Dividend

Is it possible to transfer more than 10% of profits to reserves?

YES, provided that –

1. In case the dividend is declared –

· Minimum dividend is maintained (3 years avg.) and also count bonus shares if issued in CY or 3 PYs.

· If Net profit lower by 20% or higher than 2 years avg., then no need for minimum dividend.

2. In case no dividend is declared –

· Amount transferred to reserve must be lower than 3 years avg.

Can dividend out of “profits transferred to reserves” can be paid?

YES, provided that –

1. Approval of CG.

2. 5 years avg. dividend with a limit of 10%.

3. Max 10% (paid up + free reserves) can be withdrawn.

4. After withdrawal maintain reserve at least 15% paid up.

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