Green Volt Renewable Energy Limited, a fast-growing company in the clean energy sector, was incorporated on 18th August, 2022 with the objective of…

Green Volt Renewable Energy Limited, a fast-growing company in the clean energy sector, was incorporated on 18th August, 2022 with the objective of designing, manufacturing and installing solar power systems, battery energy storage units and electric vehicle (EV) charging infrastructure across India. The company's business model focuses on providing sustainable energy solutions to industrial establishments, commercial complexes, residential societies and government agencies. The company was promoted by five entrepreneurs, namely Raghav Sharma, Mehul Kapoor, Ananya Bansal, Nikhil Arora and Tanya Verma, who had previously worked together in the renewable energy industry. Their technical expertise and innovative business ideas enabled the company to establish a strong market presence within a short span of time. At present, Green Volt Renewable Energy Limited has established 42 regional offices, employs over 1,800 technical and managerial personnel and has successfully executed more than 3,000 renewable energy projects across the country. The registered office of the company is situated at GIFT City, Gandhinagar, Gujarat. The authorised share capital of the company is ₹ 4 crore divided into 40,00,000 equity shares of ₹ 10 each. At the time of incorporation, its paid-up share capital was ₹ 2 crore, and the company had 75 shareholders. In order to establish a new manufacturing facility for solar panels and EV charging equipment, the Board of Directors decided during the Financial Year 2025-26 to issue 10,00,000 unissued equity shares through a private placement at a premium of ₹ 25 per share to 190 identified persons. The identified persons included venture capital professionals, engineering consultants and other high-net-worth investors. Among the prospective investors were Aditi Mehra, a sustainability consultant and Ankit Mehra, a project manager in a reputed engineering company. They, along with several other investors, requested the company to allot only a small number of shares. The Board accepted their requests. All subscribers remitted the subscription amount through their respective bank accounts. The company completed allotment of shares within the prescribed time and utilized the funds for acquiring land, purchasing machinery and strengthening its research and development facilities. Following the success of the fund-raising exercise, the company is planning another round of private placement during the same financial year. Since additional capital would be required, the Board proposes to increase the authorised share capital from ₹4 crore to ₹8 crore. Further, the company is considering acceptance of deposits from its members to finance future projects. However, directors Raghav Sharma and Tanya Verma are of the view that the company should first ensure proper deployment of the funds already raised and thereafter consider acceptance of deposits in the subsequent financial year. On the basis of above facts and by applying applicable provisions of the Companies Act, 2013 and the applicable Rules therein, choose the correct answer (one out of four) of the following Multiple Choice Questions (of 2 marks each) given herein under: