Hi
I want to know if a Unlisted company can issue shares at Face value to its Foreign Parent Company even if the share valuation as per the CA certificate is greater than of lesser than the Face Value.
Thanx in Adavnce
19 Replies
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 27 March 2011
I hope you are talking about the valuations arrived after DCF method.
The issue price can't be less than the value arrived at by DCF method.
Anand
(Practicing CA)
(190 Points)
Replied 28 March 2011
| Originally posted by : CA. Anuj Gupta | ||
 |
I hope you are talking about the valuations arrived after DCF method. The issue price can't be less than the value arrived at by DCF method. |
 |
Is there any specif format for teh Share Valuation Certificate, if you can you please share it.
Rgds
Anand
SATYANARAYANA
(CHARTERED ACCOUNTANT)
(21 Points)
Replied 24 May 2011
Hi,
Can anyone please provide format of DCF Method of share valuation.
Mehul Jain
(ROC and R&D Executive)
(59 Points)
Replied 04 August 2011
PFA AS REQUIRED
Attached File : 568861 791483 report.zip downloaded: 12711 times
Ankit Tulsyan
(Chartered Accountant)
(33 Points)
Replied 12 September 2011
A Foreign investor was initial subscriber of 9000 shares (Company was incorporated on 15 Dec.'10) but the share money (90000 i.e. 9000 shares @ 10) was received on 23rd March'11.
Queries
Can CA certify that as it's a new company and the foreign investor is a promoter the shares are valued at face value?
Will the DFCF Method be applicable in this case (as it's a new company)? If yes, how will we get the base figures?
SUNIL KUMAR JAIN
(PRACTISING COMPANY SECRETARY)
(187 Points)
Replied 12 September 2011
Dear Mr. Ankit Tulsyan,
Under the FDI Policy, even in case of new companies, foreign promoters who are subscribers to the Memorandum are required to subscribe based on the Share Valuation as per DCF method. Such valuation is done based on the future profitibility projections.
Regards,
Sunil K. Jain
Practising Company Secretary
9810104162; rediffmail.com
Shishir Kumar
(CS)
(43 Points)
Replied 24 September 2012
dear sir
i also have a same query
that a newly incorporated company whose subscribers have subscribed 99 %the capital @ Rs.10 each.
we had sent the FCGPR and a certificate from ca stating that the value of shares is rs.10 as company has to be formed nad value of share is rs.10 as per clause V of moa. but RBI has asked for valuation report under DCF method.
Now my sir is asking me to show any section or guideline for newly incorporated company that valuation report is given under DCF method is required if foreigner subscribes the share capital
please help me
my mail id is sunnysuman @ gmail.com
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 24 September 2012
Under form FCGPR a CA Certificate is to be submitted regarding price difference on which the share were issued to the Indian Resident Shareholders and to the NRI/ Foreign Shareholders. In case there is no difference, the certificate is to be placed just mentioning that the share were issued on face value and at the same rate to the Indian shareholders and NRI shareholders, there was no pricing difference.
Durga Thota
(Company Secretary)
(29 Points)
Replied 09 November 2012
Dear All,
My querty is-
A private limited company, having only foreign shareholderfs, issued further shares at face value i.e. Rs10/-. For filing FC GPR valuation certificate under DCF Method has been obtained. As per the same, the price is Rs. 3.20. Consistent growth has been shown in projetions. Will it be acceptable by RBI.
Thanks
Durga
Rakesh Sharma
(CS)
(38 Points)
Replied 02 January 2015
sir i have same query that in current time what is method for share valuation in case of transfer and issue of shares to NRI
meetul shah
(Employee)
(26 Points)
Replied 26 February 2015
Can you Suggest me what to do on these Query
Dear Sir,
Please refer to the FCGPR submitted by you for issue of shares on 13/12/14
In this connection it is observed that the first issue of shares to non resident is on RIGHTS basis.You are requested to clarify the same.
You are also requested to submit CS compliance certificate to Reg.6 of FEMA 20 for issue of shares on rights basis.
meetul shah
(Employee)
(26 Points)
Replied 26 February 2015
Can you Suggest me what to do on these Query
Dear Sir,
Please refer to the FCGPR submitted by you for issue of shares on 13/12/14
In this connection it is observed that the first issue of shares to non resident is on RIGHTS basis.You are requested to clarify the same.
You are also requested to submit CS compliance certificate to Reg.6 of FEMA 20 for issue of shares on rights basis.
meetul shah
(Employee)
(26 Points)
Replied 26 February 2015
Can you Suggest me what to do on these Query
Dear Sir,
Please refer to the FCGPR submitted by you for issue of shares on 13/12/14
In this connection it is observed that the first issue of shares to non resident is on RIGHTS basis.You are requested to clarify the same.
You are also requested to submit CS compliance certificate to Reg.6 of FEMA 20 for issue of shares on rights basis.
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