## Loans/Advances to Promoters, Directors, KMPs – Disclosure Requirements

### When is this Disclosure Triggered?

Additional regulatory disclosures are required when loans or advances in the nature of loans are granted to:

…either severally or jointly with any other person, and such loans are:

### What Must Be Disclosed?

For each category of borrower:

1. Amount of loan/advance outstanding (₹)

2. Percentage of that amount to total loans and advances outstanding

### Formula

```

% = (Outstanding amount of that borrower ÷ Total outstanding loans) × 100

```

Worked example

### Example 1

LD Ltd. – PYP May 2024

Total outstanding loans as at 31/03/2024: ₹120 lakhs

Borrower	Outstanding (₹ Lakhs)	Calculation	% of Total
X (Promoter)	15	15/120 × 100	12.50%
Y (Director)	25	25/120 × 100	20.83%
Z (KMP)	05	5/120 × 100	4.17%
A (Related Party)	10	10/120 × 100	8.33%

Note: 'Others' (₹65 lakhs) are not included in this disclosure table — only the four specified categories are reported.

Key: The percentage denominator is the total outstanding loans (₹120 lakhs, including Others), not just the loans to listed categories.

⚠️ Common exam mistakes

Including 'Others' in the disclosure table — only promoters, directors, KMPs, and related parties are required
Using the maximum amount granted during the year instead of the outstanding balance at year-end
Using the sum of only the four categories as the denominator — the denominator is TOTAL outstanding loans including Others
Treating this as a listed-company-only requirement — it applies wherever such loans exist

Reference:

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Disclosure of Loans and Advances to Promoters, Directors, KMPs, and Related Parties

Worked example