Free Reserves - Companies Law Ready Reckoner - Companies Law

As per section 2(43) of the Companies Act, 2013, unless the context otherwise requires, Free Reserves means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend: Provided that- ( i ) any amount representing unrealised gains, notional gains or revaluation of assets, whether shown as a reserve or otherwise, or ( ii ) any change in carrying amount of an asset or of a liability recognized in equity, including surplus in profit and loss account on measurement of the asset or the liability at fair value, shall not be treated as free reserves;