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Revenue Reserves - Retained Earnings
These are undistributed earnings. Those reserves are retained for the given reasons like:
A. To create up for the fall in profits so as to maintain acceptable risks.
B. To sustain growth via plough backs. Such are cheap source of finance.
C. They are required to boost the company's credit rating thus they enable more finance to be received.
D. It lowers the company's gearing ratio - reduces chances of liquidation/receivership.
Distribution Policies Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)
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The organization performed very well during the last year and generated profit in each segment. In the food and beverage segment, the company has made 30% net profit and in rooms a
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