Buy back of shares


Professional

A co has bought back 170 shares as on 31 march. Out if which only 100 were extinguished in the march and remaining 70 were extinguished in april. So as on 31st march what shall be the share capital of the company.will paid up capital be reduced by 170 in balance sheet as on 31 march. And the SHP filed by company as on 31 march reflects only the shares which were extinguished i.e. 100 shares not 170 shares. 

Please guide as soon as possible as the balance sheet needs to be finalised on this matter.

 
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Professional

generally buy back completes only when shares so bought back were destroyed /extinguished... In this case only 100 shares were extinguished in FY18-19 ,So as per my understanding paid up equity will be reduced by amount of 100 shares only... And for remaining 70 shares discolusure can be made in board report / as event occur after balance sheet date.
 
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Professional

Ok so in balance sheet what shall be the reduced value
 
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Associate

I guess in the balance sheet, you need to reduce all those 170 equity shares then only amount to shares bought back and consideration paid for the same will match. You can also provide the note in support in the financial statements.

 
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Professional

So in case we take 170 shares reduced in balance sheet. Then the same shall be different from shp filed. Further what shall be the shp for annual report ie. In mgt9. Moreover when we will file the annual filing forms, will this create an issue as aoc will reflect reduction of 170 as taken in balance sheet. While in mgt7 we will take as per the shareholding pattern of the company. Will form through an error on this. Please clarify.
 
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Professional

Not giving with reference to any law/ regulation, but one thing can be done that to file Revised SHP,With the statement that 70 shares have been bought back but not yet extinguished and once it's extinguished one more statement to be filed with the stock exchange, It may sort out all issue....
 
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Professional

But how will RTA give the shp on 170 shares as the DP statement doesnt reflect the same.
 
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Professional

OK, then you can file a Joint statement signed by Co. /RTA that the 70 shares were bought back by the company ending 31-03-2019 but not extinguished till that date, & date of april'19 when they were actually extinguished ,including revised pattern with the statement itself, As Main purpose of this to inform public / stock exchange at large ,& also include this statement in NOTES TO ACCOUNTS / AND IN ANNUAL REPORT with its date ...It may save from any mismatch ...
 
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Professional

But how will RTA give the shp on 170 shares as the DP statement doesnt reflect the same.
 
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good clarification and information
 
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