Raja Ltd. did not issue a part of Authorised capital i.e. ₹20,00,000.…

Read the following case study, answer the question:

Raja Pvt Ltd. has been operating in the field of Oils and Food items for last 10 years. Established in South India, has started its operations in some parts of Gujarat as well. Looking at growing demand and production the company wants to raise its Capital through an IPO to expand its operations in North India as well. The company was started in the year 2009 with only 3 members and now had 5 members and 20,000 employees. It was decided to convert the company into Public Ltd. Company. The Memorandum of Association of the company provides for ₹60,00,000 of Capital out of which the company issues ₹40,00,000 of share capital (40,000 equity shares of ₹100 each). The shares were issued at a premium of ₹20 but the company was able to get subscription of only 38,000 shares. Amount is paybale as follows ₹10 on application, ₹50 on allotment and Two calls of ₹20 each. Premium amount is to be received on allotment. The company was able to receive all money on all the shares except on 200 shares on I^st call and 300 share final call was not received. The company forfeited the shares of those who did not pay I^st call.

Raja Ltd. did not issue a part of Authorised capital i.e. ₹20,00,000. Which type of Capital is this called, according to Companies Act 2013?

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Unissued Capital

The Memorandum allows ₹60,00,000 (authorised capital) and the company offers ₹40,00,000 to the public (issued capital). The part of the authorised capital that is not offered for subscription, ₹20,00,000, is the unissued capital; it can be issued at a later date.

Why the other options are incorrect

Option (1) Unauthorised Capital — Incorrect. No such class exists; a company cannot raise any capital beyond what its Memorandum authorises.
Option (2) Unsubscriped Capital — Incorrect. The shortfall in subscription relates to shares that were offered but not taken up (here 2,000 shares), not to capital never offered.
Option (4) Uncalled Capital — Incorrect. Uncalled capital is the part of subscribed capital not yet called up from shareholders.

NCERT (2026-27 edition):
Categories of Share Capital – “… Issued Capital: It is that part of the authorised capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company’s memorandum. The authorised capital which is not offered for public subscription is known as ‘unissued capital’. Unissued capital may be offered for public subscription at a later date.”