Monday, January 05, 2009

Companies Act_Practical Problems_43

Following information is available from the audited balance sheet of Short Cut Ltd. as at 31st March, 2004 :

Paid-up share capital Rs. 500 lakh
Share premium account Rs. 100 lakh
General reserves Rs. 800 lakh
Secured loans Rs. 500 lakh
Unsecured loans Rs. 400 lakh
The company plans to buy-back its shares. Compute the maximum limit upto which the company can buy-back its shares.

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