Subscription money

This query is : Resolved

ARTHI (Querist)
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16 June 2015 Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

A Private Limited Company was incorporated in August 2013. Accounts were finalized for the period ended on 31/03/14. However, the Company did not receive Subscription Amount from the Subscribers to MOA till date.

Query

I need to understand the non-compliance and whether there is any penalty under CA 2013.

Your reply, please..............

Thanks in advance for possible replies from all concerned.

prathiba

prathiba (Expert)
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17 June 2015
Hi Arthi,

As per Sec.10(2) of the Companies Act, 2013, all money payable by any member to the company under M0A and AOA shall be a debt due from the member to the company.

Allotment of shares has to be for cash/consideration in lieu of cash.
Till the amount is received, it is a debt due from them and has to be shown accordingly in the financial statements for year ended 31.3.2014