ABC Ltd. has the following balances in their Balance Sheet as of 31st March 2018: ` (1) Equity shares capital (3.00 lakhs equity shares of ` 10 each) 30.00lacs (2) Free reserves 5.00 lacs (3) Securities Premium Account 3.00 lacs (4) Capital
redemption reserve account 4.00 lacs (5) Revaluation Reserve 3.00 lacs Directors
of the company seeks your advice in the following cases: (i) Whether the company can we give bonus shares in the ratio of 1:3? (ii) What if the company gives bonus shares in the ratio of 1:2?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Issue of bonus shares Section 63 As per ... View the full answer