Understanding Profit Transfers and Bonus Shares: What Are the Limits and Which Balance Sheet Counts?

Dear All,

Is there any limit on the transfer of profits to reserves and on the capitalization of profits? Up to what amount can a company issue bonus shares?

For the purpose of calculation, which balance sheet is taken into consideration - the last year's audited or the current year's unaudited?

For the transfer of profits to reserves and the issuance of bonus shares, you have to follow the procedures given in the attached files.

Thanks