16 November 2017
The exemption notification permitting private companies for granting loans, subject to the conditions is as follows: a) No other body corporate shareholder in the lending company; (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 and (c) Such a company has no default in repayment of such borrowings subsisting at the time of making transactions Query : The condition of borrowings less than twice of paid up share capital or fifty crore rupees, whichever is lower – does this condition to be fulfilled only at that time of making such transaction (read along with condition no. (c)) or does the time limit for condition (b) should be satisfied during any point of time until such borrowings clear to avail the exemption granted to private companies
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