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@ The Company was Incorporated on 21st March,

1916 as a public limited company under the
Indian Companies Act, VII of 1913.
@ 1965 the first manufacturing unit of bread was
started in Mumbai.
@ 1993 launched very famous brand ³Fifty-fifty´
ºffect on the Financial Statements

@ º uity = 23.89Cr
@ Face value = Rs10
@ Number of Shares outstanding = 2.389Cr
@ Debenture value = Rs170
@ Total Debenture Size = 170*2.389
= 406.13 Cr
@ Dividend Distribution Tax @ 17% = .17*406.13
= 69.04 Cr
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@      

@ Ratio of net income after taxes to total end of the
year Net worth
Ra tio Y Y
B er h a re(Rs) ë
 

RON W  
/E Ra tio ë 

2ow is this different from a dividend
payment?

@ A Dividend payout means a cash outflow from the company to the

total dividend value. ut in case of a bonus debenture there is no
immediate cash outflow from the company.
@ The 406Cr to be given as onus debenture will not result in a
immediate cash outflow from the company the only cash outflow is
the 17% Dividend distribution Tax levied on bonus debenture.
@ =.17*406.13
@ = 69.04Cr
@ Since the bonus debenture will be effective from 22 march 2010 the
other cash outflow to serve the interest payment on this 406.13 Cr
debenture
@ =.0825*406.13
@ = 33.50 Cr annually for 36 months.
 Xhy do you think this was structured as a bonus debenture
rather than a dividend?
@ No immediate cash outflow from the system unlike
dividend payout.
@ Tax shield that the company will get from 2010
onwards till 36 months for the interest payment of
the debenture
@ The management can utilize this 406.13Cr in a high
NPV project which will give them a high return
than 8.25%
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