Dear All,
As per Companies Act 2013, can I issue equity and preference shares at a price below or above the value of shares as calculated by the registered valuer. If yes, then how it should be presented in Balance Sheet then.
Thanks
3 Replies
CS GK Murty
(Company Secretary)
(225 Points)
Replied 05 May 2014
Certainly you can. If the shares arenvalued by a registered valuer, the same can be accordingly reflected in the B/S. i.e. where the valuation is above the face value, the difference can be reflected under the head "Security Premium A/c" or vice versa.
Bhagwati Prasad Singh
(Company Secretary)
(170 Points)
Replied 05 May 2014
For Example :
Nominal Value - 10
Value by Registered Valuer - 30
I I issue at Rs 50
What amount will be transferred in Share Capital account and security premium account?
And what will be the effect if i issue shares at Rs. 10/- only.
Pls reply..
CS GK Murty
(Company Secretary)
(225 Points)
Replied 05 May 2014
Let's give more clarity on the topic. What are the circumstances that necessitate for valuation of shares. It should not be at whims and fancies.
Recent Topics
- Gst number revocation chances
- Export under IGST Paid
- Selling my 5 year old pvt ltd for free
- Software Developer Filing Requirements: Do I Need
- GST E-Way Invoice
- Where to find LUT number?
- When the Tax Portal Isn't Ready, Who Pays the Pric
- ITR Vs. TDS Timeline Gap: A Taxpayer's Dilemma
- Tyres purchased ITC clime?
- LUT Number on Invoices
Related Threads
CAclubindia
