company law settlemeny scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 Dear sir,

I understood from reply to earlier query that a private company with paid up capital of less than Rs 1 lac has to increase its capital to the threshold limit from the earlier date( retrospective ). My query is if the increase in paidup capital is back dated, then what about the audited balance sheets of all the earlier years that contain paid up capital of less than Rs. 1 lac. ( if these financials were filed with income tax authorites also )

You mean to say that the balance sheets are also required to be restated ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 August 2010 You want to apply for ESS or CLSS?

If case of ESS there is no such requirement for raising the paid up capital.

In CLSS u have to.

One question i have to ask u how was the company functioning for so many years without minimum paid up capital and why the auditor never pointed out this mistake earlier?