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Share application money pending - adjustment

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Cs Vishal Goyal (Querist)
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13 June 2017 Hello Everyone
what adjustment of share application money pending for a private company which is shown on Balance sheet from 2012 till now and time to time increased.Can this company increased its paid up againsed share application money.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 June 2017 The said amount has become a 'deposit' vide explanation (a) to rule 2(c)(vii) of Companies (Acceptance of Deposits) Rules,2014. Being a violation, can be punished as per rule 21 of the said rules.

If the amount still remains as 'share application money pending allotment' , after seven years the amount has to be transferred to Investor Education Protection Fund.

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Cs Vishal Goyal

Cs Vishal Goyal (Querist)
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13 June 2017 .B. chackrapani sir, what is solution for this ?

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