SANDEEP ISSRANI (C.A) (30 Points)
03 October 2014HELLO ALL,
CAN ANYONE SOLVE MY QUERY?
A PRIVATE LIMITED COMPANY WANTS TO GO UNDER FAST TRACK EXIT SCHEME, BUT HAS A UNSECURED LOAN FROM DIRECTOR IN LIABILTY SIDE AND FEW PREOPERATIVE EXP, SECURITY DEPOSIT, AND CASH / BANK BALANCE ON ASSET SIDE.
COMPANY DOES NOT HAVE FUNDS TO PAY OFF UNSECURED LOAN OF DIRECTOR.
CS GK Murty
(Company Secretary)
(225 Points)
Replied 04 October 2014
The basic criteria for eligibility to apply under FTE:
a) The company applying under FTE should not have any asset and liability.
b) The company should not have commenced any business activity or operation since incorporation or at least one year must have been passed since last business activity or operation.
SANDEEP ISSRANI
(C.A)
(30 Points)
Replied 04 October 2014
Thank you for your reply sir,
But here company has not done any transaction since May 2013, So my question is that can we partly pay off the directors loan (Equal to the fund available with the comapany,because co. does not have enough fund to fully pay off the directors loan) and write off the remaining portion of loan and also write off the pre-operative expenses,Security deposit(On asset Side) as on before going to FAST TRACK EXIT SCHEME. Will there be any objection in that?
CAclubindia
