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.
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