Srawan Dadhichi (Accountant) (49 Points)
25 November 2011Dear
My Company has given Loan to xyz co. whose director is husband of my director's sister
Now let me know please whether I have to disclose the name of xyz co. in Caro Report (Audit Report) where we have to disclose the details of loan taken / given as per u/s 301.
some one please help me out
thanks
Sonam Bidasaria
(CA)
(770 Points)
Replied 14 January 2012
Definition of relative is defined in Sec 6 and Schedule !A to the Companies Act, 1956.
As per Schedule 1A, sister's husband is also relative.
Now, reading Sec 299 :
"Every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement......................."
Hence, the loan given by your company to XYZ Co is also covered.
CAclubindia
