Buy back of shares

Yes first utilise sec.premium later general reserve and remaining balance amount  finally  to P&L A/C

OM SAI SRI SAI JAI JAI SAI

@ TIRMULA 

ANY SPECIFIC LOGIC/REASON BEHINED IT?

im not getiing authenticated answers to my query, CA Final Students pls look into this some are saying sec.premium while others are saying gen. reserves should be utilized first

Pls give ur answers along with the reasons

look at the reply in accounts session.......but still better u get confirmed about it with an expert

  @ Sweta

 ya, i saw ur reply than only came up with the above post, because i thought u wr not sure...

Resources of Buy Back
A Company can purchase its own shares from 
(i) free reserves; Where a company purchases its own shares out of free reserves, then a sum equal to the nominal value of the share so purchased shall be transferred to the capital redemption reserve and details of such transfer shall be disclosed in the balance-sheet or
(ii) securities premium account; or 
(iii) proceeds of any shares or other specified securities. A Company cannot buyback its shares or other specified securities out of the proceeds of an earlier issue of the same kind of shares or specified securities.

@ bhagat

U did not understand my question, im not asking about Sources..of buy back.

I request not to give a fluke at it

Pls reply only if u are 100% sure & with Suitable reasons 

HEY SHREYANS..........as per sec 77A of COMPANIES ACT 1956,no specific order has been given  ,regarding the transfer of d amount to CRR.

U CAN TRANSFER IT IN NE ORDER

ITS PURPOSE:-

THE AMT IS TRANSFERD 2 CRR JUST 2 KEEP D CAPITAL INTACT......SO IT DUS NT MATTER IN WCH ORDER Y TRANSFER D AMOUNT COS D REULTING OVERALL CAPITAL REMAINS INTACT,NO MATTER WCH ORDER U FOLLOW!!!

N CHILL YR EVN IPCC STUDNTS HAV A REPLY 2 DS QUERY.........

You should follow the sequence as specified by you.

Sec-78 of Companies Act has specified the limited  purposes for which securities premium can be used among them one of which is to provide for buy back. But as regards to GR & P/L no such limited use is applicable. So it would be prudent & rational to first use those reserves which has limited uses (SP) rather than those which can be used for any purpose (GR, P/L). So it would be rational to use SP before GR & P/L. 

With Regards,

SOUVIK

@ Akansha

But  both Sec. Prem. & gen reserves have different Uses & we are reducing the balance of them by Creating CRR, So dont you think that there must be some regulation regarding this

@ Sovuik

Thanks Very Much Buddy,  

After so many Replies i got one in which some logic was there, but  iam wating for some other replies as well ,because when i posted this query in accounts section one CA was saying that Gen Reserve should be utilized First

i agree wd at souvik says...........n u r also ryt  i thnk so.........bt d prob is dat in law dre is no specific provison 4 it n i also thnk dar g/r shud b usd 1st...........as far as wt i hv read is cncrnd n rest lemme also no bout d final cnclusion of it

Hey still no reply , pls final students, experts  look into this as i want to know the conclusion