Internal reconstruction

This query is : Resolved

Share Report Follow Query Ask a Query

praveen

praveen (Querist)
Follow

23 December 2013 conditions when internal reconstruction is desirable

CA Vijeta Verma

CA Vijeta Verma (Expert)
Follow

25 December 2013 Mainly internal reconstruction is permitted by BIFR when it concludes that the company can perform well and survive given a chance after making some compormises.
Further,the interest of stakeholders & public may also adversely affected if the company is ordered for winding up ,so through internal reconstruction BIFR provides a kind of opportunity to company to prove its worth.The one year period is just like a do or die situation for the company.

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

25 December 2013 Internal reconstruction refers to the internal re-organization of the financial structure of a company. It is also termed as re-organization which permits the existing company to be continued. Generally, share capital is reduced to write off the past accumulated losses of the company.

The accounting procedure of internal reconstruction is distinct from that of amalgamation, absorption and external reconstruction.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

eddanapudi murali

ACCFIN SOLUTIONS

Amit Singh

K.M. AGGARWAL

Vinod Dharwarkar

Subscribe Now

Internal reconstruction

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

CA Final

Accountant

Article Assistant