interest free loans URGENT!!!!!!!!!

if both the co.s are of same person

than this is the matter of substantial interest

and in this case

I think a co. can invest in another co. but can't give loan...

Hai Amitk..

please refer Sec 372 A for Inter corporate loans (applicable for Public ltd co.)

it prescribes minimum interest rate to be charged for a loan given to another company.

So a public ltd co cannot give interest free loans.

Upto my understanding;

In certain circumstances interest free loan can be providd like a Holding company may give interest free loan to it's wos.

A pvt. company (which is not subsi of a pub. comp.) may give interest free loan. 

Likewise, other circumstances have been mentioned in Section 372A itself, whereSection doesn't apply.

Regards,

Thanks Vivek Sir,