CRR

Hi Guys

I wanted to know what is Capital Redemption Reserve and how it is treated in Cash Flow Statment?

Replies (1)

DEAR KUNAL

Capital redemption reserve created when u paid off u'r share capital e.g. at the time of buyback of shares, redemption of preference shares. CRR can be utilised to issue bonus shares.

CRR doesn't afftect u'r cash flow statement as it is just the transfer of Free reserves to CRR. Whenever u make a buyback of shares or redemption of preference shares by making cash payment, that cash payment would only affect your CASH FLOW FROM FINANCING ACTIVITIES and no effect shall be given for CRR.

Hope this solves u'r query.

REGARDS,

MANOJ

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
07 August 2026
Chartered Accountant

Devesh Garg and co

New Delhi

CA

View Details