Business Standard

Rise in related-party transactions outpaces sales growth, shows data

Share has risen as a percentage of net sales

In April FY25, 15,982 companies were incorporated, compared to 16,599 the previous year. Representational image
Premium

Representational Image

Sachin P Mampatta Mumbai

Listen to This Article

The value of transactions that listed companies enter with related parties is worth trillions of rupees among the top companies.

The value of related party transactions as a percentage of total assets on the balance sheets of S&P BSE 500 companies is over 9 per cent as of 2022-23 (FY23).

Transactions on the profit and loss (P/L) statement are equivalent to over a fifth of net sales, shows a Business Standard analysis of numbers from corporate data provider Capitaline.

In absolute terms, the value of related party transactions on the balance sheets of companies totalled Rs 11.6 trillion, and those

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 27 2024 | 10:50 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com