loan from client/sundry Debtors

This query is : Resolved

lalit kumar sharma (Querist)
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03 October 2008 My company is a service providing company. Last financial year we have taken unsecured loan from our client for rs. 5.25 lacs on 01.01.2008 and return it to client on 25.05.2008(in current financial year). Can we take unsecured loan from our client. Although we have taken loan letter from the client with ward circle along with PAN. If any liability or rules violation please provide me necessary details.

regards,
lalit

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 October 2008 If yours is a company, any unsecured loan from your client will fall under the classification of deposits.

You have not indicated whether you are a pvt ltd or public ltd company.

You have also not indicated whether your client is a company or individual.

lalit kumar sharma

lalit kumar sharma (Querist)
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03 October 2008 our company is a pvt. ltd. company registered with Delhi & Haryana ROC and our client is a partnership firm.

regards,
lalit

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 October 2008 So it is not possible for you to receive this unsecured loan under the companies Act.