share application money.

This query is : Resolved

sayeed (Querist)
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17 July 2008 Hai.

The pvt ltd company is recieved 9 crore from its holding co during the year.The opening balance of share application money
remains unalloted in Balancesheet Rs 2 Crore.
I s there any rime limite allot shares??

Can subsiadiry reciece share application money without increasing authorised capital?

Where the appl money should shown in financial statement?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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17 July 2008 No time limit, but time limit might be governed by offer / contract document on private placement basis.

It will be illogical to raise application money if the authorised capital is not increased.

Pending allotment they are Current liabilities