Can Limited Company issue Bonus shares from Balance available in P & L A/c which is shown under "Reserve & Surplus"?
As per SEBI Guidelines for Bonus Shares, Bonus can be made out of Free Reserves or Share Premium.
PRANAV SHAH (SELF EMPLOYED) (38 Points)
08 December 2009Can Limited Company issue Bonus shares from Balance available in P & L A/c which is shown under "Reserve & Surplus"?
As per SEBI Guidelines for Bonus Shares, Bonus can be made out of Free Reserves or Share Premium.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 08 December 2009
yes, profit & loss balance is free reserve, & compny can issue bonus share from PL bal.
CA Trinath Galla
(student)
(3130 Points)
Replied 08 December 2009
| Originally posted by :AYUSH AGRAWAL | ||
| " | yes, profit & loss balance is free reserve, & compny can issue bonus share from PL bal. | " |
yashodeep bafna
(PRACTICE)
(40 Points)
Replied 09 December 2009
yes, profit and loss a/c is an part of reserve and surplus .
Ansari
(ca final)
(444 Points)
Replied 09 December 2009
| Originally posted by :AYUSH AGRAWAL | ||
| " | yes, profit & loss balance is free reserve, & compny can issue bonus share from PL bal. | " |
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 09 December 2009
yea..P and L is part of free reserves and company can issue bonus shares out of it
Bharat Khurana
(Student)
(153 Points)
Replied 10 December 2009
company can issue bonus shares out of free reserves as well as securities premium
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