Dear all,
My company has recieved Rs. 65,00,000 from one of my directors as share application money. As the Fair Market value of shares is Rs 420, I cant issue shares in round figure, so out of this amount only Rs. 64,98,800 will be utilised for issue of 4642 shares and Rs. 1200 will be refunded.
Is this process correct ? If yes pls tell me the exact procedure to do so.
Thanks in advance
I do not think it is a big issue. Simply refund Rs. 1,200 to the concerned director and ensure proper accounting in the books of account. In short, the transaction should be absolutely transparent as far as accounting treatment is concerned.
Thanks
VNSS & Co
Mumbai
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Vakilsearch.com
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Vakilsearch.com
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