Explanation:

Let’s break this down:

- Assertion (A): Securities Premium Reserve cannot be utilised to buy back its own shares.

- This statement is incorrect.

- Actually, under Section 77A of the Companies Act, 2013, a company *can* use securities premium to buy back its own shares.

- Reason (R): According to Section 52(2) of the Companies Act, 2013, the amount of securities premium can be used for the prescribed purposes only.

- This is correct.

- Section 52(2) lists out permitted uses for securities premium, including issuing bonus shares, writing off expenses, premium on redemption, and—crucially—buying back shares.

Now, looking at the options:

- Both (A) and (R) are correct and (R) is the correct reason of (A).

- Not true, since Assertion (A) is wrong.

- Both (A) and (R) are correct but (R) is not the correct reason of (A).

- Still doesn’t make sense—A is wrong.

- Only (R) is correct.

- This checks out. (R) is right; (A) is not.

- Both (A) and (R) are wrong.

- Not true. (R) is fine.

So, the answer is option:3 – Only (R) is correct.

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