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Query regarding allotment of shares

This query is : Resolved 
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(Querist)
15 March 2017 Respected Sir,

In Case of allotment of Shares by way of conversion of loan into equity whether it comes under Consideration for cash or other than cash?
In case of consideration other than cash:
A Director( also a share holder) gave unsecured loan of Rs. 50 Lakhs.
The company went for rights issue and he wants company to adjust his loan amount agaiinst the proceeds of rights issue and further he gave balance amount by way of electronic fund transfer.
Please tell me whether the above mentioned case willl come under consideration of cash or other than cash.

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Kumud prasad

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Kumud prasad (Expert)
15 March 2017 it will be considered as other than cash

attach Copy of Contract/Complete particulars of contract duly stamped, in case securities are issued other than cash
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