16 November 2011
Hi, I want to know that If share application money is kept with the company. Whether share application money is considered as Share Capital while Calculationg Retrun on Capital Employed Ratio.
Capital employed=(Share Capital+Res and Surplus+Long Term Loan-Ficticiou Assets).
16 November 2011
It may not be considered unless allotment of shares is made to the shareholders. Share application money received in excess of allotment size will never be considred for calculating capital employed.
16 November 2011
Share Application which is pending for allotment is a current liability and same is not be considered as share capital or part of it for any purpose untill the allotment takes place...And I think in revised schedule-VI the same is kept under the head of "CURRENT LIABILITY"..
So it should not be taken for the calculation for ROCE...
CAclubindia
