shirin bhatt (Company Secretary in Practice) (65 Points)
04 October 2008
hi everyone
I want to know what is the limit upto which profits of an unlisted public company be utilised for issuing bonus shares? Which balance sheet is taken into account for calculations whether current year's unaudited or latest audited balance sheet?
Moreover I also want to know if there is any limit on the amount which can be transferred to free reserves?
Regards,
Shirin
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 04 October 2008
If your company have sufficient reserves to maintain the average dividend of the previous three years, then the excess over that can be distributed as bonus shares.
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