SECRETARIAL AUDIT - as per new amendment

Co Act 2013 195 views 3 replies

sir

For the purpose of Secretarial Audit of Private companies as per new amendment one of the condition is

  • Every Company having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 crore or more.


My query is Whether the borrowings include Bank guarantees?

Replies (3)
Bank Guarantee may be included

But - BG is Contingent Liability and shown only in Notes to the Accounts. 

In this scenario, is there any logic or provision regarding considering it as borrowing?

A bank guarantee is a promise from a lending institution that ensures the bank will step up if a debtor can't cover a debt....so it's not included


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