Atul Ltd 2018-19

Background The Dividend Distribution Policy is formulated as required by the Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Philosophy ¹ĺĚ ūŞƎîŠNj ċĚŕĿĚDŽĚƙ ƥĺîƥ ƎŕūƭijĺĿŠij ċîČŒ ūlj ƎƑūǛƥƙ ljūƑ ēƑĿDŽĿŠij ijƑūDžƥĺ Ŀƙ ĿŞƎūƑƥîŠƥ ĿŠ ƥĺĚ ŕūŠij ƑƭŠ ljūƑ ƥĺĚ ČƑĚîƥĿūŠ ūlj ƙĺîƑĚĺūŕēĚƑƙɄ DŽîŕƭĚȦ ƥ ƥĺĚ ƙîŞĚ ƥĿŞĚȡ Ŀƥ ƑĚČūijŠĿƙĚƙ ƥĺĚ ŠĚĚē ljūƑ ēĿƙƥƑĿċƭƥĿŠij î ƎūƑƥĿūŠ ūlj ƥĺĚ ƎƑūǛƥ îƙ ƎîNjūƭƥ ċNj DžîNj ūlj îƎƎƑūƎƑĿîƥĚ ƑîƥĚ ūlj ēĿDŽĿēĚŠē ƥū ƥĺĚ ƙĺîƑĚĺūŕēĚƑƙȦ ¹ĺƭƙȡ ƥĺĚ ūŞƎîŠNj ƙƥƑĿŒĚƙ î ŏƭēĿČĿūƭƙ ċîŕîŠČĚ ċĚƥDžĚĚŠ ƥĺĚ ƥDžū DžĺĿŕĚ recommending the dividend rate for approval of the shareholders. Parameters for declaration of dividend A) Financial parameters | Internal factors: Ŀȴ ūŠƙūŕĿēîƥĚē ŠĚƥ ūƎĚƑîƥĿŠij ƎƑūǛƥ îljƥĚƑ ƥîNJ ii) Working capital requirements iii) Capital expenditure requirements ĿDŽȴ ¤ĚƙūƭƑČĚƙ ƑĚƐƭĿƑĚē ƥū ljƭŠē îČƐƭĿƙĿƥĿūŠƙ îŠē ʈ ūƑ ŠĚDž ċƭƙĿŠĚƙƙĚƙ v) Cash required to meet contingencies vi) Quantum of outstanding debt vii) Past dividend trends viii) Investments in subsidiary | associate companies ix) Outlook for the near-term B) External factors: i) Government policies ĿĿȴ /ČūŠūŞĿČ ĚŠDŽĿƑūŠŞĚŠƥ îŠē ūƭƥŕūūŒ ljūƑ ijƑūDžƥĺ iii) Trade cycles iv) Dividend declared by companies in the same industry v) Any other factor having impact on the business of the Company Circumstances under which the shareholders may or may not expect dividend ¹ĺĚ ƙĺîƑĚĺūŕēĚƑƙ ŞîNj ijĚŠĚƑîŕŕNj ĚNJƎĚČƥ î ƑĚîƙūŠîċŕĚ ēĿDŽĿēĚŠē ĿŠ ČîƙĚ ūlj ƙĿijŠĿǛČîŠƥ ƎƑūǛƥ îŠē Čîƙĺ ǜūDž ljƑūŞ ūƎĚƑîƥĿūŠƙȦ Utilisation of retained earnings ¹ĺĚ ūŞƎîŠNj ŞîNj ēĚČŕîƑĚ ēĿDŽĿēĚŠē ūƭƥ ūlj ƥĺĚ ƎƑūǛƥƙ ūlj ƥĺĚ ūŞƎîŠNj ljūƑ ƥĺĚ NjĚîƑ ūƑ ūƭƥ ūlj ƥĺĚ ƎƑūǛƥƙ ljūƑ îŠNj ƎƑĚDŽĿūƭƙ NjĚîƑ ūƑ NjĚîƑƙ ūƑ ūƭƥ ūlj ƥĺĚ ljƑĚĚ ƑĚƙĚƑDŽĚƙ îDŽîĿŕîċŕĚ ljūƑ ēĿƙƥƑĿċƭƥĿūŠ ūlj ēĿDŽĿēĚŠēȡ îljƥĚƑ ĺîDŽĿŠij ēƭĚ ƑĚijîƑē ƥū ƥĺĚ ƎîƑîŞĚƥĚƑƙ ŕîĿē ēūDžŠ ĿŠ this policy. Parameters adopted with regard to various classes of shares a) The authorised share capital of the Company is divided into equity shares of ` 10 each and preference shares of ` 100 each. The issued and paid-up share capital of the Company comprises only equity shares. ċȴ ¹ĺĚ ūŞƎîŠNj DžĿŕŕ ǛƑƙƥ ēĚČŕîƑĚ ēĿDŽĿēĚŠē ūŠ ūƭƥƙƥîŠēĿŠij ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙȡ Ŀlj îŠNjȡ îƥ ƥĺĚ ƑîƥĚ ūlj ēĿDŽĿēĚŠē ǛNJĚē îƥ ƥĺĚ ƥĿŞĚ ūlj ĿƙƙƭĚ ūlj ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙ îŠē ƥĺĚƑĚîljƥĚƑȡ ƥĺĚ ēĿDŽĿēĚŠē DžĿŕŕ ċĚ ēĚČŕîƑĚē ūŠ ĚƐƭĿƥNj ƙĺîƑĚƙȦ Amendment The Policy may be amended by the Board of Directors. Dividend Distribution Policy 89