The Intent of the policy is to broadly specify the following parameters:

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Dividend Distributin Plicy f NLC India Limited (frmerly Neyveli Lignite Crpratin Limited) 1) Back Grund SEBI vide its Ntificatin dated 08.07.

1 Dividend Distributin Plicy f NLC India Limited (frmerly Neyveli Lignite Crpratin Limited) 1) Back Grund SEBI vide its Ntificatin dated has inserted regulatin 43A in the Securities and Exchange Bard f India (Listing bligatins and disclsure requirements) Regulatins, 2015 which requires tp five hundred listed entities based n market capitalizatin (calculated as n March 31 f every financial year) t frmulate a dividend distributin plicy which shall be disclsed in their Annual Reprt and n their websites. Cnsidering the fact that NLC India Ltd is amngst the tp 500 listed entities as per the criteria as at , the dividend distributin plicy has been frmulated. The Intent f the plicy is t bradly specify the fllwing parameters: the circumstances under which the sharehlders f the listed entities may r may nt expect dividend the financial parameters that shall be cnsidered while declaring dividend internal and external factrs that shall be cnsidered fr declaratin f dividend plicy as t hw the retained earnings shall be utilized parameters that shall be adpted with regard t varius classes f shares and Any ther parameter 2) Effective date The plicy shall becme effective frm the date f its adptin by the Bard i.e ) Plicy Framewrk The plicy is framed bradly in line with the prvisins f Cmpanies Act, 2013 and als taking int cnsideratin, guidelines n Capital Restructuring f Central Public Sectr Enterprises issued by Dept f Investment and Public Asset Management (DIPAM), Ministry f Finance, Dept f Public Enterprises, SEBI and ther guidelines, t the extent applicable. The plicy shall deem t cver the amendments if any, issued by any f the regulatry authrities and / r Gvt f India frm time t time. 4) Objective f the plicy Cnsidering the prvisins f the amended Regulatin 43 A f Listing Obligatin and Disclsure Requirements f SEBI Regulatins, 2015, the Bard f NLC India had decided t draw a defined plicy with regard t decisin fr distributin f dividend t its sharehlders and / r retaining the prfit. The plicy cvers the timing, factrs, financial parameters shall be cnsidered fr taking such decisins f c:\g-wrker\temp\task \6a510d96483ad7e b88362df23.dc

2 declaratin f dividend r f retentin f prfits, t bring the transparency with the sharehlders f NLC India. Plicy shall nt apply t: Determinatin and deciding dividend n preference shares, if any t be issued by the NLC India in a later date, as the same will be as per the terms f issue apprved by the sharehlders f the NLC India. Distributin f dividend in kind i.e. by issue f fully r partly paid bnus shares r ther securities subject t applicable laws. Distributin f cash as an alternative t payment f dividend by way f buy back f shares. 5) The circumstances under which the sharehlders f the NLC India may r may nt expect dividend Decisin regarding dividend seeks t balance the dual bjective f rewarding the sharehlders thrugh dividend and retain prfit t fund the grwth plan f the cmpany. The cmpany can be reasnably expected t cntinue declaring dividend in future as well unless the Cmpany is restrained t declare prfits due t insufficient prfits r nn-availability f sufficient funds. Further, thugh the cmpany endeavurs t declare dividend as per the guidelines issued by DIPAM, Gvt f India as specified under clause 5.3 and 5.4, the cmpany may hwever prpse lwer dividend after analysis f varius financial parameters, cash flw psitin, funds required fr future grwth and after apprval f cncerned Dept f Gvt f India. 6) The financial parameters that shall be cnsidered while declaring/recmmending dividend Being a Central Public Sectr Enterprise (CPSE), the NLC India has t cmply the guidelines dated 27 th May, 2016 and 19 th Dec 2016 n Capital Restructuring f Central Public Sectr Enterprises issued by DIPAM mandating every CPSE t pay a minimum annual dividend f 30% f PAT r 5 % f Net-wrth, whichever is higher subject t the maximum dividend permissible under the extant prvisins. Nnetheless, CPSE are expected t pay the maximum dividend permissible under the Act under which CPSE has been set up, unless lwer dividend prpsed t be paid is justified n a case t case basis after the analysis f the fllwing aspect: Net-wrth f the CPSE and its capacity t brrw Lng- term brrwing c:\g-wrker\temp\task \6a510d96483ad7e b88362df23.dc

3 CAPEX / Business Expansin needs Retentin f prfit fr further leveraging in line with the Capex needs: and Cash and bank balances 7) Internal and external factrs that shall be cnsidered fr declaratin f dividend a. Internal Factrs i. Cash Flw: In the event, NLC India cannt generate adequate perating cash flw; it may need t rely n utside funding t meet its financial bligatins and smetimes t run the day t day peratins. In such circumstances, the Bard will cnsider these factrs befre its decisin whether t declare the dividend r retain its prfit. ii. CAPEX plan: Declaratin f dividend will als depend n CAPEX plan f the cmpany. Deplyment f internal resurces t meet the cmmitted CAPEX will be taken int accunt. Apart frm the abve financial parameters, the Bard f NLC India may als cnsider varius ther internal factrs, which inter- alia include: Additinal investments in subsidiaries/assciates f the cmpany Any ther factrs as deemed fit. b. External Factrs i. Ecnmic Envirnment : In the event f uncertain r recessinary ecnmic, business and industry cnditins, NLC India will endeavur t retain larger part f prfits t build up the reserve t sustain future up dwns. ii. Taxatin and ther regulatry cncern: Dividend distributin tax as required by tax regulatin r any restrictins n payment f dividend by virtue f any regulatin, as may be applicable t the cmpany, at the time f declaratin f dividend and its impact n the finances f the NLC India. iii. Macr-ecnmic Cnditins : The plicy decisins that may be frmulated by the Gvernment f India which may have a bearing n r affect the business f the NLC India, the Bard may cnsider retaining a larger part f prfits t have sufficient reserves t absrb unfreseen circumstances. c:\g-wrker\temp\task \6a510d96483ad7e b88362df23.dc

4 iv. Cst f Brrwing : The Bard will analyse the lng term and /r shrt term fund requirement cnsidering the viability f the ptins in terms f cst f raising the same frm external surces r thrugh plughing back its wn funds. Regulatry Nrms prescribed by the Ministries, Central/State Regulatrs such as Central Electricity Regulatry Cmmissin (CERC), State Electricity Regulatry Cmmissins (SERCs) and ther statutry bdies may affect the margin and in turn affect dividend pay ut. The cmpany may cnsider retaining a larger part f prfit t have sufficient reserves t absrb unfreseen circumstances arising ut f the ecnmic scenari prevailing in the cuntry and abrad which may have bearing n the industry and cmpany. 8) Plicy as t hw the retained earnings shall be utilized Prfits being retained shall be deplyed in expanding the business and thus cntribute t the grwth f the business and peratins f the NLC India. Utilisatin f retained earnings shall als be gverned by the fllwing parameters: The bjects f the NLC India as detailed in Memrandum f Assciatin Strategic and lng terms requirements f the NLC India Future pwer asset installatin/acquisitin and Develpment f lignite and cal blck develpment. Diversificatin plan Nn fund based needs f the cmpany and its subsidiaries and jint ventures Gvt guidelines with regard t buy-back f shares, issue f bnus shares etc. Any ther criteria which Bard may cnsider apprpriate 9) Parameters that shall be adpted with regard t varius classes f shares NLC India has presently nly ne class f shares i.e. equity shares. Since the cmpany has issued nly ne class f equity shares with equal vting rights, all the sharehlders f the cmpany are entitled t receive the same amunt f dividend per share. As and when it prpses t issue any ther class f shares, the plicy shall be mdified accrdingly. c:\g-wrker\temp\task \6a510d96483ad7e b88362df23.dc

5 10) Manner and timelines fr Dividend Payut. a. Interim Dividend(s) The Bard may cnsider declaratin f Interim dividend(s) n the basis f last quarterly apprved accunts during the financial year at the time f Bard meeting and als the prfit prjectins fr the remaining part f the year. The payment f the dividend shall be as per the applicable prvisins f The Cmpanies Act, In case n final dividend is declared fr any year, the interim dividend if any paid during the year, will be regarded as the final dividend fr the said year in the annual general meeting. b. Final Dividend Recmmendatin f final dividend, if any, shall be dne by the Bard, usually in the Bard Meeting that cnsiders and apprves the financial statements, subject t the apprval f the sharehlders f the Cmpany. The dividend as recmmended by the Bard shall be declared at the annual general meeting f the cmpany. The payment f the dividend shall be as per the applicable prvisins f the Cmpanies Act, ) Amendment CMD is authrised t make mdificatins in the plicy especially t cmply with the Gvt directives, if any, and will als be the Cmpetent Authrity fr any interpretatin regarding the plicy. Glssary ********** CAPEX CERC CMD CPSE DIPAM SEBI SERC Capital Expenditure Central Electricity Regulatry Cmmissin Chairman and Managing Directr Central Public Sectr Enterprise Department f Investment and Public Asset Management Securities and Exchange Bard f India State Electricity Regulatry Cmmissin *** c:\g-wrker\temp\task \6a510d96483ad7e b88362df23.dc

DIVIDEND DISTRIBUTION POLICY OF SOLAR INDUSTRIES INDIA LIMITED

DIVIDEND DISTRIBUTION POLICY OF SOLAR INDUSTRIES INDIA LIMITED 1 A. REGULATORY FRAMEWORK The Securities Exchange Bard f India ( SEBI ) n July 8, 2016 inserted Regulatin 43A in SEBI (Listing Obligatins