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P C Agrawal (Vice President (Corporate)) 03 December 2014
Sec.185 puts restrictions on giving 'loan' (and not 'advance') to directors. 'Loan' means lending of money with absolute promise to repay, whereas 'advance' is to be adjusted against supply of goods and services. One can argue that advance given against current month's salary is not loan. However, it will be difficult to make this argument if advance is given for 3 months, which will be in the nature of loan.