Share capital and debentures

Companies Act-Phase (I & II)

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As per companies act 2013, a company should maintain debt equity ratio post buyback is-

1:1

2:1

3:1

1:2:1

Explanation:

As per Sec 68 of companies’ act 2013, the ratio of the aggregate of secured and unsecured debts owed by the company should not be more than twice the paid up capital and Its free reserves.

By: Srishti Gupta

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