ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!


    тЪб Month End Offer - Flat 52% Off On All Courses! Enroll Now тЪб
    00:00:00 AM Left

    Question

    Which among the following can be utilized for Buy Back

    of shares of an organisation?
    A Revaluation Reserve Correct Answer Incorrect Answer
    B Securities Premium Reserve Correct Answer Incorrect Answer
    C CRR Correct Answer Incorrect Answer
    D Debenture Redemption Reserve Correct Answer Incorrect Answer
    E Share Forfeiture Account Correct Answer Incorrect Answer

    Solution

    Company may purchase its own shares or other specified securities out of: o Its Free Reserves o The Securities Premium Account, or o The proceeds of any shares or any other securities § No buy back shall be made out of the proceeds of an earlier issue of the same kind of shares or other specified securities Reserves which are not available as sources of Buy Back

    • Revaluation Reserve
    • CRR
    • Debenture Redemption Reserve
    • Share Forfeiture Account
    • Capital Reserves
    Note – [if !supportLists]-->· [endif]-->a company cannot withdraw buy-back offer, once made [if !supportLists]-->· [endif]-->Company cannot use borrowed funds from bank to make buyback

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question