Corporate guarantee and its treatment
This query is : Resolved
Shrinivasan
(Querist)
22 February 2017
Dear Professional friends,
My query is regarding corporate guarantee. In this case, a Private Limited company gave Corporate guarantee to a Partnership firm on its loan from bank. Now what is treatment for the private limited company. Whether the Pvt ltd company need to file Form CHG-1 for that guarantee given by the pvt company to that partnership firm. If yes, kindly explain the appropriate rules. If no, then what will be the treatment for the pvt company.
Thanks in Advance.
My query is regarding corporate guarantee. In this case, a Private Limited company gave Corporate guarantee to a Partnership firm on its loan from bank. Now what is treatment for the private limited company. Whether the Pvt ltd company need to file Form CHG-1 for that guarantee given by the pvt company to that partnership firm. If yes, kindly explain the appropriate rules. If no, then what will be the treatment for the pvt company.
Thanks in Advance.
CA DHAVAL MISTRY
(Expert)
24 February 2017
CHG-1 is to be filed if the charge is created against the asset of the company by banks or any FIs. In case of corporate guarantee, the same shall be reported in CARO Report issued by the statutory auditor of the company. Further, you need to mention the guarantee details in the statutory register of the company
Thanks
Thanks
Shrinivasan
(Querist)
02 March 2017
Thank you very much Mr.DHAVAL MISTRY.
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