Dividends are declared at the Annual General Meeting of the shareholders based on the recommendation by the Board. The Board may recommend dividends, at its discretion, to be paid to our members. The members can reduce the rate of dividend in their general body meeting if they deem fit. However, they cannot increase the rate of Dividend due to a specific mention in Companies Act.

The Board may also declare interim dividends. Generally, the factors that may be considered by the Board before making any recommendations for the dividend include, but are not limited to, future capital expenditure plans, profits earned during the financial year, cost of raising funds from alternate sources, cash flow position and applicable taxes including tax on dividend.

Dividends shall be paid within 30 Days of Declaration. For any delay in payment of dividend, the company shall pay interest as mentioned in the Act. To facilitate timely payment of dividend the company shall transfer within 5 working days the amount of dividend to a separate bank account from which the dividend cheques/warrants would be dispatched. The Companies Act, 1956, contains provisions, which governs the procedure for declaration and payment of dividend, the same would be complied as a matter of Corporate Dividend Policy.