Schedule VI of Companies Act

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Rajesh (Querist)
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28 November 2008 Please guide that whether a loan backed by Bank Guarantee should be treated as Secured Loan or as Unsecured Loan. Please mention the Section also

Pankaj Jhawar

Pankaj Jhawar (Expert)
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28 November 2008 SEcured LOan

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 November 2008 If the loan is guaranteed by manager's and/or director's of the company it can be classified as secured loans as per the instructions, in accordance with which liabilities should be made out,given in schedule V1.

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Rajesh

Rajesh (Querist)
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01 December 2008 Thanks for the reply, but I have a doubt because in this case the charge of the underlying security is not registered with the Co. So how such loan can be treated as Secured Loan. Can a loan be classified as secured in which charge is registered with the Guarantor of the loan. Please refer a book if it is so.

Rajdeep Pawar

Rajdeep Pawar (Expert)
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03 December 2008 In present case, loan will be treated as unsecured. Secured loan will be one which has some charge on the Assets of the company, in present case the lender doesn't have any charge on the assets of the company.