The paid-up share capital and free reserves of Narmada Ltd. stood at rupees 100 lakh and rupees 20 lakh respectively. During the immediately preceding three years company had distributed dividends at...

The paid-up share capital and free reserves of Narmada Ltd. stood at rupees 100 lakh and rupees 20 lakh respectively. During the immediately preceding three years company had distributed dividends at the rate of 10%, 8%, and 12%. The company has incurred losses of rupees 2 lakh in the current financial year. Find out the maximum amount which can be distributed as dividends for the current financial year. Write the detailed procedure for distribution of dividend assuming all the possibilities