• Filter Your Search
            
       
 
Notifications
(0)
Circulars
(0)
Orders
(0)
News
(0)
Queries
(0)
No updates found in last 7 days.
Notifications|Circulars|Orders|News|Queries


Q & A

 
2117 Views 3 Ans

In case of a pvt company incorporated in year 2014, the first year of operation is 2014-15 and there is no question of preceding year. In such case how to ascertain if the limits under Sec 188 read with relevant rules have exceeded?. The % are to be applied on the turnover, networth etc of preceding year which is not there in case of a newly incorporated company.

Section 188- Related party transactions.

Posted By: Latha 8 year(s) ago

This question has been closed if you want to answer,you have to re-open.


    Divesh Goyal

As per explanation of rule of Section 188 turnover shall be computed on the basis of Audited financial statement of preceding financial year. Therefore there is no preceding financial year so turnover will be NIL. Company have to compute limit of transaction keeping in mind that there was no turnover in the preceding financial year

  • Comment
  •   Comment (0)

Expert    Ankit Singhi

the earlier turnover, networth will be treated as Nil

  • Comment
  •   Comment (1)

    VISWANATHAN ARUNACHALAM

if the company is crated by a conversion from partnership firm., then previous year figure can be taken for ascertaining the limit. under sec188.or pass a board resolution that the referred sec 188 of the companies act 2013 is not applicable at present ., since it is a startup company and will be viewed at the conclusion of in the next financial year., and go ahead with sanction of loan &advances and file necessary MGT-14 with ROC., as per sec 179(3) and rule 8 . with the certified copy of the referred resolution. of board meeting and as well as of the members general meeting. regds viswanathan aruna chalam

  • Comment
  •   Comment (0)

Recently Active Member

Recently Active Member

Pramod Prabhudesai
B D Jokhakar & Co

Post Your Question
My Q&A
 


Topic

Sections

About Q&A

Q & A is a unique platform to get your answers. You can create questions by topics or sections for easy identification of your query . You get various alerts to keep you connected and can also search your query.


So keep posting and stay connected
#
Companies Act 2013/1956
Decoding the New Act
Resource Center
My Section
Information Cafe
Calculators


COPYRIGHT NOTICE: All information and material posted in this website (including but not limited to text, audio, video or graphical images), are subject to copyrights owned by Corporate Professionals eSolutions Private Limited, its affiliates and associates. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless prior permission has been granted by Corporate Professionals eSolutions Private Limited. All other rights reserved.

© Corporate Professionals eSolutions Pvt Ltd. | All Rights reserved
Scroll