Explain the disclosure requirements as per Schedule III of the Companies Act 2013 with regard to "Share Capital".

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2017
Explain the disclosure requirements as per Schedule III of the Companies Act 2013 with regard to "Share Capital".

Answer & Explanation:

Disclosure Requirements with regard to 'Share Capital' as per Schedule III of the Companies Act, 2013: For each class of share capital (different classes of preference shares to be treated separately): The number and amount of shares authorized; The number of shares issued, subscribed, and fully paid, and subscribed but not fully paid; Par value per share; A reconciliation of the number of shares outstanding at the beginning and at the end of the period; The rights, preferences, and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital; Shares in the company held by its holding company or its ultimate holding company or by its subsidiaries or associates; Shares in the company held by any shareholder holding more than 5 percent shares; Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts; Separate particulars for a period of five years following the year in which the shares have been allotted/bought back, in respect of: Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Aggregate number and class of shares allotted as fully paid up by way of bonus shares (Specify the source from which bonus shares are issued). Aggregate number and class of shares bought back. Terms of any security issued along with the earliest date of conversion in descending order starting from the farthest such date.

Topics: Financial Statements

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