Is the debit balance in the profit and loss account for losses incurred by the Eligible Borrower, if any, required to be deducted from the free reserve while calculating the ECB liability-equity ratio?
External Commercial Borrowings (ECB) and Trade Credits - As on Jun 26, 2023
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Deduction of P&L debit balance: ECB liability equity ratio requires such losses to be excluded from computable equity. Any debit balance in the profit and loss account as per the latest audited balance sheet of the Eligible Borrower must be deducted from equity (free ... Summary
Deduction of P&L debit balance: ECB liability equity ratio requires such losses to be excluded from computable equity.
Any debit balance in the profit and loss account as per the latest audited balance sheet of the Eligible Borrower must be deducted from equity (free reserves and other equity components) when computing the ECB liability equity ratio under FEMA guidance.
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