10 August 2011
A company is engaged in the development of ports. For financing the development, it had applied for an ECB. While it was waiting for the sanction of ECB by the lender, it had obtained short term rupee advances from its group companies to meet the expenses related to the development of port. Now the ECB loan is sanctioned and the funds are received by the company. Can the company utilise the ECB loan amount to repay the short term rupee advances it obtained from group companies?. Will it be covered under the end uses that are not permitted as per the ECB norms?
CAclubindia
