Dear Friends,
Share Capital is 1 crore and RE is 1.1 Crore. Where it will be impact in our Balance Sheet. What action is required for Losses are greater than Share Capital.
What is re?
is it reserves and surplus?
5 Replies
Kapadia Pravin
(17259 Points)
Replied 11 January 2020
You mean to say against share capital of 1 crore, Retained Earnings (RE) is 1.1 crore.
RE will appear as P & L Account in Balance sheet either side of BS depending upon + /- balance.
RE will appear as P & L Account in Balance sheet either side of BS depending upon + /- balance.
Mohanraj J
(1178 Points)
Replied 11 January 2020
Dear Kapadi, Yes ofcourse Retained Earnings is always appeared in PL and we need to show in the Balance Sheet too. Shareholder's Funds = Share Capital + Retained Earnings. But, my query is Retained Earnings (Losses) are more than Share Capital. So, how it will be affected the share holders? we need to intimate to them ? any ROC compliances?
Kapadia Pravin
(17259 Points)
Replied 11 January 2020
Company Secretary will handle ROC filings. No extra ROC filings.
Shareholders come to know through Annual Report along with Directors Report and Audited accounts. It's common sir.
Shareholders come to know through Annual Report along with Directors Report and Audited accounts. It's common sir.
Mohanraj J
(1178 Points)
Replied 11 January 2020
Dear Kapaji Ji, thanks a lot for your kind assistance. mohanraj_vkj @ yahoo.co.in
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