Checklist for Interim Dividend - required
Prakash B
Dear Professionals,
Could please any one supply the requisite check list and necessary documentations for declaration and payment of interim dividend by a listed company.
Thanking you,
With Best Regards
Prakash B
chakri hegde
PROCEDURE FOR PAYMENT OF INTERIM DIVIDEND
A) Interim financial statements for the period for which interim dividend is to be declared has to be prepared and the profit as shown in the financial statements is to be reduced by the following amounts:
Depreciation for the full year
Tax including deferred tax and other anticipated losses for the year
Dividend on preference shares, if any and
Proper provision has to be made in respect of transfer to reserves
( Note: While preparing the Interim Financial Statements, Accounting Standard 25 and 29 are applicable and the same to considered while preparing the Account)
B) While declaring dividend the Board should also consider specified percentage of profit which is required to be transferred to reserves as per the Companies (Transfer of Profits to Reserves) Rules, 1975 while preparing final accounts for the year.
C) In case Interim Dividend is declared on only one class of Equity shares, the directors should ensure that the profit as calculated under point A) is adequate to meet the dividend that would have to be paid on the other classes of equity shares.
D) While final dividend may be paid out of free reserves, no interim dividend should be paid out of reserves in the event of a loss or inadequacy of profits as the companies (Declaration of Dividend out of Reserves) Rules, 1975 do not apply to Interim Dividend.
Procedure of declaring and payment of Dividend
In case of Interim Dividend, it shall be declared in the Board meeting and not at a meeting of the committee of the board or by way of a resolution passed by circulation and no approval of members is required.
The amount of Dividend / Interim Dividend shall be deposited in a separate bank account within five days from the date of declaration of such dividend.
Dividend Distribution tax has to be paid within 14 days from the date of
- Declaration of Dividend, or
- Distribution of any dividend, or
- Payment of any dividend,
whichever is earliest.
The amount of interim dividend shall be paid within 30 days of such declaration and in case of non resident shareholders by complying with provisions of FEMA.
---------------------
With Best Wishes
Chakri G Hegde
Nissin Foods India Ltd.
Bangalore
--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com
Prakash B
Dear Mr. Chakri,
Thank You very much, Could you please also forward the necessary documentations, if any.
Further while Intimating to stock Exchanges regarding record date, declaration and payment of dividend etc has to be given in 2 (working days) , 5, 21 clear working days respectively or clear days (including Sunday and Saturday).
Thanks & Regards
Prakash B