Share Capital(Quick Clarification Required)

My client is a Pvt Ltd company who alloted shares to a foreign investor 5,00,000 shares of Rs.10/-each. Foreign investor through RTGS sent Rs.50,00,000/- out of which my client company received only Rs.4991020/-, which is net of RTGS charges. with out noticing this fact, the board has passed the resolution for 50L, recorded in the minutes book the same figure and also filled the Form-2 with the same amount 50L. Since it is a foreign investments company has an obligation to disclose the fact of alloting the shares to FDI. however by this time company was aware of the fact of RTGS charges and mentioned only Rs.4991020/- in the disclosure submitted to RBI.

My query is, is it sufficient if the foreign investor deposit the remaining balance of Rs.8980/- and revise the disclosure submitted to RBI (or) the company has to revise the resolution and file the revised Form - 2???

Swaroop

SRO0141517

Replies (1)

Assume that the Foreign Company has remitted to Indian Company some 1 lak Euro's on 03.05.10 the following entry will be passed in their books

Investments in India A/c. Dr.  1 lak Euro

          To Bank                                               1 lak Euro

Whereas the Indian Company will received the same in INR Rs.60 lak (Assume 1 euro = 60/-) but the bank has credited only Rs.59,99,800/- . the following entry has to be passed in INDIAN COMPANY BOOKS

Bank A/c.          59,99,800/-

Bank Charges 200/-

                To Share Application Money received 60,00,000/-

Hence in your case its only an book entry adjustment & nothing to do with Compliance.

If i am wrong kindly let me know.

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