Dear friends.
Could any of you help me to understand the meaning of "Thin Capital" and its applicability in our Indian context?
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Thin Capital
Replies (2)
Thin capitalisation is a consideration in cases where loans are obtained from related parties, the loans are continuously used within the company and the ratio of the loans to the shareholders’ equity is high in comparison to similar companies in the same sector.
Thanks Milan for the Info. I was also not sure about this. You remove my doubts....
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