Investment in subisidary
ravi teja thota
(Querist) 31 August 2016
This query is : Resolved
Dear all, Our company is a private limited company incorporated in india ( Say "X") and has two subsidaries in nepal which are into HYDRO power generation. Our company has 88% share holding in both the companies. Lets say the two subisdary companies in Nepal as "A" and "B". Company B has spent 2.72 crores on behalf of Company A. Company B has 4.83 crores pending share allotment to be done to our company(i.e holding company "X"). Now we are planning to increase our stake in company A. So that we have decided to convert the Debt portion of company A which has to be given to company B into equity investment in company A.
My question in this issue is :
1)how to deal the entire transaction ;
2) what are the entries to be passed in the books;
3)what are the statutory compliances to be dealt with in dealing this transaction ?
Raj Kumar Makkad
(Expert) 01 September 2016
This is your commercial query. Why do you depend upon this charity site instead of availing the specific services of a professional?
Rajendra K Goyal
(Expert) 01 September 2016
Commercial query, proceed to obtain professional guidance.
