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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
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Sachin P Mampatta Mumbai

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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