Under Section 52 of the Companies Act 2013, Securities Premium Reserve can only be used for specified purposes, including issuing fully paid bonus shares, writing off preliminary expenses, writing off discount or expenses on issue of shares/debentures, providing premium on redemption of preference shares/debentures, and buy-back of own shares. Buying raw materials, fixed assets, or making investments is not permitted.
Security Premium Reserve can be used by Hero Ltd. for
CUET UG 2022 — Accountancy Company Accounts
2022mcqeasy
Security Premium Reserve can be used by Hero Ltd. for
Official previous-year question
Held on 15 Jul 2022 · Verified 13 Jul 2026.
Options
- A
Buying raw material
- B
Buying Fixed assets
- C
Issuing fully Paid Bonus shares
- D
Making investment in other companies
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