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After internal reconstruction with a capital reduction, the balance sheet must disclose:
ANo disclosure required
BOnly the new share capital, no mention of reduction
COriginal share capital only
DThe fact of reduction and how it was effected (in notes / via "and reduced")
Answer & Solution
Correct answer: D. The fact of reduction and how it was effected (in notes / via "and reduced")
1. Step 1: Per Companies Act, post-reduction the company must disclose the fact "and reduced" in its name / notes for a period as ordered by Tribunal.
2. Step 2: Disclosure protects creditor/investor interest.
3. Step 3: Hence (A).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_