Form No. 23AB Template - Companies Act 1956 Free PDF India

About this agreement

FORM NO. 23AB OF THE COMPANIES ACT, 1956

Need a precise FORM NO. 23AB of the Companies Act, 1956 format for issuing shares at a premium? Download our ready-to-use, customizable legal template in PDF or Word format today and ensure seamless ROC compliance in India.

What is FORM NO. 23AB?

FORM NO. 23AB is a statutory valuation report mandated under the Companies Act, 1956, specifically for companies (other than listed ones) issuing shares at a premium. This form, certified by a qualified chartered accountant, accompanies Form 2 and must be filed with the Registrar of Companies (ROC). It justifies the premium amount based on a fair valuation, complying with Section 78, which governs premium on shares. Whether you're a private limited company or an unlisted public company raising capital, this FORM NO. 23AB format is essential for legal validity and transparency in share allotments.

Why is FORM NO. 23AB Important?

Compliance with FORM NO. 23AB is non-negotiable to prevent penalties under the Companies Act. Failure to file can attract fines up to ₹5,000 per day, director disqualifications, and potential invalidation of the share issue. It safeguards investor interests, demonstrates due diligence, and builds trust with stakeholders. In India's evolving corporate landscape, using a accurate FORM NO. 23AB sample ensures your fundraising aligns with MCA guidelines, avoiding delays in approvals and audits.

Key Elements of FORM NO. 23AB Format

Our FORM NO. 23AB template includes all mandatory sections for quick preparation:

Company Particulars: CIN, name, registered office address, and authorized capital.
Share Issue Details: Number of shares, nominal value, issue price, and premium amount.
Valuation Methodology: Explanation of methods like Discounted Cash Flow (DCF), Price Earnings (P/E) ratio, Net Asset Value (NAV), or comparable company analysis.
Fair Value Justification: Detailed computations, assumptions, and market comparables supporting the premium.
Chartered Accountant Certification: Signature, membership number, firm details, date, and seal.
Annexures: Supporting financial statements, valuation reports, or board resolutions.

This structure makes the FORM NO. 23AB ready to use, saving hours of drafting.

Who Should Use FORM NO. 23AB?

Ideal for:

Private limited companies issuing fresh shares or to promoters at premium.
Startups and SMEs raising venture capital or angel investments.
Family-owned businesses restructuring capital.
Unlisted public companies complying with ROC filings. Common use cases include preferential allotments, employee stock options with premium, or buybacks. If your business in India is scaling up capital without listing, this FORM NO. 23AB legal template is a must-have.

Download FORM NO. 23AB Format for Free or Premium

Get instant access to our FORM NO. 23AB of the Companies Act, 1956 sample. Choose free download for basic PDF/Word format or upgrade to premium for AI-powered customization and legal review options. Fill in your details, get CA certification, and file confidently with ROC.

Customization, Legal Advice, and More

While our customizable FORM NO. 23AB template meets standard requirements under the Companies Act, 1956, it's advisable to consult a company secretary, chartered accountant, or lawyer for case-specific modifications, especially post-2013 Act transitions. Tailor it effortlessly with our tools for Indian court and company needs.

Explore related legal templates: Form 2 ROC filing, Share Subscription Agreement, Companies Act forms India, valuation certificate sample, premium share issue format. Stay compliant and efficient!

FORM NO. 23AB OF THE COMPANIES ACT, 1956

Non-Judicial

FORM NO. 23AB

(See Rule 7A)

Statement contenting salient features of balance sheet and profit and loss account, etc. as per section 219(1)(b)(iv)

Form of Abridged Balance Sheet

Name of the Company ????????.

Abridged balance sheet as at ???????

Particulars

Figures at the end of

Current financial year

Previous financial year

SOURCES OF FUNDS

(4) Shareholders funds

(a) Capital

(i) Equity

(ii) Preference

(iii) Reserves and surplus

(b) Reserves and surplus

(i) Capital reserve

(ii) Revenue reserve

(iii) Revaluation reserve

(iv) Surplus in profit and loss account

(v) Share premium reserve

(vi) Investment allowance reserve]

(5) Loan funds

(a) Debentures (the amount of convertible /partly convertible debentures indicating the date of conversion]

(b) Public deposits

(d) Unsecured loans

Total of (1) and (2)

APPLICATION OF FUNDS

(4) Fixed assets

(a) Net block ------(Original cost less depreciation)

(b) Capital work-in-progress

(5) Investments

(a) Government securities

(b) Investment in subsidiary companies

(i) Quoted

(ii) Unquoted

(i) Quoted

(ii) Unquoted

(6) (I) Current assets, loans and advances

(a) Inventories

(b) Sundry debtors

(d) other current assets

(e) Loans and advances

(i) To subsidiary companies

(ii) To others

0 PDF downloads

0 Word downloads

Download PDF₹99 Download Word₹99

Important Guidelines

Guidelines for Drafting FORM NO. 23AB OF THE COMPANIES ACT, 1956

Where it is Used: Form No. 23AB is utilized under the Companies Act, 1956, for filing the statutory auditor's report with the Registrar of Companies (RoC). This form is crucial for companies to comply with the requirement of submitting the auditor's report, which includes the company's financial statements and compliance with legal standards.

Guidelines:

Complete Financial Information: Ensure that the financial statements attached to Form No. 23AB are comprehensive, providing a true and fair view of the company's financial position.

Auditor's Observations: The auditor's report should include observations on the company's internal controls, financial practices, and adherence to accounting standards.

Compliance with Legal Standards: Confirm that the financial statements comply with the applicable accounting standards and legal requirements outlined in the Companies Act.

Timely Filing: Submit Form No. 23AB within the stipulated time frame to avoid penalties for late filing.

Common Mistakes to Avoid:

Incomplete Financial Statements: Ensure that the financial statements are complete and accurate. Incomplete information may lead to rejection or delays.

Lack of Auditor's Observations: The auditor's report should include observations on financial practices and internal controls. Omitting this may be seen as non-compliance.

Non-Compliance with Accounting Standards: Verify that the financial statements adhere to the prescribed accounting standards. Non-compliance can lead to regulatory issues.

Delayed Filing: File the form within the due date to avoid penalties. Late filing may attract financial repercussions.

Adhering to these guidelines ensures accurate and compliant filing of Form No. 23AB, meeting the statutory requirements and facilitating transparent reporting to the Registrar of Companies.

Frequently asked questions

What is Form No. 23AB of the Companies Act, 1956?→

Form No. 23AB is a statutory form under the Companies Act, 1956, used by companies to furnish information with respect to compliance under Section 293(1)(a) and (b) regarding board powers for asset sales or borrowing in India.

Is Form No. 23AB still legally valid in India under the Companies Act, 2013?→

The Companies Act, 2013 has superseded the 1956 Act. Verify with the MCA portal for equivalent e-forms like INC-28; older forms may not be accepted for current filings.

In what format can I download Form No. 23AB?→

Form No. 23AB is available for free download in editable Word and non-editable PDF formats, suitable for customization and printing.

Does Form No. 23AB require stamp duty or court fee in India?→

No stamp duty or court fee is applicable on Form No. 23AB itself, as it is a compliance filing form. Attachments may require stamping based on state laws.

Can I customize or edit the Form No. 23AB template?→

Yes, the Word version of Form No. 23AB is fully customizable. Edit company details, dates, and specifics before signing and filing with ROC.

Who should use Form No. 23AB and when?→

Companies under Companies Act, 1956 needing to report board compliance under Section 293 should use it. Consult a CA or lawyer for post-2013 applicability and filing.