MCA vide notification dated 05/06/2015 titled Exemptions to Private Companies U/s. 462 of CA 2013 has provided that Restriction on loan to directors provided under section 185 of Companies Act, 2013 shall not apply to following private companies:
(a) in whose share capital no other body corporate has invested any money;
(b)
if the borrowings of such a company from banks or financial
institutions or any body corporate is less than twice of its paid up
share capital or fifty crore rupees, whichever is lower; and
(c)
such a company has no default in repayment of such borrowings
subsisting at the time of making transactions under this section.
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