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Share application money in rev sch vi

John Joseph (FINANCE MANAGER) (77 Points)

05 November 2012

dear collegues,

A pvt Ltd Co having Authorised share capital of Rs 10 laks . Issued Rs 1 lakhs. Co has an Share capital Advance of Rs 9 laks.

In the previous year Rs 9 laks recevied from directors is shown as Share capital Advance.

In the current Year as per Rev Sch Vi. There is no item like share capital Advance instead of Share application money pending allotment.

if we want to show under share application money pending allotment. the amount should be equal to or less than share issued.

How we can solve this situation by showing the amount under Share application Money pending allotment. what all steps has to be taken?

Help me to sort out this problem?

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Sonam Bidasaria (CA) (770 Points)
Replied 09 May 2013

You said that

"if we want to show under share application money pending allotment. the amount should be equal to or less than share issued."

Share Application money pending allotment should be equal ti or less than "Authorised Capital" and not "Issued Capital"

So, in your case there is no problem as the Company is having sufficient idle authorised capital.

Disclosure requirement as per Revised Schedule Vi for Share Application Money Pending Allotment are as under:

• terms and conditions;

• number of shares proposed to be issued;

• the amount of premium, if any;

• the period before which shares are to be allotted;

• whether the company has sufficient authorized share capital to cover the share capital mount on allotment of shares out of share application money;

• Interest accrued on amount due for refund;

• The period for which the share application money has been pending beyond the period for allotment as mentioned in the share application form along with the reasons for such share application money being pending.