Dear Sir \ Madam
whether the loans taken by a private company from a private money leanding institution is contravention of section 58A of the companies ACT?
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 06 December 2012
Section 58A is to be read with Companies (Acceptance of Deposit) Rules, 1975.
First of all such rules does not apply on private company. Secondly, any loan received from any financial institution does not classify under deposit, it will be classified as loan.
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