1.1. To regulate the process of dividend declaration and its pay-out by the Company in accordance with the provisions of the SEBI(Listing Obligations & Disclosure Requirements) Regulations, 2015 (Regulations), Companies Act, 2013 (the Act) read with the applicable Rules framed thereunder.
1.2. The objective of this Policy is to ensure a regular dividend income, maximise wealth of the shareholders and long term capital appreciation for all stakeholders of the Company. The Company would endeavour to strike the right balance between the dividend paid and profits retained in the business for various purposes, subject to applicable laws.
1.1. The profits earned by the Company can either be retained in business, used for operations, acquisitions, expansion, diversification or distributed to the shareholders. The Company may choose to retain a part of its profits and distribute the balance among its shareholders as dividend. This Policy aims to lay down the basic principles to be adhered to while declaring dividend.
2.2. The Board of Directors will refer to this Policy while declaring/ recommending dividends.
3.1. The Policy set out herein relates to Equity Share Capital in accordance with the provisions of Section 43 of the Act.
Declaration/Recommendation of Dividend shall be the prerogative and at the discretion of the Board of Directors. In the event the performance/ future requirements so require, it shall be open to the Board of Directors not to declare any dividend. It shall also be open to the Board of Directors to declare special dividend in exceptional circumstances if it deems fit.
While recommending/declaring dividend, the Board will consider financial parameters, including but not limited to
4.2 Internal and External:
While recommending/declaring Dividend, the Board will Consider Internal and External Factors such as:
The Companies Act, 2013 provides for two types of Dividend i.e. Final & Interim. The Board of Directors may declare either Interim or Final or both types of dividend from time to time in their absolute discretion. While declaring dividend the Board of Directors shall endeavour that the Payout ratio shall not be less than 20% of the consolidated net profit of the Company in any financial year, except in cases where the Board deems fit after due deliberation.
6.1 Internal and External:
The Board of Directors of the Company may, subject to applicable laws, amend, modify any or all clauses, suspend or rescind this Policy at any time. Any difficulties or ambiguities in this Policy will be resolved by the Board of Directors in line with broad intent of this Policy.
This Policy was adopted by the Board of Directors at its meeting held on October 21, 2016.