section 301 of Company Law Act 1956

Save Share

This query is : Resolved

Sumiti Jain (Querist)
Follow

02 December 2009 if loan has been taken from the family member of any director of the company,
whether the max. outstanding amt. of that loan should be shown in an auditor report u/s 301 or not?

Ankur Garg

Ankur Garg (Expert)
Follow

02 December 2009 As per my understanding section 301 is applicable to the above transaction. Reason being director is interested in the above transaction and as per the language of section 301(1) all contracts or arrangements to which section 299 applies should be entered in 301 register.

One time entry is required and no need to mentioned outstanding amount.

Views of other experts solicited.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 December 2009 Continuing Ankur Sir, the auditor's report shall contain the particulars of the said transaction.

Rasesh

Rasesh (Expert)
Follow

07 December 2009 Transaction wise details need not be mentioned in the auditors report. It is only the total figure of loans taken from parties covered under Sec. 301 has to be mentioned i.e. outstanding at the end of the year and the max amuount outstanding during the year. This is also to be given in the Annexure to the Auditors Report and not the Main Auditors Report

The AS-18 declarations in the Notes to account will include this amount (but not seperately).