Hi friends can anyone guide me on the under mentioned issue :
If the share capital of a listed company was subscribed by 99.2 % and there was 0.8% unsubscribed capital and it continued for 7 yrs and lately in balance sheet the auditors stared showing the subcribed capital as issued capital. I explain with illustrqation also like :
Issued capital - Rs. 10,00,00,000/-
subscribed capital - Rs. 9,92,00,000/-
After 7 years the balance sheet showing Rs. 9,92,00,000/- as issued and subscribed capital.
My query is whether this is valid as per the provisions of law? If not what steps to be taken to clear the diffrence in issued and subscibed capital?
Also does dis amount to reduction of capital?
Waiting for ur valuable reply so plz reply asap and help me in this matter.
regards
Jasjeet
CAclubindia
