Return of advance in cash
This query is : Resolved
Rakesh Aggarwal
(Querist)
30 September 2011
A pvt ltd company gave rs. 5 lacks to its buyer as loan and receive the same in cash. can pvt. ltd co do this. or is there any violation of act. Pls tell
30 September 2011
Why the loan was granted: reason and basis not clear as well as the mode of loan tendered: cash or cheque/DD.
Even if it was granted to realise the sale proceeds from the buyer against the supplies made to him by the Company, Company is entering into financial business and accordingly rules, laws as applicable to financial companies will become applicable apart from change in the object clause, if it was not in business object to the MA of the Company.
Even if it was granted to realise the sale proceeds from the buyer against the supplies made to him by the Company, Company is entering into financial business and accordingly rules, laws as applicable to financial companies will become applicable apart from change in the object clause, if it was not in business object to the MA of the Company.
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