"As per Section 180(1)(c) of the Companies Act 2013, the board of the directors of a public company shall not borrow moneys, together with the moneys already borrowed by the company (apart from “temporary loans” obtained from the company’s bankers in the ordinary course of business), in excess of the aggregate of the paid-up capital and free reserves of the company, unless it is approved by the shareholders.
Temporary loans are loans repayable on demand or within six months from the date of the loan such as short-term, cash credit arrangements, the discounting of bills and the issue of other short-term loans of a seasonal character, but does not include loans raised for the purpose of financial expenditure of a capital nature."
Pls clarify the below
1. Whether OCC Limits covered under borrowings
2. Whether BG/LC Limits covered under borrowings
3. Whether Compulsory Convertible Debentures issued covered under borrowings
Thanks in advance
Kishore
CAclubindia
