It is the policy of the Board in recommending dividends to allow shareholders to participate in the profits of
Boustead Plantations Berhad, as well as to retain adequate reserves for future growth.
As the Company is mainly an investment holding company, the Company’s income, and therefore the ability to pay
dividends, is dependent upon rental income, dividends and other distributions from Subsidiaries, Associates and
joint operation.
The payment of dividends by Subsidiaries and Associates will depend upon their distributable profits, operating
results, financial condition, capital expenditure, debt servicing and other obligations or business plans and
applicable laws or agreements restricting their ability to pay dividends or make other distributions.
The actual dividend that the Board may recommend or declare in respect of any particular financial year or period
will depend on the factors outlined below as well as any other factors deemed relavant by the Board. In considering
the level of dividend payments, if any, upon recommendation by the Board, the following factors are taken into
account:
(i) level of cash, gearing and return on equity and retained earnings;
(ii) expected financial performance;
(iii) projected levels of capital expenditure and other investment plans;
(iv) working capital requirements; and
(v) any contractual restrictions.
After taking into consideration the abovementioned factors under items (i) to (v), it is the intention of the Board
to adopt a dividend payout ratio of at least 60% of audited profit after tax attributable to shareholders for each
financial year, after excluding the profit retained by Associates and any unrealised income that are non-cash in
nature. The dividend policy reflects the Board’s current views on the Group’s financial position and the said policy
will be reviewed from time to time.
DIVIDEND
POLICY
an n ual repo rt 2015
147
