06 September 2012
Company's Authorised capital is Rs. 20 Lakhs and Share Application money is Rs. 35 Lakhs it is possible according to laws of Statutory bodies.
As per revised Schedule VI, the share application money pending allotment details should be given in Balance sheet. It has also to be disclosed that, whether the company has sufficient authorised share capital to cover the share capital amount resulting from allotment of shares out of such share application money.
Guest
Guest
(Expert)
06 September 2012
There is no prohibition is SAP money is greater than authorised capital. It can be taken. However, it is not a good practice.