22 February 2014
what is the limit when a company invest or gives loan in or to other company and is not considered as nbfc. kindly solve my query as early as possible.
22 February 2014
The limit shall be calculated in accordance with section 372A of the Companies Act, 1956 and is 60% of the paid-up capital and free reserves, or 100% of its free reserves, whichever is more, calculated for loans/investments/securities/guarantees taken together. Please refer to section 372A for details on calculation.
CAclubindia
