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Let me take an example,
If In a company Authorised, issued subscribed and paidup capital is Rs 1,00,000/- and on Assets side Cash & Bank balance is rs 1,00,000/- on 31.03.2008. on 30.03.2009 Company receive share application money of Rs 10 cr which has accordingly shown by the company in their closing balance sheet for 31.03.2009.
Now on 30.03.2010 company passes a resolution in which they decide to increase authorised share capital from rs 1 lack to 10 lakh and decide to increase Issued and subscribed share capital from rs 1 lack to 10 crore at premium.
on 20th august 2010 Auditor signed the balance sheet on the basis of Board meeting. Balance sheet is just like that.....
Liabilities
Authorised Sh Cap - 10,00,000
Issued Share Capital - 10,00,000/-
Share Premium - 9,90,00,000/-
Assets
Cash and Bank Balance 10,00,00,000/-
now,
In september company file form 5 for increase in authorised share capital but failed to file form 2 for allotment of shares.
Now, management decides to give back the shares application money received earlier.
Whether the company would be able to do so. |
