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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2010 whether it is compulsory to transfer to reserves in case dividend is declared by company out of accumulated profit of past yerr not transfer to reserves?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 August 2010 Yes the same is to be transferred as per Companies (Transfer of Profits to Reserves) Rules, 1975.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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24 August 2010 In case dividend is declared by company out of accumulated profit

Either get Prior permission from Central Government

or

Transfer specified % to reserve as per Companies (Transfer of Profits to Reserves) Rules, 1975.

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