The company has overdraft facility and year end balance is Rs.18 lakh. Further, The company has taken loan of Rs.15 Lakh for purchase of new asset from bank which is used for business purpose.
01 May 2013
Applicable because loans from banks or financial institutions are normally in the form of term loans, demand loans, export credits, working capital limits, cash credits, overdraft facilities, bills purchased or discounted. Outstanding balances of such loans should be considered as loan outstanding for the purpose of of computing the limit of rupees twenty five lakhs.
Courtesy:- Statement on Companies ( Auditor's Report ) Order ,2003.
CAclubindia
