Dear Learned Members,
ABC Pvt Ltd has availed a Term Loan of INR 5 Crores from its Bankers at certain terms and conditions. The company had filed e-form 8 under the old Act for charge creation.
Now the Company has availed a Foreign LC/Buyer Credit of INR 10 Crore. However, the repayment terms, margin, collateral are different from the existing one.
Therefore, would this amount to Modification of the existing charge or a fresh creation of charge?
Thanking you in advance.
Agreeing to P C Agrawal Sir, I would like to add Term loan and LC/BC are all together diffrent facilities LC/BC comes under non fund based limits and you have created charge on term loan, you have to create a fresh charge for new facilities being sanctioned.
Thank you for your valuable comments.
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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T R SOOD & CO
New Delhi
CA Inter
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R P S K & Associates
Nashik
CA Inter
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CAclubindia
