Treatment of share application money pending allotment

As per the revised Schedule VI, Share Application money pending allotment  is required to be shown under two parts- part against whom shares will be allotted is in the nature of equity and the part which is due for refund is in the nature of liability.It should not be included in 'shareholders funds'. In case of over subscripttion ,it has to be presented under 'Other Current Liabilities." Further, the terms and conditions of allotment are to be disclosed.It has also to be disclosed whether the company has sufficient authorised capital to cover the the share capital amount resulting from allotment of shares against share application money.Further , the period for which the share application money has been pending beyond the stipulated period for allotment alongwith reasons for delay.In some cases ,the shares are not allotted and the money is refunded after a few years.In such case ,the true nature of funding is that of a loan