SLCM - Questions & Answers (Part 1) CS Executive
Question 1:- The following is an extract of Balance Sheet of Alpha Ltd.: Equity Shares Capital — 50,000 Equity Share of ₹ 10 each. 10% Debenture Capital — 20,000 Debenture of ₹ 10 each. On 21st April, 2018, the Board of directors decided to buy-back 5,000 equity shares for which they would call Answer: The proceeds will be utilized as follows as per ICDR Regulations: (Public Issue Se Jo Paise Mile Hai Unka sahi Istemal Ho raha hai ya Nai, Yeh Dekne Ke Liye Monitoring Agency Appoint Kar lete Hai par yeh tabhi hoga jab issue size offer for sale ko chodkar 100 crore ke upar hota hai) If the issue size excluding the size of offer for sale by selling shareholders, exceeds ₹ 100 crores, the issuer shall ensure that the use of the proceeds of the issue is monitored by a public financial institutions or by one of the scheduled commercial banks named in the offer document as a banker to the issuer. In case the issuer is a bank or a public financial institution or an insurance company, this prov...