Free Reserve for purpose of Section 180(1)(C)

[CS Simranjeet Singh]

Dear All

Pls let me know what is included in free reserves to calculate 180(1)(c) limit for borrowing.. def of free reserve mean as per act to include reserves which as per last audited bal sheet are available for distribution as dividend..

So, accordingly P&L balance will be included but whether securities premium reserve balance will be included in calculating free reserves ?

 

 Warm Regards

 S S

  Take RISKS in your LIFE. If you WIN, you can LEAD! If you LOSE, You can  GUIDE! 

 

[periwal...@gmail.com]

No resrve which is created for some specific purpose shall be included. Any surplus, general reserve shall only be included.

 

In other words only the reserves created out of profit of company shall be included.

 

Securities premium doesnt form part of same.