CA Vijeta Verma
( Querist )
02 September 2010
Q-1)what is the exact sequence of utilisation of Capital Redemption Reserve,free reserves(general reserve,P&L),capital reserve,security premium etc for the purpose of buy back of shares( both for compliance with sec77A & for writing off loss on buy back), Redemption of preference shares,bonus share issue,bonus call??
Q2) is it so that if P&l A/c is given with general reserve then the whole amount of P&L shall be utilised first for the purpose & then only general reserve shall be utilised?
Q3) is it correct to say that Investment allowance reserve,development reserve are no where used since they are created for a particular purpose?