explain the treatment of premium on redemption of shares/debentures in cash flow statement.
Shri Lakshmi, I would like to correct you that only debentures are redeemed; shares are non-redeemable.
The following is the treatment of premium paid on redemption of debentures:
1. Added under Operating Activities as Non-Operating Item like loss on sale of assets, interest on debentures, etc.
2. Deducted under Financing Activities
The following is the treatment of premium paid on redemption of debentures:
1. Added under Operating Activities as Non-Operating Item like loss on sale of assets, interest on debentures, etc.
2. Deducted under Financing Activities