Reporting requirement
Report whether, in respect of loans, investments, guarantees and security, the provisions of Sections 185 and 186 of the Companies Act 2013 have been complied with. If not, give details.
What to verify before signing
- Section 185 — loans / guarantees / security to directors and connected persons (largely prohibited with exceptions)
- Section 186 — investment / loan / guarantee / security limits (60% paid-up capital + securities premium + free reserves, or 100% of free reserves + securities premium, whichever higher)
- Special resolution where exceeded
- Disclosures in FS notes per Section 186(4)
Sample observation — applicable
The Company has not granted any loans, made any investments, given any guarantee or provided any security in respect of which provisions of Section 185 and 186 of the Companies Act 2013 are applicable. Accordingly, the requirements under clause (iv) of paragraph 3 of the Order are not applicable to the Company.
Related standards
Sections 185, 186 Companies Act 2013
On CORAA
Clause (iv) auto-populates from the underlying ledger work in CORAA’s
Reporting hub. Each observation traces back to the transactions that triggered it. Pair with our
CARO 2020 Checklist template for the full audit-report annexure.
Related on CORAA University
