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Transfer of certain sums to capital redemption reserve account

Transfer of certain sums to capital redemption reserve account :

Section – 77AA. Where a company purchases its own shares out of free reserves, then a sum equal to the nominal value of the share so purchased shall be transferred to the capital redemption reserve account referred to in clause (d) of the proviso to sub-section (1) of and details of such transfer shall be disclosed in the balance-sheet.