Declarations & Other Filings
Note – Section 186 Non-Compliance
Explanatory note on non-compliance under Section 186 (loans & investments).
What this format contains
Note:-
As per Section 186 of the Companies Act, 2013, if a company grants a loan to any person without charging interest, or by charging interest rate lower than the yield of Government securities of a similar tenor following penalties shall be applicable:
| Sr. No. | Applicable to | Penalty |
| Company | Fine not less than [AMOUNT] and up to [AMOUNT]. | |
| Officer in Default | Imprisonment up to two years and / or with a Fine of not less than [AMOUNT] and up to [AMOUNT]. |
---Piyush.
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