Unsecured loan convert to equity capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2011 Dear Expert

In our Pvt Ltd Company Balance sheet show Unsecured loan from director and relatives approx Rs. 4 Crore and we want to convert to equity capital

Please give details procedures and other related issue like accounting entries roc filling etc

Thanks in Advance

Guest

Guest (Expert)

23 June 2012
There is no bar for conversion of loan into share capital. You are required to enter into agreement with lender for conversion of loan into capital.

Call a Board meeting and pass a resolution and file Form-2 and form 3 within 30 days.

Regards