2 MarksSEPTEMBER 2025Inter
As per Rule 7 of the Companies (Declaration & Payment of Dividend) Rules, 2014, in the event of inadequacy or absence of profits in any year, a Company may declare dividend out of surplus subject to the fulfilment of the condition that total amount to be drawn from such accumulated profits shall not exceed ______ as appearing in the latest audited financial statement.
A
(A) 1/10th of the total assets
B
(B) 1/5th of the sum of its paid-up share capital
C
(C) 1/10th of the sum of its paid-up share capital and free reserves
D
(D) 1/5th of the sum of its paid-up share capital and free reserves