31 May 2008
A company has issued QIP & warrants. for the same company has paid commission of Rs.2500000/-to lead managers.Right now we are showing it under miscellaneous expenditure not written off. Can it be deducted from Securities Premium Account as section 78 of Company Act,1956.
02 June 2008
it can be done as such adjustment is permissible as per sec.78 as it states that securities premium can be utilised for 1) writting off preliminary expenses, disc. on issue of debentures, 2) paying premium on redemption of preference shares, debentures, 3) for issuing fully paid up bonus shares, 4) for paying expenses on underwriting of shares and debentures. as per item 4) you can adjust the comm from securities premium account.
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