♦ Provision of the Companies Act for Redemption of Preference Shares (Sec. 55 of the Companies Act, 2013), Companies (Share and Debentures) Rules

♦ Methods of Redemption of Fully Paid up Preference Shares as per Companies Act, 2013 :

(a)The Proceed of a Fresh Issue of Shares, the Capitalisation of Undistributed Profits and a Combination of Both

(b)Calculation of Minimum Fresh Issue to Provide the Fund for Redemption

(Question on Entries and/or Balance Sheet)

Note : Companies governed by Section 133 of the Companies Act, 2013 and comply with the accounting standards prescribed for them. Hence, the balance in security premium account not to be utilised for premium payable on redemption of preference shares.

♦ Introduction : Provisions of Section 71 (1) and (4) of the Companies Act, 2013

♦ Creation and Investment of DRR including the Companies (Share Capital and Debentures) Rules, 2014, the Methods of Writing-off Discount / Loss on Issue of Debentures

♦ Terms of Issue of Debentures

♦ Methods of Redemption of Debentures : By Payment in Lumpsum and by Payment in Instalments (Excluding from By Purchase in Open Market), Conversion

(Question of entries, ledgers and/or Balance Sheet and/or Redemption of Preference Shares)