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Assertion (A): Sahara Ltd. invited applications for issuing 20,00,000 equity shares of Rs.10 each. The public applied for 17,10,000 shares. The company cannot proceed for the allotment of shares
Reason (R): The application can only be processed if the company receives a minimum of 12.5% subscription.

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Assertion (A) is true, but Reason (R) is false

Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Assertion (A) is false, but Reason(R)is true

answer is B.

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Detailed Solution

Company can go for further proven of Allotment of shares only when company gets minimum subscription.

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