Applicability of section 185 & 186 of companies act 2013

Sanjay (Associate) (152 Points)

22 April 2017  

Holding Company have given loans to 4 Wholly owned subsidiaries ("WOS") and to 3 fellow subsidiaries. All are having common directorship. Further all loans are interest free.

So i will need to give Qulaified opinion in Audit report of Holding company for not complying the provision of Section 186 since loans are given at free rate of interest and for Section 185 for giving loan to Fellow Subsidiaries.