Issue of shares at a premium by private company
A private company can issue shares at a premium. No justification required.
It is possible to issue the shares at a premium by a private limited company even if it a newly formed company.
However, issue of shares on discount is not possible for a newly formed company as per section 79.
Secondly what can be the legal repircation if a company issues shares at premuim despite having loss.
One important point here is that post issue at premium the net balance in reserve and surplus gets converted from debit balance to credit balance.