Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A) : Securities premium reserve can not be utilised to pay as dividend to the shareholders.
Reason (R) : Securities premium can be utilised only for the specific purposes stated in companies Act 2013.
In the context of the above statements, which one of the following is correct?
1
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
2
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
3
Assertion (A) is false, but Reason (R) is true
4
Assertion (A) is true, but Reason (R) is false
5
None of the above