Loan given to husband of director's sister in caro report

Stat Audit 1068 views 2 replies

Dear

My Company has given Loan to xyz co. whose director is husband of my director's sister

Now let me know please whether I have to disclose the name of xyz co. in Caro Report (Audit Report) where we have to disclose the details of loan taken / given as per u/s 301.

some one please help me out

thanks

Replies (2)

you have to discose the name

Definition of relative is defined in Sec 6 and Schedule !A to the Companies Act, 1956.

As per Schedule 1A, sister's husband is also relative.

Now, reading Sec 299 :

"Every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement......................."

Hence, the loan given by your company to XYZ Co is also covered.


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