his Dividend Distribution Policy of Generation Next Fashions Limited is framed and approved by Board of Directors
of the company in compliance with Bangladesh Securities and Exchange Commission's Directive No. BSEC/CMRRCD/2021-386/3- dated, 14 January 2021.
The Policy is aimed to set out the criteria and parameters, which the board of directors of the company shall take into consideration at the time of recommendation for dividend.
The Board of Directors may declare interim dividend and recommend final dividend complying the Companies Act, 1994; provisions of all Rules,
Regulations, Notifications, Orders, Guidelines, etc. in force or to be enforced and issued or to be issued from time to time by Regulatory
This Dividend Distribution Policy is applicable with effect from 01st July 2021.
Parameters to be considered for declaration of dividend:
The Board of Directors of the company will consider the following internal or external parameters while recommending dividend:
1. Financial performance and growth opportunities of the company.
2. Positive impacts on capital market
3. Dividend payout trend of the company
4. Capital to Risk Weighted Assets Ratio (CRAR) position of the company
5. Tax implication
6. Economic factors
7. Any other Regulatory requirements
For fixing the dividend payout ratio, the Board needs to consider the operating results of the company and the Shareholders return as well.
Dividend should be paid out of Divisible profit of the company. If the eligibility criteria for recommendation of dividend has not been met by
the company or any threshold has been fixed by the Regulators or any restriction has been imposed by the Regulatory Authorities; the Board of
Directors of the company may recommend dividend within the threshold or may not recommend any dividend according to restrictions.
Procedure of declaration/recommendation of dividend
The company shall notify the Exchange and the Commission in advance the date and time of its board of directors'meeting specially called for consideration/adoption of its quarterly financial statements and for declaration of any entitlement (interim dividend) for the shareholders before 3 (three) working days of holding such meeting:
Provided that no stock/bonus entitlement shall be declared as interim dividend and Provided that the decision about recommending dividend
and entitlement for such dividend cannot be changed.