Dividend

Pursuant to Section 124 of the Companies Act, 2013, read with Investors Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ('the Rules'), as amended, all unclaimed/un-encashed dividends / matured debentures are required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government, after the completion of seven years. Further, according to the Rules, the shares in respect of which dividend has not been claimed or en-cashed by the shareholders for seven consecutive years or more shall also be transferred to the demat account created by the IEPF Authority in accordance with the Rules.

 

Accordingly, the Company has transferred the unpaid/unclaimed amount of dividend/interim dividend declared/paid up to the financial year 2012-13 on respective due dates to the Investors Education and Protection Fund Authority (IEPF).

 

(a) Unclaimed Dividend liable to be transferred to the IEPF:

 

The following table provides the dividend declared/paid by the Company and due date for transfer of the unclaimed dividends to the IEPF:

 

Year Type of dividend Dividend per share (In ₹) Date of declaration Due date for transfer to IEPF

2013-14

Final

4.50

23-07-2014

29-08-2021

2014-15

Interim

2.00

23-03-2015

29-04-2022

2014-15

Final

2.50

27-07-2015

01-09-2022

2015-16

Final

4.00

26-07-2016

31-08-2023

2016-17

Final

5.00

28-07-2017

02-09-2024

2017-18

Interim

3.00

16-03-2018

21-04-2025

2017-18

Final

3.50

27-07-2018

01-09-2025

2018-19

Interim

3.00

21-01-2019

26-02-2026

2018-19

Final

3.50

22-07-2019

23-08-2026

2019-20

Final

12.00

24-07-2020

27-08-2027

2020-21

Interim

6.00

01-02-2021

08-03-2028

 

For details of unpaid/unclaimed dividend as at 31st March 2021, Click here

 

(b) Transfer of equity shares to the Investors Education and Protection Fund (IEPF):

 

All shares of the Company in respect of which dividends have remained unclaimed or un-encashed for seven consecutive years or more, are required to be transferred by the Company to the IEPF established by the Government of India. The Company sends periodic communication to the respective shareholders to claim/encash the dividend.

 

Details of Equity Shares transferred to the IEPF:

 

For details of Equity Shares transferred to the IEPF as at 31st March 2021, Click here

 

(c) Details of Equity Shares liable to be transferred to the IEPF:

 

The Company will be transferring the shares pertaining to dividend declared for the financial year 2013-14 on which dividend is unclaimed/un-encashed for seven consecutive years.

 

Shareholders are requested to claim the dividend by submitting the required details to company's RTA KFin Technologies Private Limited (email - einward.ris@kfintech.com) on or before July 31, 2021.

 

Particulars of Dividend Due Date of transfer

Final Dividend 2013-14

29-08-2021

 

For details of Equity Shares liable to be transferred to the IEPF during the year 2020-2021, Click here

 

Application to claim the unclaimed dividend / shares from IEPF Authority:

 

Upon transfer of dividend / shares to IEPF, shareholders can claim the unclaimed dividend amount and the shares transferred to the Demat Account of the IEPF Authority by making an application in Web Form IEPF-5 online available on the website of Investors Education and Protection Fund at www.iepf.gov.in/IEPF/corporates.html

 

Shareholders are requested to send the physical copy of the same duly signed (as per registered specimen signature) along with requisite documents enumerated in the said Web Form IEPF-5 to the Company addressed to the Nodal officer at its registered office for verification of your claim. If the documents are found to be in order, the Company will send a verification report to IEPF Authority for refund of the unclaimed dividend amount and transfer of the shares back to the credit of the concerned shareholder.

 

Nodal officer of the Company:

 

Mr. Rajesh Mukhija
Sr. Vice President Legal & Company Secretary
Coromandel International Limited
Coromandel House,
1-2-10, Sardar Patel Road,
Secunderabad - 500 003
E-mail: investorsgrievance@coromandel.murugappa.com
Tel: +91-40-6699 7300/7500
Fax: +91-40-2784 4117

 

Tax on Dividend

 

Pursuant to the provisions of the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividends paid or distributed by the Company after April 01, 2020 shall be taxable in the hands of the shareholders. Therefore, the Company would be required to deduct tax at source (TDS) at the time of making payment of the said Dividend after the same is declared by the shareholders at the Annual General Meeting (AGM).

 

The withholding tax rate would vary depending on the residential status of each shareholder and documents submitted by them and accepted by the Company in this regard. Accordingly, the dividend, when declared, will be paid after deducting TDS in the following manner:

 

For Resident Shareholders:

  1. Where Permanent Account Number (PAN) is available and has been furnished to the Company, tax shall be deducted at source @ 10% on the amount of Dividend in accordance with the provisions of Section 194 of the Income Tax Act, 1961.

  2.  

  3. Where PAN is not available/invalid/not submitted, tax shall be deducted at source @ 20% on the amount of Dividend as per Section 206AA of the Income Tax Act, 1961.

  4.  

  5. However, no TDS shall be deducted on the Dividend payable to a resident Individual shareholder if:

  1. The total amount of dividend to be received by the shareholder during the financial year does not exceed Rs 5,000 (computed collectively if there are multiple folios with the same PAN Number); or

  2.  

  3. The shareholder submits duly signed Form 15G (applicable to any person other than a Company or a Firm) / Form 15H (applicable to an Individual above the age of 60 years), provided that the eligibility conditions are being met. You may download Form 15G / 15H from the links given below:

  4.  

    Click here to download Form 15G

     

    Click here to download Form 15H

  1. No tax will be withheld from Dividend to be paid to Mutual Funds and Category - I & II Alternate Investment Funds registered with SEBI. The Mutual Funds and Alternate Investment Funds shall, however, furnish the following documents to the Company's Registrar and Share Transfer Agent (RTA), KFin Technologies Private Limited.

  2.  

    1. Certified copy of SEBI Registration/CBDT notification;

    2.  

    3. Declaration that their income is exempt under Section 10 (23D) of the Income Tax Act, 1961 and therefore no TDS is required under Section 196 (iv) of the Income Tax Act, 1961.

 

For Non-Resident Shareholders:

  1. The tax will be deducted at source @ 20% (plus applicable surcharge and cess) on the amount of Dividend payable to the shareholder in accordance with the provisions of Section 195 of the Income Tax Act, 1961 at applicable rates in force.

  2.  

    However, as per Section 90 of the Income Tax Act, 1961 the Non-resident shareholders have the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) between India and the Country of tax residence of the shareholders, if such DTAA provisions are more beneficial to the such shareholders. For availing the DTAA benefits, the Non-resident shareholders will have to furnish the following documents:

  1. Self-attested copy of Tax Residency Certificate (TRC) obtained from the tax authorities of the country of which the shareholder is resident;

  2.  

  3. Self-declaration in Form 10F; [Click here to download Form 10F]

  4.  

  5. Self-attested copy of the Permanent Account Number (PAN) allotted by the Indian Income Tax authorities;

  6.  

  7. Self-declaration for the financial year [Click here to download the self-declaration format], certifying the following:

  8.  

    1. Shareholder is and will continue to remain a tax resident of the Country of its residence during the financial year for which it is declared;

    2.  

    3. Shareholder is eligible to claim the beneficial DTAA rate for the purposes of tax withholding on dividend declared by the Company;

    4.  

    5. Shareholder has no reason to believe that its claim for the benefits of the DTAA is impaired in any manner;

    6.  

    7. Shareholder is the ultimate beneficial owner of its shareholding in the Company and dividend receivable from the Company; and

    8.  

    9. Shareholder does not have a taxable presence or a permanent establishment in India during the financial year for which it is declared.

  1. Please note that the application of beneficial DTAA rate at the time of tax deduction / withholding on Dividend shall depend upon the completeness and satisfactory review by the Company of the documents submitted by Non-resident shareholder.

  2.  

  3. Notwithstanding paragraph 1 above, tax shall be deducted at source @20% (plus applicable surcharge and cess) by the Company on dividends paid to the Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs). Such TDS rate shall not be reduced on account of the application of the lower DTAA rate, if any. However, in case FIIs & FPIs want tax to be deducted at a lower rate as per the DTAA applicable to them, they may obtain a certificate under Section 197 of the Income Tax Act, 1961 to this effect and furnish the same to the Company's RTA, KFin Technologies Private Limited.

Kindly note that the aforementioned documents are required to be submitted online by clicking on the link provided below in order to enable the Company to determine and deduct appropriate TDS/withholding tax rate.

 

Link for Tax Exemption Forms Online: Click here to submit the Tax Exemption Forms online

 

For withholding of tax, residential status of the shareholder will be considered as per the data available with the Company/the RTA/the DPs. In case there is any change in the residential status, the shareholders are requested to update their current status with the Company/the RTA/the DPs.

 

Kindly note that no claim shall lie against the Company for the tax deducted at source on Dividend. The Company shall arrange to email a soft copy of the TDS Certificate at the shareholders registered email address post payment of the Dividend. Shareholders will also be able to see the credit of TDS in Form 26AS, which can be downloaded from their e-filing account at http://incometaxindiaefiling.gov.in

 

It may further be noted that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents from the shareholders, the shareholders may file return of income and claim refund of tax, as appropriate.

 

For any further information or clarification, you may kindly write to the Company at Investorsgrievance@coromandel.murugappa.com or to our RTA at einward.ris@kfintech.com.