Question

A company with paid-up equity capital of ₹20,00,000 and free reserves of ₹30,00,000 decides to buy back shares worth ₹15,00,000. The debt-equity ratio post buy-back must not exceed 2:1. If the company has existing debt of ₹70,00,000, can the buy-back be executed?

A Yes, fully
B No, exceeds debt-equity norm
C Yes, but only up to ₹12,50,000
D Yes, but subject to SEBI approval
E Cannot be determined
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