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Which of the following is NOT a 'free reserve' for buy-back purposes per Companies Act?
AGeneral Reserve
BProfit & Loss Account credit balance
CSecurities Premium
DRevaluation Reserve
Answer & Solution
Correct answer: D. Revaluation Reserve
1. Step 1: Free reserves are reserves available for dividend distribution.
2. Step 2: Per Ch 12, "unrealised gains, notional gains or revaluation of assets shall not be treated as free reserves".
3. Step 3: Revaluation Reserve is excluded. Hence (D).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_