{"product_id":"borrowing-by-companies-law-practice-book-by-taxmann","title":"Borrowing by Companies Law \u0026 Practice -  Book By Taxmann","description":"\u003cp\u003e\u003cstrong\u003eBorrowing by Companies Law \u0026amp; Practice -  Book By Taxmann\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eEdition : \u003c\/strong\u003e2026\u003c\/p\u003e\n\u003cp\u003eBorrowing by Companies – Law \u0026amp; Practice is a practical guide to corporate debt in India. It takes the reader from the first Board resolution to the auditor's report. In one volume, it covers:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003eDeposits and loans\u003c\/li\u003e\n\u003cli\u003eConvertible notes and debentures\u003c\/li\u003e\n\u003cli\u003eUnlisted bonds and Masala Bonds\u003c\/li\u003e\n\u003cli\u003eGovernment schemes for MSMEs\u003c\/li\u003e\n\u003cli\u003eBorrowing by listed and unlisted public companies\u003c\/li\u003e\n\u003cli\u003eRegistration of charges\u003c\/li\u003e\n\u003cli\u003eExternal Commercial Borrowings (ECBs)\u003c\/li\u003e\n\u003cli\u003eAudit and tax-audit reporting on loans and borrowings\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe book brings law, compliance and audit together. It explains what the law allows, what a company must do and file, and what happens when things go wrong. Start-ups, private companies, MSMEs, unlisted public companies and listed companies each get their own treatment. Readers can go straight to their own situation. It answers the questions practitioners actually face, such as:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003eMust Form DPT-3 be filed when a company holds only exempt deposits?\u003c\/li\u003e\n\u003cli\u003eWhen does share application money turn into a deposit?\u003c\/li\u003e\n\u003cli\u003eMust a loss-making company create a Debenture Redemption Reserve?\u003c\/li\u003e\n\u003cli\u003eCan a director who joined after an issue be held liable for it?\u003c\/li\u003e\n\u003cli\u003eWhat happens when a charge is not registered in time?\u003c\/li\u003e\n\u003cli\u003eWhat must a company with listed debt securities file, and when?\u003c\/li\u003e\n\u003cli\u003eIs a convertible note an ECB?\u003c\/li\u003e\n\u003cli\u003eHow should an auditor report a term loan used for the wrong purpose?\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThis book is intended for the following audience:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003e\n\u003cstrong\u003eCompany Secretaries\u003c\/strong\u003e, for deposit and debenture procedures, charge filings and Board approvals\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eChartered Accountants and Auditors\u003c\/strong\u003e, for CARO 2020 and Form 3CD reporting on loans and borrowings\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCorporate Lawyers and In-house Legal Teams\u003c\/strong\u003e, for structuring debt and reading the case law\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCFOs, Finance and Treasury Teams\u003c\/strong\u003e, for choosing between instruments and planning bond issues and ECBs\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eDirectors (including Independent Directors) and Promoters\u003c\/strong\u003e, to understand their personal exposure\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eStart-up Founders\u003c\/strong\u003e, for convertible notes, whom they can borrow from, and the start-up ECB window\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eMSME Owners\u003c\/strong\u003e, for government credit and support schemes and how to apply for them\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eIssuers, Investors and Intermediaries\u003c\/strong\u003e in unlisted bonds and Masala Bonds\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eStudents and Young Professionals\u003c\/strong\u003e, as study material backed by case studies and MCQs\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe Present Publication is the 2026 Edition. Taxmann publishes it for The Chamber of Tax Consultants (CTC), in the year the Chamber marks its 100\u003csup\u003eth\u003c\/sup\u003e anniversary. The book is the joint work of 16 practitioners: Advocates, Company Secretaries and Chartered Accountants. The noteworthy features of this book are as follows:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003e[\u003cstrong\u003eWho Can Lend, and on What Terms\u003c\/strong\u003e] A table goes through 16 possible sources of funds, from shareholders, directors and promoters to banks, trusts and overseas lenders. It marks each one as permitted or not, with the conditions or reasons. The deposits chapter lists the receipts that are not treated as deposits, from directors' funds and inter-corporate loans to customer advances\u003c\/li\u003e\n\u003cli\u003e[\u003cstrong\u003eInstruments Compared Side by Side\u003c\/strong\u003e]\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eDeposits, loans, advances, debentures and bonds are compared on nature, source, convertibility, security and duration\u003c\/li\u003e\n\u003cli\u003eConvertible notes are compared with CCDs, NCDs, loans and share warrants on eight points. Their definitions under the Companies Act and under FEMA are set out next to each other\u003c\/li\u003e\n\u003cli\u003eOther comparisons include listed against unlisted bonds, Masala Bonds against ECBs, and a convertible note against an optionally convertible preference share\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eProcedures Step by Step\u003c\/strong\u003e] Processes are broken down point by point:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eThe deposit procedure, in 15 numbered points\u003c\/li\u003e\n\u003cli\u003eA 13-step route for issuing convertible debentures\u003c\/li\u003e\n\u003cli\u003eA five-step roadmap for registering a charge\u003c\/li\u003e\n\u003cli\u003eThe steps for seeking condonation of delay\u003c\/li\u003e\n\u003cli\u003eThe ECB chapter runs from internal approvals and loan documentation to the Loan Registration Number and reporting after the loan is drawn. Flowcharts and a summary chart sum up the deposit, debenture and convertible note processes\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eForms Linked to the Steps\u003c\/strong\u003e] Steps are linked to the forms that go with them:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eDPT-1, DPT-2, DPT-3 and GNL-2 for deposits\u003c\/li\u003e\n\u003cli\u003ePAS-3, PAS-4, PAS-5, SH-7, MGT-14, and SH-12 for debentures\u003c\/li\u003e\n\u003cli\u003eCHG-1 to CHG-9 and INC-28 for charges\u003c\/li\u003e\n\u003cli\u003eForm CN, Form ECB 1, Form ECB 2, Form GRN and Form FC-GPR for cross-border transactions\u003c\/li\u003e\n\u003cli\u003eForm 3CD for the tax audit\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eCase Law Explained\u003c\/strong\u003e] The deposits and debentures chapters discuss 15 select rulings. These include the Sahara, Mohan Gupta, Hotel City Plaza and Ind-Swift cases, and rulings on when directors are, and are not, liable for an issue. In all, the book cites more than 30 judgments and orders, from the Supreme Court and High Courts to the NCLT, NCLAT, SAT, SEBI and the House of Lords\u003c\/li\u003e\n\u003cli\u003e[\u003cstrong\u003eWorked Examples and Case Studies\u003c\/strong\u003e] Worked figures show:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eHow a valuation cap and a conversion discount change a convertible note's conversion price\u003c\/li\u003e\n\u003cli\u003eHow each type of debenture is repaid or converted\u003c\/li\u003e\n\u003cli\u003eHow a demat deadline is worked out\u003c\/li\u003e\n\u003cli\u003eHow the guarantee late fee applies to each reporting form\u003c\/li\u003e\n\u003cli\u003eThe book also has 14 case studies:\u003c\/li\u003e\n\u003cul type=\"square\"\u003e\n\u003cli\u003eThree real enforcement matters: Sahara, IL\u0026amp;FS and Tata Motors Finance\u003c\/li\u003e\n\u003cli\u003eFour ECB proposals\u003c\/li\u003e\n\u003cli\u003eSeven audit scenarios, two of them with MCQs and explained answers\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eTraps, FAQs and Do\u003c\/strong\u003e\u003cstrong\u003e'\u003c\/strong\u003e\u003cstrong\u003es and Don\u003c\/strong\u003e\u003cstrong\u003e'\u003c\/strong\u003e\u003cstrong\u003ets\u003c\/strong\u003e] The book flags the mistakes that cause trouble in practice:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eInformal loans from friends and family\u003c\/li\u003e\n\u003cli\u003eLate DPT-3 filings\u003c\/li\u003e\n\u003cli\u003eShare application money held too long\u003c\/li\u003e\n\u003cli\u003eCustomer advances used as loans\u003c\/li\u003e\n\u003cli\u003eCross-border deals that meet the Companies Act but miss FEMA\u003c\/li\u003e\n\u003cli\u003eIt also answers 20 FAQs on deposits and debentures. It lists common ECB non-compliances and 12 pairs of do's and don'ts. It works through grey areas in auditing borrowings, such as evergreening and undocumented related-party loans\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eReady Reckoners\u003c\/strong\u003e] Ready-to-use tables include:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eA summary of deposit filings with timelines\u003c\/li\u003e\n\u003cli\u003eThe timeline and fee table for registering a charge, and a guide to the charge forms\u003c\/li\u003e\n\u003cli\u003eStamp duty rates on debentures\u003c\/li\u003e\n\u003cli\u003eListing criteria and an 18-item compliance calendar for listed non-convertible securities\u003c\/li\u003e\n\u003cli\u003eA table of 27 SEBI penalties\u003c\/li\u003e\n\u003cli\u003eAn 'ECB Parameters at a Glance' table that gives the regulatory source for each point\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eAn Auditor\u003c\/strong\u003e\u003cstrong\u003e'\u003c\/strong\u003e\u003cstrong\u003es Toolkit\u003c\/strong\u003e] The audit chapter sets out the auditor’s duties standard by standard. It covers substantive procedures, analytical ratios for testing borrowings, and clause-wise procedures for CARO 2020 and Form 3CD. It also gives:\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eModel wording for clean, qualified and adverse CARO reporting\u003c\/li\u003e\n\u003cli\u003eA matrix that maps 14 borrowing situations to the relevant SA, CARO and Form 3CD clauses\u003c\/li\u003e\n\u003cli\u003eSix boxed observations from the Quality Review Board on where borrowing audits fall short\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e[\u003cstrong\u003eAmended \u0026amp; Updated\u003c\/strong\u003e] The ECB chapter reflects the February 2026 overhaul of the ECB framework. It also covers the FEM (Guarantees) Regulations 2026, including the RBI circular of 1\u003csup\u003est\u003c\/sup\u003e April 2026 on guarantee reporting. Tax references cover both the Income-tax Act 1961 and the Income-tax Act 2025. Form 3CD references also give the corresponding Form 26 under the Income-tax Rules 2026. The unlisted bonds chapter includes market data up to June 2026\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eThe coverage of the book is as follows:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 1 | Debt Financing and Accepting Deposits\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eWhat debentures, deposits, loans, advances and bonds are, and how they differ\u003c\/li\u003e\n\u003cli\u003ePoints to weigh before accepting deposits, including deposits from NRIs\u003c\/li\u003e\n\u003cli\u003eThe full procedure for accepting deposits, from Board approval to repayment\u003c\/li\u003e\n\u003cli\u003eExemptions for private companies and IFSC public companies\u003c\/li\u003e\n\u003cli\u003eEquity shares with differential rights as an alternative to debt\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 2 | Start Ups\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eWhom a start-up may borrow from, source by source\u003c\/li\u003e\n\u003cli\u003eConvertible notes: meaning, eligible investors, agreement terms, advantages, and compliance under the Companies Act and FEMA\u003c\/li\u003e\n\u003cli\u003eBorrowing compliances and the Board’s borrowing powers under Sections 179 and 180\u003c\/li\u003e\n\u003cli\u003eHow Board approval works alongside delegated borrowing powers\u003c\/li\u003e\n\u003cli\u003eAn adjudication order on a loan taken from a director without Board approval\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 3 | Acceptance of Deposits by Private Companies under the Companies Act 2013\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eHow deposit regulation developed, and what counts as an exempt deposit\u003c\/li\u003e\n\u003cli\u003eProcedure, deposits from members, Form DPT-1 disclosures, and exemptions for private companies and start-ups\u003c\/li\u003e\n\u003cli\u003eValuation, convertibility and premature repayment of deposits\u003c\/li\u003e\n\u003cli\u003eThe Banning of Unregulated Deposit Schemes Act 2019\u003c\/li\u003e\n\u003cli\u003ePenalties, the line between a deposit and a loan, and depositors' remedies before the NCLT\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 4 | Debentures\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eFeatures and types of debentures, with illustrations\u003c\/li\u003e\n\u003cli\u003eThe procedure for issuing convertible debentures, issue at a discount or premium, and commission\u003c\/li\u003e\n\u003cli\u003eOffer letter disclosures, valuation, premature redemption, and whether debentures fall under the Banning of Unregulated Deposit Schemes Act 2019\u003c\/li\u003e\n\u003cli\u003eDebenture Redemption Reserve, debenture trustees and the trust deed\u003c\/li\u003e\n\u003cli\u003eDemat rules, stamp duty and penalties\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 5 | Unlisted Domestic Bonds \u0026amp; Masala Bonds: A Legal and Regulatory Perspective\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eWhy unlisted bonds are growing, with recent market data\u003c\/li\u003e\n\u003cli\u003eUnlisted bonds: nature, regulatory framework, compliance, features, risks and taxation\u003c\/li\u003e\n\u003cli\u003eMasala Bonds: framework, features, how the Companies Act, SEBI and RBI rules apply, and taxation\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 6 | SMEs and schemes for SMEs for borrowings\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eThe MSME sector and the Union Budget measures to support MSMEs\u003c\/li\u003e\n\u003cli\u003eGovernment schemes such as PMEGP, CGTMSE, PMMY (MUDRA), MSE-CDP, ESDP and the International Cooperation Scheme\u003c\/li\u003e\n\u003cli\u003eA summary of other schemes, including PM Vishwakarma, with contact details of MSME offices\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 7 | Public Company – Listed and Unlisted: Borrowings\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eHow borrowing rules developed, with a year-wise chronology of changes\u003c\/li\u003e\n\u003cli\u003eCompanies Act provisions on Board powers, deposits, inter-corporate loans and related party borrowings\u003c\/li\u003e\n\u003cli\u003eSEBI's LODR, ICDR and NCS Regulations; ECBs, FCCBs and IFSC regulations\u003c\/li\u003e\n\u003cli\u003eListing criteria, the listing process and ongoing compliance for non-convertible securities\u003c\/li\u003e\n\u003cli\u003ePenalties and compounding under the Companies Act, SEBI and FEMA\u003c\/li\u003e\n\u003cli\u003eRecent developments and the outlook for corporate borrowing\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 8 | Registration of charges on the Property\/Asset of the Company\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eThe company's duty to register a charge, and the lender's right to step in\u003c\/li\u003e\n\u003cli\u003eA step-by-step roadmap with filing timelines and fees\u003c\/li\u003e\n\u003cli\u003eModification and satisfaction of charges, the register of charges, and who may inspect it\u003c\/li\u003e\n\u003cli\u003eCondonation of delay, Board minutes and penalties\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 9 | External Commercial Borrowings (ECB): Overview and applicability for Start-Ups, Private \u0026amp; Public Companies\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eThe regulatory set-up and how the ECB regime has evolved\u003c\/li\u003e\n\u003cli\u003eEligible borrowers and lenders, currency, forms, limits, maturity, cost and end-use rules\u003c\/li\u003e\n\u003cli\u003eSecurity, refinancing, conversion into non-debt instruments, parking of proceeds, and reporting\u003c\/li\u003e\n\u003cli\u003eTrade Credit, the start-up ECB window and cross-border guarantees\u003c\/li\u003e\n\u003cli\u003ePoints that differ for public and private companies\u003c\/li\u003e\n\u003cli\u003eThe process before and after borrowing, the tax interface and compounding\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cli\u003e\u003cstrong\u003eChapter 10 | Auditor’s Duty and Reporting in Respect of Loans and Borrowings\u003c\/strong\u003e\u003c\/li\u003e\n\u003cul type=\"circle\"\u003e\n\u003cli\u003eHow the audit of borrowings, and CARO and Form 3CD reporting, have evolved\u003c\/li\u003e\n\u003cli\u003eThe auditor's duties under the Standards on Auditing, and substantive procedures\u003c\/li\u003e\n\u003cli\u003eClause-wise reporting under CARO 2020 and Form 3CD\u003c\/li\u003e\n\u003cli\u003eThe AS and Ind AS framework for borrowings, including Schedule III disclosures\u003c\/li\u003e\n\u003cli\u003ePractical difficulties and controversies in auditing borrowings\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ul\u003e\n\u003cp\u003eEach chapter stands on its own and broadly follows this pattern:\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli\u003e\n\u003cstrong\u003eChapter Opening\u003c\/strong\u003e — Each chapter opens with its title and the names of its authors. Most then begin with an introduction, synopsis, background or short history. The public company, ECB and audit chapters also trace how the rules changed over time\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eTopic-wise Sections\u003c\/strong\u003e — The law and procedure are then taken up topic by topic, with numbered steps, tables, charts and flowcharts\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eSet Format for Rulings\u003c\/strong\u003e — Most select case laws follow the same headings: background, legal issue, reasoning, and impact and significance\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eExamples and Callouts in Place\u003c\/strong\u003e — Worked examples sit next to the rules they explain. Boxed callouts in the ECB and audit chapters flag key practice points and QRB observations\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003ePractical Close\u003c\/strong\u003e — Most chapters close with practical material, such as FAQs, practical challenges, case laws or case studies, do's and don'ts, a filings summary, an at-a-glance table, a penalty table or a contacts directory\u003c\/li\u003e\n\u003c\/ul\u003e","brand":"Taxmann","offers":[{"title":"Default Title","offer_id":62983791411281,"sku":"9789375619901","price":487.0,"currency_code":"INR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0574\/5534\/5745\/files\/BorrowingsByCompanies.png?v=1792232705","url":"https:\/\/buytestseries.in\/products\/borrowing-by-companies-law-practice-book-by-taxmann","provider":"BuyTestSeries.in","version":"1.0","type":"link"}