 "Illustration by Binay Sinha")
Related-party transactions (RPTs) of government firms have risen from 8.8 per cent of net sales in financial year 2014-15 (FY15) to 31.5 per cent in FY19, the highest in at least five years.
Such transactions recorded on the balance sheet have also risen from 1.2 per cent of total assets to 2.4 per cent in the same period. The balance sheet transactions had risen to as high as 3.4 per cent in FY17.
RPTs are transactions entered into by a company with an entity related to its promoter.
This analysis was based on information from firms in S&P BSE 500
