Loan by pvt ltd co

This query is : Resolved

CA Pramod Jain (Querist)
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06 September 2013 a company whose main object is trading, has not done any trading business in last 2 years.

co is having surplus fund which it has given to some unreltaed co as ICD @ 17% p.a.

now it is having whole income from interest.

whether there is any restriction with respect to NBFC as it is having income from Interst (100%).

Ajay Mishra

Ajay Mishra (Expert)
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06 September 2013 Generally its income is not commence from business. Generally your company is not allowed to finance other company, if that company is not related with your company.