fund raising in current scenario-april2014

8/12/2019 Fund Raising in Current Scenario-April2014

1/33

FUND RAISINGFUND RAISINGFUND RAISINGFUND RAISING

LUNAWAT & CO.

Chartered Accountants

LUNAWAT & CO.

Chartered Accountants

CA. PRAMOD JAINFCA, FCS, FCMA, MIMA, DISA

CA. PRAMOD JAINFCA, FCS, FCMA, MIMA, DISA


2/33


3/33

CAPITALCAPITALCAPITALCAPITALPublicPublicPublicPublic

Public IssuePublic IssuePublic IssuePublic Issue

Private PlacementPrivate PlacementPrivate PlacementPrivate Placement

RightRightRightRight

BonusBonusBonusBonus

PrivatePrivatePrivatePrivate

Private PlacementPrivate PlacementPrivate PlacementPrivate Placement

RightRightRightRight

BonusBonusBonusBonus

Lunawat & Co.


4/33

Lunawat & Co.

LoansLoansLoansLoans

DebenturesDebenturesDebenturesDebentures

DepositsDepositsDepositsDepositsLoansLoansLoansLoans


5/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT

Special ResolutionSpecial ResolutionSpecial ResolutionSpecial Resolution MGTMGTMGTMGT ----14 (earlier14 (earlier14 (earlier14 (earlieroffer should beoffer should beoffer should beoffer should be

complete)complete)complete)complete)

Send letter of offerSend letter of offerSend letter of offerSend letter of offer

to persons fromto persons fromto persons fromto persons fromwhom money to bewhom money to bewhom money to bewhom money to be

raised < 50 personsraised < 50 personsraised < 50 personsraised < 50 persons> 200 per> 200 per> 200 per> 200 per yryryryr

Send the detail ofSend the detail ofSend the detail ofSend the detail ofpersons to whompersons to whompersons to whompersons to whomoffer sent to ROCoffer sent to ROCoffer sent to ROCoffer sent to ROC

within 30 dayswithin 30 dayswithin 30 dayswithin 30 days

On receivingOn receivingOn receivingOn receivingamount, allot withinamount, allot withinamount, allot withinamount, allot within

60 days60 days60 days60 days

If not allotted refundIf not allotted refundIf not allotted refundIf not allotted refundwithin 15 dayswithin 15 dayswithin 15 dayswithin 15 days

If not refunded payIf not refunded payIf not refunded payIf not refunded payinttinttinttintt @ 12%@ 12%@ 12%@ 12%

Lunawat & Co.


6/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT ---- PROCEDUREPROCEDUREPROCEDUREPROCEDURE Offer letter in PAS 4 + application form serialOffer letter in PAS 4 + application form serialOffer letter in PAS 4 + application form serialOffer letter in PAS 4 + application form serial

numbered + addressed to specific personnumbered + addressed to specific personnumbered + addressed to specific personnumbered + addressed to specific person to beto beto beto be

sent in writing or electronic modesent in writing or electronic modesent in writing or electronic modesent in writing or electronic mode While passing special resolutionWhile passing special resolutionWhile passing special resolutionWhile passing special resolution basis orbasis orbasis orbasis or

justification of pricing (including premium) to bejustification of pricing (including premium) to bejustification of pricing (including premium) to bejustification of pricing (including premium) to be

made in explanatory statementmade in explanatory statementmade in explanatory statementmade in explanatory statement Offer per person can not be for less thanOffer per person can not be for less thanOffer per person can not be for less thanOffer per person can not be for less than RsRsRsRs. 20K. 20K. 20K. 20K

Payment to be made from bank A/c of personPayment to be made from bank A/c of personPayment to be made from bank A/c of personPayment to be made from bank A/c of person

subscribingsubscribingsubscribingsubscribing

Company to keep record of such Bank A/cCompany to keep record of such Bank A/cCompany to keep record of such Bank A/cCompany to keep record of such Bank A/c

To maintain complete record in PASTo maintain complete record in PASTo maintain complete record in PASTo maintain complete record in PAS 5555 and PAS 4and PAS 4and PAS 4and PAS 4

to be filed with ROCto be filed with ROCto be filed with ROCto be filed with ROC

Lunawat & Co.


7/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT OFFER LETTEROFFER LETTEROFFER LETTEROFFER LETTER Business carried out by Co & subsidiariesBusiness carried out by Co & subsidiariesBusiness carried out by Co & subsidiariesBusiness carried out by Co & subsidiaries

Managements perception of risk factorsManagements perception of risk factorsManagements perception of risk factorsManagements perception of risk factors

Details of default including interestDetails of default including interestDetails of default including interestDetails of default including interest statutory dues,statutory dues,statutory dues,statutory dues,

deposit, loan,deposit, loan,deposit, loan,deposit, loan, etcetcetcetc

Time schedule for which offer is validTime schedule for which offer is validTime schedule for which offer is validTime schedule for which offer is valid

Price of offer and its justificationPrice of offer and its justificationPrice of offer and its justificationPrice of offer and its justification

Name & Address of theName & Address of theName & Address of theName & Address of the valuervaluervaluervaluer who did valuationwho did valuationwho did valuationwho did valuation

Purpose and object of offerPurpose and object of offerPurpose and object of offerPurpose and object of offer Contribution by promoters or directorsContribution by promoters or directorsContribution by promoters or directorsContribution by promoters or directors

Disclosure of interest of director, promoter or KMPDisclosure of interest of director, promoter or KMPDisclosure of interest of director, promoter or KMPDisclosure of interest of director, promoter or KMP

Details of litigation pendingDetails of litigation pendingDetails of litigation pendingDetails of litigation pending

Lunawat & Co.


8/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT OFFER LETTEROFFER LETTEROFFER LETTEROFFER LETTER Remuneration of directors for current + last 3Remuneration of directors for current + last 3Remuneration of directors for current + last 3Remuneration of directors for current + last 3

yrsyrsyrsyrs

Related party transaction for last 3 yearsRelated party transaction for last 3 yearsRelated party transaction for last 3 yearsRelated party transaction for last 3 years

relating to loans, guarantee or securitiesrelating to loans, guarantee or securitiesrelating to loans, guarantee or securitiesrelating to loans, guarantee or securities

AuditorsAuditorsAuditorsAuditors reservations or qualifications orreservations or qualifications orreservations or qualifications orreservations or qualifications oradverse remarksadverse remarksadverse remarksadverse remarks for last 5 yearsfor last 5 yearsfor last 5 yearsfor last 5 years its impactits impactits impactits impact

on FS & corrective action taken / proposed foron FS & corrective action taken / proposed foron FS & corrective action taken / proposed foron FS & corrective action taken / proposed for

each commenteach commenteach commenteach comment

Material frauds last 3 yearsMaterial frauds last 3 yearsMaterial frauds last 3 yearsMaterial frauds last 3 years

Lunawat & Co.


9/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT OFFER LETTEROFFER LETTEROFFER LETTEROFFER LETTER Financial positionFinancial positionFinancial positionFinancial position

Capital structure before & after;Capital structure before & after;Capital structure before & after;Capital structure before & after;

Profit before & after tax for 3 yearsProfit before & after tax for 3 yearsProfit before & after tax for 3 yearsProfit before & after tax for 3 years

Dividend last 3 yearsDividend last 3 yearsDividend last 3 yearsDividend last 3 years

InterestInterestInterestInterest coverage ratio for last three years (Cashcoverage ratio for last three years (Cashcoverage ratio for last three years (Cashcoverage ratio for last three years (Cashprofit after tax plus interest paid/interest paid)profit after tax plus interest paid/interest paid)profit after tax plus interest paid/interest paid)profit after tax plus interest paid/interest paid)

Summary of financial position including Cash FlowsSummary of financial position including Cash FlowsSummary of financial position including Cash FlowsSummary of financial position including Cash Flows

---- last 3 yearslast 3 yearslast 3 yearslast 3 years auditedauditedauditedaudited Change in A/Change in A/Change in A/Change in A/cingcingcingcing policies in last 3 years and itspolicies in last 3 years and itspolicies in last 3 years and itspolicies in last 3 years and its

effect on profits & Reserveseffect on profits & Reserveseffect on profits & Reserveseffect on profits & Reserves

Declaration by director of complianceDeclaration by director of complianceDeclaration by director of complianceDeclaration by director of compliance

Lunawat & Co.


10/33

PRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENTPRIVATE PLACEMENT -

--- CAUTION

CAUTIONCAUTIONCAUTION

On allotment file PASOn allotment file PASOn allotment file PASOn allotment file PAS ----3 in 30 days,3 in 30 days,3 in 30 days,3 in 30 days,

detail to include PAN & edetail to include PAN & edetail to include PAN & edetail to include PAN & e----mail idmail idmail idmail idCannot be in cashCannot be in cashCannot be in cashCannot be in cash

If not followedIf not followedIf not followedIf not followed ---- PenaltyPenaltyPenaltyPenaltyPenalty of amount involved or 2 Cr,Penalty of amount involved or 2 Cr,Penalty of amount involved or 2 Cr,Penalty of amount involved or 2 Cr,

whichever is highwhichever is highwhichever is highwhichever is high+ to refund the money+ to refund the money+ to refund the money+ to refund the money

Effective from 01.04.2014Effective from 01.04.2014Effective from 01.04.2014Effective from 01.04.2014

Lunawat & Co.


11/33

SHARE CAPITAL & DEBSHARE CAPITAL & DEBSHARE CAPITAL & DEBSHARE CAPITAL & DEB

Share capital may be equity (with voting /Share capital may be equity (with voting /Share capital may be equity (with voting /Share capital may be equity (with voting /

differential rights to voting, dividend,differential rights to voting, dividend,differential rights to voting, dividend,differential rights to voting, dividend, etcetcetcetc ) or) or) or) or

PreferencePreferencePreferencePreference

Company cannot issue shares at a discountCompany cannot issue shares at a discountCompany cannot issue shares at a discountCompany cannot issue shares at a discount

other than as sweat equity shares (53)other than as sweat equity shares (53)other than as sweat equity shares (53)other than as sweat equity shares (53) A company may issue preference sharesA company may issue preference sharesA company may issue preference sharesA company may issue preference shares

redeemable after 20 years for infrastructureredeemable after 20 years for infrastructureredeemable after 20 years for infrastructureredeemable after 20 years for infrastructure

projectsprojectsprojectsprojects

No company shall issue any DebenturesNo company shall issue any DebenturesNo company shall issue any DebenturesNo company shall issue any Debentures

carrying any voting rightscarrying any voting rightscarrying any voting rightscarrying any voting rights

Lunawat & Co.


12/33

DEPOSITSDEPOSITSDEPOSITSDEPOSITSLunawat & Co.


13/33

DEPOSITSDEPOSITSDEPOSITSDEPOSITS

Following may invite, accept or renewFollowing may invite, accept or renewFollowing may invite, accept or renewFollowing may invite, accept or renew

deposits :deposits :deposits :deposits :

Banking companiesBanking companiesBanking companiesBanking companies ---- (RBI);(RBI);(RBI);(RBI);

Non Banking Financial Companies (NBFC)Non Banking Financial Companies (NBFC)Non Banking Financial Companies (NBFC)Non Banking Financial Companies (NBFC)

(RBI);(RBI);(RBI);(RBI);Notified companies;Notified companies;Notified companies;Notified companies;

Public company having net worth > 100 Cr orPublic company having net worth > 100 Cr orPublic company having net worth > 100 Cr orPublic company having net worth > 100 Cr orturnover > 500 Cr (Rules)turnover > 500 Cr (Rules)turnover > 500 Cr (Rules)turnover > 500 Cr (Rules)

OthersOthersOthersOthers only from its members subject toonly from its members subject toonly from its members subject toonly from its members subject to

certain conditions (73(2)).certain conditions (73(2)).certain conditions (73(2)).certain conditions (73(2)).

Lunawat & Co.


14/33

ACCEPTANCE OF DEPOSIT RULES 2014ACCEPTANCE OF DEPOSIT RULES 2014ACCEPTANCE OF DEPOSIT RULES 2014ACCEPTANCE OF DEPOSIT RULES 2014

Apply to all companies except Bank, NBFC & HFCApply to all companies except Bank, NBFC & HFCApply to all companies except Bank, NBFC & HFCApply to all companies except Bank, NBFC & HFC

Deposit includes receipt of money by way of loan,Deposit includes receipt of money by way of loan,Deposit includes receipt of money by way of loan,Deposit includes receipt of money by way of loan,

deposit or other form, but does not include:deposit or other form, but does not include:deposit or other form, but does not include:deposit or other form, but does not include:

Amount received from CG, SG, L Auth., Stat. Auth.Amount received from CG, SG, L Auth., Stat. Auth.Amount received from CG, SG, L Auth., Stat. Auth.Amount received from CG, SG, L Auth., Stat. Auth.

Amount from foreignAmount from foreignAmount from foreignAmount from foreign govtgovtgovtgovt, bank,, bank,, bank,, bank, etcetcetcetc as per FEMAas per FEMAas per FEMAas per FEMA Amount received from Banks, PFIs, CPsAmount received from Banks, PFIs, CPsAmount received from Banks, PFIs, CPsAmount received from Banks, PFIs, CPs

ICDICDICDICD

Share appl. money, except not allotted/refundedShare appl. money, except not allotted/refundedShare appl. money, except not allotted/refundedShare appl. money, except not allotted/refunded

Amount received from director out of his own fundsAmount received from director out of his own fundsAmount received from director out of his own fundsAmount received from director out of his own funds

Convertible bond / debentureConvertible bond / debentureConvertible bond / debentureConvertible bond / debenture shares within 5 yearsshares within 5 yearsshares within 5 yearsshares within 5 years

Interest free security depositInterest free security depositInterest free security depositInterest free security deposit employeeemployeeemployeeemployee 1111 yryryryr salarysalarysalarysalary

Lunawat & Co.


15/33

ACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULES 2014201420142014

Interest free amount received in TrustInterest free amount received in TrustInterest free amount received in TrustInterest free amount received in Trust

Business advances:Business advances:Business advances:Business advances:

Supply of goods / servicesSupply of goods / servicesSupply of goods / servicesSupply of goods / services within 365 dayswithin 365 dayswithin 365 dayswithin 365 days

Against propertyAgainst propertyAgainst propertyAgainst property if adjusted as per agreementif adjusted as per agreementif adjusted as per agreementif adjusted as per agreement

SSSSecurity deposit for performance of contract forecurity deposit for performance of contract forecurity deposit for performance of contract forecurity deposit for performance of contract for

supply of goods or provision of servicessupply of goods or provision of servicessupply of goods or provision of servicessupply of goods or provision of services

AAAAdvance under long term projects or for supply ofdvance under long term projects or for supply ofdvance under long term projects or for supply ofdvance under long term projects or for supply of

capital goodscapital goodscapital goodscapital goods

If Co. accepting money does not have necessaryIf Co. accepting money does not have necessaryIf Co. accepting money does not have necessaryIf Co. accepting money does not have necessary

permission or approval to deal in goods orpermission or approval to deal in goods orpermission or approval to deal in goods orpermission or approval to deal in goods or

properties or servicesproperties or servicesproperties or servicesproperties or services ----DepositDepositDepositDeposit

Lunawat & Co.


16/33

ACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULESACCEPTANCE OF DEPOSIT RULES 2014201420142014

PromotersPromotersPromotersPromoters ---- stipulation of any FI or a banks:stipulation of any FI or a banks:stipulation of any FI or a banks:stipulation of any FI or a banks:----

loan is brought in pursuance of the stipulation imposed by theloan is brought in pursuance of the stipulation imposed by theloan is brought in pursuance of the stipulation imposed by theloan is brought in pursuance of the stipulation imposed by the

lending institutions on the promoters to contribute suchlending institutions on the promoters to contribute suchlending institutions on the promoters to contribute suchlending institutions on the promoters to contribute such

finance; andfinance; andfinance; andfinance; and

loan is provided by the promoters themselves and/or by theirloan is provided by the promoters themselves and/or by theirloan is provided by the promoters themselves and/or by theirloan is provided by the promoters themselves and/or by their

relatives.relatives.relatives.relatives.

Exemption available only till loans are repaidExemption available only till loans are repaidExemption available only till loans are repaidExemption available only till loans are repaid

Amt. received byAmt. received byAmt. received byAmt. received by NidhiNidhiNidhiNidhi companiescompaniescompaniescompanies

Public / EligiblePublic / EligiblePublic / EligiblePublic / Eligible depositdepositdepositdeposit 6 m to 36 m6 m to 36 m6 m to 36 m6 m to 36 m

If


17/33

EXISTING DEPOSITSEXISTING DEPOSITSEXISTING DEPOSITSEXISTING DEPOSITS

Prepare a list and file with ROC within 3 months fromPrepare a list and file with ROC within 3 months fromPrepare a list and file with ROC within 3 months fromPrepare a list and file with ROC within 3 months from

1.4.20141.4.20141.4.20141.4.2014

Repay to the depositors within 1 yearRepay to the depositors within 1 yearRepay to the depositors within 1 yearRepay to the depositors within 1 year NonNonNonNon----compliance:compliance:compliance:compliance:

amountamountamountamount to be repaid along with interestto be repaid along with interestto be repaid along with interestto be repaid along with interest

finefinefinefine on Companyon Companyon Companyon Company

minimumminimumminimumminimum RsRsRsRs. 1. 1. 1. 1 CroreCroreCroreCrore,,,,

MaximumMaximumMaximumMaximum RsRsRsRs. 10. 10. 10. 10 crorecrorecrorecrore

onononon every officer in defaultevery officer in defaultevery officer in defaultevery officer in default

imprisonmentimprisonmentimprisonmentimprisonment uptouptouptoupto 7 years or7 years or7 years or7 years or

finefinefinefine minimum

minimumminimumminimum Rs

RsRsRs. 25000,

. 25000,. 25000,

. 25000,

maximummaximummaximummaximum RsRsRsRs. 25 L or. 25 L or. 25 L or. 25 L or bothbothbothboth

Lunawat & Co.


18/33

Lunawat & Co.

LOANSLOANSLOANSLOANS

Debentures,Debentures,Debentures,Debentures,BondsBondsBondsBonds

DepositsDepositsDepositsDepositsOtherOtherOtherOtherthanthanthanthan

DepositDepositDepositDeposit

ICDICDICDICD Banks, FIsBanks, FIsBanks, FIsBanks, FIsFromFromFromFrom

DirectorDirectorDirectorDirector


19/33

LOANSLOANSLOANSLOANS TAKING (179)TAKING (179)TAKING (179)TAKING (179)

CapitalCapitalCapitalCapital ----1 L1 L1 L1 L

Free ReserveFree ReserveFree ReserveFree Reserve 1 L1 L1 L1 L

Existing LoanExisting LoanExisting LoanExisting Loan 1 L1 L1 L1 L

New LoanNew LoanNew LoanNew Loan

50 K50 K50 K50 K

BoardBoardBoardBoardResolutionResolutionResolutionResolution ----ROCROCROCROC

Lunawat & Co.


20/33

LOANSLOANSLOANSLOANS TAKINGTAKINGTAKINGTAKING (180)(180)(180)(180)Lunawat & Co.


21/33

TAKING LOANS (180)TAKING LOANS (180)TAKING LOANS (180)TAKING LOANS (180)

ForForForFor ssss.... 180180180180,,,, loansloansloansloans includesincludesincludesincludes loansloansloansloans fromfromfromfrom banksbanksbanksbanks

tootootootooTemporaryTemporaryTemporaryTemporary loansloansloansloans fromfromfromfrom bankersbankersbankersbankers inininin ordinaryordinaryordinaryordinary

coursecoursecoursecourse ofofofof businessbusinessbusinessbusiness notnotnotnot includedincludedincludedincluded inininin limitslimitslimitslimits

TemporaryTemporaryTemporaryTemporary loansloansloansloans meansmeansmeansmeans repayablerepayablerepayablerepayable onononon::::

DemandDemandDemandDemand

WithinWithinWithinWithin 6666 monthsmonthsmonthsmonths

ButButButBut doesdoesdoesdoes notnotnotnot includeincludeincludeinclude loanloanloanloan forforforfor capitalcapitalcapitalcapital purposepurposepurposepurpose

Lunawat & Co.


22/33

PENALTY FOR DELAY IN FILINGPENALTY FOR DELAY IN FILINGPENALTY FOR DELAY IN FILINGPENALTY FOR DELAY IN FILING

DelayDelayDelayDelay uptouptouptoupto 270270270270 daysdaysdaysdays 12121212 timestimestimestimes filingfilingfilingfiling feefeefeefeeAfterAfterAfterAfter 300300300300 daysdaysdaysdays::::

OnOnOnOn companycompanycompanycompany finefinefinefine RsRsRsRs.... 5555 LLLL 25252525 LLLL;;;; andandandandOnOnOnOn officerofficerofficerofficer inininin defaultdefaultdefaultdefault finefinefinefine RsRsRsRs.... 1111 LLLL 5555 LLLL

Lunawat & Co.


23/33

ICDICDICDICD

CanCanCanCan aaaa companycompanycompanycompany taketaketaketake ICD?ICD?ICD?ICD?

WhatWhatWhatWhat ifififif thethethethe companycompanycompanycompany fromfromfromfrom whomwhomwhomwhom youyouyouyou taketaketaketake

ICDICDICDICD hashashashas samesamesamesame directordirectordirectordirector asasasas youryouryouryour company?company?company?company?

WhatWhatWhatWhat ifififif thethethethe companycompanycompanycompany fromfromfromfrom whomwhomwhomwhom youyouyouyou taketaketaketake

ICDICDICDICD hashashashas aaaa membermembermembermember whowhowhowho isisisis alsoalsoalsoalso aaaa directordirectordirectordirector inininin

youryouryouryour companycompanycompanycompany????

PenaltyPenaltyPenaltyPenalty:::: OnOnOnOn companycompanycompanycompany whowhowhowho givesgivesgivesgives FFFF RsRsRsRs.... 5555 LLLL 25252525 LLLL;;;; andandandand

OnOnOnOn companycompanycompanycompany whowhowhowho takestakestakestakes ICDICDICDICD FFFF---- RsRsRsRs.... 5555 LLLL 25252525 LLLL

Lunawat & Co.


24/33

SHARE CAPITAL AND INCOME TAXSHARE CAPITAL AND INCOME TAXSHARE CAPITAL AND INCOME TAXSHARE CAPITAL AND INCOME TAX

Section 68Section 68Section 68Section 68

Section 115BBESection 115BBESection 115BBESection 115BBE Section 56(1)(vii)(c)Section 56(1)(vii)(c)Section 56(1)(vii)(c)Section 56(1)(vii)(c) Individual / HUFIndividual / HUFIndividual / HUFIndividual / HUF

Section 56(1)(Section 56(1)(Section 56(1)(Section 56(1)(viiaviiaviiaviia)))) Firm or CompanyFirm or CompanyFirm or CompanyFirm or Company Section 56(1)(Section 56(1)(Section 56(1)(Section 56(1)(viibviibviibviib)))) CompanyCompanyCompanyCompany

Lunawat & Co.


25/33

SECTION 68SECTION 68SECTION 68SECTION 68

Source of source to be provedSource of source to be provedSource of source to be provedSource of source to be proved w.e.fw.e.fw.e.fw.e.f....

1.4.2013. Not applicable to:1.4.2013. Not applicable to:1.4.2013. Not applicable to:1.4.2013. Not applicable to:

Co. in which public are substantially interestedCo. in which public are substantially interestedCo. in which public are substantially interestedCo. in which public are substantially interested

Application received from Venture capital co. orApplication received from Venture capital co. orApplication received from Venture capital co. orApplication received from Venture capital co. or

fundfundfundfund Sum credited may be:Sum credited may be:Sum credited may be:Sum credited may be:

Share application moneyShare application moneyShare application moneyShare application money

Share capitalShare capitalShare capitalShare capital

Share premiumShare premiumShare premiumShare premium

Any such amount by whatever name calledAny such amount by whatever name calledAny such amount by whatever name calledAny such amount by whatever name called

Lunawat & Co.


26/33

SECTION 68SECTION 68SECTION 68SECTION 68

Application for Debentures??Application for Debentures??Application for Debentures??Application for Debentures??

Received from Indian company??Received from Indian company??Received from Indian company??Received from Indian company??

Received from Foreign Company??Received from Foreign Company??Received from Foreign Company??Received from Foreign Company??

Received from NonReceived from NonReceived from NonReceived from Non----resident Indian??resident Indian??resident Indian??resident Indian??

Received from Foreign Citizen??Received from Foreign Citizen??Received from Foreign Citizen??Received from Foreign Citizen??

Lunawat & Co.

C


27/33

SECTION 115BBESECTION 115BBESECTION 115BBESECTION 115BBE

If assessed u/s 68 / 69 / 69A / 69B /If assessed u/s 68 / 69 / 69A / 69B /If assessed u/s 68 / 69 / 69A / 69B /If assessed u/s 68 / 69 / 69A / 69B /

69C / 69D69C / 69D69C / 69D69C / 69D rate of taxrate of taxrate of taxrate of tax 30% on such30% on such30% on such30% on suchincomeincomeincomeincome

No expenditure allowed from suchNo expenditure allowed from suchNo expenditure allowed from suchNo expenditure allowed from such

incomeincomeincomeincome

No allowances allowed from such incomeNo allowances allowed from such incomeNo allowances allowed from such incomeNo allowances allowed from such income

Deduction u/c VIA???Deduction u/c VIA???Deduction u/c VIA???Deduction u/c VIA???

Lunawat & Co.

L & C


28/33

SECTION 56(1)(SECTION 56(1)(SECTION 56(1)(SECTION 56(1)(vii)(c)vii)(c)vii)(c)vii)(c)

Applicable only to individual and HUFApplicable only to individual and HUFApplicable only to individual and HUFApplicable only to individual and HUF

Mr. AMr. AMr. AMr. A buy Shares of listed Co for 5 Lbuy Shares of listed Co for 5 Lbuy Shares of listed Co for 5 Lbuy Shares of listed Co for 5 L from Mr. Bfrom Mr. Bfrom Mr. Bfrom Mr. B

(FMV(FMV(FMV(FMV 5.5 L5.5 L5.5 L5.5 L). Is 56 (1) (vii) (c) applicable?). Is 56 (1) (vii) (c) applicable?). Is 56 (1) (vii) (c) applicable?). Is 56 (1) (vii) (c) applicable?

Mr. XMr. XMr. XMr. X buy Shares of listed Co forbuy Shares of listed Co forbuy Shares of listed Co forbuy Shares of listed Co for 2222 L fromL fromL fromL from Mr. BMr. BMr. BMr. B

(FMV(FMV(FMV(FMV 2.52.52.52.5 LLLL) & for) & for) & for) & for RsRsRsRs. 3 L from C (FMV 3.25 L).?. 3 L from C (FMV 3.25 L).?. 3 L from C (FMV 3.25 L).?. 3 L from C (FMV 3.25 L).? Mr. M to plan his taxation sells shares ofMr. M to plan his taxation sells shares ofMr. M to plan his taxation sells shares ofMr. M to plan his taxation sells shares of

Reliance Industries to Mrs. M forReliance Industries to Mrs. M forReliance Industries to Mrs. M forReliance Industries to Mrs. M for RsRsRsRs. 1 L (FMV. 1 L (FMV. 1 L (FMV. 1 L (FMV

2 L)??2 L)??2 L)??2 L)??

Mr. P buys redeemable debentures of ABC Pvt.Mr. P buys redeemable debentures of ABC Pvt.Mr. P buys redeemable debentures of ABC Pvt.Mr. P buys redeemable debentures of ABC Pvt.

Ltd. having FVLtd. having FVLtd. having FVLtd. having FV RsRsRsRs. 5 L from Mr. Q for. 5 L from Mr. Q for. 5 L from Mr. Q for. 5 L from Mr. Q for RsRsRsRs. 4 L??. 4 L??. 4 L??. 4 L??

Lunawat & Co.

L t & C


29/33

SECTION 56(1SECTION 56(1SECTION 56(1SECTION 56(1)()()()(viiaviiaviiaviia))))

Applicable only to a Firm, LLP and CompanyApplicable only to a Firm, LLP and CompanyApplicable only to a Firm, LLP and CompanyApplicable only to a Firm, LLP and Company

Applicable onApplicable onApplicable onApplicable on receipt of shares at price inreceipt of shares at price inreceipt of shares at price inreceipt of shares at price in

excess > 50k of fairexcess > 50k of fairexcess > 50k of fairexcess > 50k of fair value ofvalue ofvalue ofvalue of sharessharessharesshares

XYZ P.XYZ P.XYZ P.XYZ P. LtdsLtdsLtdsLtds shares FMV isshares FMV isshares FMV isshares FMV is RsRsRsRs. 50 per share. It. 50 per share. It. 50 per share. It. 50 per share. It

allots 1 L shares @allots 1 L shares @allots 1 L shares @allots 1 L shares @ RsRsRsRs. 10/. 10/. 10/. 10/---- to its promoter??to its promoter??to its promoter??to its promoter??

ABC P.ABC P.ABC P.ABC P. LtdsLtdsLtdsLtds shares FMV isshares FMV isshares FMV isshares FMV is RsRsRsRs. 100/. 100/. 100/. 100/---- itsitsitsits

issues bonus shares in ratio of 1:1??issues bonus shares in ratio of 1:1??issues bonus shares in ratio of 1:1??issues bonus shares in ratio of 1:1?? ABC P. LtdABC P. LtdABC P. LtdABC P. Ltd buysbuysbuysbuys convertibleconvertibleconvertibleconvertible debentures ofdebentures ofdebentures ofdebentures of

XYZ.XYZ.XYZ.XYZ. Ltd. having FVLtd. having FVLtd. having FVLtd. having FV RsRsRsRs. 5 L from Mr. Q for. 5 L from Mr. Q for. 5 L from Mr. Q for. 5 L from Mr. Q for RsRsRsRs....

4 L4 L4 L4 L????????

Lunawat & Co.

L t & C


30/33

SECTION 56(1SECTION 56(1SECTION 56(1SECTION 56(1)()()()(viibviibviibviib))))

Applicable only to a CompanyApplicable only to a CompanyApplicable only to a CompanyApplicable only to a Company

Applicable on consideration received onApplicable on consideration received onApplicable on consideration received onApplicable on consideration received onissue of shares at premiumissue of shares at premiumissue of shares at premiumissue of shares at premium considerationconsiderationconsiderationconsideration

received in excess of FMV of shares isreceived in excess of FMV of shares isreceived in excess of FMV of shares isreceived in excess of FMV of shares is

incomeincomeincomeincome

Not applicable to:Not applicable to:Not applicable to:Not applicable to:

Co. in which public are substantially interestedCo. in which public are substantially interestedCo. in which public are substantially interestedCo. in which public are substantially interested

AmountAmountAmountAmount received from Venture capital co. orreceived from Venture capital co. orreceived from Venture capital co. orreceived from Venture capital co. or fundfundfundfund

Lunawat & Co.

Lunawat & Co


31/33

SECTION 56(1)(SECTION 56(1)(SECTION 56(1)(SECTION 56(1)(viibviibviibviib))))

Is issue of Debentures covered ??Is issue of Debentures covered ??Is issue of Debentures covered ??Is issue of Debentures covered ??

XYZ P.XYZ P.XYZ P.XYZ P. LtdsLtdsLtdsLtds shares FMV isshares FMV isshares FMV isshares FMV is RsRsRsRs.... 20202020 perperperper

share. It allotsshare. It allotsshare. It allotsshare. It allots the following:the following:the following:the following:

1111 L shares @L shares @L shares @L shares @ RsRsRsRs.... 50505050////---- totototo ABC P. Ltd.??ABC P. Ltd.??ABC P. Ltd.??ABC P. Ltd.??

2 L shares @ 100/2 L shares @ 100/2 L shares @ 100/2 L shares @ 100/---- totototo Foreign Company??Foreign Company??Foreign Company??Foreign Company??

1 L shares @ 80/1 L shares @ 80/1 L shares @ 80/1 L shares @ 80/---- to Nonto Nonto Nonto Non----resident Indian??resident Indian??resident Indian??resident Indian??

1 L share @ 90/1 L share @ 90/1 L share @ 90/1 L share @ 90/---- to Foreign Citizen??to Foreign Citizen??to Foreign Citizen??to Foreign Citizen??

ABC P. Ltd. after incorporation gets itsABC P. Ltd. after incorporation gets itsABC P. Ltd. after incorporation gets itsABC P. Ltd. after incorporation gets its

shares valued @ 500/shares valued @ 500/shares valued @ 500/shares valued @ 500/---- based on intangiblebased on intangiblebased on intangiblebased on intangible

asset it acquired & allots shares @ 450/asset it acquired & allots shares @ 450/asset it acquired & allots shares @ 450/asset it acquired & allots shares @ 450/---- ????

Lunawat & Co.

Lunawat & Co


32/33

Lunawat & Co.


33/33

CA. Pramod JainCA. Pramod JainCA. Pramod JainCA. Pramod Jain

[email protected]@[email protected]@lunawat.com

+91 9811073867+91 9811073867+91 9811073867+91 9811073867

2014 CA. Pramod Jain, Lunawat & Co

fund raising in current scenario-april2014

Documents