FM

FINANCIAL MANAGEMENT:

FINANCIAL MANAGEMENT DIVIDEND POLICY SUBMITTED TO: PROF. REDDY

GROUP MEMBERS:

GROUP MEMBERS SAKET BHOBOO 10 VINAYAK JAGDALE 35 SHRIDHAR JAUNJAL 37 RIKSHIT MEHTA 48 GAURESH PATHARE 51 ANIKET KHISMATRAO(PG) 07

INTRODUCTION:

INTRODUCTION Dividend policy involves the balancing of the shareholders’ desire for current dividends and the firm’s needs for funds for growth. OBJECTIVES: Firm’s Need for Funds Shareholders’ Need for Income

CONDITIONS FOR DIVIDEND POLICY :

CONDITIONS FOR DIVIDEND POLICY Under Indian law, a company declares dividends (including interim dividends) upon a recommendation by its board of directors and approval by a majority of the shareholders at the annual general meeting of shareholders held within six months of the end of each fiscal year. interim dividends can be paid out with only a recommendation by the board of directors , though such action is subject to subsequent sanction by the shareholders at the annual general meeting held within six months from the end of the fiscal year.

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The shareholders have the right to decrease but not to increase the dividend amount recommended by the board of directors. Dividends (including interim dividends) must be paid within 30 days from the date of the declaration. any dividend which remains unpaid or unclaimed after that period must be transferred within seven days to a special unpaid dividend account held at a scheduled bank.

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If profits for that year are insufficient to declare dividends (including interim dividends), the dividends for that year may be declared and paid out from accumulated profits on the following conditions: T he rate of dividend to be declared shall not exceed the average of the rates at which dividends were declared in the five years immediately preceding that year or 10.0% of our paid-up share capital, whichever is less; T he total amount to be drawn from the accumulated profits earned in previous years and transferred to the reserves shall not exceed an amount equal to one-tenth of the sum of our paid-up share capital and net reserves, and the amount so drawn shall first be utilized to set off the losses incurred in the financial year before any dividend in respect of preference or equity share is declared; The balance of the reserves after such withdrawal shall not fall below 15.0% of our paid-up share capital .

STERLITE:

STERLITE Sterlite is the leading copper producer in India. Sterlite operations include a smelter, refinery, phosphoric acid plant, sulphuric acid plant and copper rod plant at Tuticorin in the state of Tamil Nadu in southern India; and a refinery and two copper rod plants at Silvassa in the Union territory of Dadra and Nagar Haveli in western India.

Sterlite’s policy on Dividend:

Sterlite’s policy on Dividend Sterlite are generally paid Dividend in the fiscal year following the year in which they are declared . The tax rates imposed on Sterlite in respect of dividends paid in prior periods have varied . Currently , the effective tax rate on dividends is 17.0%, which is a direct tax paid by Sterlite . Taxes on dividends are not payable by Sterlite shareholders and are not withheld or deducted from the dividend payments set forth above.

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Future dividends will depend on our revenue, cash flows, financial condition (including capital position ) and other factors.

Dividend History of SATERLITE :

Dividend History of SATERLITE Year of Dividend Dividend warrant dated Percentage of dividend Paid per Share in Rs. 2004 – 2005 08.09.2005 60 3.00 2005- 2006 25.09.2006 62.5 1.25 Interim Dividend 06 11.12.2006 200 4.00 2007-08 26.08.2008 200 4.00 2008-09 24.09.2009 175 3.50 2009-10 16.06.2010 - 3.75

BHARTI AIRTEL:

BHARTI AIRTEL

DIVIDEND POLICY OF BHARTI AIRTEL:

DIVIDEND POLICY OF BHARTI AIRTEL

DIVIDEND HISTORY OF BHARTI AIRTEL:

DIVIDEND HISTORY OF BHARTI AIRTEL

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THANK YOU