Preference Share Capital Securities Premium Alc Capital Redemption

Preference Share Capital Securities Premium Alc Capital Redemption
Reserve
General Reserve Profit & Loss Alc Sinking Fund Reserve Dividend Equalization Reserve
Loan from nee Deposits from S Ltd. Current Liabilities Provision for Taxation
Corporate Laws & Secretarial Practice
1/50/000
11
Preference Shares in B Ltd. 1/50/000 Debentures in e Ltd. 2/25/000 Shares in P Ltd.
50/000 1/00/000 2/25/000
5/00/000 2/20/000 1/10/000
60/000
Capital in Z & Co. Current Assets
1/00/000
55/000
10/00/000 2/00/000 1/25/000 1/00/000
38/30/000
38/30/000
The following is the additional relevant information:
(i) Of the equity share capital, 3/000 shares have been issued as rights shares
and 2,000 shares as bonus shares.
(ii) B Ltd. is subsidiary of XYZ Ltd. with 90% shareholding, whereas A Ltd. is
wholly owned subsidiary of XYZ Ltd.
(iU) Z & Co. is a partnership firm.
The Directors seek advice as to whether the following additional investments
can be made by a decision taken in a Board Meeting:
(i) Loan to A Ltd.
(ii) Debentures in B Ltd. (iU) Purchase of shares of Shree Ltd. in the open market
State reasons.
Rs.
10,00,000
2,25,000
95/000
[November,2oo01