Balance sheet of ABC Ltd. as at 31st March, 2004 shows the following liabilities :
Paid-up capital Rs. 10 crore.
Reserves and surplus Rs. 20 crore.
Reserves for redemption of debentures Rs. 5 crore.
The company has already advanced to the following companies :
XYZ Ltd. — Rs. 6 crore.
MNO Ltd. — Rs. 2 crore.
ABC Ltd. has given corporate guarantee of Rs. 5 crore to STU Ltd.
PQR Ltd. has approached ABC Ltd. for inter-corporate loan of Rs. 8 crore.
As the Company Secretary of ABC Ltd., advise the management on the limits of making loans and inter-corporate investments.
Paid-up capital Rs. 10 crore.
Reserves and surplus Rs. 20 crore.
Reserves for redemption of debentures Rs. 5 crore.
The company has already advanced to the following companies :
XYZ Ltd. — Rs. 6 crore.
MNO Ltd. — Rs. 2 crore.
ABC Ltd. has given corporate guarantee of Rs. 5 crore to STU Ltd.
PQR Ltd. has approached ABC Ltd. for inter-corporate loan of Rs. 8 crore.
As the Company Secretary of ABC Ltd., advise the management on the limits of making loans and inter-corporate investments.
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