Capital and Assets of the

Industry/company
Capital and Assets have included all
kinds of properties, whether movable or
immovable, tangible or intangible,
whether related to business or not.
Capital assets are significant pieces of
property such as homes, cars,
investment properties, stocks, bonds,
and even collectibles or art. For
businesses, a capital asset is a type of
asset with a useful life longer than a year
that is not intended for sale in the regular
course of the business's operation.
Capital is the value of the investment in
the business by the owner(s). It is that
part of the business that belongs to the
owner; hence it is often described as the
owner’s interest. Capital is the net worth
of a company or the money that is
required to produce goods.
Assets are the economic resources
belonging to a business. Assets could be
money in a cash register or bank
account, or items such as property,
fixtures and furniture, equipment, motor
vehicles, and stock or goods for resale.
An important asset in businesses which
sell goods or services on credit is money
owed to the enterprise by customers.
Assets are things that have a value and
can be sold in the market for a monetary
value.
The capital or the fund is the most
important part of the company or
industry and the fund required to set up
any company or industry is known as the
capital of the company. The capital is
collected from the shareholders or
owner of the company or industry. If any
Limited or Private Limited company has
registered on the office of the register of
companies, the capital has been
provided in the Memorandum of
Association (MoA) of the company.
There are alternative ways to register the
industry, which are guided and
governed by the Private Firm Register
Act, 2014 and Partnership Act, 2020. The
share capital is divide and provided in
MoA of the company/industry, which are
such as;
● The amount of share capital the
company will have and
● The division of the share capital into
shares of the fixed amount;
According to the Companies Act, 2063,
when anyone registeres a company, the
shareholders must agree to take the
share amount based on the issued capital
of the purpose company. The MoA must
show the names of the shareholders who
have agreed to take shares and the
numbers of shares each will take. These
people are subscribers of the company.
This provision has provided on the Part 3
Sec.18 (e) of CA, 2063 whereas; "the
figure of the authorized capital of the
company and the figure of the share
capital to be issued by the company for
time being and the figure of undertaken to
be paid by the promoter of the company".
The share capital is provided also under
the Part 4 Sec.27 where as provided that
"the face value of shares of a private
company shall be as specified in its
articles of association."
According to CA, 2063 the share capital
divided into three different ways and
prescribed on AoA and MoA which are
as follows;
a) Authorized Capital:- the provision of

authorized capital is a limited

company's authorized share capital is
the amount of capital with which its
starts its life (Sect. 27(2) of CA, 2063-
The face value of shares of a public
company shall be fifty rupees per share
or shall be equivalent to such amount
exceeding fifty rupees as is divisible
by the figure ten as provided in the
memorandum of association and
articles of association.) and which is
states on the MoA & AoA. The
 authorized capital may not be the same
as its issued capital.
b) Issued Capital:- The provision of
issued share capital refers to normal
value of the part of authorized capital
which has been subscribed for by the
signatories to the MoA and it has been
allotted for cash or for consideration
other than cash or allotted as bonus
share.
c) Paid of Capital:- the provision of paid

capital is a paid up capital is the amount

deposited by the shareholders which is
against the payment for the shares they
are willing to take. The shareholders
should pay the share amount as per
demand by the Board of Director of the
company.
These provisions of the share structure of
the private and public company are
distinct. The public company should
allocate 30% share for the public but the
private company should not allocate any
share for the public and shareholder up
to 101 only. The provision of payment of
amount of shares is provided on Section
53 of CA, 2063, whereas; an amount for a
share shall be paid up within the period
of a call made in accordance with the
articles of association and in making a
call pursuant to Sub-section(1), a
company shall send every shareholder a
written notice, in the prescribed format,
specifying a time-limit of at least thirty
days and the installment payable by
him/her, the place and time for payment.
A public company shall also publish such
notice, for at least three times, in a daily
newspaper with national circulation.

Change of Share of the Company

The provision relating to the Power of
company to alter its share capital, which
has provided on Section 56 Sub-Section
(1) Subject to the provisions contained in
its articles of association, any company
may, by adopting a special resolution at
its general meeting, make alteration in
its share capital. A copy of the resolution
and notice of the increase in authorized
share capital is needed to be sent to the
CRO within one month of passing the
resolution. Whether the authorized
capital is increased, required fee pay on
the CRO.
Even though the provision relating to
reduction of share capital is provided on
Sec.57 of CA, 2063 where as if a company
intends to reduce its share capital, it
may, by adopting a special resolution to
that effect at its general meeting, reduce
its share capital by obtaining approval of
the Court and making necessary
amendment to or alteration in the
memorandum of association and articles
of association, accordingly.
Assets
In the industry or business company has
invested the capital for assets. Assets are
everything of value that is owned by a
person or company. Any property of
value that one possesses, usually
considered as applicable to the payment
of one's debts is considered an asset.
Simplistically stated, assets are things of
value that can be readily converted into
cash. The balance sheet of a firm records
the monetary value of the assets owned
by the business firm. It is money and
other valuables belonging to an
individual business.
The assets are classified into two-part
tangible assets and intangible assets.
Tangible assets contain various
subclasses, including current assets and
fixed assets. Current assets include
inventory, while fixed assets include
such items as buildings and equipments,
with technical consultancy and
supervision prior to the making of
investment in any industry or during
different stages of construction and
which is to be capitalized, pre-
investment and pre-operation costs as
well as the amount of interest during the
construction period, which is to be
capitalized shall be considered as the
fixed assets of any industry.
The Industrial Enterprises Act, 2020 has
provided that the fixed assets which are
known as tangible capital as well as
assets. The section 16 has clearly
provided the fixed assets are;
(a) Land, underground, space, water or
under water or improved physical
infrastructure,
(b) Constructed physical
infrastructure i.e. sewage, internal
roads, structure of drinking water,
water supply systems on the land
(c) Office of the industry, industry,
building or warehouse,
(d) Hostel building for employee or
workers,
(e)Electricity supply and related
machine and systems,
(f) Machinery, equipment and their
spare parts,
(g) Vehicles,
(h)Official goods and equipment,
(i) Furniture,
(j) Communication tools and related
equipment and systems.
The intangible assets are nonphysical
resources and rights that have a value to
the firm because they give the firm some
kind of advantage in the market place
i.e. of intangible assets are goodwill,
copyrights, trademarks, patents (it has
defined on Section 2 of Patent Design
and Trademark Act, 2022) and computer
programs and financial assets, including
such items as accounts receivable bonds
and stocks.
The assets have three essential
characters, which are as follows;
1. the probable future benefit involves a
capacity, singly or in combination with
other assets, in the case of profit-
oriented enterprises, to contribute
directly or indirectly to future net cash
flows and in the case of not-for-profit
organizations, to provided services;
2. the entity can control access to the
benefits; and
3. The transaction or event given rise to
the entity's right to, or control of the
benefit has already occurred;