Understanding sec 188 of companies Act, 2013 with simple flowchart

Sec 188 made easy for CA, CS and other students: Understanding sec 188 of companies Act, 2013 with simple flowchart.

Sec 188 of Companies Act, 2013 is applicable from 1st April, 2014. Due to its complicated enactment & Rules thereof, many a times students as well as professionals in industry & practice finds it difficult to get a crystal clear idea regarding its applicability, implementation, effect and compliance.

In an attempt to make it clear, I would like to present this simple simple flowchart-