can private company enjoy exemption from section 185 after fulfilling following conditions
(a)Company does not have any other body corporate invested in its share capital;
(b) Company does not have borrowings from banks / financial institutional over two times its paid up share capital or fifty crore, whichever is lower; and
(c) Company has not defaulted in the repayment of such borrowings subsisting at the time of making such transactions under Section 185.
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Applicability of section 185 of companies act, 2013 to private company
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Summary: Private companies are exempted from Section 185 provided they have no body corporate investors, maintain borrowings below the specified threshold (twice paid-up capital or ₹50 crore, whichever is lower), and have no outstanding loan defaults. Failure to meet these criteria makes the company subject to the standard provisions of Section 185.
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