Dividends Declaration of Transfer to reserves of certain percentage of profits

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....9; Queries arising from the Companies (Transfer of Profits to Reserves) Rules, 1975 and the Companies (Declaration of Dividend out of Reserves) Rules, 1975 answered The Department has received a number of queries in respect of the above‑mentioned rules. The points raised have been duly considered and the Department's views thereon are indicated below: Query 1: Whether arrears of depreciati....

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....er reference to dividend made in the rules is to both equity and preference dividend or to equity dividend alone? Answer: The reference is to equity dividend and also to that portion of dividend relating to participating preference shares over and above the fixed rate of preference dividend. Query 5: Whether transfer to development rebate reserve, capital reserve or special reserve will meet the....

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....ions on Dividend) Act, 1974 mandatory in certain cases? Answer: Since there is no inconsistency with the provisions of the Companies (Temporary Restrictions on Dividend) Act, the provisions of these Rules will have to be complied with. Query 10: Whether after transfer of 10 per cent of the current profits to reserve, the remaining undistributed profits could be carried forward in the profit and ....