Share capital

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zamir (Querist)
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02 September 2009 If face value of equity share is reduced to Rs 2 from Rs 10. then what is the face value of authorised share capital to be shown.
Suppose if Authorised capital was 50000 shares of Rs 10 each.
After reduction of face value of share whether authorised capital is Rs 500000 (Rs 10 each)or RS 100000/- (Rs 2 each).

Ankur Garg

Ankur Garg (Expert)
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02 September 2009 authorised capital still remain same i.e. 500000.

250000 equity shares @ Rs 2 each.

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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02 September 2009 there can be one denomination at a time of shares in india..if u have reduced face value of shares.accordingly your authorised share capital shall be shown in balance sheet as

25000 Equity shares @ Rs 2 each(P.Y 50000 shares of Rs 10 each)