Dividend

This query is : Resolved

Rakesh Jain (Querist)
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10 May 2016 Dear Experts,
Good Morning!
If we have accumulated Loss as on 1st April, 2015 (15,888 K) and there is Net profit in FY 2015 (During 1st April, 2015 to 31st March, 2016) amount 1,123 K
So as on 31st March, 2016 there is accumulated loss 14,765 K.
Can we distribute dividend to Shareholder using FY 2015 profit instead of Carried forward loss as per company act, 2013 and all updated rules and regulation for company act.
Regards,
Rakeshjain199205 @gmail.com

Mandar

Mandar (Expert)
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10 May 2016 No , Kindly refer below
Reference: Rule 3(3) of Declaration of Dividend out of Reserves & Companies Amendment Act 2015

(3) The amount so drawn shall first be utilised to set off the losses incurred in the financial year in which dividend is declared before any dividend in respect of equity shares is declared

Sr. No 10 :- 123(1) No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year are set off against profit of the company of the current year the loss or depreciation, whichever is less, in previous years is set off against the profit of the company for the year for which dividend is declared or paid.