Page 87 - BCML AR 2019-20

BALRAMPUR CHINI MILLS LIMITED

AnnExuRE I
diVideNd distRiBUtioN poLicY

1. Background 5. General policy of the Company as regards Dividend
Securities and Exchange Board of India (SEBI) has notified the Subject to the general considerations and the parameters
SEBI (Listing Obligations and Disclosure Requirements) (Second as mentioned in this Policy, the Board shall endeavor to pay/
Amendment) Regulations, 2016 which came into force w.e.f. July recommend a dividend (including Dividend Distribution Tax) in the
8, 2016. Pursuant to Regulation 43A of the said Regulations, top range of 20 – 40% of Profit After Tax every year. However, buy-back
500 listed entities based on market capitalization (calculated of securities may require revisit of the dividend payout.
as on March 31st of every financial year) should have a Dividend The general considerations of the Company for taking decisions
Distribution Policy.
with regard to dividend payout or retention of profits shall be as
Therefore, the Board of Directors of Balrampur Chini Mills Limited following:
has adopted this Dividend Distribution Policy of the Company as (a) Subject to the other considerations as provided in the Policy,
per the aforesaid requirement.
the Board shall determine the dividend payout in a particular
2. Effective Date year after taking into consideration the operating and financial
performance of the Company, the advice of executive
This Policy becomes effective from the date of its adoption by the management and other relevant factors.
Board i.e. Saturday, 11th February, 2017.
(b) The Board may also, where appropriate, aim at distributing
3. Definitions & Interpretations dividends in form of fully or partly paid shares or other
Unless repugnant to the context: securities, subject to applicable law.
(a) ‘Act’ shall mean the Companies Act, 2013 as amended from (c) Free cash flows and adjustments for exceptional / one off
time to time and shall include Rules, Regulations and Secretarial items.
Standards made thereunder or pursuant thereto. In case of a lower dividend payout for any given financial year, the

(b) ‘Board’ shall mean the Board of Directors of the Company, as Board will provide a rationale in the Annual Report.
constituted from time to time.
6. Parameters
(c) ‘Company’ shall mean ‘Balrampur Chini Mills Limited’.
The Board shall consider the following parameters:
(d) ‘Policy’ shall mean this Dividend Distribution Policy as per the (a) Circumstances under which the shareholders of the Company
SEBI (Listing Obligations and Disclosure Requirements) (Second may or may not expect dividend:
Amendment) Regulations, 2016.
Shareholders may expect Dividend when the Company is
(e) ‘Listing Regulations’ shall mean SEBI (Listing Obligations & having adequate surplus funds after providing all expenses,
Disclosure Requirements) Regulations, 2015 (as amended).
depreciation, etc., and complying all other statutory
All words and expressions used but not defined in this Policy, but requirements of the Act.
defined in the Act or the Listing Regulations shall have the same Shareholders may not expect Dividend:
meaning as respectively assigned to them in such Act or Regulations,
as the case may be. (i) When the Sugar Industry Scenario is uncertain, even if the
Company has earned profits in the year.
Words importing the singular number shall include the plural
number and words importing the masculine gender shall, where (ii) When there are regulatory restrictions.
the context admits, include the feminine and neuter gender. (iii) Whenever it is proposed to utilise the surplus cash for buy
4. Objective back of securities.

The Company shall strive to drive growth and thereby maximise (b) Financial parameters/Internal factors:
shareholders’ value. The object of this Policy is to strike a balance In addition to the aforesaid parameters, the decision of
between dividend payout and the need to retain earnings for future dividend payout or retention of profits shall also be based on
growth. This Policy broadly specifies the external and internal factors the following:
that shall be considered while declaring dividend.

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