Download DIVIDEND POLICY Preface Regulation 43A of the SEBI (Listing

DIVIDENDPOLICY
(approvedbytheBoardofDirectorsinitsMeetingheldon18thOctober2016)
Preface
Regulation43AoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,
2016requirestop500listedentities(calculatedasonMarch31ofeveryfinancialyear)to
formulateadividenddistributionpolicy.
Accordingly,inadherenceofthestatedparametersofRegulation43ADividendDistribution
Policyissetouthereinbelow.
MeaningofDividend
“Dividend”includesInterimDividend.TheActneitherspecificallydefinesthetermDividend
normakesanydistinctionbetweeninterimandfinalDividend.
In commercial usage, the term “Dividend” means the profit of a company, which is not
retained in the business and is distributed among the shareholders in proportion to the
amountpaid‐uponthesharesheldbythem.
The endeavour of the management is to divide net earnings into dividends and retained
earnings in an optimum way so as to achieve the objective of wealth maximization for
shareholders.
Parameter(a)–ThecircumstancesunderwhichShareholderscanorcannotexpect
dividend
RegularDividend–TheCompanyhasaverygoodrecordofdistributingcontinuousdividend
toitsshareholdersfrompastmanyyears.Atthetimeofrecommendingadoptionofannual
financialstatementstotheshareholders,theBoardnormallyrecommendsaDividendforthe
respectivefinancialyear.
InterimDividend–TheBoardmay,atitsdiscretion,declareInterimDividend,wheneverthe
companyhasaccumulatedprofits.
Special/ExtraordinaryDividend–Inexceptionalcircumstances,suchasuponextraordinary
profitsfromsaleofinvestmentsetc.,theBoardmaydeclareaSpecialDividend,asaone‐off
paymenttotheshareholders.
TheBoardmaydecidetomakeadividendpay‐outbetween30%to50%takingintoaccount
thecashflowsandprofitsonaconsolidatedbasis.Further,theBoardmayamendthepay‐
outrange,wheneverconsideredappropriatebyit.
Parameter(b)–Thefinancialparametersthatshallbeconsideredwhiledeclaringdividend
Thefinancialparametersthatshallbeconsideredwhiledeclaringdividendshallbelikeavailable
CashFlows,ProfitAfterTax(PAT),ReturnonAssets(RoA),ReturnonEquity(RoE),Earnings
PerShare(EPS)etc.
Parameter(c)–Internalandexternalfactorsthatshallbeconsideredfordeclaration
ofdividend
ExternalFactors:‐
InternalFactors:‐
i. StatutoryObligations,Government
i. Profitsearnedduringtheyear;
RegulationsandTaxationpolicies.
ii. Present&futureCapital
ii. StateofEconomy‐incaseof
requirementsoftheexisting
uncertainorrecessionaryeconomic
businessesincludingany
andbusinessconditions,Boardwill
acquisition;
endeavourtoretainlargerpartof
iii. Expansion/Modernizationof
profitstobuildupreservestoabsorb
existingbusinesses;
probablefutureshocks.
iv. Investmentsin
subsidiaries/associatesofthe
Company;
v. Anyotherfactorasdeemedfitby
theBoard.
Parameter(d)–Policyastohowtheretainedearningsshallbeutilized
In furtherance of Company’s objectives, the retained earnings of the Company shall be
utilized for present & future capital requirements of the existing businesses including
acquisitions,investmentsinsubsidiaries/associatesoftheCompany.
Parameter (e) – Parameters thatshallbe adopted with regard to various classesof
shares
Companydoesnothavedifferentclassesofsharesatthispointoftime.Infutureifdifferent
classesofsharesareissued,theparameterstobeadoptedwithregardtothoseclassesshall
bedecidedaccordingly.
ReviewandAmendment
Any or all provisions of this Policy would be subject to the revision/ amendment to the
Listing Regulations or related circular, notification, guidance notes issued by SEBI or
relevant authority, on the subject from time to time. Any such amendment shall
automaticallyhavetheeffectofamendingthisPolicywithouttheneedofanyapprovalby
theBoardofDirectorsoranyofitsCommittees.