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NBFC loan to its Auditor

Neha Rohilla (28 Points)

19 October 2018

Hi
NBFC main business is giving loan. Can it give loan to its auditor???
Plz guide

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8 Replies

Hitesh (Student) (3549 Points)
Replied 19 October 2018

Yes it can give provided it is at arms length

1 Like

Anush Ram (160 Points)
Replied 19 October 2018

141(3)(d)(ii)person who, or his relative or partner is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of such amount >5 Lacs(sub rule 2 of rule 10 of CH- X)
isn't it?....
ofcourse it is in the course of business!...
hmmm??!!...
waiting for reply!

Hitesh (Student) (3549 Points)
Replied 19 October 2018

Please do not speak alone of cos act requirements. Even RBI act has to be taken for. consideration.

1 Like

Anush Ram (160 Points)
Replied 19 October 2018

I see😐😐(i don't know),Do RBI act talk about this?(I wonder).....oh,please don't take it serious of mentioning the sections,subsections bla bla😅😅😅...

Hitesh (Student) (3549 Points)
Replied 19 October 2018

Plz check the RBI act and then talk bla bla bla

Anush Ram (160 Points)
Replied 19 October 2018

that's rude😕😕😕

1 Like

Hitesh (Student) (3549 Points)
Replied 19 October 2018

Hey nothing like that bro it was just a reply

Nanjundaiah R (CS- Trainee ) (236 Points)
Replied 21 October 2018

Being a NBFC it must comply with the Companies Act, hence Auditor can't get loan from NBFC, which effect on independence of Auditor, that is wat section 141(3)(d)(ii) says