If the LPU is greater than last year, what is expected to happen to the reserves?

When the Last Price Update (LPU) is greater than the previous year, it typically indicates an increase in the value or appreciation of the asset in question. As asset values rise, reserves—the assets that a company retains for future use or obligations—are likely to increase as well. Higher valuations generally lead to a greater accumulation of resources, which can contribute positively to the reserves.

Moreover, increased asset values can enhance a company's financial stability and capacity to invest or respond to future challenges. Companies often adjust their reserves in relation to the performance of their assets, and an elevated LPU signifies that the organization can strengthen its reserve base.

In contrast, a decrease in the LPU would suggest a decline in asset value, which could lead to a reduction in reserves, while a stable LPU without changes implies that reserves would remain unchanged. The option regarding reserves being frozen typically does not apply in the context of changing valuations and would not logically follow from an upward movement in LPU.