IndigoLearn

Buy back

In buy back videos sir told crr is created to compensate the liability holders but when crr is used for issuing fully paid up bonus shares then the amount gets converted into share capital then what is benifit for liability holders


Enuguru Sai Nithin

Enuguru Sai Nithin

CA Inter

76K+

26-Oct-20 23:40

15

Answers (1)

If the amount is kept in free reserves, company may pay dividend. If it is capital, it is difficult to return it back to the owners.


Suraj Lakhotia

Suraj Lakhotia

Admin

27-Oct-20 17:22