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Query on loan by a company from a director

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Tanuj Chandra Saxenaa

Company Secretary

7085 Points Posted on 15 December 2021

loan from director by a company as per companies act need to be reported in aoc2 Or not

Replies (3)

Quick Summary

This discussion clarifies reporting requirements for loans a company receives from its director. While loans from directors are generally not covered under Section 188 and thus not mandatory for AOC-2 reporting, specific conditions apply. If the loan is an exempted deposit and the director declares the funds are from their own pocket, DPT-3 reporting might still be necessary if outstanding on March 31st. The consensus leans towards mentioning such loans in AOC-2 for transparency, even if not strictly required.

Chirag

Professional

1979 Points Posted on 16 December 2021

It's an exempted deposit u/r 2(1)(c) of companies (AOD) Rules , subject to declaration by director that means of lending are from his own pocket and not from borrowed funds ,So DPT -3 reporting if o/s as on 31/03 is required ,,secondly AOC-2 requires all kind of related party transactions whether in ordinary course or not or arms length basis or not ? So as per my view Loan from director should be mentioned in AOC-2 by keeping in mind transfer of resources,services and obligations etc and there is no harm as such ...