Can any body tell me that if any company made losses in his earliar year e.g 80 lacs but during current financial year it made a profit say Rs. 60 lacs can company declare dividend out of this whole 60 lacs without set off any earliar years losses
Can any body tell me that if any company made losses in his earliar year e.g 80 lacs but during current financial year it made a profit say Rs. 60 lacs can company declare dividend out of this whole 60 lacs without set off any earliar years losses
As per Sec 205 the Co should provide for depreciation before it pays the dividend. So if the Co incurred losses in previous year, it should set off the amount of depreciation or amount of loss whichever is lower.
see more in attached file also....
SMJ global advisors pvt ltd
New Delhi
B.Com
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Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Aggarwal Sarawagi and Co
New Delhi
CA
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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CAclubindia
