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Justification on issue of shares at a premium

Anjali Modi (Student CA Final ) (38 Points)

27 November 2015

One of my client (Pvt. Ltd. Co.)issue share Face Value 10 and on Rs. 90 Rs. Premium . co. is a private limited company Now ITO Want justification For Rs. 90 premium per share . If you have any case law or justification please provide me.

Please mail me the reply on anjalimodi29 @ gmail.com

Thanks & Regards

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19 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 27 November 2015

Justification mail to u. Pls check

Anantha P Pandit H N (Proprietor) (22 Points)
Replied 31 December 2015

Hi Ash Jian

I am from Bangalore. One of my clinet incorporated as a Pvt Ltd.,Company in Feb 2014 as a 100% subsidiary of UK company. Initially the capital was Rs.1 lakh. They received an amount of Rs.43 lakh from parent company in June 2015 towards meeting expenses thorugh Foreign inward remittance approved by RBI. But my mistake they had mentioned Capital in the application and hence the amount has been shown as 80000 shares issued at a preium of Rs.43.35. The overseas banker through whom the amount is received is seeking justificatin for the premium. Can u help in this.What could be the proper justification in this regards. my mail id is pandithna @ yahoo.com. Regards and wish you happy new year.

a.k.m.a. faruque (proprietor) (21 Points)
Replied 20 January 2016

Dear CA Ash Jain

One of my client (Pvt. Ltd. Co.)issue share Face Value 10 and on Rs. 30 Rs. Premium . co. is a private limited company Now ITO Want justification For Rs. 30 premium per share . If you have any case law or justification please provide me.the company earn profit every year

Please mail me the reply on akmafaruque @ gmail.com

vijay sharma (CA Job) (31 Points)
Replied 23 December 2016

one of client issue shares at premium, now ITO wants justification of premium

if you have any format for justification

pls forward to me at viz1987 @ gmail.com

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 23 December 2016

Justification Mail send :

pandithna @ yahoo.com,
akmafaruque @ gmail.com,
viz1987 @ gmail.com

casubhas779 @ gmail.com

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 23 December 2016

Three Email send to you for Justification for the same

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 23 December 2016

Three Email send to you for Justification for the same

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 23 December 2016

Three Email send to you for Justification for the same

Durgesh Padharia (Article Assistant) (38 Points)
Replied 30 January 2017

one of client issue shares at premium, now ITO wants justification of premium if you have any format for justification pls forward to me at ca.durgesh001 @ gmail.com

Siddhartha Singhani (ACA, DISA (ICAI)) (40 Points)
Replied 16 February 2017

CA Ash Jain, Please forward the justification of share premium to casiddharthasinghani @ yahoo.com.

Ravina Rohira (Chartered Accountant) (23 Points)
Replied 03 March 2017

Please forward the justification of share premium to ravinarohira @ gmail.com

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 04 March 2017

send justification of share premium in email..

Gabel (36 Points)
Replied 29 June 2017

We have filed documents for private placement of preference shares at a premium. Now MCA is asking for justification for issue at a premium and that how the premium would be adjusted on conversion.

Please guide me as to what should be mentioned in such case.