Reduction of capital(URGENT)

YES IT AMOUNTS TO REDUCTION OF CAPITAL AS PER SECTION 100 OF COMPANIES ACT. U SHOULD HAVE DIVISIBLE PROFIT UPTO 88.20 LACS FOR TRANSFER TO CAPITAL REDEMPTION RESERVE.

DIVISIBLE PROFIT MEANS THE RESERVES AVAILABLE FOR DISTRIBUTION OF DIVIDEND.

GENERAL RESERVE/PROFIT AND LOSS A/C..................DR 8820000

         TO CAPITAL REDEMPTION RESERVE                                                8820000

NO NEED TO TAKE COURT PERMISSION.

WHEN CONVERTED REQUIRED TO FILE E-FORM-2 FOR ALLOTMENT AND E-FORM-5 FOR REDUCTION IN CAPITAL

Will need further consideration here, Please refer to the regulation for Securities Premium account. It should be treated equivalent to Capital, further there seems no reason for creating Capital Redemtion Reserve on Conversion of preference shares.

Further this will not amount to reduction in share capital.