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saravan ramasamy (Querist)
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29 September 2012 amalgamation in the nature of merger?why the difference between paid up capital and consideration should be adjusted in the transferor co. reserves...,if any , otherwise transfreree co reserves .......what s the logic ?

Amol S Joglekar

Amol S Joglekar (Expert)
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29 September 2012 A person can not make profit with himself/herself. In the case of merger, this principle is hit and hence the difference between paid up capital and consideration needs to be adjusted accordingly.

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