“The board of directors of the company at their meeting held on Wednesday, September 6, has revised the dividend of Re 1 per equity share, based on the information received and to be compliant with the provisions of the Section 123 of the Companies Act, 2013, without deviating from its intention to distribute the dividend,” 8K Miles said in a statement.
Earlier, the board of directors of the company at its meeting held on May 10, 2017 recommended a dividend of Rs 7 per equity share of face value of Rs 5 each for the year ended March 31, 2017.
While proposing the dividend for shareholders approval, the Board has taken into consideration of “Consolidated accounts” and recommended the dividend to the extent of profit available in consolidated financials.
Board was informed that as per the provisions in case of inadequacy or absence of profits, company can declare dividend out of the accumulated profits earned by it in previous years and transferred to the reserves and after compliance with the rules. Also for this purpose only “Standalone Financials” to be considered and NOT Consolidated financials. The Board was further advised that any dividend outside the above provisions will be improper dividend, it added.
Since, the Board cannot make futuristic statement; the dividend will be decided based on realization of the profit by the Standalone entity, subject to limitation placed under the Act. However, Board has all the intention to declare the dividend on realization in the forthcoming period, it added.
At 02:12 PM, the stock was down 6% at Rs 449 on BSE, as compared to 0.09% rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over four-fold with a combined 334,479 shares changed hands on BSE and NSE.