DIVIDEND DISTRIBUTION POLICY
Saiham Textile Mills Ltd. has adopted this Dividend Distribution Policy pursuant to Bangladesh Securities and Exchange Commission (BSEC) directive dated BSEC/CMRRCD/ 2021-386/03 dated January 14, 2021. The Policy shall apply to the ordinary equity shares issued and outstanding since the Company has issued only one class of equity shares.
The objective of the policy is to provide guidance to stakeholders on the dividend distribution framework adopted by the Company. The Policy in line with the Company's medium and long-term strategies, investment and financial plans, the state of the Country's economy and the industry and keeping the balance between the expectations of our shareholders and the needs of our company into consideration in accordance with the provisions of the Companies Act, 1994, notifications by the BSEC and other applicable legal provisions of the relevant legal laws and regulations,
Parameters for declaration of dividend
The Policy depends on the financial position of the company, other funding needs related to the investments to be made, conditions in the sector, conditions in the economic environment, Company’s present and future performance for declaration and payment of dividend. The Board of Directors shall consider following Financial parameters and other internal and external factors affecting the dividend proposal while arriving at the dividend amount:
Availability of profits; -
Favorable debt equity ratio; -
Company’s liquidity position and future cash flow requirements for operations; -
Future Capital expenditure requirement of the Company;-
Working Capital requirement of the Company;-
Macro economic and business conditions;-
Industry outlook for the future years;-
Changes in the Government policies or changes in regulatory provisions;-
Any other relevant factor that the Board may deem fit to consider;-
Utilization of retained earnings
The Company may utilize its retained earnings to the interest of the Company and its stakeholders. Retained earnings help in maintaining a healthy capital adequacy ratio and supports the future growth.
- Issue of Bonus shares;
- Declaration of Dividend interim or Final;
- Acquisition/diversification/ Expansion and modernization of existing business;
- Capital expenditure requirements;
- Increase in production capacity;
- High cost of debt. Apart from the above,
The Board may not declare dividend or may recommend a lower payout for a given financial year, after analyzing the prospective opportunities and threats or in the event of challenging circumstances. The portion of profits not distributed among the shareholders as dividends will be used for the business activities of the Company.
Entitlement of dividend
The Company shall determine the record date or date of closure of the register of members. The Company shall give notice in advance of at least 14 working days (excluding the date of intimation and the record date) to stock exchange(s) of record date specifying the purpose of the record date. Members whose names shall appear in the Members’/Depository Register on the Record Date will be eligible to receive dividend.
The Dividend Distribution Policy shall be disclosed in the Annual Report and on the website of the Company.
Modification of this Policy
The Board is authorized to change or modify this Policy from time to time at its sole discretion and/or in pursuance of any amendments made by any relevant law for the time being in force.
This Policy shall not be construed as a solicitation for investments in the Company’s securities/shares and shall neither act as an assurance of guaranteed returns (in any form), on investments in the Company’s securities.