Question

Attempt the following:

Write a reply to a complaint by an investor

Answer 1

VIKRAM COMPANY LIMITED
Registered Office: 49, Vikas house, Vivekananda Road,
Churchgate, Mumbai - 400 020.
CIN : L42874MH2021PLC666398

Tel. No. (022) 2213 4769
Fax No. (022) 2213 5698

Website: www.vikramcoltd.com
E-mail: [email protected]
Date: 15th July, 2019

Ref. No. VC/69/19-20
Mr. Vaibhav Joshi,
15, Prerna Mahal, lala lajpat rai Road,
Ahmadabad 380 009.

[By Registered Post A.D.]

Sub: Non-receipt of Dividend for 2018-19

Dear Sir,
I am in receipt of your complaint letter dated 10th July 2019 regarding non-receipt of dividend for the year 2018-19. In this regard. I am directed by the Board to inform you that your Board of Directors has carefully considered the financial position and profits of the company before taking a decision on the payment of dividends.

The Board of Directors is of the view that the non-payment of dividends this year will help strengthen the financial position of your company. Such a non-payment of dividend will provide additional nuance for the expansion and development programme which your company has in its immediate view. The alternative to this step was heavy borrowings from the banks and other (financial institutions at a higher rate of interest. The consequent heavy burden of interest would have decreased the probability of your company. The Board's decision of non-payment of dividends will prove to be a boon to the Company as also to its members.

I hope you will appreciate the long term beneficial view taken by the Board in this regard.

Your faithfully,
For Vikas company limited

Sd./
Company secretary

C.C to: SEBI