Premium on Redemption....

yes you can do that

yes we can use for redemption

but in institutes study material they have not used it
they have only used free reserves and ignored securities premium reserve

please refer to the question utilisation of securities premium. It clearly states that we can use securities premium for redemption of preference shares

According to Section 52 of Companies Act, Security Premium can be utilized for providing premium on redemption of preference shares and debentures. But if the company is u/s 133 then it can't do so. Section 133 talks about the company to comply with the accounting standards which most of the companies complies. Therefore in study material it has been assumed that the company is u/s 133 and the question has been solved accordingly.

thank you everyone for helping me out here