Forfeiture of Equity Shares by Asha Ltd.
Forfeiture of shares is a process by which a company cancels shares that have not been fully paid up by the shareholder. In the case of Asha Ltd., 100 equity shares of ₹20 each were forfeited due to non-payment of the first call of ₹3 per share. Let's break down the process in detail:

Reason for Forfeiture
- The shareholders of Asha Ltd. failed to pay the first call of ₹3 per share on the equity shares issued by the company.
- This non-payment of the call amount led to the company deciding to forfeit the shares.

Forfeiture Process
- Once the call amount was not paid by the shareholders within the specified time frame, the company issued a notice to the shareholders informing them of the impending forfeiture.
- After the notice period lapsed, if the shareholders still did not pay the call amount, the company went ahead with the forfeiture process.

Consequences of Forfeiture
- When shares are forfeited, the shareholder loses ownership of the shares and any amount already paid towards the shares.
- The forfeited shares become the property of the company, which can then be reissued or sold to new shareholders.

Impact on Shareholders
- Shareholders who fail to pay the call amount risk losing their investment in the company.
- The company may also take legal action to recover any outstanding amounts from the shareholders.
In conclusion, forfeiture of shares is a serious consequence for shareholders who do not fulfill their financial obligations towards the company. It is essential for shareholders to adhere to payment schedules to avoid such actions by the company.