23 July 2010
SHARE APPLICATION MONEY IS NEITHER A PART OF SHARE CAPITAL ISSUED NOR IN THE NATURE OF UNSECURED LOAN. IT IS IN NATURE MORE LIQUID THAN SHARE CAPITAL AND LESS LIQUID THAN UNSECURED LOAN. SO IT SHOULD IDEALLY BE SHOWN AFTER UNSECURED LOAN
23 July 2010
share application money pending allotment is of the nature of a current liability and should, therefore, be disclosed as such. Share application money pending allotment should hence be disclosed as a current liability and not as a part of share capital.
23 July 2010
Schedule V1 is silent on this issue. My understanding is, to be grouped in' current liabilities' though grouped under share capital in published accounts of companies.
23 July 2010
As per Schedule VI Shareapplication money pending allotment is shown below the "Share Capital". For reference you can see the 2007-08 balance sheet of Jindal Saw Limited.
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