Forfeiture

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CS Swati Gangrade (Querist)
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07 July 2009 Dear all,

In the balance sheet of our company, under head issued and subscrbd capital, an amount under heading 'Forfeited share amount paid up' is being shown since last 11 years. now auditors have asked to convert this into reserve.

i want to know, what can actually be done with the paid up amount on forfeited shares.

plz help. its urgent.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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07 July 2009 It entirely depends on what happen to the shares forfeited, it it has been reissued. of so convert it in cap reserve

CS Swati Gangrade

CS Swati Gangrade (Querist)
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09 July 2009 The forfeited shares are not reissued, but shown in paid up capital.
is there any provision to convert this amount to general reserve after 3 years ?

CS Swati Gangrade

CS Swati Gangrade (Querist)
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09 July 2009 The forfeited shares are not reissued, but shown in paid up capital.
is there any provision to convert this amount to general reserve after 3 years ?

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)
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11 July 2009 No there is no any such provision to convert it into general reserve after 3 years. As these forfieted shares can be reissued any time. if at the time of reissue, shares are issued at discount, than it can be adjusted there. If board cancel these share than can be shown as general reserve.

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