03-05-2010, 05:58 PM
What is the source of loan? It can be converted to share capital if it is from directors. You may need to seek approval from SECP for conversion more specifically if it is to affect the right issue stipulations.
As far as financial health is concerned, it will not improve even by cconversion of loan (unless loan carries huge mark up rate). You will rather require to inject fresh equity, arrange handsome working capital and initiate Business Process Re-engineering, if required. However, first you need to assess the reasons of incurrence of losses previously so that a cohesive strategy be made for the future.
Regards,
As far as financial health is concerned, it will not improve even by cconversion of loan (unless loan carries huge mark up rate). You will rather require to inject fresh equity, arrange handsome working capital and initiate Business Process Re-engineering, if required. However, first you need to assess the reasons of incurrence of losses previously so that a cohesive strategy be made for the future.
Regards,
