Regarding sec. 293(1) (d)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 As per the above quoted section the public ltd can borrow the aggregate of paid up capital and free reserves. But please clarify that for calculating the borrowing powers latest audited balance sheet i.e. 31st march 2011 amount needs to be taken or unaudited quarter / period ended 31st december 2011 can be taken for the purpose.

kindly solve my query...... :)

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

22 February 2012 Section 293(1)(d) does not provide that amount of paid-up capital & free reserve should be taken as per the latest audited balance sheet. In the context of the Companies (Acceptance of Deposits) Rules, 1975, the DCA has clarified that the limit under the Rules are to be computed with reference to aggregate of paid-up capital and free reserve as appearing in the latest audited balance sheet of the company and any change arising thereafter is to be disregareded

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now