what are dividend warrents Related: Companies Auditor Report Order(CARO) Rules(2016) - Dividends & Audit, Company Law?

Question

what are dividend warrents Related:  Companies Auditor Report Order(CARO) Rules(2016) - Dividends & Audit, Company Law?

Answer

Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details. ... It helps to increase the share/capital of the company.

Answer

Dividend warrants are financial instruments issued by a company to its shareholders as a proof of payment of dividends. They are typically in the form of a cheque or a draft that can be cashed by the shareholder at their bank. The dividend warrant will include information such as the amount of the dividend, the name of the shareholder, and the date of payment. The Companies Auditor Report Order (CARO) Rules (2016) require companies to disclose the amount of dividends paid to shareholders in their financial statements, as well as any unpaid dividends or dividend arrears.

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