Borrowings by the public company

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 Dear Members,

Whether the unlisted public limited company borrow unsecured loans from private limited companies.Some of these may be related parties while few other unrelated.

Does it attracts non compliance under section 58A? In case yes how to rectify this default.

Thanks in advance,

Ajay Mishra

Ajay Mishra (Expert)
Follow

23 July 2013 Hi

As per Rule 2(b)(iv) of the Companies (Acceptance of Deposits) Rules, 1975, Loans received from another company is not treated as deposit it will be treated inter company loan.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 Thanks ajay ji,

Does it suggests that there should be observance of Section 372A rather than 58A.

Please guide..

Thanks..

Ajay Mishra

Ajay Mishra (Expert)
Follow

15 August 2013 Yes, absolutely, you will follow the provision of section 372A.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!