Clarification as to conversation of unsecured loans

Dear Mr. Sanjay Baheti,

In this case the director should give a written request for conversion of loan into Share application money. The Company should pass a Board resolution for such conversion.In case the director is a NRI, the allotment is required to be made within 180 days of receipt of share application money.I could not understand the reference made of hawala/JV.Please specify so that I may reply the same.

With Regards,

CS Sunil K. Jain FCS,AICWA ,Practising Company Secretary,9810104162 , skj13 @ rediffmail.com

Thanks Mr.Sunil Jain for reply.

The meaning of hawala/JV is the adjustment routed through Journal as origionally the amount were credited to unsecured loans accounts in Books  to  square-up the same by debiting to unsecured loans  account & credited to Share Application  money account .