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A company has Free Reserves Rs 1.24 cr, Securities Premium Rs 0.82 cr, CRR Rs 1.07 cr and Revaluation Reserve Rs 0.63 cr. The maximum bonus issue amount is:
Answer & Solution
Correct answer: D.
1. Eligible sources: Free Reserves + Securities Premium + CRR = 1.24 + 0.82 + 1.07 = 3.13 cr.
2. Revaluation Reserve (Rs 0.63 cr) is excluded per Section 63.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_