Loans from individuals other than directors and shareholders

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urvashi sharma (Querist)
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09 June 2013 whether form no. 8 is required to be filed with ROC for loans taken from outsiders (i.e. individuals other than directors, their relatives and members of company), which are secured by only personal guarantee of directors?

Plz guide me. It's urgent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 June 2013 No need as per section 125(4) of the Companies Act,1956.

urvashi sharma

urvashi sharma (Querist)
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10 June 2013 Thank you so much sir.

kindly also tell under which head of Loans, such loans i.e. loans taken from individuals other than directors, their relatives and members of the company secured only by personal guarantee of directors, will be shown in B/S of the company? Whether under Secured Loans or Unsecured Loans.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 June 2013 Personal guarantee can't be considered as security. Disclosure (as per revised schedule VI) depends upon whether 'long term' or 'short term'. If long term, classify in 'Non- current liabilities' under line item 'long term borrowings'. If short term in 'current liabilities under line item' 'short term borrowings'.

urvashi sharma

urvashi sharma (Querist)
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10 June 2013 Agreed Sir, but Long or Short term borrowings are further classified as Secured and unsecured borrowings and my question is whether loan secured only by personal guarantee of directors will be classified under secured loans head or unsecured loans head?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 June 2013 Personal guarantee can't be considered as a security. Hence loan is unsecured.

urvashi sharma

urvashi sharma (Querist)
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11 June 2013 Thank you Sir....

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