Issue of shares against deposit money

Save Share

This query is : Resolved

Komal Taunk (Querist)

02 March 2015 As per the provisions of Companies Act 2013, Unsecured loan i.e. deposits shown in the balance sheet as on 31.03.2014 is required to be repaid within 1 year from commencement of this Act.
Can I issue shares against the deposit money to the respective lenders before 31.03.2015? If yes, what is the process?
Or, Is it necessary to return the deposit money?

CS JAY GOHIL

CS JAY GOHIL (Expert)

02 March 2015 yes it is possible, first transfer deposit money to share application money a/c and issue shares on private placements or right basis.

as per rules it is necessary to repay deposit amount

Komal Taunk

Komal Taunk (Querist)

02 March 2015 As the whole process is to be completed before 31.03.2015 and the deposit money is kept in the Company bank Account, Is it necessary to transfer the same in a separate bank account for share application money?
What are the e-Forms to be filed to ROC for such transfer of deposit money a/c to share application money a/c?

CS JAY GOHIL

CS JAY GOHIL (Expert)

02 March 2015 No its not necessary to transfer money to separate bank account

no forms are required to be filed regarding such transfer because its internal accounting matter or adjustment

CS Divesh Goyal

CS Divesh Goyal (Expert)

03 March 2015 dear komal you cany convert deposit into sharecapital under ca 2013 .
if ypu want to cnvrt deposit of 31.03.2014 then u have to allot before 30.05.2014

for more clarificationsent me.mail at
csdiveshgoyal@gmail.com
i will mail u cmplt process.
i have written article.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now