The following information is available from the balance sheet of Jupiter Pvt Ltd. as on 31.3.2018:₹ croreIssued share capital 30Paid up equity capital 25General reserve 2Profit & Loss Account 5Investment fluctuation

Section 54 read with rule 8(4) of Companies (Share Capital & Debentures) Rules 2014 deals with issue of sweat equity shares and limits on issue of the same. Rule 8(4) states that the company shall not issue sweat equity shares for more than fifteen percent of the existing paid up equity share capital in a year or shares of the issue value of rupees five crores, whichever is higher. The issuance of sweat equity shares in the Company shall not exceed twenty five percent, of the paid up equity capital of the Company at any time. Applying the same in the given situation, 15% of paid up equity share capital = ₹ 3.75 Crore (25 * 15%) Now, shares of issue value of ₹ 5 crore is higher than ₹ 3.75 crore. 25% of paid up equity capital = ₹ 6.25 crore (25 * 25%) Thus, maximum value of sweat equity shares that can be issued by the company as on 31st March 2018 is ₹ 5 crore. The amount of reserves, profit & loss account and loan are of no relevance in this aspect.