Dividend distribution Policy

TATA Motors
parameters for declaration of any interim dividend or
recommendation of Annual Dividend to shareholders:
Ø Financial Parameters / Internal Factors:
-Profit after taxes earned during the year;
-Profit available for distribution;
-Investment Prospectus;
-Operating Cash flow requirements of the Company;
-Earnings per Share;
-Liquidity position of the Company;
-Past Dividend Payout Ratio/trends.
Ø External Factors:
-General Economic environment and Market conditions;
 -Prevailing legal requirements, regulatory conditions or
restrictions laid down under the applicable laws including tax
laws.

dividend given by TATA Motors from 2010 to 2020

(in dollors)

TATA Motors did not declared any dividend after financial year
2016 -2017. Last dividend that they declared was in year 2016 -
17, which was 0.01 dollars per share.

TVS Motors
parameters while declaring or recommending dividend to the
shareholders of the Company:
- Investment opportunities, ie, opportunities for expansion and
diversification into new projects, acquisitions and/or any other
potential strategic actions that may help the Company grow;
- Liquidity position of the Company;
- Growth in earnings of the Company;
- Restrictions in debt agreements executed with lenders in
relation to the payment of dividends;
- Track record of payment of dividend, historically;
- Dividend pay-out policies adopted by peers;
- Contingency requirements;
- State of the economy and nature of industry;
-Macro-economic and business conditions in general;
External Factors

1 Access to capital market

The access to capital markets would be easier, when the
Company declares more dividends rather than retain earnings.
2 Legal consideration Prevailing legal requirements, tax rules,
Government policies and statutory conditions or restrictions as
may be provided under applicable laws.
3 Market expectation The declaration of dividends and its
quantum may have a positive impact on the market prices.
4 Peers Dividend pay-out policies adopted by peers or
companies similarly placed in the industry.
5 Tax considerations Dividend pay-out may be impacted by
change in applicable taxation laws.
6 Inflation The Company may also take into account the rate of
inflation when declaration of dividend .

Internal Factors

1 Liquidity In order to pay dividends, the Company will require

access to cash. Even in the event that the Company is profitable,
payment of dividend would be difficult if resources are tied up
in other forms of assets or commitments.
2 Repayment of debt Dividend pay-out would depend upon
debt repayment schedule, agreed upon by the Company with its
creditors / lenders.
3 Stability of profits With a stable profit, it is more likely that
dividend pay-out will be at a higher percentage of earnings.
Dividend given by TVS Motors is increasing year by years.
TVS Motors gave 3.5 rupees dividend per share in financial year
2018-19 and year 2019-20 , while earning per share is
decreased from Rs. 14.11 per share to Rs.12.47 per share.
TVS spend 200 crore rupees for dividend in financial year 2019-
20.   

Tata motors officially announced statement that their

stockholder have to wait for good dividend.