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Considering the aforementioned dividend payment track record
of the Company, the Company shall endeavor to maintain
a total dividend pay-out ratio in the range of 25% to 40% of
the annual standalone profits after tax (PAT) of the Company.
Under the applicable provisions of the Act, the Company’s
ability to declare and pay dividends is based on the standalone
Financial Statements only. In future should the regulations be
amended permitting the Company to pay dividend based on
its Consolidated Profits, the Board would consider such a payout
ratio on its Consolidated Profits. Till such time, The Company will
endeavor to have a policy on dividend distribution with a similar
payout ratio across its subsidiaries and to the extent possible, in
its joint ventures after discussions with its partners.
Manner and timelines:
The Company may declare dividends for a year, usually payable
for a financial year at the time when the Board considers and
recommends the Annual Financial Statements, which is called
final dividend. The Board of Directors shall have the power to
recommend final dividend to the shareholders for their approval
in the Annual General Meeting of the Company.
The Board of Directors shall also have the absolute power to
declare interim dividend during the financial year, between two
Annual General Meetings as and when they consider it fit.
9) SPECIFIC CLAUSE WITH REGARD TO DIVIDEND ON
SHARESWITH DIFFERENTIAL VOTING RIGHTS
The payment of dividend shall be based on the respective rights
attached to each class of shares as per their terms of issue.
The Company has two classes of shares- the Ordinary shares and
‘A’ Ordinary shares. The holders of “A” Ordinary shares shall as per
the terms of its issue be entitled to receive dividend for each
financial year at five percentage points more than the aggregate
rate of dividend on Ordinary shares for that financial year.
10)POLICY REVIEW AND AMENDMENTS
The Policy will be reviewed periodically by the Board. Any
changes in the policy will be communicated to the shareholders,
alongwith the rationale for carrying out said changes in timely
manner.
11)DISCLOSURES
The Policy shall be disclosed in the Annual report and on the
website of the Company i.e. at
www.tatamotors.com.12)DISCLAIMER
a) The Policy does not constitute a commitment regarding
the future dividends of the Company, but only represents a
general guidance regarding dividend policy. The statement
of the Policy does not in any way restrict the right of the Board
to use its discretion in the recommendation of the Dividend
to be distributed in the year and the Board reserves the right
to depart from the policy as and when circumstances so
warrant.
b) Given the aforementioned uncertainties, prospective or
present investors are cautioned not to place undue reliance
on any of the forward- looking statements in the Policy.