DIVIDEND POLICY It is the policy of the Board in recommending dividends to allow shareholders to participate in the profits of Boustead Plantations Berhad, while taking into account the retention of adequate reserves for future growth. The Company’s income and therefore its ability to pay dividends is dependent upon income from plantation operations, dividends and other distributions from subsidiaries, associated companies and joint operation plantation. The payment of dividends by subsidiaries and associated companies 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. Under the dividend policy, it is the intention of the Board to adopt a dividend payout ratio of at least 60% of the Company’s audited profit after taxation and zakat attributable to shareholders for each financial year, after excluding the profit retained by associated companies, any unrealised income that are non-cash in nature and exceptional gains of non-operating nature where cash flow arising therefrom may be reinvested. The above-mentioned payout ratio that the Board intends to adopt in respect of dividend payment for a particular financial year or period will depend on the factors outlined below as well as any other factors deemed relevant by the Board. In considering the amount of dividend payment, 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, investment plans or growth/expansion strategy; (iv) working capital requirements; and (v) any contractual restrictions. 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. Boustead Plantations Berhad 276
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