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Loan Given by Director To Company

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Sweeper
163 Points Joined April 2013
If during last FY director has given any loans to co. than, is Co. required to pay director any interest on the same??

The director has given money out of his own funds...
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On 23 September 2019 at 14:42 Report
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43 Points Joined September 2019
Yes The company has to Pay Interest otherwise CARO Reporting will be made. and The Auditor May Qualify due to Significant Transaction.
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On 23 September 2019 at 22:35
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Sweeper
163 Points Joined April 2013
But law does not specifically provide that.. than on what basis it is to be calculated and how much interest %???
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On 23 September 2019 at 23:50
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43 Points Joined September 2019
Will you tell me whether the Company is Pvt. or Public/listed..??
Because If CARO Not Applicable... then NO PROBLEM 😊
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On 24 September 2019 at 11:04
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Sweeper
163 Points Joined April 2013
Co. is Pvt ltd co. and CARO is applicable to it..

Can you even tell me the section or proviso or any other significant rule where is it is mandatory to pay interest
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On 24 September 2019 at 11:16
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CS
2942 Points Joined April 2016

The amount given by the Director to the Company is treated as Loan which shall be repaid along with the interest. 

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On 24 September 2019 at 16:27
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Sweeper
163 Points Joined April 2013
@ Jatin but section is silent.. it specifies only declaration is enough from director...

Can you pls provide me the link, case law or any reference...

The reason being there are mixed reviews...
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On 24 September 2019 at 17:29

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