## AS 18 – Exemptions from Disclosure Requirements
In certain situations, AS 18 grants exemptions from the related party disclosure requirements.
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### A. Statutory / Regulatory Confidentiality
Disclosure requirements do not apply if providing the information would conflict with confidentiality obligations imposed by:
- A statute, or
- A regulator or similar competent authority
> Classic example: Banks are required by law to maintain confidentiality about their customers — they are exempt from disclosing related party transactions with those customers.
> Important caveat: A commercial contractual confidentiality clause between private parties does not qualify for this exemption. Only statutory/regulatory confidentiality counts.
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### B. State-Controlled Enterprises
Government-controlled enterprises are not required to follow the related party disclosure requirements.
- Example: Maharashtra Govt controls both Indian Oil Corporation and BSNL. These two are related parties (common control) — but being state-controlled enterprises, neither is required to disclose the relationship.
> This exemption avoids the massive administrative burden on PSUs that interact extensively with other state entities.
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### Summary Table
| Exemption | Who Benefits | Condition |
|---|---|---|
| Statutory confidentiality | Any enterprise | Confidentiality mandated by statute or regulator |
| State-controlled enterprises | PSUs, govt companies | Controlled by central/state government |