Inter corporate borrowing between private limited company

This query is : Resolved

Shivish Verma (Querist)
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05 April 2016 Sir
Mr A is the Director of XYZ Pvt Ltc and ABC Pvt ltd.
Can XYZ Pvt Ltd give loan to ABC Pvt Ltd

Please reply Its urgent

Thanks

Mandar

Mandar (Expert)
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05 April 2016 Yes,
With reference to MCA notification dated June 5, 2015 the following conditions shall be fulfilled:-
(a) in whose share capital another body corporate has invested any money;
(b) if the borrowings of such a company from banks or financial institutions or anybody corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower;
(c) such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section