Industry-respected asset manager Dosi called the company’s dividend payments in the previous fiscal year a “rude shock” and a “joke” and pointed out its promoter. Karanishimaran Did not reduce the fees paid to him by the company for his service.
“The message this is sending is very, very controversial … this is a serious issue of corporate governance today,” Doshi said in a post-profit conference call on management late Friday. It was.
The company’s board paid only an interim dividend of Rs. 5 per share, which announced quarterly earnings since March of the fiscal year ended March 2021. Based on the announced dividends, the company’s dividend payment rate plummeted from 57 to 13% in 2020-21. Percentage for the fiscal year ending March 2020.
Absolutely, the company’s consolidated cash flow statement shows that the interim dividend paid by the company in 2020-21 increased by 80% from 985 rupees paid in 2019-20 to 197 rupees.
Not only did earnings per share increase by 10% in the previous fiscal year, but dividend payments decreased despite a 15% increase in cash and cash equivalents.
The· Sun TV Management attending the conference call explained that dividend payments were reduced as part of careful risk management in light of the ongoing Covid pandemic. “We are living in a very difficult time and there are rumors that a third wave could occur later this year,” the company said in response to Doshi’s question.
Management also emphasized that eight films, including two megafilms currently in production, would cost a huge amount of Rs 1,200.
However, he said he was confused by the sudden change in the company’s signal to shareholders after the company’s management said it wanted to pay cash on its books in its December quarter earnings announcement as it would lower its rate of return. It was.
Mr. Dosi was particularly dissatisfied with the fact that the company chose to cut shareholder dividends because of the unusual situation caused by the pandemic, but the same fees paid in 2019-20. Continued to pay the promoter. According to Sun TV, promoter fees have been limited to the same level since 2017.
Sun TV’s management sought to convince Doshi to notify the board of concerns raised regarding the payment of dividends. “We are fully aware of the anxieties you have. Believe that we will regain the message. Our intention is not to deny minority shareholders,” said the company’s management. It was.
Mr. Dosi recommended explaining the reduction in dividend rates to shareholders or announcing the company’s June quarter financial results.
Enam’s Jiten Doshi raises corporate governance concerns on Sun TV
https://economictimes.indiatimes.com/markets/stocks/news/enams-jiten-doshi-raises-corporate-governance-concerns-at-sun-tv/articleshow/83500364.cms Enam’s Jiten Doshi raises corporate governance concerns on Sun TV