As per Sec 123 of The Companies Act, 2013, it is not mandatory to transfer any amount to reserves before declaration of dividend.
Hence the company can declare dividends without transferring any amount to reserves.
However as a matter of prudence, the company may transfer as the Dividend Policy of the company.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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