Atul Ltd Annual Report 2016-17

Atul Ltd | Annual Report 2016-17

Dividend Distribution Policy

Background

The Dividend Distribution Policy is formulated as required by the Regulation 43A of the Securities and Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulations, 2015.

Philosophy

The Company believes that ploughing back of profits for driving growth is important in the long run for the creation

of robust Shareholders value. At the same time, it recognises the need for distributing a portion of the profit as payout by way

of appropriate rate of dividend to the Shareholders. Thus, the Company strikes a judicious balance between the two while

recommending the dividend rate for approval of the Shareholders.

Parameters for declaration of Dividend

Financial parameters | Internal factors:

i) Consolidated net operating profit after tax

ii) Working capital requirements

iii) Capital expenditure requirements

iv) Resources required to fund acquisitions and | or new businesses

v) Cash required to meet contingencies

vi) Quantum of outstanding debt

vii) Past dividend trends

viii) Investments in subsidiary | associate companies

ix) Outlook for the near term

External factors:

i) Government policies

ii) Economic environment and outlook for growth

iii) Trade cycles

iv) Dividend declared by companies in the same industry

v) Any other factor having impact on the business of the Company

Circumstances under which the Shareholders may or may not expect dividend

The Shareholders may generally expect a reasonable dividend in case of significant profit and cash flow from operations.

Utilisation of retained earnings

The Company may declare dividend out of the profits of the Company for the year or out of the profits for any previous year or

years or out of the free reserves available for distribution of dividend, after having due regard to the parameters laid down in

this Policy.

Parameters adopted with regard to various classes of shares

Presently, the authorised share capital of the Company is divided into Equity shares of

10 each and

Preference shares of

100 each. At present, the issued and paid-up share capital of the Company comprises only

Equity shares.

The Company will first declare dividend on outstanding Preference shares, if any, at the rate of dividend fixed at the time

of issue of Preference shares and thereafter, the dividend will be declared on Equity shares.

Amendment

The Policy may be amended by the Board of Directors.