As Per the Rules Framed Under the Companies Act, 1956

As per the rules framed under the companies Act, 1956, if the dividend proposed by a company is 12% of the paid up capital, the amount to be transferred to reserve must not be less than

A) 5% of current year profit
B) 7.5% of the current year profit
C) 10% of the current year profit
D) 2.5% of the current year profit.