRANSACTIONS

Investment – Definition

Investment is more in detail defined under section 199 of the Companies Act, 2017, which is reproduced below:

Explanation: The term “investment” shall include equity, loans, advances, guarantees, by whatever name called, except for the amount due as normal trade credit, where the terms and conditions of trade transaction(s) carried out on arms-length and in accordance with the trade policy of the company.