Treatment in the books

There are two possibilities here:

1.Please transfer the amounts to the books of B Ltd and then incur the Expenditure there depending on the decision given by the management of B Ltd. This is the right way of doing things,since the decisions on expenses etc have to be taken legally by Board of directors of B Ltd.This should uniformly applied whether it is expenditure or reimbursement.

2.Please go on spending on B Ltd and on yearly basis transfer the expenditure in the form of Unsecured Loan or Share Application Money.But please follow the formalities like Board minutes,register of inter company loans,conducing meetings(at least on paper) etc,.

Before all this please take the views of Directors what is the purpose of floating this company and long term view of the affairs of the company.

kkm