Please let me know, what is the maximum percentage of Dividend that can be declared by a Pvt Ltd Company.
Please let me know in the below case:
Paid-up Capital of the Company - 1.65 cr
Profits after all adjustments - 3.20 cr (after providing depreciation, set off previous losses etc)
As per the Secretarial Standard on Dividends, 10% of the profits should be transferred to reserves if Dividend Proposed is more than 20% of Paidup Capital of the Company. Please let me know if we can declare maximum amount after transferring 10% of Profits of 3.20 cr to Reserves or dividend declared should not exceed Paidup Capital of the Company.
CAclubindia
