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can a pvt ltd company give loan to its ltd sister concern.

This query is : Resolved 
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(Querist)
18 February 2011 Dear Experts,

Our is a pvt ltd company. we have given advance to a public limted company, which is our sister concern. is this allowed as per company's Act.

Waiting for reply,
Thanks in advacne.
Sushli.
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Sunil Kr. Sanganeria

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Sunil Kr. Sanganeria (Expert)
18 February 2011 Any loan to sister concern without interest may be questiond by the ITO.

Further, section 2(22)(e) may be applicable. Section 2(22)(e) dedpends on pattern of shareholding of both the Company
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CS Taher

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CS Taher (Expert)
18 February 2011 No provision of companies act shall apply to a private company, Unless the pvt Company is subsidiary of a Public Company.

If your company is pvt Company and not subsidiary of a public company then you can give advance or loan to any public company or Pvt company.
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