Loan from friends and relatives

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Hi, Its a doubt on unsecured loans. A unit, engaged in trading of marbles activity and it have bank loan (working capital) of 23.00 lac and shown loan from friends n relatives of Rs. 17.20 lac in balance sheet for past 3 years . Now in projections, the unit has withdrawn the unsecured loan n increased the bank loan to 40.00 lacs. Is this d correct procedure?? Bcs there s a policy dat loan from frnz and relatives should not be liquidated before Bank loan.
Replies (1)

Dear Nanditha.. Your opinion may be right at the time of liquidation of firm upto my knowledge.


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