Dividend

Taking into consideration our financial performance for the year and the need to conserve resources for the furtherance of business expansion, your board recommends for a dividend payment of Rs.2/-(20%) per equity share for 2016-2017 (Re.1/- in 2015-16) on 1,37,19,582 equity shares of Rs.10 each. The proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting of the company. This will result in cash outflow of Rs.335 lakhs.

During the previous year, the company has made a provision for the dividend declared by the Board of Directors as per requirement of pre-revised Accounting Standard(AS-4) Contingencies and events occurring after the balance sheet date.

Consequently, no provision has been made in respective of the aforesaid dividend proposed by the Board of Directors for the year ended 31st March 2017. Had the company continued with the creation of provision for the proposed dividend as at the balance sheet date, its balance in surplus would have been lowered by Rs.335 lakhs and short term provision would have been Rs.335 lakhs including DDT.