This Policy has been formulated by Saiham Cotton Mills Limited pursuant to Bangladesh Securities and Exchange Commission (BSEC) Directive No. BSEC/CMRRCD/2021-386/03 dated January 14, 2021.

The Company shall declare dividend only after ensuring compliance with the regulatory guidelines on dividend declaration.

Availability of profits
Company's liquidity position and future cash flow requirements for operation Profits earned during the financial year.

• Growth rate of past earnings.
• Earnings stability.
• Accumulated reserves.
• History of dividends distributed by the company.
• Working capital requirements.

• Shareholder's expectations.
• Industry outlook for the future years.
• Changes in the government policies or changes in regulatory provisions.
• Other relevant factors that the Board may deem fit.

The company shall determine the record date of members. Members whose names shall appear in the Members / Depository Register on the Record date will be eligible to receive dividend.

The dividend proposal placed before the Board for its recommendation shall be in term of this policy: The recommendation of the Board should be placed before the Annual General Meeting for final approval of the Shareholders.

• 1. Company shall pay off the dividend the entitled shareholders within 30 days of approval.
• 2. Equivalent amount of cash dividend shall be kept in a dedicated separate Bank Account.
• 3. Company shall pay off cash dividend to the bank account of the entitled shareholder are available in the BO account maintained with the Depository Participant (DP) or the Bank Account as provided by the shareholder in paper form , through Bangladesh Electronic Funds Transfer Network (BEFTN) or through bank transfer or any electronic payment system as recognized by the Bangladesh Bank , if not possible to pay off through BEFTN;
• 4. In case of non - availability of bank account information or not possible to distribute cash dividend through BEFTN or any electronic payment system, company shall issue cash dividend warrant and shall send it by post to the shareholder;
• 5. Company shall credit stock dividend directly to the BO account of the entitled shareholder, subject to clearance of the exchange (s) and the Central Depository Bangladesh Limited (CDBL).
• 6. If any cash dividend remains unpaid or unclaimed or unsettled including accrued interest (after adjustment of bank charge, if any) thereon for a period of 3 (three) years from the date of declaration or approval or record date, as the case may be, shall be transferred by the company to the fund as directed or prescribed by the Commission.

Company shall maintain detailed information of unpaid or unclaimed dividend as per BO account number - wise or name - wise or folio number - wise of the shareholder and shall also disclose the summary of aforesaid information in the statements of financial position (Quarterly / Annually) as a separate line item " Unclaimed Dividend Account “.

The company shall submit a compliance report to the Commission and the Exchanges in a specified format in respect of the provisions of clause (2), (3), (4) and (5) of the Directive No. BSEC/CMRRCD/ 2021-386 / 03; dated: January 14, 2021 within 7 (Seven) working days of the completion of dividend distribution and publish the compliance report in its website.