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
If your company have sufficient reserves to maintain the average dividend of the previous three years, then the excess over that can be distributed as bonus shares.
Hi
i would like to know the ceizing amount for calculation of bonus, earlier it was rs.3500/- is it exceeded? suppose my basic salary is rs 6500/- the bonus will be 8.33% of rs 3500*12 = 3500 arond.
please let me know
CAclubindia
