Bonus is just a free share given to shareholders it doesn’t impact cash flow of a company. Only reserves get distributed.
Bonus can be declared from three reserves
- Capital reserve
- Securities premium reserve
- General reserve
In case of KPI Green they had not created capital reserve so the bonus shall be distributed from Securities premium and general reserve if SPR is not sufficient.
Hence saying that reserve can be used for debt and capex has no use as company act,2013 provided certain restrictions on reserves.
Hope your doubt is cleared now.
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