Loan taken by a Pvt Ltd Co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2010 Dear Experts,
1)Can a Pvt Ltd Co. take loan from another Pvt Ltd Co.?
2) Can A Pvt Ltd Co. accept interest free loan from directors?
3) Can director of a Pvt Ltd Co. Accept loan , which is further transferred to the company by the later, were EMI is directly paid by the Company to the third party? Is it allowed?

Thanx in advance

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2010 1. Yes
2. Yes if there is no borrowings by the director.
3. It could be considered as public deposit as the director giving the loan should not have taken loan to give loan to the company.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2010 Dear Expert,
Thnx for d support, but I have some query:
1) Dat A Pvt Ltd Co can only accept loan from its Directors, shareholders and members. So how can a Pvt Ltd Co take loan from another Pvt Ltd Co( in which no directors or shareholders are common)
2) Is there any disclosure required for the same in Auditors report?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2010 visit this link
http://www.advocatekhoj.com/library/rules/companiesacceptance/2.php?Title=Companies%20%20%20(Acceptance%20of%20Deposits)%20Rules,%201975

In the rules it is mentioned any amount received by a company from any other company is not a public deposit. So no problem.

If loan is taken from parties covered u/s 301 then the same needs to be disclosed in the CARO report, otherwise not.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2010 thnx a lot once again

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2010 U can also thank by using the thank user icon.

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