Gift to indian wholly owned subsidiary

Shridhi Jain (Company Secretary) (1678 Points)

17 January 2014  

A foreign company has indian wholly owned subsidiary (WOS). The indian company is not doing well so foreign parent company wishes to help indian company by way of providing financial aid (neither capital nor liability) and also wants to give machinery as gift without creating any further liability on indian company.

Indian company is already in huge losses since its incorporation.

Can it be done?