Hi Members,
How do we interpret Ordinary Course of Business in following section.
185(1)(b) - a company which in the ordinary course of its business provides loans or gives guarantees or securities for the due repayment of any loan and in respect of such loans an interest is charged at a rate not less than the bank rate declared by the Reserve Bank of India.
Is it like the main business should be providing loans (NBFC)
or
any ancillary clause providing loans / guarantees - will be ordinary course of business.
CAclubindia
