Declaration of dividend

Dear Professional Colleague, My query is 1. when Private company is declaring dividend to the Equity Share holders out of Reserves should we comply with the following Rules and in that paid up share capital should we include both preference share capital and equity share capital. As per Rule 3 (4) of the Companies (Declaration and Payment of Dividend) Rules, 2014 : The Balance of reserves after such withdrawal shall not fall below 15% of its paid up share capital as appearing in the latest audited financial Statement. 2. As per 123(1) 3rd Proviso, by complying with the Rules, dividend shall be declared out of Free Reserves : Is capital redemption reserve considered as Free Reserves? Kindly clarify