Question

For Interim Dividend Auditors conduct _______​

Answer 1

Explanation:

This article has been written by Avni Sharma, a 2nd year student intern from National Law University Odisha. The article talks about Dividends, Audit and Accounts and the legal provisions pertaining to the same.

Every company in the market requires maintenance of Dividends, Audits, and Accounts as these form the basis of the financial planning of the company. This article talks about the foundational concepts given under the Companies Act, 2013 (the Act). Dividends are provided under Section 2(35) of the Act and Audits are mentioned under Section 224 of the Act.

In this article, we will have a look at meanings, legal aspects, and case laws in relation to Dividends, Audits and Accounts.

Table of Contents

Dividends

Dividend fund

Statutory provisions

Separate bank account for dividend

Depreciation

Reserve Fund

Compulsory reserves

Unpaid dividend account

Payment to registered holders

Effect of declaration

Interim dividend

Payment of interest

Investor Education and Protection Fund

Capitalization of profits

Bonus shares

Accounts

Directors’ Responsibility Statement

Preservation of books of account

Accounts to comply with accounting standards

National Advisory Committee on Accounting Standards (NACAS)

Right of inspection

Financial Statements

Audit

Appointment of auditors

Remuneration of auditor

Removal

Qualifications

Powers and duties of auditors

Default in disclosing fraud

Special audit

Power of Registrar to call for special information

Seizure of documents by Registrar

Audit of cost accounts

Conclusion

References

Dividends

The word ‘Dividend’ finds its origin in the Latin term “dividendum” which means ‘to divide’. When a company borrows money from the shareholders, it naturally shares its profits. This share of profit is known as a dividend. Notably, dividends do not form a part of the rights of shareholders but only when the dividends are declared by the company, the right to claim the dividends arise.

Answer 2

Answer:

The answer is correct.

Explanation:

You are correct.