Question

Director of ZPA Ltd. made a final call of Rs. 50 per share on 1st August, 2015 indicating the last date of payment of call to be 31st August, 2015. Mr. Black holding 5,000 shares paid the call money on 15 October, 2015. The company has a policy of paying interest on calls-in-arrear as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-arrear will be _____.

• A. Rs. 3,125
• B. Rs. 1,562.50
• C. Rs. 1,875
• D. Rs. 1,500

Answer 1

The correct option is A Rs. 3,125

Here, amount paid by Mr. Black on final call is Rs 50*5,000 i.e. Rs 2,50,000. As per Table F of Schedule I to the Companies Act, 2013, if rate of interest on callis in arrears in not mentioned in the AOA of the company, then it shall be levied at 10% p.a. So, interest on final call paid by Black will be 10% of Rs 2,50,000 i.e Rs 25,000. Mr Black paid the shares 1.5 months later than last date of payment. So, the interest paid will be (Rs 25,000/12)*1.5 i.e. Rs 3,125.