can company converet intercorporate deposit in to preference shares???
Conversion of intercorporate deposit in to preference shares
Bharat Patel ( COMPANY SECRETARY) (32 Points)
03 July 2015
Bharat Patel ( COMPANY SECRETARY) (32 Points)
03 July 2015can company converet intercorporate deposit in to preference shares???
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 03 July 2015
Hi,
In general as you are aware, ICD are to bridge the short term working capital requirements unlike long tern loans from FIs or other sources. I dont see any difference in conversion of a debit into equity and to that of conversion of ICD to equity.
Thanks,
Suri
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