Financial Daily from THE HINDU group of publications
Thursday, Mar 06, 2003
Financial Daily from THE HINDU group of publications Thursday, Mar 06, 2003 |
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Budget Corporate - Announcements HLL special dividend cut by Re 1 Our Bureau
MUMBAI, March 5 HINDUSTAN Lever Ltd (HLL) has decided to reduce the quantum of special dividend announced in August 2002 from Rs 2.76 per share to Rs 1.76 per share. This reduction follows the changes in the Budgetary proposals regarding dividend distribution tax. The company said that it will now bear the dividend distribution tax of Rs 219 crore, as the burden - 12.81 per cent flat rate including surcharge - will shift to the company in the 2003-04 fiscal as per the provisions in the Finance Bill. The remaining Rs 388.5 crore will be distributed to the shareholders, including Unilever. The total outflow of funds for this purpose remains unaltered at Rs 1,928 crore, HLL said. Under the scheme of arrangement for issue of bonus debentures and payment of special dividend, shareholders are to be issued one bonus debenture of Rs 6 each for every share of Rs 1 each. Additionally, a special dividend of Rs 2.76 per share was also being paid. According to company officials, the earlier special dividend of Rs 2.76 per share had been worked to include the tax, the burden of which fell on the shareholder as per the Finance Act of 2002-03. The company said that it does not stand to gain from the latest Budget proposals.
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