22 April 2008
YES A COMPANY MAY RECEIVE CASH AS AN UNSECURED LOAN FROM A DIRECTOR. BUT THEN THE DIRECTOR MUST BE ABLE TO SHOW THE SOURCE FOR THESE FUNDS IN HIS BOOKS. SEC 269 OF IT ACT LIMITS BE KEPT IN MIND. BUT IF BANKS /FIN. INST. ARE ALREADY LENDERS , THESE UNSECURED LOANS FROM DIRECTORS CANNOT BE PAID BACK BEFORE REPAYING BANK LOANS. STILL EASIER IS TO SHOW AS CASH ADV. FROM A CUSTOMER / RECOVERY OF VERY OLD DEBTOR BALANCES BELOW RS. 20000/ PER DAY IF POSSIBLE. OR SHOW REFUND OF TOUR ADV. IN CASH BY AN EMPLOYEE IF YOU HAVE ANY DUES. SOME COS. SHOW RECEIPT OF CASH ON SALE OF SCRAP / FACTORY YARD WASTE. R.V.RAO
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