Section 372A(5)

udit sharma (Company Secretary) (2303 Points)

11 January 2011  


Company A has given a Share Application money of Rs.2 Crores to Company B. Till date, the Company has not allotted any shares to Company A.

Can this be shown as an investment in Company B and an entry to this effect has to be made in the Register of Inter-Corporate Investments maintained under section 372A(5) of the Companies Act, 1956?

In my opinion, this will be treated as investment only when Company B makes an allotment to Company A.

Please help....


CS Udit Sharma