Conversion of loan in to Equity
This query is : Resolved
Anand Upadhyay
(Querist)
31 May 2011
Dear All,
WE have one holding company who has given loan to its wholly owned subsidiary in lieu of equipment transfer. Loan consist of advanced outstanding and interest component. it also consist of current account.
Now wholly owned subsidiary want to convert its whole amount in to equity shares.
kindly tell me procedure and compliance to be done for wholly owned subsidiary (Public company) and Holding company (Listed Company)if possible along with documents and checklist.
Thanks & Regards,
Anand
WE have one holding company who has given loan to its wholly owned subsidiary in lieu of equipment transfer. Loan consist of advanced outstanding and interest component. it also consist of current account.
Now wholly owned subsidiary want to convert its whole amount in to equity shares.
kindly tell me procedure and compliance to be done for wholly owned subsidiary (Public company) and Holding company (Listed Company)if possible along with documents and checklist.
Thanks & Regards,
Anand
31 May 2011
If at the time of the loan if their any option is given in the agreement than it can be easily converted, otherwise it can be converted with the resolution of the Board or Member as per the requirement and also required to file e-form 2 for allotment within 30days of allotment.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
