Page 71 - Tata_Chemicals_yearly-reports-2017-18

Annexure 1 to Board’s Report
Dividend Distribution Policy

Scope and Purpose Financial Parameters As in the past, subject to the provisions of the
applicable law, the Company’s dividend pay-
Tata Chemicals Limited (‘the Company’) shares are listed on the
out will be determined based on available
BSE Limited and the National Stock Exchange of India Limited. The
financial resources, investment requirements
Securities and Exchange Board of India (‘SEBI’) vide its notification and taking into account optimal shareholder
dated 8 July, 2016 has inserted Regulation 43A in SEBI (Listing return.
Obligations and Disclosure Requirements) Regulations, 2015 and has Based on the above, the Company will
made it mandatory for the top 500 listed entities, based on market endeavour to maintain the steady level of
capitalisation, as on 31 March of every financial year to formulate a dividend per share over the medium term.
Dividend Distribution Policy (‘Policy’). The Board of Directors of the Utilisation of ʀ Capital expenditure
Company at its Meeting held on 29 March, 2017 has adopted the retained earnings ʀ Organic/Inorganic growth
Policy which endeavours for fairness, consistency and sustainability ʀ General corporate purposes, including Integrated Report
while distributing profits to the shareholders. contingencies
ʀ Investments in the new/existing business
Objective ʀ Any other permitted use under the
Companies Act, 2013
The Policy defines the conditions for paying a dividend. The Board of
Directors will recommend any annual dividend based on this Policy Disclosure
as well as any specific financial or market conditions prevailing at
The Board of Directors will review the policy annually. Any revisions in
the time. The intention of the Policy is to set out the broad criteria
the Policy will be communicated to shareholders in a timely manner.
to be considered when determining what dividend to declare or not
The Policy shall be disclosed in the Annual Report and on the website
declare to the shareholders of the Company.
of the Company i.e. www.tatachemicals.com.
The Company has had a consistent dividend policy that balances the Disclaimer
objective of appropriately rewarding shareholders through dividends
and to support the future growth. The Policy does not constitute a commitment regarding the future
dividends of the Company, but only represents a general guidance Statutory Reports
Parameters adopted The Company has one class of equity regarding dividend policy. The statement of the Policy does not
with regards to share and no preference share capital. Any in any way restrict the right of the Board to use its discretion in the
various classes of declared dividend will be divided equally recommendation of the Dividend to be distributed in the year and
shares among all shareholders, on the record date.
the Board reserves the right to depart from the Policy as and when
Frequency Dividends will generally be declared once circumstances so warrant.
a year after the announcement of full year
results but before the Annual General
Meeting. On behalf of the Board of Directors
In years of exceptional gains or other events
a special dividend may be declared.
Internal and When determining the annual dividend,
External Factors the Company will consider, amongst other Bhaskar Bhat R. Mukundan
matters: Director Managing Director & CEO
ʀ The level of dividends paid historically
ʀ Actual results for the year and the outlook Mumbai, 18 May, 2018
for business operations
ʀ Providing for anticipated capital Financial Statements
expenditures or acquisitions, to further
enhance shareholder value or meet
strategic objectives
ʀ Setting aside cash to meet debt
repayments
ʀ Retaining earnings to provide for
contingencies or unforeseeable events
ʀ The overall economic environment
ʀ Changes in the cost and availability of
external financing
ʀ Changes in government policy, industry
rulings and regulatory provisions

Board's Report 69