Nbfc

This query is : Resolved

Guest

Guest (Querist)

22 February 2014 what is the limit when a company invest or gives loan in or to other company and is not considered as nbfc.
kindly solve my query as early as possible.

SHAKTI JINDAL

SHAKTI JINDAL (Expert)
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22 February 2014 The limit shall be calculated in accordance with section 372A of the Companies Act, 1956 and is 60% of the paid-up capital and free reserves, or 100% of its free reserves, whichever is more, calculated for loans/investments/securities/guarantees taken together. Please refer to section 372A for details on calculation.