Section A: Disclosure as per section 186(4) of the Companies Act , 2013
Compilers’ Note
Section 186(4) of the Companies Act, 2013 requires disclosure in the financial statements regarding “full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security”. This disclosure is in addition to the disclosures required for ‘loans and advances’ as per Schedule III to the Companies Act, 2013 as well as related disclosures required as per the notified accounting standards.
The disclosures u/s. 186(4) apply to all companies – including private limited companies.
Given below are some illustrative disclosures given by companies for the above.
Hindalco Industries Ltd . (31-3-2015)
From Notes to Financial Statements
Fixed Assets
53. (a) D etails of Loans given, Investments made and Guarantees given covered u/s. 186(4) of the Companies Act, 2013:
(i) D etails of Investments made given as part of Note No. 14 (Non-Current Investments) and Note No. 17 (Current Investments).
(ii) Loans and Corporate Guarantees given below: (Rs. Crore)
Gillette India Ltd. (30-6-2015)
From Notes to Financial Statements
1. Disclosure required under 186(4) of the Companies Act, 2013 for loans given:
Above intercorporate loans have been given for general business purposes for meeting their working capital requirements.
Reliance Industries Ltd . (31-3-2015)
From Notes to Financial Statements
37. Details of loans given, investments made and guarantee given covered u/s 186(4) of THE COMPANIES ACT, 2013 Loans given and Investments made are given under the respective heads.
Sobha Ltd . (31-3-2015) From Notes to Financial Statements Disclosure required u/s.186(4) of the Companies Act 2013: For details of loans, advances and guarantees given and securities provided to related parties refer note 26. Note: Note 26 gives disclosures regarding names of related parties and transaction details. The same are not reproduced here.
Tata Global Beverages Ltd .
(31-3-2015)
From Directors’ Report
Particulars of Loans, Guarantees or Investments by the Company
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are provided in Annexure 3 attached to this report.
Annexure 3
Particulars of investment made and guarantee/loan given during the year
