limits for bonus issue and capitalisation

shirin bhatt (Company Secretary in Practice)   (65 Points)

04 October 2008  

hi everyone

I want to know what is the limit upto which profits of an unlisted public company be utilised for issuing bonus shares? Which balance sheet is taken into account for calculations whether current year's unaudited or latest audited balance sheet?

Moreover I also want to know if there is any limit on the amount which can be transferred to free reserves?

Regards,

Shirin