PRESENTED BY: S.KRUTHIKA-25 ADHEIP BAKSHI-44 ISHA GOGAWAT-26 ESHITA ZATAKIA-14 TRUSHNA DESAI-59SHIVRAJ YADAV-43

DIVIDEND POLICY

TATA STEEL & JINDAL STEEL

WHAT IS A DIVIDEND POLICY

The amount that a public company will pay out as dividend to its shareholders.

It will also outline when the dividends will be paid out , how much, and how frequent.

It also has an impact on investors and perceptions of the company in the financial markets.

VARIOUS DIVIDEND POLICIES

Generous dividend and bonus policyFixed dividend policyErratic dividend policy

TYPES OF DIVIDEND

Regular dividend

Interim dividend

Stock dividend

Scrip dividend

Bond dividend

Property dividend

FACTORS AFFECTING DIVIDEND POLICY

Stability of earningsAge of corporationLiquidity of fundsNeed for additional capitalTaxation policyGovernment policyPast dividend ratesTime for payment of dividend

TATA STEEL

It was formerly known as TISCOIt was founded in 1907World’s 7th largest steel companyConsolidated revenue of US$29.33 billionNet profit of US$2.74 billion

JINDAL STEEL

Initially named as orbit strips ltd.Annual turnover of over US $2.1 billionOne of the largest steel producers in India

with 12 plants in India and 2 in USA. Leading player in steel, power, mining, oil

and gas and infrastructure.

DIVIDEND IN %

2010 2009 20080

100

200

300

400

500

600

Jindal SteelTata Steel

Dividend paid

2008 2009 20100

2

4

6

8

10

12

14

16

18

TATAJINDAL

EARNING PER SHARE

2008 2009 20100

20

40

60

80

100

120

140

160

180

JINDALTATA

PRICE EARNING RATIO

2008 2009 20100

10

20

30

40

50

60

JINDALTATA

COMMENTS

The 52 week high of Tata is Rs.737 and that of Jindal is Rs.755.25.

The 52 week low of Tata is Rs.448.65 and that of Jindal is Rs.572.70.

Jindal steel pays better dividend to its shareholders.

The earning per share has increased in 2009 and decreased in 2010 for both the companies.