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Unsecured loans
How much of unsecured loans in a balance sheet is to be considered under capital/equity while arriving at D/E Ratio of Partnership Firms and Corporates?
Replies (4)
Quick Summary
| Loans from | Conditions, if any: | |
| 1.) | Shareholder:
|
Member: Yes, can accept, but subject to the condition specified in deposit Rules |
| 2.) | Director/Relatives of Director | Yes, can accept, but the director/relative will give a Declaration in writing that money is not given out of borrowed funds and company will disclose it in the Board’s report. |
| 3.) | Employee
|
Yes, can accept up to the employee’s annual salary ( there should be a contract of employment with the company) in the nature of non- interest bearing security deposit. |
| 4.) | Any other Individual | Can’t accept because it is prohibited by the definition of Private Company. |
| 5.) | Proprietorship Firm ; | Can’t accept because it can’t be director, Member or relative of Director. |
| 6.) | HUF
|
Can’t accept because it can’t be director, Member or relative of Director. |
| 7.) | Partnership Firm
|
Can’t accept because it can’t be director, Member or relative of Director. |
| 8.) | Any Company
|
Yes, can accept, but also comply with Sec 179(3) wherein the conditions are specified for the lender |
| 9.) | Banks | Yes, can accept |
| 10.) | Trust
|
Yes, can accept, but loan received should be non- interest bearing. |
| 11.) | Outside India
|
Yes, can accept, but subject to the provisions of the Foreign Exchange Management Act, 1999 and rules and regulations made there under. |
| 12.) | Govt. organization ( eg. SIDBI) | Yes, can accept |
| 13.) | Any other Financial Institution which are not incorporated as Banks (eg. Religare, Fullerton, Barclays, Bajaj Finance).
Yes, can accept |
|
Try tax guru dot in and you have further information. That can help you sort out the above
Thanks for the clarification
Thank you so much, your answer cleared a lot of confusion for me
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