Share capital vs share application money - reg
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 July 2012
Dear Experts,
Good Evening...
We are Pvt Ltd company, asper our balance sheet as on 31-3-2011 FY(2010-11),
we have Authorised Share Capital Rs.10Cr Issued share capital Rs.9.01Cr
Share application money Rs.10.62Cr,
My Query 1) whether amount wise issued share capital vs share application money is right or wrong.
If wrong, what we have to do to rectify the same in FY 2011-12
Query 2) whether amount wise authorised share capital vs share application money is right or wrong.
If wrong, what we have to do to rectify the same in FY 2011-12
Can you please guide me
With regards
R Saravanan
Good Evening...
We are Pvt Ltd company, asper our balance sheet as on 31-3-2011 FY(2010-11),
we have Authorised Share Capital Rs.10Cr Issued share capital Rs.9.01Cr
Share application money Rs.10.62Cr,
My Query 1) whether amount wise issued share capital vs share application money is right or wrong.
If wrong, what we have to do to rectify the same in FY 2011-12
Query 2) whether amount wise authorised share capital vs share application money is right or wrong.
If wrong, what we have to do to rectify the same in FY 2011-12
Can you please guide me
With regards
R Saravanan
19 July 2012
Hi,
I case of Private Limited Co. the Act is silent in case of accepting Share Application Money, but as per normal practice one should allot share application money within 180 days from accepting the same. In your case you have to increase your Authorised Share Capital first later you can allot the shares.
In Balance sheet the share application money pending allotment should be treated as current liabilities till the allotment.
The amount wise all situations were right if you follow the above general rules.
I case of Private Limited Co. the Act is silent in case of accepting Share Application Money, but as per normal practice one should allot share application money within 180 days from accepting the same. In your case you have to increase your Authorised Share Capital first later you can allot the shares.
In Balance sheet the share application money pending allotment should be treated as current liabilities till the allotment.
The amount wise all situations were right if you follow the above general rules.
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2012
Dear Mr.Rajesh,
If we may not alloted the share after 180 days, long long we can hold the money with us.
If we are not in a position to increase the authorised capital, shall we refund the money to them, whether we have pay with interest or not
If we may not alloted the share after 180 days, long long we can hold the money with us.
If we are not in a position to increase the authorised capital, shall we refund the money to them, whether we have pay with interest or not
20 July 2012
Hi,
Mr Anonymous, Kindly look, frankly saying the Companies Act, 1956 is silent in case of Share Application Money in Private Limited Co. There were lot of contrary views in discussion about share application money.
You can kept such SAM in current liabilities (but not in share capital). And the Interest on such amount shall be regulate by the mutual agreement between Co and Alottes. You can pay if decided. And it is not mandatory to refund the same within 180 days (I said it is a general practice not compulsion).
Mr Anonymous, Kindly look, frankly saying the Companies Act, 1956 is silent in case of Share Application Money in Private Limited Co. There were lot of contrary views in discussion about share application money.
You can kept such SAM in current liabilities (but not in share capital). And the Interest on such amount shall be regulate by the mutual agreement between Co and Alottes. You can pay if decided. And it is not mandatory to refund the same within 180 days (I said it is a general practice not compulsion).
20 July 2012
First of all the company can not accept share application money more than its authorised capital. It has to return the application money or increase its Authorised Share Capital.
Secondly, in case of unlisted public companies, Ministry has issued a notification in dEcember 2011 and mandated that the company cannot keep share application money more than 60 days.
Secondly, in case of unlisted public companies, Ministry has issued a notification in dEcember 2011 and mandated that the company cannot keep share application money more than 60 days.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
Trending Online Classes
CAclubindia
