Hello
My question is regarding loan by directors of a small private limited company to his company
As per my knowledge, the directors as per companies act 2013 can give loans to their companies but these loans should be from own sources. Now i have question about the meaning of own sources?
In my case the director has the capital of Rs 50,00,000 as on 31.03.2014 in his balance sheet. As on 31.03.2014 Rs 50 Lakhs is invested in Land of Rs 2500000 and the balance is invested in his other business (retailers)
Now i want ask that what amount will be considered as own sources for the director to give loan to his Company?
Thanks
CAclubindia
