Does Free Reserves includes Capital Reserves for calculation of net worth under 180(1)(c), since Debentures Redemption Reserve is not considered in calculation of Net worth, please clarify whether to include Capital Reserves or not
Free reserves are such reserves which are available for dividend distribution. Capital Reserves cannot be used to distribute dividend. Net Worth includes only Free reserves and not Capital reserves (i.e. Debenture Redemption) Reserve.
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