Annual Report, 2016-17

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Board shall consider the restrictions, if any, imposed by the
Act and other applicable laws with regard to declaration of
dividend.
Statutory obligations under the Act to transfer a certain portion
of profits to any specific reserve such as Debenture Redemption
Reserve, Capital Redemption Reserve, etc. may impact the
decision with regard to dividend declaration.
Dividend distribution tax or any tax deduction at source as
required by tax regulations in India, applicable at the time of
declaration of dividend may impact the decision with regard to
dividend declaration.
Agreements with Lenders / Debenture Trustees
The decision of dividend pay-out may also be affected by the
restrictions and covenants contained in the agreements entered
into with the lenders or Debenture Trustees of the Company
from time to time.
Other Factors
Other factors beyond control of the Management like natural
calamities, fire, etc. affecting operations of the Company may
impact the decision with regard to dividend declaration.
INTERNAL FACTORS:
The Board shall consider internal factors while declaring dividend
including the following:
• Outlook of the Company in line with business plan
• Profitability;
• Capex needs for the existing businesses;
• Mergers and Acquisitions;
• Expansion / Modernization of the business;
• Cost of raising funds from alternate sources;
• Cost of servicing outstanding debts;
• Funds for meeting contingent liabilities
• Any other factor as deemed appropriate by the Board.
7. FINANCIAL PARAMETERS FOR
DECLARING DIVIDEND
To keep investment attractive and to ensure capital appreciation
for the shareholders, the Company shall also endeavour to
provide consistent return over a period of time. While deciding
on the dividend, micro and macro economic parameters for the
country in general and the Company in particular shall also be
considered.
The Board shall endeavour to maintain the Dividend Payout
Ratio (Dividend including Dividend Distribution Tax / Profit After
Tax) between 20-25% of Consolidated Profit After Tax.
Taking into consideration the aforementioned factors, the Board
shall endeavour to maintain a dividend payout.
8. UTILISATIONOF RETAINED EARNINGS
Subject to the provisions of the Act and other applicable laws,
retained earnings may be utilised as under:
• Declaration of dividend - Interim or Final;
• Issue of fully paid-up bonus shares;
• Augmenting internal resources;
• Repayment of debt;
• Funding for Capex / expansion plans / acquisition;
• Any other permitted use.
9. CIRCUMSTANCES IMPACTINGDIVIDEND
PAYMENT
The decision regarding Dividend pay-out is a crucial decision
as it determines the amount of profit to be distributed among
shareholders and amount of profit to be retained in the business.
The circumstances under which the shareholders may expect
dividend would depend upon certain factors mentioned in
Clause 6 above.
10. PARAMETERS FOR VARIOUS CLASSES
OF SHARES
The Authorised Share Capital of the Company is divided into
Equity Shares of Re. 1/- each and Preference Shares of Rs.
100/- each. Currently, the Company has one class of issued and
subscribed shares - Equity Shares. There is no privilege amongst
Equity shareholders of the Company with respect to dividend
distribution.
As and when the Company shall issue other class of Equity Shares
or other kind of shares, this Policy may be suitably amended.
11. DISCLOSURE
This Dividend Distribution Policy shall be disclosed in the Annual
Report of the Company and on the Company’s website www.
If the Company proposes to declare dividend on the basis of any
additional parameters apart from those mentioned in the Policy
or proposes to change the parameters contained in this Policy,
it shall disclose such changes along with the rationale for the
same in the Annual Report and on the website.
12. EFFECTIVE DATE
This Policy shall be effective and applicable for dividend, if any,
declared for the Financial Year 2016-17 onwards.
13. REVIEW/ AMENDMENT
This Dividend Distribution Policy may be amended by the Board,
as and when deemed fit. Any or all provisions of this Policy
would be subject to revision / amendment in accordance with
the provisions of the Act and the Listing Regulations, from time
to time. Any amendments in the Act or in the Listing Regulations
shall be binding even if not incorporated in this Policy.
083 ANNUAL
REPORT 2016-17 KAJARIA
CERAMICS
CORPORATE
OVERVIEW
MANAGEMENT
REPORTS
FINANCIAL
STATEMENTS