Related party transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2018 i have director of xyz pvt ltd company and i have transfer of amount of rs 540000/- from my proprietorship firm to company for material goods purchase any one suggest me is it required to show in director report and audit report. as per sec 188(1) of company act this sec does not apply to pvt ltd company.
kindly suggest me what i do?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 November 2018 1. This is a related party transaction.

2. Show the amount as Loan from director in the company's balance sheet.

3. This should be shown in the notes on account of the company as per AS-18.

4. No need to mention in Director's report / Audit report.(unless CARO, 2016 is applicable).