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ABC Ltd. has paid-up equity capital of 10,00,000 equity shares of ₹ 10 each fully paid-up. The position of reserves is as follows:General Reserve = ₹ 30,00,000Profit & Loss Account = ₹ 2,00,000Securities Premium = ₹ 2,00,000The company decided to buy back 2,00,000 equity shares of ₹ 10 each at 25% premium. For this purpose, the company sold the entire investments at ₹ 12,00,000 (book value ₹ 10,00,000) and made a fresh issue of 10% preference shares of ₹ 100 each to the extent minimum after utilizing the securities premium account and half of the general reserve. How many preference shares must be issued by the company so that provisions of the Companies Act, 2013 get complied with,20

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ABC Ltd. has paid-up equity capital of 10,00,000 equity shares of ₹ 10 each fully paid-up. The position of reserves is as follows:<br />General Reserve = ₹ 30,00,000<br />Profit & Loss Account = ₹ 2,00,000<br />Securities Premium = ₹ 2,00,000<br />The company decided to buy back 2,00,000 equity shares of ₹ 10 each at 25% premium. For this purpose, the company sold the entire investments at ₹ 12,00,000 (book value ₹ 10,00,000) and made a fresh issue of 10% preference shares of ₹ 100 each to the extent minimum after utilizing the securities premium account and half of the general reserve. How many preference shares must be issued by the company so that provisions of the Companies Act, 2013 get complied with,20






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