Info Tech Ltd., an unlisted public company, has a paid-up equity share capital of ₹10 Crores (1 Crore shares of ₹10 each fully paid-up). The company wishes to reward its Chief Technology Officer (CTO) for developing a pa

Info Tech Ltd., an unlisted public company, has a paid-up equity share capital of ₹10 Crores (1 Crore shares of ₹10 each fully paid-up). The company wishes to reward its Chief Technology Officer (CTO) for developing a patented software which has significantly improved the performance and revenues of the company. The company decides to issue sweat equity shares to the CTO. The company has not issued sweat equity shares so far. Following details are available: Current Market Price of share = ₹250, Face Value of share = ₹10, Number of sweat equity shares to be issued = 1,00,000 shares. These shares will be issued to the CTO at a premium of 50%. Based on the above information answer the following: (i) Verify whether the proposed issue is within statutory limits or not.