Rajagopalakrishnan R (PARTNER) (1422 Points)
09 September 2014In the context of CARO 2003, Clause requires an auditor to report on Loans taken from/granted to "Companies Firms or other Parties entered in the register u/s 301."
The query is whether a director of the same co, is such a party??
Uttam
(employee)
(814 Points)
Replied 10 September 2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 10 September 2014
Section 301 refers to all parties covered u/s 297 and 299. These will include:
a) All directors of the company
b) All relatives of directors of the company
c) Firms in which any director of the company or his relative is a partner
d) Any other partner of such a firm
e) Private company of which the director of our company is a member or director
f) Body corporate or firm of which the director of our company is a director or member.
Rajagopalakrishnan R
(PARTNER)
(1422 Points)
Replied 05 October 2014
I may be permitted to refer to CS P C Agarwalji's reply with due respect to his views, I think while section 297 and 299 applies to all the parties listed by him, the reference in CARO 2003 regarding disclosure by auditor of Loans given or taken from "Companies firms and other parties in which directors are interested" should not logically include the Director himself unless the law intended a roundabout way of saying that the director himself is a party in whom he is interested. Therefore it would seem out of context to include Loans from the Directors for this particular reporting clause. All members views please
Rakesh Gampa
(62 Points)
Replied 27 September 2016
"Granting loan to companies covered in the register maintained under section 301 of companies act ,1956 "
will that mean loans given under sec295.
Rakesh Gampa
(62 Points)
Replied 15 March 2017
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