Securities Premium Account definition
Examples of Securities Premium Account in a sentence
The amount, as on the Appointed Date, lying to the credit of Securities Premium Account will be utilized first to set-off deferred tax assets recognized in respect of brought forward business losses and the balance to set-off deferred tax assets recognized in respect of unabsorbed deprecation with no further act or deed on the part of Transferor Company.
Further, the adjustment to the Securities Premium Account does not involve any financial outlay and therefore, would not affect the ability or liquidity of the Transferor Company to meet its obligations/ commitments or have any adverse impact on the creditors.
The excess, if any, after recording the aforesaid entries in sub clause 5.1(i) to 5.1(iv) above, shall be credited to the Securities Premium Account of FMML.
The Securities Premium Account of the Company amounting to ₹ 661,02,27,115 /- shall be reduced in part and shall be utilized for writing off the Accumulated Losses to the extent of ₹ 528,25,91,328/-.
As an integral part of this Scheme and upon the coming into effect of this Scheme, the Reserve and Surplus shall be reduced by utilizing Capital Redemption Reserve/ Securities Premium Account amounting to Rs. 34,231,000/- for the purpose of adjusting / writing off Goodwill on de-merger.
The balance, to the extent available in the Business Reorganisation Reserve Account and the Securities Premium Account shall be utilised to adjust the debit balance in the Profit and Loss account.
The adjustment of the Securities Premium Account would not have any impact on the shareholding pattern of the Transferor Company nor would it have any adverse impact on the creditors of the Transferor Company.
Notwithstanding the reduction in the paid up share capital and utilization of the Securities Premium Account of FSRL, FSRL shall not be required to add “And Reduced” as suffix to its name.
The order of the NCLT sanctioning the Scheme shall be deemed to be an order under Section 66, Section 52 and other applicable provisions of the Act confirming the reduction of the Securities Premium Account.
The Board, vide resolution dated 9 July 2016, has considered and approved the proposal to reduce the Securities Premium Account of the Company amounting to ₹ 661,02,27,115 /-, and that such reduction be effected by writing off the Accumulated Losses in part amounting to ₹ 528,25,91,328/- to give true and fair view of books of accounts of the Company, subject to the consent of the shareholders and the approval from the Court and other statutory authorities as and where applicable.