Sazgar Engineering Works Limited Declares Interim Dividend And Announces Book Closure Dates

Lahore, Sazgar Engineering Works Limited has announced that its Board of Directors, in a meeting held on April 18, 2024, has declared an interim cash dividend of Rs.8.00 per ordinary share, which constitutes an 80% dividend. This payment will be made to shareholders listed in the company’s register by the end of business on April 30, 2024. The company’s share transfer books will remain closed from May 1, 2024, to May 3, 2024, inclusive. Transfers processed at the share registrar office of Corp Tec Associates in Lahore by April 30 will be eligible for the dividend. Shareholders are urged to update any changes in their addresses promptly.

Further details were provided on the electronic payment of dividends, as mandated by the Companies Act of 2017. Shareholders must submit their bank account details, including the IBAN, bank name, and branch information, along with a valid CNIC copy to receive their dividends electronically. This submission is required for both physical shares and those held in CDC accounts. Absent valid account information, dividends will be withheld as per regulatory requirements.

Regarding tax deductions, the current withholding tax rate on dividends is set at 15% for active taxpayers listed on the Federal Board of Revenue’s (FBR) website and 30% for those not on the list. Shareholders not on the active taxpayer list must ensure their status is updated with the FBR before the dividend distribution date to benefit from the lower tax rate. Corporate shareholders are also reminded to update their National Tax Number with their CDC participants or share registrar.

Additionally, for shareholders with jointly held accounts, tax will be deducted based on each holder’s share. If shareholders do not provide specific shareholding details to the share registrar by April 29, 2024, it will be assumed shares are equally divided among all holders, impacting the tax deduction rate.

Exemptions from income tax or Zakat deductions are contingent upon submitting valid exemption certificates or necessary documents to the company’s share registrar. The FBR requires a valid Tax Exemption Certificate to claim withholding tax exemptions under specific clauses of the Income Tax Ordinance.