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Buy back of shares

Whenever preference shares are redeemed does the CRR is created


Ramesh garu

Ramesh garu

CA Inter

9K+

09-Apr-20 11:07

26

Answers (2)

Amount transferred to CRR(Shortfall) = Nominal value of preference capital to be redeemed - Nominal value of any fresh issue of share capital So it's depends whether to create CRR or not If company doesn't go for any fresh issue of shares then , company has to create CRR 100% of the nominal value of redemption of preference shares . And If company is issuing 100% of the nominal value of redemption of preference shares then, no need to create CRR at all.


Chandan Subudhi

Chandan Subudhi

CA Inter

12K+

09-Apr-20 17:41

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