Interim dividend can be declared:

1. Section 123(3) — interim dividend can be declared by the Board out of (a) profits of the current FY up to the date of declaration, or (b) accumulated profits if loss-making, subject to conditions. 2. AGM approval is not required for interim dividend. 3. Hence (B). _Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_