Before any dividend is declared the following shall be set off against profits of current year ........

Companies Act-Phase (I & II) Paymentofdividends

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Before any dividend is declared, the following shall be set off against profits of current year:

Losses of any previous financial year not provided for

Depreciation of any previous financial year not provided for

Either of the above

Both of the above

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Explanation:

As per Companies (Declaration and Payment of Dividend) Amendment Rules, 2014, no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profits of company of current year