Raising of further capital

This query is : Resolved

Akash Nandi (Querist)
Follow

11 March 2014 dear all A pvt ltd co has its 10 lac sh.capital and 30 lacs debt . all assets are secured against loan taken. Company having 100 lacs turnover how is it possible to arrange further capital of rs 20 lacs.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 March 2014 your debt equity is already 3:1. You need to bring in director's assets as collateral to raise more funds. plus with 100 lac turnover, do you actually have the ability to service 50 lacs of debt?

Akash Nandi

Akash Nandi (Querist)
Follow

11 March 2014 with the increase of debt the company is desiring that it will have a increase in sale

sir is it possible anyhow to release the assets from the secured loans by way of convertig the pvt ltd. co. into a ltd company.
i got this opinion from a senior one is it a good option
kindly figure it out

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 March 2014 the conversion of the company to a limited company will not give you any immediate relief. You cannot get release of assets just because you are converting!. what it does is that it allows you to take deposits from public. given the amount of turnover you have, makes no sense to convert in public.

Akash Nandi

Akash Nandi (Querist)
Follow

11 March 2014 thnk u sir
so as per your concern to get urgent cash what path should followed

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 March 2014 already said get one of the director to offer personal fixed assets for collateral.

Message likes : 1 times

Akash Nandi

Akash Nandi (Querist)
Follow

11 March 2014 THANKS FOR YOUR VALUABLE CONCERN

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