Accounting · Redemption of Preference Shares
Zenith Infra Ltd is considering the redemption of its 5,000, 10% redeemable preference shares of 100 rupees each at a premium of 10%. The company has a balance of 3,00,000 rupees in its General Reserve and 1,00,000 rupees in its Securities Premium Account. To fund the redemption, the company decides to issue 2,000 new equity shares of 100 rupees each at a premium of 20%. What is the minimum amount that Zenith Infra Ltd must transfer to the Capital Redemption Reserve (CRR) to complete the redemption legally under Section 55 of the Companies Act 2013?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 15,50,000 rupees
- 22,00,000 rupees
- 33,00,000 rupees✓
- 45,00,000 rupees
Correct answer
3,00,000 rupees
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