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+--- Thread: Loan taken from bank to finance an associate (/thread-loan-taken-from-bank-to-finance-an-associate)
Loan taken from bank to finance an associate - Star - 01-25-2010
Dear members,
A unlisted company has taken long term loan from a financial institution specifically for the purpose of financing the needs of an associate..
All requirements of section 208 has already been fulfilled. Please state whether or not the auditors' report would be affected by this transaction?
Regards,
*
- shakilbadar - 01-26-2010
dear Star,
i hope the following link will be helpful to you.
http//kms-law.org/recent_opinionininvestment.htm
Regards,
- Star - 01-26-2010
Dear Shakil,
The opinion referred is good enough for the purpose of section 208. However, my question is quite specific about the situation in which company specifically obtains financing from bank to finance a specific associate.
My question still stands whether or not this transaction will impact on the opinion of auditor?
Regards,
*
- kamranACA - 02-06-2010
Dear
If all requirements of section 208 have been fulfilled, the memorandum includes such a clause in objectives, mark up rate is higher than specific and avergae both finance costs of the lender, and all arrangement has fully been disclosed in the financial statements; then,
In my view there is no need to modify auditors' report for any reason.
I have real life examples where such loans were arranged and disbursed.
Just to inform, section 208 is going to be re-phrased and the recommended revised version is too complex.
Regards,
Kamran.
- Malcom Wagon - 07-09-2010
Really this information is very meaningful.
http//www.madpennystocks.com/