CERA SANITARYWARE LIMITED
DIVIDEND DISTRIBUTION POLICY
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”), require the Company to formulate and disclose a Dividend Distribution Policy in the annual report and on the corporate website. The Board of Directors (“Board”) of Cera Sanitaryware Limited (“Company”) has adopted this Dividend Distribution Policy to comply with these requirements.
Dividend represents the profit of the Company, which is distributed to shareholders in proportion to the amount paid-up on shares they hold. Dividend includes Interim Dividend.
The Company is deeply committed to driving superior value creation for all its stakeholders. The focus will continue to be future growth and long term interests of the Company as well as its shareholders. Accordingly, the Board would continue to adopt a progressive dividend policy, ensuring the immediate as well as long term needs of the business.
The Company shall declare dividend only after ensuring compliance with the requisite regulations and directions as stipulated under the provisions of the Companies Act, 2013 and rules made thereunder, SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time, other SEBI regulations and any other regulations as may be applicable from time to time.
The Board will assess the Company’s financial requirements, including present and future organic and inorganic growth opportunities, government policies & regulations and other relevant factors (as mentioned elsewhere in this policy) and accordingly declare dividend in any financial year.
The shareholders of the Company may not expect dividend under certain circumstances including the following,
The Board will consider various parameters as mentioned below before arriving at a decision on declaration of dividend:
The Company may choose to retain a part of its profits and distribute the balance amongst its shareholders as Dividend after due consideration to the parameters laid down in this Policy subject to the Company’s need for capital for its growth plan and positive cash flow:
a. The Company policy is of stable dividend set at 14-18% of PAT to be paid out as dividend or capital return (share buyback) or a combination and the Company will endeavor to maintain the same. The selection of the form of distribution is to optimize return to shareholder.
b. Along with its dividend policy, the Company also affirms to keep its Net Cash positive.
c. The Company in certain years to reward shareholders can declare bonus dividend or capital return or combination of both in addition to set annual dividend policy.
Retained earnings shall be utilized in accordance with prevailing regulatory requirements, creating reserves for specific objectives, fortifying the balance sheet against contingencies, generating higher returns for shareholders through reinvestment of profits for future growth and expansion and any other specific purpose as approved by the Board of Directors of the Company. The Company shall endeavor to utilize retained earnings in a manner that shall be beneficial to both, the interests of the Company and its stakeholders.
Presently, the issued and paid-up share capital of the Company comprises of equity shares only. In case, the Company issues other kind of shares, the Board may suitably amend this Policy.
In the event of a conflict between this policy and the existing statutory regulations, the statutory regulations will prevail.
The Board is authorized to change/amend this policy from time to time at its sole discretion and/or in pursuance of any amendments made in the Companies Act, 2013, SEBI and other Regulations, etc. This revised policy has been approved by the Board of Directors of the Company at their meeting held on 10th June, 2021 and effective from the same date.