Please help me in calculating the maximum limits for providing inter corporate loan/ guarantee as per Sec. 372A. The balance sheet of a public company shows following figures:
|
Equity Shares of Rs.10/- each |
For Cash |
1779000.00 |
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For consideration other than cash |
4249650.00 |
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Allotted by way of Bonus Shares |
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on Capitalisation of Reserves |
18085950.00 |
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Fully paid Equity Shares |
24114600.00 |
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6% Non-Cumulative Redeemable |
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Preference Shares of Rs 100/- each |
18000000.00 |
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SCHEDULE 2- RESERVES & SURPLUS |
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Capital Reserve |
|
8803465.00 |
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Share Premium |
|
100000.00 |
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Revaluation Reserve |
|
4179667.00 |
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Total |
|
13083132.00 |
Further there is a debit balance of PL also which is shown in the Application of Funds side of the balance sheet as follows:
Profit & Loss Account 211229732.87
Less: General Reserve per Contra 13808874.00
197420858.87
Due to the debit balance of PL, the limit is coming to a negative figure. Now, should 60% of paid up capital be considered as the maximum limit for providing inter corporate loans/ guarantee, since there does not remain free reserve after adjusting the negative balance of PL.
CAclubindia
