Question

As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ______.

विकल्प

• Writing off capital losses

• Issue of fully paid bonus shares

• Writing off discount on issue of securities

• Writing off preliminary expenses

Answer 1

As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for writing off capital losses.

Explanation:

As per Section 52(2), Companies Act 2013, the balance in Securities Premium A/c can be used only for:

1. Issuing fully paid bonus shares.

2. Writing off preliminary expenses.

3. Writing off commission/discount on issue of securities.

4. Providing for premium payable on redemption of preference shares/debentures.

5. Buy-back of own shares (Sec 68).