10 May 2016
One company has recently converted itself in to LLP, the company had accumulated profit of Rs.5.47 Crores, Security Premium of Rs.1.88 Crores & Capital of 0.49 Crores at the time of conversion.
The converted LLP has advanced around 5 crores to an AOP in which partners of LLP are substantially interested. The LLP has received interest from AOP & in next year the funds which were given as Loan & Advance are also recovered back.
Whether it would violate the condition of section 47(xiiib) or not ?
CAclubindia
