Scenario on Financial Statements of Companies and Divisible Profits
Vidyut Infra Limited, an unlisted public company, presents its draft financial details for the financial year ended 31st March 2026. The net profit calculated as per Section 198 of the Companies Act, 2013, before deducting managerial remuneration, stands at ₹ 200 lakhs. The company has 1 Managing Director and 2 Whole-time Directors, along with 3 Part-time (Non-Executive) Directors. The Board proposes to pay the maximum permissible managerial remuneration without seeking special resolution or approval of the Central Government. Further, for the year ended 31st March 2026, the company declared a interim dividend of ₹ 10 lakhs in November 2025 out of current profits. Owing to a shortfall in profits to meet the board's target dividend payout of 15% on its paid-up equity share capital of ₹ 500 lakhs (Face Value ₹ 10 per share), the company intends to declare a final dividend for FY 2025-26 by withdrawing from its Accumulated Free Reserves as per Rule 3 of the Companies (Declaration and Payment of Dividend) Rules, 2014. The past 3 financial years' dividend rates declared by Vidyut Infra Limited were 12%, 15%, and 18%. The balance in Free Reserves before any withdrawal is ₹ 180 lakhs, and the balance in General Reserve is ₹ 50 lakhs. Paid-up Equity Share Capital is ₹ 500 lakhs.
