CAN INTERIM DIVIDEND BE DECLARED AFTER FINANCIAL YEAR

This query is : Resolved

Vinod Agarwal (Querist)
Follow

07 July 2011 FACTS: -
- CO. A HAS FINANCIAL YEAR FROM 01.04.2010 TO 31.03.2011.
-THE BOARD MEETING OF THE CO. IS SCHEDULED ON 31.05.2011 FOR APPROVALS OF YERALY FINANCIALS AND DECLARING INTERIM DIVIDEND FOR 2010 - 2011
-THE CO. IS IN THE PROCESS OF FINALIZING BOOKS OF ACCOUNTS AND AGM WILL BE HELD IN THE MONTH OF AUG'2011
-THERE IS A SUFFICIENT PROFITS IN 2010 - 2011 IN ORDER TO DECLARE INTERIM DIVIDEND.

QUERY:-
-CAN THE BOARD DECLARE INTERIM DIVIDEND FOR THE F.Y.2010-2011 IN MAY'2011.
-WHETHER THE DIVIDENDS DECLARED AFTER CLOSURE OF F.Y.2010 -2011 AUTOMATICALLY BECOMES INTERIM DIVIDEND FOR THE F.Y. 2011-2012.
-IF THE INTERIM DIVIDEND RELATES TO F.Y.2010 - 2011, WHAT WOULD BE THE ACCOUNTING ENTRIES.

Guest

Guest (Expert)

07 July 2011 1. No, It is not possible.
2. Yes
3. No Question arise, as it is not possible.

Message likes : 1 times

Vinod Agarwal

Vinod Agarwal (Querist)
Follow

08 July 2011 Hi Ankur,

Thanks for your reply.

As per cos. act interim dividend can be declared at any time between two AGMs.

Can you give the specific reasons for why Interim dividend can not be declared after the end of the year.

Message likes : 2 times

CA Sumat Singhal

CA Sumat Singhal (Expert)
Follow

15 July 2011 As it name implies "interim" although provision relating to dividend are also applicable to interim dividend also, but interim dividend is a matter of prudent practice of Board, if circumstances permits and on company's performance.