Applicability of section 185

A company has in previous years obtained an Interest free loan from other group company amounting to Rs. 215 million. Under the Companies Act, 2013, there is a restriction on inter corporate loan between Companies having common directors (section 185)

Whether Sec. 185 is applicable for 2013-14 statutory audit, since Companies ACt 2013 is applicable w.e.f. 01st April 2014.

Pls advice

Replies (1)
No preeti, in my view it is not applicable to 13-14 statutory audit......so the loan already taken is excluded....however, henceforth care is to be taken for complying with sec 185..... P.S. the statutory auditors might have a diff view.....

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