12-19-2010, 02:35 PM
Dear Mr. Atif
We retain Capital Redemption Reserve Fund(CRRF) only for the redemption of fund, even if we have redeemed all preference shares. For utilizing it for any other purpose we have to follow reduction of capital procedures u/s 96.
But as per section 85(1)(c), if we want to redeem through CRRF than we transfer the amount from profits to such fund, that equals to redemption fund. So i think there will not be any amount left in such fund after redemption of preference shares.
If there is any mistake in my answer, than seniors please correct it.
Regards,
We retain Capital Redemption Reserve Fund(CRRF) only for the redemption of fund, even if we have redeemed all preference shares. For utilizing it for any other purpose we have to follow reduction of capital procedures u/s 96.
But as per section 85(1)(c), if we want to redeem through CRRF than we transfer the amount from profits to such fund, that equals to redemption fund. So i think there will not be any amount left in such fund after redemption of preference shares.
If there is any mistake in my answer, than seniors please correct it.
Regards,
