Page 74 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

Annexure 1 to Board’s Report
Dividend Distribution Policy

Scope and Purpose Financial As in the past, subject to the provisions of the
Tata Chemicals Limited (‘the Company’) shares are listed on the Parameters applicable law, the Company’s dividend payout
BSE Limited and the National Stock Exchange of India Limited. will be determined based on available financial
The Securities and Exchange Board of India (‘SEBI’) vide its resources, investment requirements and taking
notification dated July 8, 2016, has inserted Regulation 43A in SEBI into account optimal shareholder return
(Listing Obligations and Disclosure Requirements) Regulations, Based on the above, the Company will endeavour
2015 and has made it mandatory for the top 500 listed entities, to maintain the steady level of dividend per share
based on market capitalisation, as on March 31 of every financial over the medium term
year to formulate a Dividend Distribution Policy (‘Policy’). Utilisation of • Capital expenditure
The Board of Directors of the Company has adopted the Policy retained earnings • Organic/Inorganic growth
which endeavours for fairness, consistency and sustainability while • General corporate purposes, including
distributing profits to the shareholders. contingencies

Objective • Investments in the new/existing business
• Any other permitted use under the Companies
The Policy defines the conditions for paying a dividend. Act, 2013
The Board of Directors will recommend any annual dividend Dividend Range As in the past, subject to the provisions of
based on this Policy as well as any specific financial or market applicable laws, the Company’s dividend payout
conditions prevailing at the time. The intention of the Policy is will be determined based on availability of
to set out the broad criteria to be considered when determining financial resources, investment requirements and
what dividend to declare or not declare to the shareholders of also take into account optimal shareholder return.
the Company. The Company would endeavour to target a total
dividend payout ratio in the range of 30% to 50%
The Company has had a consistent dividend policy that balances of the Annual Standalone Profits after Tax (PAT) of
the objective of appropriately rewarding shareholders through the Company
dividends and to support the future growth.
Disclosure
Parameters The Company has one class of equity share and no
adopted with preference share capital. Any declared dividend The Board of Directors will review the Policy annually. Any revisions
regards to various will be divided equally among all shareholders, on in the Policy will be communicated to shareholders in a timely
classes of shares the record date manner. The Policy shall be disclosed in the Annual Report and on
Frequency Dividends will generally be declared once a year the website of the Company at https://www.tatachemicals.com/
after the announcement of full year results but DividendDistPolicy.htm.
before the Annual General Meeting
In years of exceptional gains or other events a Disclaimer
special dividend may be declared The Policy does not constitute a commitment regarding the future
Internal and When determining the annual dividend, the dividends of the Company, but only represents a general guidance
External Factors Company will consider, amongst other matters: regarding dividend policy. The statement of the Policy does not in
• The level of dividends paid historically any way restrict the right of the Board to use its discretion in the
• Actual results for the year and the outlook recommendation of the Dividend to be distributed in the year and
for business operations the Board reserves the right to depart from the Policy as and when
• Providing for anticipated capital circumstances so warrant.
expenditures or acquisitions, to further
enhance shareholder value or meet On behalf of the Board of Directors
strategic objectives
• Setting aside cash to meet debt repayments N. Chandrasekaran
• Retaining earnings to provide for Chairman
contingencies or unforeseeable events DIN: 00121863
• The overall economic environment
• Changes in the cost and availability of Mumbai, May 3, 2021
external financing
• Changes in government policy, industry
rulings and regulatory provisions

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