Gayathri (company secretary) (83 Points)
12 November 2010As per Scetion 293 of the Companies Act, the borrowing limits are upto the aggregate of paid-up capital and free reserves of the Company. In that case, for calculation of existing limits of borrowing, should we take the amount as mentioned in the last-audited balance sheet or as on the current date?
sudhakar ca cwa
(service)
(1518 Points)
Replied 12 November 2010
in opinion last-audited balance sheet only.
but wait for other views
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 12 November 2010
Keeping in view the intention of law behind section 293(1)(d), amount as on the current date should be taken for calculation of limits.
Thanks
CA Mallika Chaudhary
(CWA Final and CA)
(418 Points)
Replied 12 November 2010
Agree with Ankur Sir
- Because nothing otherwise has been expressly mentioned in the section.
- The stipulation of "Latest Audited Balance Sheet" is only for section 372A [as per explanation to section 372(10) ].
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