Section 372A(5)
This query is : Resolved
udit sharma
(Querist)
11 January 2011
Hi...
Company A has given a Share Application money of Rs. 2 Crores to Company B. Till date, the Company has not allotted any shares to Company A.
Can this be shown as an investment in Company B and an entry to this effect has to be made in the Register of Inter-Corporate Investments maintained under section 372A(5) of the Companies Act, 1956 by Company A ?
In my opinion, this will be treated as investment only when Company B makes an allotment to Company A.
Please help....
Regards
CS Udit Sharma
Company A has given a Share Application money of Rs. 2 Crores to Company B. Till date, the Company has not allotted any shares to Company A.
Can this be shown as an investment in Company B and an entry to this effect has to be made in the Register of Inter-Corporate Investments maintained under section 372A(5) of the Companies Act, 1956 by Company A ?
In my opinion, this will be treated as investment only when Company B makes an allotment to Company A.
Please help....
Regards
CS Udit Sharma
11 January 2011
Dear Udit,
I had Come across a Similar Issue during my Audit & You are Perfectly Correct , It will be Treated as Investment only on allotment.
Regards
Ankit Gulgulia
I had Come across a Similar Issue during my Audit & You are Perfectly Correct , It will be Treated as Investment only on allotment.
Regards
Ankit Gulgulia
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