I came across a company the other day, with net assets of one pound, and capital/reserves of one pound. This was the balance sheet position for three years in a row. Although the accounts were classed as exempt, following the balance sheet was a detailed profit and loss account. This showed the net after tax profit, and then dividend declared equal to the profit, so the end result was nil. I admit I was taken aback, because it demonstrates all too clearly that the dividend was calculated and (I assume) credited to the DLA well after the event. Is this a widespread practice?