Share application money pending allotment

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Pradip Shaw & Co (Querist)
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26 March 2016 Very Good Morning professionals

Share application money pending allotment 64.00 lacs shown in ABS 2012, however authorised capital only 10.00 lacs, same figure continue in 2013, Last IT return & ROC return filed for FY.2012-13.
Increase in authorised capital from 10.00 lacs to 100.00 lacs done in Nov 2015
My question as ROC return and income tax return pending it is better to allot share as on current date or back date ie after 30.09.2013 ie after last AGM.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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02 April 2016 When the Authorised Capital was Rs. 10 Lacs, The Company cannot accept the application for 64 lacs.
Secondly allotment can be made only after increase in the authorized share capital.
Authorised share capital was increased in Nov 2015 so the allotment can only be made after that.

Secondly, there is one more violation, companies can not delay allotment more than 2 months of receiving the application money otherwise it has to return the money with interest.

Further, as per companies act, 2013 all the share application money pending for more than 2 months will be considered as deposits and the company need to comply the provisions of deposits.