Mahesh Babu (Business) (37 Points)
06 April 2011My company's authorized share capital is Rs. 2 crores..we received 2 crores in full but we showed 1.5 crore under subscribed capital and 50 lacs were under share application money.Total 2 crores was under share capital.Now we want to issue shares against application money for premium.which will make our share capital as 1.75 crores and 25 lacs will be under share premium account.Kindly let me know the procedure to be followed
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 06 April 2011
I dont think any special formality needed to be done. Jst relevant accounting entries are required. I think relevant accounting entry will be
Share application Dr. 25 lac
To Share premium 25 lac
Besides that, you should file form 2 for return of allotment.
Experts advice required.
Jaideep
(Service)
(1368 Points)
Replied 06 April 2011
Appreciate Response from Shridhi, if it is a private company on which the query is silent.
However for public compnay as you have received application money, members must have passed special reolution, plz check whether it provides for premium.
Also for private companies Board Resolution will require.
Kindly take suitable share application form.
Regards
Jaideep Pandya
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 06 April 2011
Hi Jaideep, its a pvt. co. as the query is posted under "pvt. co." head.
Jaideep
(Service)
(1368 Points)
Replied 06 April 2011
Thanks Shridhi for pointing out.... Still Share application form needed for Income Tax purpose
Regards
Jaideep Pandya
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