Dividend declaration under the Indian Companies Act 1956

According to the provision of The Companies Act 1956. Companies registered under this act can declare divided out of

1. Profit of the current year arrived at after providing for the depreciation of the financial year, dividend proposed to be declared.

2. Profit of the previous year arrived at after providing for the depreciation of the financial or preceeding financial year or years.

3. Money's offered by the central government or state government in pursuance of the guarentee offered by such government.

Dividend can also be declared out of the accumulated profit, but subject to the following conditions:

1. Dividend declared during the financial year shall not exceed the average dividend of 5 years dividend, preceeding the financial year, dividend proposed to be declared.

2. Accumulated profit withdrawn for the declaration of dividend, shall not exceed 1/10th of the total paid up capital and accumulated reserves.

3. Such reserve on account of withdrawal, shall not reduce below 15 percent of total paid up capital.

Chartered Accountany

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Myself, is a student of The Institute of Chartered Accountants of India, completed my CA(PCC) and enrolled for the final examinations. On many occasion, my dream of becoming Chartered Accountancy were turmoil. Since, my reregistration of Articleship in Chennai, were revoked by the institute associated with financial pressure. Later on I discovered the importance of undergoing the articleship training made me more interested in pursuing the courses.

Doing articleship with the right organisation is important, to know its importance. Large Audit Firm do train the article assistant but they limit them to particular fields, example a student can become an expert in Taxation, while he will be exposed very little to the field of audit. While a small firm offers very little scope to learn a new thing, but a firm inbetween the above mentioned range will train in all field and equip the student. So choose the best firm to get trained yourself.

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