Declaration of dividend
This query is : Resolved
29 December 2011
Dear Sirs, pls guide me with regard to the following.
A state owned undertaking having carried forward Accumulated losses worth Rs. 18.68 lakhs and current year profit amounting of Rs.2.34 lakhs.The profit for the current year comprises of writting back of provision related to the previous year,Interest on fixed deposit and rent on immovable property. So whether the undertaking can declare divend out of the current year profit.
A state owned undertaking having carried forward Accumulated losses worth Rs. 18.68 lakhs and current year profit amounting of Rs.2.34 lakhs.The profit for the current year comprises of writting back of provision related to the previous year,Interest on fixed deposit and rent on immovable property. So whether the undertaking can declare divend out of the current year profit.
29 December 2011
Previous year losses are required to be set off first, before declaring any dividend.
Profit from writing back of provisions are not allowed to be distributed as dividend as these profits are no realisble in cash.
Profit from writing back of provisions are not allowed to be distributed as dividend as these profits are no realisble in cash.
02 January 2012
If the company has incurred any loss in any previous year then the amount of the loss or or the amount which is equal to the amount provided for depreciation for that year whichever is less, shall be set off against the profits of the company for the year for which dividend is proposed to be declared or paid or against the profits of the company for any previous financial year or years, arrived at in both cases after providing for depreciation.
Therefore you have to set off the amount of loss or the amount of deprecitaion of loss making years, whichever is less have to set off before declaring the dividend.
Therefore you have to set off the amount of loss or the amount of deprecitaion of loss making years, whichever is less have to set off before declaring the dividend.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Multiple trade mark
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- LC charges in relation to Asset purchased should be Capitalised ?
- Value of property in capital gain
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
