Section 372a of the companies act, 1956.
This query is : Resolved
Guest
Guest
(Querist)
29 March 2012
Dear Sir,
I want to know whether accumulated losses and intangible assets are also reduced from free reserves (i.e.for checking the conditions of 60% of (paid up capital + free reserves) for complying the provisions of Section 372A of the Companies Act, 1956.
I want to know whether accumulated losses and intangible assets are also reduced from free reserves (i.e.for checking the conditions of 60% of (paid up capital + free reserves) for complying the provisions of Section 372A of the Companies Act, 1956.
29 March 2012
Hi
As per the Explanation given under section 372A, 'free reserves' means those reserves which, as per the latest audited balance sheet of the company, are free for distribution as dividend and shall include balance to the credit of the securities premium account but shall not include share application money. If accumulated losses is available then it will be reduced from free reserve.
Regards
As per the Explanation given under section 372A, 'free reserves' means those reserves which, as per the latest audited balance sheet of the company, are free for distribution as dividend and shall include balance to the credit of the securities premium account but shall not include share application money. If accumulated losses is available then it will be reduced from free reserve.
Regards
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Guest
Guest
(Querist)
30 March 2012
Sir,
I want to know whether intangible assets are also reduced for calculating the free reserves.
I want to know whether intangible assets are also reduced for calculating the free reserves.
30 March 2012
Hi
Generally intangible assets will not be taken into account for free reserve.
Generally intangible assets will not be taken into account for free reserve.
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