HOW MUCH PERCENTAGE TRANSFER TO GENERAL RESERVE FROM PROFIT

sachin kumar

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Jan 12, 2012, 11:15:48 PM1/12/12

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Dear Friends Gdmrng.

i want to know that if a company not declared any dividend during the financial year, then what percentage of profit it can transfer to general reserve. can company transfer any percentage, whatever it want to transfer.please guide me.

Thanks & Regards

Sachin Pyare

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Nithyakalyani Kannan

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Jan 12, 2012, 11:54:03 PM1/12/12

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I think it's 25% of the profits. Members, please correct if I'm wrong.

Thanks & regards,
CS Nithyakalyani M

From: sachin kumar <cssach...@gmail.com>
To: csmy...@googlegroups.com
Sent: Friday, 13 January 2012 9:45 AM
Subject: [CSMysore] HOW MUCH PERCENTAGE TRANSFER TO GENERAL RESERVE FROM PROFIT

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Ram Mohan

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Jan 12, 2012, 11:56:19 PM1/12/12

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refer Central Govt (transfer to reserves) rules

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CS R Ram Mohan
Company Secretary
(M) 9959964512

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kartheek CN

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Jan 13, 2012, 12:04:45 AM1/13/12

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Dear Sachin,

PFA the Companies (Transfer of Profits to Reserves) Rules, 1975..

You can find the answer in the highlighted sections of the same.

Other members views solicited

C.N. Kartheek

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ketan sumesara

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Jan 13, 2012, 12:21:57 AM1/13/12

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25% percentage

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sachin kumar

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Jan 13, 2012, 2:08:40 AM1/13/12

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DEAR FRIENDS

I THINK THIS POINT IS SUITABLE

(ii) Where no dividend is declared, the amount proposed to be transferred to its

reserves from the current profits shall be lower than the average amount of the

dividends to the shareholders declared by it over the three years immediately

preceding the financial year.

BUT IN CASE A COMPANY NEVER DECLARED DIVIDEND THEN I THINK THIS IS DEPEND ON DISCRETION OF MANAGEMENT, THEY CAN TRANSFER WHATEVER THEY WANT. PLEASE CORRECT ME IF I AM WRONG