Calculation of limits under sec 58a of companies act

prem (Proprietor) (26 Points)

12 December 2012  

 

While calculating the limits under Section 58A of Companies Act for acceptance of Fixed Deposits, can we consider capital reserves as part of Share Capital + Free Reserves ?

Under what circumstances can the Capital Reserve be considered as Free Reserves ?

The Company has credited the profit on sale of shares directly to Capital Reserve. Can this portion of Capital Reserve be considered as Free Reserve ?