Query on share application money

Pvt ltd 565 views 2 replies

Neetu Agrawal

PCS

213 Points Joined October 2010

Hi all,

Thr s privated limited company which tuk aloan from bank..at the time of taking the loan bank tuk a undertaking from the company stating that the company will increase its paid up capital position by 50lacs till the year ending 31st march,2011.the company dint increased as the stated.. n nw they want to increase it giving it back dated effect.

the prob is hw funds wud be infused?

I check out one jharkhand high court ruling which stated that any payment above rs.20000 shud be thru account payee chq..in case of share application money too..or else liable for penalty..

options available...1. cn it be done thru liquid cash keeping in mind IT ACT.
2. chq to be recd in march n realised in april?
3. thrs a directors loan standing in the books so convert that loan into shares (BT THEN ALSO THR S A SHORT FALL OF RS. 15LAC?

Kindly provide ur valuable coments.

Replies (2)

CA Sandeep Kumar

Audit Assistant

804 Points Joined May 2009

Strictly if the share capital was not increased as on a particular date, nothing much can be done post that date. If the company can arrange for funds now, i.e, if people are ready to invest now, best thing is to negotiate with the bankers itself for some relief.

Try to convince the bankers, but everthing depends on what basis bank has given loan and other conditions need to be looked into.