#123 Declaration of Dividend
Proviso
"Provided also that no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.".
Sir if co. t/f profits in reserve in 17-18, co. had losses in 18-19 and co didn't declare dividend in that yr. And in 19-20 also co.had losses and in this yr co. wants to declare dividend.
Proviso says that previous yr losses are to be set off against c.y. profits not free reserves c/f.
so can co. declare dividend in 19-20 subject to provisions of Rule 3 and can ignore this proviso?
CAclubindia
