Following information has been extracted from the balance sheet of Richy Rich Ltd. :
(i) Paid-up share capital Rs.20 crore
(ii) Reserves and surplus Rs.80 crore
(iii) Capital reserve Rs.5 crore
(iv) Investment in securities Rs.10 crore
(v) Loan to companies Rs.30 crore
(i) Paid-up share capital Rs.20 crore
(ii) Reserves and surplus Rs.80 crore
(iii) Capital reserve Rs.5 crore
(iv) Investment in securities Rs.10 crore
(v) Loan to companies Rs.30 crore
DEF Ltd. has requested Richy Rich Ltd. for a loan of Rs.50 crore which the Board
of directors will consider at its ensuing meeting. Explain the legal position and
advise the Board.
of directors will consider at its ensuing meeting. Explain the legal position and
advise the Board.
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