09 April 2012
hi, our company is a public company limited by shares n unlisted. it is a manufacturer of aloe Vera products.company buys raw material(aloe vera Leaf) from directors who owns agricultural lands.they enter into MOU with company to supply raw material n in return company allots shares for the money.aloe vera leaf cost 10 (each leaf) n out of 10/- 8/- is adjusted towards share allotment,2/- will be paid in cash. our authorise capital is 25 crores n paid up capital is 20 crores.
As directors are cultivating other crops in the subjected lands they want to cancel MOU.(Reducing the area of cultivation of aloe vera). so i opted for buy back of shares kindly advise me Thanks
10 April 2012
directors supply aloe leaf (Raw Material)each leaf 10/- and for that company allot shares there is no money involved. paid up capital increases every year as they supply upto fy 2014-15, as per MOU Agreement.
CAclubindia
