Dear All,
sir, I have one quary, wheather listed company made investment in pvt ltd co. in which directors are interested. if yes, then what is the accounting treatment in the books of listed company ? wheather it is shown as Investment OR Loans & Advnces recoverable in cash in kind under the head current assest. whaether sec.295,297 or 372A is attracted in the above case.
Thanks & Regards
Vivek
Dear Sir,
Investment or Loan-------totally dependent on the transaction. If you have purchased the shares of the private co than it is iv=investment otherwise loan.
Section 295 loan to director not applicable bcoz this is specifically governed by section 372A regarding inter-corporate transactions. Further exemptions mentioned u/s 372A(8) are not available to the listed company in the given case.
Section 297 also not applicable.
Section 299 and 300 and 301 are applicable to the listed company. As per section 299 disclosure of interest by directors is necessary and accordingly entry is required in the register mentioned u/s 301.
Wait for other expert opinions.
Thanks
agree with ankur sir
O P Bagla & Co LLP
New Delhi
CA Inter
View Details
CAclubindia
