Transfer of Profit to Reserves

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Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 As per Transfer of Profit to Reserves rules, we have to transfer a certain % of current year profits to reserves before payment of dividend. Can a company transfer more than 10 % to reserves? What are the guidelines if more than 10% has to be transferred? Can anyone please provide a calculation format for guidelines conditions for transfer more than 10%?

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Rasesh

Rasesh (Expert)
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22 October 2010 The law provides the minimum % to be transferred to GR. The Board is free to decide any percentage higher than the minimum prescribed under the rules.

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 Thank You for your reply.
But there are conditions laid down for voluntary transfer of a higher %. How do we take care of these conditions?

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Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 Awaiting a reply on the above

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 Awaiting expert views on above