Reserve & surplus

sir

a private limited company has 12 Lacs in its reserves & surplus.

in next year, the Net profit (after tax) is Rs 8 Lacs. it is T/f to Res & Surplus Account, now total is 20 Lacs in it.

similary, next year, it will increase again (in case of profit).

Then, how & when can this balance of Reserve & Surplus be used ?

 

 

 

Replies (1)
To declare dividend
Redemption of Preference Shares
Premium on redemption of Preference Shares
Buy Back of securities
Transfer To CRR
Bonus Issue
To Make Provisions
Future business development

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