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Declaring dividend

Sunil (Internal Auditor) (334 Points)

22 September 2012

IF we declare dividend from the profit of 2011-12 profit and loss account should we provide for it in the same financial statements

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5 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 22 September 2012

Yes you have to provide in appropriations including dividend distribution tax.

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deepali agarwal (Company Secretary) (1289 Points)
Replied 22 September 2012

For declaring dividend ICSI has issued an SS-3 and coording to it:

Dividend should be declared only at an Annual General

Meeting.

Dividend should relate to a financial year and should be declared

by the Members at the Annual General Meeting of the company

after consideration of the balance sheet and profit and loss

account. Members may declare a lower rate of Dividend than

what is recommended by the Board but have no power to

increase the amount or rate of Dividend recommended by the Board.

For more details read SS-3 issued by institute of company secretaries of India......

Sunil (Internal Auditor) (334 Points)
Replied 22 September 2012

Please clarify how come it possible as the amount of dividend is declared on the AGM in which the Financial statements for the year is considered. Is it posible to alter the financial statements audited and signed by CA which is approved in AGM to include that provision

deepali agarwal (Company Secretary) (1289 Points)
Replied 22 September 2012

U r absolutely right..It is obviously not possible to alter the audited financial reports but i am assuming that it is already declared in ur AGM because without it we cant declare dividend...