Question

Attempt the following.

Draft a reply letter resolving the query of the member on low rate of dividend.

Answer 1

SHREE CEMENT INDUSTRIES LIMITED
Registered Office: 31, Tulsi Tower, Bandra (East), Mumbai - 400 050
CIN: L50307 MH 2000 PLC160699

Phone: 022-24245025
Fax: 022-45456035
Ref. No. S/MR-D/25/19-20

Website: www.shreecementindustriesltd.com
E-mail: [email protected]
Date: 20^th April, 2019

Ms. Kishor Malpani
15/21, Lotus Apt.,
Borivali (W),
Mumbai - 400 103.

Sub. : Resolving Query on Low Rate of Dividend made by the Company

Dear Sir,
      This is to inform you that as per your letter dated 15^th April 2019 I am hereby authorised to resolve your query regarding the low rate of dividend paid by the company to their faithful members. The reasons for the low rate of dividend are mentioned below :

1. That during the last year, due to the floods, company’s factory situated at Mahim (E) was not in a condition to operate in a full fledge manner.
2. That due to such unavoidable circumstances of natural disaster company faced huge financial losses.
3. That due to such circumstances Board of Directors has decided to transfer Rupees 12.5 crores to General Reserves which is 50% more than the amount transferred to Reserves last year.

Hope you will be satisfied by the above information as provided by the company. We assure you that company will easily come over from such unavoidable circumstances and will deliver much better dividend in the coming years.

Thanking you,

Yours faithfully,          
For Shree Cement Industries Limited

Sign            

(Mr. Suhas Bajaj)   
 Company Secretary