The commission disapprove the company’s proposal of distributing 9 percent stock and 0.4737 percent cash dividend.
Earlier, Api Power submitted an application seeking approval to distribute the dividend on August 25. While analysis of the documents submitted by the company, ERC found that the company proposed the dividend by showing unrealized gain as net profit of FY 2080/81. Following which, the regulatory body directed the company to submit clear explanation.
The company in its clarification said that as per given provision, it showed financial tools and investment under its ownership in market price and the market price can be written in profit and loss account or other comprehensive income.
ERC, in its correspondence to the company, informed that such activities are not allowed as per Company Act, 2063, section 56, subsection (10), thus, the dividend has been disapproved.
