Export Transactions Net Activity may be positive or negative. Related to DEFINITIONS Arm’s length transactionĪrm’s Length Transaction means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest.Įxport Transactions Net Activity means the aggregate net total, resulting from Export Transactions, of (i) Spot Market Energy charges, (ii) Transmission Congestion Charges, and (iii) Transmission Loss Charges, calculated as set forth in Operating Agreement, Schedule 1 and the parallel provisions of Tariff, Attachment K-Appendix. Related party transaction in relation to the Company means a transaction which is: Related Party in relation to the Company means a party related with the Company in any of the ways as are laid down in Section 2(76) of the Companies Act, 2013. Policy means this policy, as amended from time-to-time. Material related party transaction in relation to the Company means a related party transaction which individually or taken together with previous transactions during a financial year, exceeds 10 per cent of the annual “ consolidated turnover” of the Company as per the last audited financial statements of the Company. Board means the Board of Directors of Jain Irrigation Systems Ltd.Company means Jain Irrigation Systems Ltd. Audit committee means the audit committee of the Board of Directors of Jain Irrigation Systems Ltd. Companies should consider variety of factors like size and volume of transactions, arms- length, frequency, purpose, etc., to make this assessment. The purpose of making such assessment is to determine whether the transaction is usual or customary to the company and/ or its line of business. The assessment of whether a transaction is in ordinary course of business is very subjective, judgmental and can vary on case-to-case basis giving consideration to nature of business and objects of the entity. Transactions under contracts whose terms are changed before expiry.Transactions with circular arrangements, for example, sales with a commitment to repurchase.Sales transactions with unusually large discounts or returns.The leasing of premises or the rendering of management services by the entity to another party if no consideration is exchanged. Transactions with offshore entities in jurisdictions with weak corporate laws.Complex equity transactions, such as corporate restructurings or acquisitions.In its guidance to auditors, the ICAI has included following few examples of transactions that are considered outside the entity’s normal (or ordinary) course of business: It seems that the ordinary course of business will cover the usual transactions, customs and practices of a business and of a company. Ordinary course of business the phrase “ordinary course of business” is not defined under the Companies Act 2013 or rules made there under. DEFINITIONS Arm’s length transaction means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest, no relationship interse.
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