A Co. Ltd. has business loss and un-absorbed depreciation of ₹ 10 Crore. B Co. Ltd. is profit making Company. B Co. Ltd. wanted to acquire A Co. Ltd. with the benefit of set off of brought forward loss and unabsorbed depreciation. The legally permissible method is:
A. Reverse merger
B. Outright purchase
C. Slump sale of A Co. Ltd.
D. Converting A Co. Ltd. into subsidiary of B. Co. Ltd.
Answer:B
A Co. Ltd. has business loss and un-absorbed depreciation of ₹ 10 Crore. B Co. Ltd. is profit making Company. B Co. Ltd. wanted to acquire A Co. Ltd. with the benefit of set off of brought forward loss and unabsorbed depreciation. The legally permissible method is:
A. Reverse merger B. Outright purchase C. Slump sale of A Co. Ltd. D. Converting A Co. Ltd. into subsidiary of B. Co. Ltd.