Dividend

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Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2010 what %-age of Profit is to be transferred to Reserve in case of Dividend declaration of 10% for a financial year. Is there any other provisions of Company's Act to be looked after. Please guide

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 August 2010 Companies (Transfer of Profits to Reserves) Rules, 1975 is not applicable since dividend rate is 10%.

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2010 Thanx Sir. But Rules lays that
Where the dividend proposed exceeds 10 per cent but not 12.5 per cent of the paid-up capital, the amount to be transferred to the reserves shall not be less than 2.5 per cent of the current profits.

I dint found anything reagrding applicability
Kindly guide

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Rasesh

Rasesh (Expert)
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01 September 2010 The relevant provisions are in the Companies (Transfer of Profits to Reserves) Rules, 1975.

The rules are applicable to all companies.