Fundamental Glossary / Indian Stock Market-Specific Fundamentals
Related Party Disclosures
The notes and filings that show transactions and balances with promoters, subsidiaries, key managers, and their connected entities.
Formula
Ind AS 24 requires the note in the financial statements. SEBI's related-party rules require approvals and, for material deals, more disclosure to the exchanges.
What it means
The accounting disclosure and the listing-regulation disclosure serve the same purpose: a reader should see value moving between the listed company and the people who control it.
Names, nature of the relationship, and the amount are the minimum. The useful note also shows loans, guarantees, and the year-end balance, not only the year's sales.
How to read it
Track the balances, not only the flows. A loan to a promoter entity that never falls is a receivable in name and an extraction in substance until it is repaid.
What to watch
Consolidation eliminates many intra-group trades in the consolidated statements. The standalone related-party note still shows them. Read standalone when you care about cash leaving the listed entity.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.