Loan sanctioned for director's personal purpose.

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nimit gada (Querist)
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12 October 2017 What are the Company Law provisions and responsibilty of the Company Auditor where loan taken by the company from a Financial Institution or a Bank is utilised for personal purposes of the company's director?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 October 2017 Auditor's has to report this as per clause 3 (ix) of Companies (Auditor's Report) Order,2016.

nimit gada

nimit gada (Querist)
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13 October 2017 Thank you sir. It would be great if I can also get the company law provisions for this matter. Also, any other requirement to be fulfilled by the auditor if purpose mentioned in loan sanction letter is different?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 October 2017 Section 143 r.a.w. S.O. 1228(E) dated 29-03-2016.

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