Issue Of Prospectus

Yamuna Ltd., invited general public to subscribe for its public issue of ₹ 10 crore (10 lakh shares of ₹ 100 each ) through issue of prospectus . However , the company received applications for 8 lakh shares . Can the company proceed with allotment of shares ? Give reasons in support of your answer .

Govind Ltd., issued a prospectus inviting application, Rs. 5 on allotment (including premium), Rs. 2 on First call, and Rs. 2 on Final call. Applications were received for 27,000 shares. Directors allotted the shares as follows : {:("To applicants of 16,000 shares",.................,"full allotment"),("To applicants of 6,000 shares",.................,"4,000 shares"),("To applicants of 5,000 shares",.................,"Nil"):} Give entries in the Cash Book and Journal, assuming that all sums due on allotment and calls have been received.

(Issue of shares at Premium, Fully subscribed, Amount Payable in Instalments). New India Ltd. was registered with a capital of Rs. 1,00,00,000 in equity shares of Rs. 100 each. It issued a prospectus inviting applications for 20,000 shares at 40% premium payable as follows: On Application Rs. 50 (including Rs. 10 premium), On Allotment Rs. 40 (including Rs. 10 premium), On First Call Rs. 30 (including Rs. 10 premium), Applications were received for 20,000. The amount due was received. Pass the necessary Journal entries and also show how 'Share Capital' Will be shown in the Balance Sheet of the Company.

Nav Lakshmi Ltd. issued a prospectus inviting applications for 50,000 shares of Rs. 10 each. These shares were issued at par on the following terms : On applications Rs. 3, on allotment Rs. 4, on first call Rs. 2 and on final call the balance. Applications were received for 60,000 shares. Allotments were made on the following basis : (i) To applicants for 10,000 shares - in full, (ii) To applicants for 20,000 shares - 15,000 shares, (iii) To applicants for 30,000 shares - 25,000 shares. All excess amount paid on application is to be adjusted against amount due on allotment. The shares were fully called and paid except the amount of allotment, first and final call not paid by those who applied for 2,000 shares of the group applying for 20,000 shares. All the shares on which calls were not paid were forfeited by the Board of Directors. 1,000 forfeited shares were re-issued as fully paid on receipt of Rs. 8 per share. Show the journal entries in the books of Nav Lakshmi Ltd.

ABC Ltd. issued prospectus for the subscription of its shares for RS. 500 crores in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of RS. 5 crores and banned its three executive directors for dealing in securities market for three years. Identify the function and its type performed by SEBI in the above case.

ABC Ltd. issued prosphectus for the subscription of its shares for Rs 500 crore in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of Rs 5 crore and banned its three executive directors for dealing in securities market for three years. Identify the function and its type performed by SEBI in the above case.

Bliss Products Ltd. registered with capital of ₹ 90,00,000 divided into 90,000 equity shares of ₹ 100 each. The company issued prospectus inviting applications for 50,000 equity shares of ₹ 100 each payable as ₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and balance on second call. Applications were received for ₹40,000 shares. Raman to whom 1600 shares were allotted failed to pay final call money and these shares were forfeited. Of the forfeited shares, 600 shares were reissued to Sukhman, credited as fully paid for ₹ 90 per share. Present the Share Capital as per Schedule III of Companies Act, 2013

On 1st April, 2014, Blue Heaven Ltd. was formed with an authorised capital of Rs. 20,00,000 divided into 2,00,000 equity shares of Rs. 10 each. The company issued prospectus inviting applications for 1,50,000 equity shares. The company received applications for 1,40,000 equity shares. During the first year, Rs. 7 per share were called. Arun holding 4,000 shares and Varun holding 3,000 shares did not pay the first call of Rs 2 share. Vanrun's shares were forfeited after the first call and later on 1,800 of the forfeited shares were re-issued at Rs. 5 per share, Rs. 7 called up. Show the following : (a) Share Capital in the Balance Sheet of the company as per Schedule III Part I of the Companies Act, 2013. (b) Also prepare 'Notes to Accounts' for the same.