SHARE CAPITAL

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ajit (Querist)
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21 December 2010 OUR COMPANY HAVE DECIDE INCREASE SHARE CAPITAL RS.25,00,000/- WHAT IS AFFECT ON THE COMPANY AFTER INCRESE SHARE CAPITAL. PL GIVE ME ALL DETAILS.

CA.RAJIV SHUKLA FCA

CA.RAJIV SHUKLA FCA (Expert)
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21 December 2010 Dear Ajit,

Question asked should be specific not veague

1-If company Increases Capital due to Increase of Networth of the company to supporting Bank Finances as Working Capital or Term Loan.

2-For Entering in to Future Joint Ventures etc.

Effect on Company

Company can Increase Shareholdings]

Comapny may create Surplus Fund for business

Exps on Increase of Capital treated as Preliminary Exps and 1/5 shall be written off till future 5 years.