[aaykarbhavan] Query regarding cash received for expenses

Hi,

Someone may please reply to my queries :

During the current FY, ABC Private Limited (a subsidiary company) has incurred cash expenses of Rs.8 Lacs.
Subsidiary company is yet to commence business activity.


The source of expenses was cash receipt from it's XYZ Private Limited (100% Holding Company).

Query

Subsidiary company has treated this amount Rs.8 Lacs (received in cash) as

SHARE APPLICATION MONEY received from the Holding Company.

Now, can the Subsidiary company make allotment for Rs.8 Lacs to it's Holding Company.

Ans : .........................


Can the Subsidiary Company continue to receive cash for it's expenses from the Holding Company ?
Will there be any consequences on such transactions ?

Ans : .........................


Thanks in advance.



------------------------------------

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.comYahoo! Groups Links

<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/aaykarbhavan/

<*> Your email settings:
Individual Email | Traditional

<*> To change settings online go to:
http://groups.yahoo.com/group/aaykarbhavan/join
(Yahoo! ID required)

<*> To change settings via email:
aaykarbhavan-digest@yahoogroups.com
aaykarbhavan-fullfeatured@yahoogroups.com

<*> To unsubscribe from this group, send an email to:
aaykarbhavan-unsubscribe@yahoogroups.com

<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/