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Question : As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ___________.

Option 1: Writing off capital losses.

Option 2: Issue of fully paid bonus shares.

Option 3: Writing off discount on issue of securities.

Option 4: Writing off preliminary expenses.


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Writing off capital losses.


Solution : Answer = Writing off capital losses.

Securities Premium Reserve cannot be utilized for writing off capital losses. This is because capital losses are incurred from investments or asset sales, and utilizing premium reserves for this purpose would not be appropriate. A Securities Premium Reserve is typically used for issuing fully paid bonus shares or writing off discounts on securities.
Hence, the correct option is 1.

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