Salient features of SS-3

The salient features of this standard are: — Dividend can be declared out of free reserves and surplus in the profit and loss account of the company. However, dividend should not be declared out of the Securities Premium Account or the Capital Redemption Reserve Account or Revaluation Reserve or Amalgamation Reserve or out of profit on reissue of forfeited shares or out of profit earned prior to the incorporation of the company. — Interim Dividend may be declared after the Board has considered the Interim financial statements for the period for which Interim Dividend is to be declared, after taking into account depreciation for the full year and arrears of depreciation, appropriations and transfers to statutory reserves, taxation, Dividend at the contracted rate on preference shares and transfer to reserves as per provisions of the Companies (Transfer of Profits to Reserves) Rules, 1975.

SS3--secretarial standards on dividend The salient features of this standard are: — Dividend can be declared out of free reserves and surplus in the profit and loss account of the company. However, dividend should not be declared out of the Securities Premium Account or the Capital Redemption Reserve Account or Revaluation Reserve or Amalgamation Reserve or out of profit on reissue of forfeited shares or out of profit earned prior to the incorporation of the company. — Interim Dividend may be declared after the Board has considered the Interim financial statements for the period for which Interim Dividend is to be declared, after taking into account depreciation for the full year and arrears of depreciation, appropriations and transfers to statutory reserves, taxation, Dividend at the contracted rate on preference shares and transfer to reserves as per provisions of the Companies (Transfer of Profits to Reserves) Rules, 1975. — Interim Dividend should not be declared out of reserves. — Dividend may be paid by cash, cheque, qarrent, demand draft, pay order or directly through ECS. — Calls in arrears and any other sum due from a member may be adjusted against Dividend payable to the member. — Dividend, whether interim or final, once declared becomes a debt and should not be revoked. — Unpaid/Unclaimed Dividend should be transferred to the Investor Education and Protection Fund on expiry of seven years from the date on which such Dividends were transferred to unpaid Dividend Account after giving individual intimation to the claimant shareholders. — Any interest earned on unpaid Dividend Account should also be transferred to Investor Education and Protection Fund. — Paid Dividend warrant instruments returned by the Bank and Dividend Registers should be preserved for a period of eight years. — The Balance Sheet, Annual Report and Annual Return of the company should make separate disclosures of the amount of Dividend lying in the unpaid or unclaimed Dividend account for seven years. Annual Return and Annual Report should also disclose the amount transferred to Investor Education and Protection Fund. Thanks