share application money - pending allotment

[Sriram K]

Dear All,

Can any one advice me on the following:

X P ltd is having application money not yet allotted for more than 2 years

As per the CA - 2013 what compliance needs tobe followed

should we refund the about or is it mandatory to allot shares.

Regards

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Regards,
Sriram K Sarma

[ULHAS BHAT]

Sriramji,

Share Application money should be allotted within 60 days as per the new Act. However, please note that the new Act is applicable only after 1.4.14.
Beyond 60 days, the same will have to be refunded within 15 further days. Else it is treated as Deposits under Companies (Acceptance of Deposits) Rules 2014.

Regards,
CS Ulhas S Bhat
B. Com., FCS
Practicing Company Secretary
FAH Arcade, Shop No.5, 1st Floor
Opp. Bus Stop, Chokkabettu Junction
Surathkal, Mangalore 575014

Mobile: +919739122718, +918105419177

Office: 0824-2476788

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[Sriram K]

Thanks you sir,

If 60 days time is applicable as per CA - 2013. what will be the status of old pending share application money which are not yet allotted.

will it be calculated from 1.4.2014. or it will not be applicable. 

Regards

[SSMarthi]

Dear Sriram

The new provisions are nor applicable to the monies received on or before 31st March 2014, hence you can continue to show as Share Application money.

Regards

CS SS Marthi

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From: Sriram K
Sent: ‎12-‎06-‎2014 16:07
To: cschennai
Subject: Re: (CSchennai) share application money - pending allotment

[ULHAS BHAT]

Marthi Sir,

Great to see you here. While the same could be shown as Share Application Money in B/S as at 31.03.2014, however, what is the status thereafter. Is there any time limit within which the same should be refunded?
It is a practical problem for me, as I interpreted that it has to be refunded within 75 days otherwise new Companies Act, 2013, and consequently Section 74 thereof will be applicable.

Regards,
CS Ulhas S Bhat
B. Com., FCS
Practicing Company Secretary
FAH Arcade, Shop No.5, 1st Floor
Opp. Bus Stop, Chokkabettu Junction
Surathkal, Mangalore 575014

Mobile: +919739122718, +918105419177

Office: 0824-2476788

[SSMarthi]

Dear Ulhas

It is also nice to read your mails.  Frankly speaking there is no time limit for the monies collected on or before 31st March 2014.

Regards

Marthi

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From: ULHAS BHAT
Sent: ‎12-‎06-‎2014 18:10
To: csch...@googlegroups.com