Urgent query

The company must have converted such loan into equity before Applicability of Companies Act, 2013.

If the company has taken loan from banks, or other Financial Institutins, then the Banks might have put a stipulation over company to take unsecured loan from promoters. If, such stipulation is there, then this unsecured laon will not be treated as deposit

Same case with me also. My company taken 6 lakh loan from some other company in which there is a common director. I am not able to repay the amount before 31 Mar 2015. Similarly another 9 lakhs loan from 5 different persons/friends.

Suggest me Better Solution.

The loan is possible only from Directors. If the person from whom the laon has been taken and is showing on Balance Sheet of the company on 31.03.2014 as loan from Directors, it could be exempted from Definition of Deposits.

Hope you have understood my point which i can not explain here on public portal.

Section 62(3) of the Act permits to convert unsecured loan into equity if such loan was taken with prior approval from members with an option to do so. Hence, even after the applicability of new Act, there is no issue in this aspect.