Dividend is nothing but the distribution of divisible or distributable profits of a company among the holders of its equity shares. What are the main sources of payment of dividend, exclusing free reserves, as provided i

Section 123 of the Companies Act 2013 provides following sources for the payment of dividend. No dividend shall be declared or paid by a company for any financial year except: out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of Schedule II of the Company Act or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation in accordance with the provisions of Schedule II and remaining undistributed, or out of both; or out of money provided by the Central Government or a State Government for the payment of dividend by the company in pursuance of a guarantee given by that Government.