Treatment of statutory reserve of nbfc on surrender of cor

Hi Puneet it will be worthwhile to think on below points:

1. Statutory reserve gets created from the profits earned.

2. RBI has not prescribed the mechanisim in which the statutory reserves should be used. 

Hence in the event when COR is surrendered ideal treatement of statutory reserves will be to transfer the same to P&L credit balance. 

I hope the above is helpful.

Regards,

Ujas