kaushal (w) (545 Points)
05 August 20081 what is charge over assets?
2 assets here means only Fixed assets only or debtor and stock also?
3 what is first charge and second charge ?
4 If assets is of Rs.1000
Does it means 1st charge on cash credit account of Rs. 300
2nd charge can be created of Rs. 200 ?
Does it mean that way or Some other way???
CA Nitin Wadhwani
(Chartered Accountant)
(4469 Points)
Replied 06 August 2008
There is No definition in the companies act. however it means mortgage of immovable assets and hypothecation(but not pledge) of movable assets.
first charge means in case of default the amount which will be recovered from sale of charged asset will be paid to the first charge holder and so on
Devendra Goyal
(Service)
(24 Points)
Replied 06 August 2008
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 06 August 2008
1. It is a subject matter of security for a borrowing and committed to it.
2.All assets can be charged.
3.First and secong charge are the order in which the assets have been committed for satisfaction of the borrowings concerned.
4. Sl no 3 is self explanatory.
CAclubindia
