CS R SHARMA (COMPANY SECRETARY) (28 Points)
14 March 2019IN CASE A COMPANY INTEDS TO AVAIL ECB FROM ONE OF ITS FOREIGN GROUP COMPANY FOR (i) PLANT AND MACHINERY AND (ii) WORKING CAPITAL - WHAT WOULD BE THE MINIMUM AVERAGE MATURITY PERIOD (MAMP) IN THESE CASES. THE ECB AMOUNT WILL BE WITHIN USD 50 MN.
FOR YOUR INFORMATION, THIS COMPANY IS A MANUFACTURING COMPANY.
CS R SHARMA
(COMPANY SECRETARY)
(28 Points)
Replied 14 March 2019
As per New Framework on ECB, MAMP is 3 years, except for in exceptional cases it can be 1 year or 5 years. Not sure, where this 6 months will fit. Can you highlight the calculation or provision?
CA Ashish Patel
(Self Employed)
(28 Points)
Replied 14 March 2019
CS R SHARMA
(COMPANY SECRETARY)
(28 Points)
Replied 14 March 2019
Thank you Mr. Patel and Manoj for your prompt reply.
However, Mr. Patel - i don't want to know the calculation part - but - the minimum no. of year for which my Company can avail ECB ie. either for 3 years or 1 year ?
CS R SHARMA
(COMPANY SECRETARY)
(28 Points)
Replied 14 March 2019
CAN WE TAKE APPROVAL OF AVAILING ECB THROUGH CIRCULAR RESOLUTION ? ITS A PRIVATE LIMITED COMPANY
CAclubindia
