fc-gpr- issue of shares

This query is : Resolved

asha fernandes (Querist)
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06 September 2008 sir , regarding the form fc-gpr which needs to be issued to rbi signed by the auditor i have the followiung doubts:
1- it says about the method of valuations- the com has randomly issued shares at rs.100 per share. so what shd the auditor do
2-all method of valuations talk about average of 3 years. this has just set up in april 2007 and no previous balance sheets are available.
3-the shares are issued on 11th july 08 and period of 30 days has already elapsedwhat to do
4- if i have to advice a newly opened software company which is a subsidiary of a foreign company regarding the method of valuation of shares. then what can it be
kindly let me know at ur ealist sir its very urgent. thanking u in advance

CS Vivek Hegde

CS Vivek Hegde (Expert)
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10 December 2008 Asha

What the FEMA rule says is the shares should be issued is FAIR VALUE which should not be lower than the face value. So for start up companies the auditors can certify the face value as FAIR VALUE.

u need not apply CCI Guidelines.

It is very well settled

rgds

Vivek

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