This Dividend Distribution Policy is adopted by Saiham Textile Mills Ltd. in accordance with the directive issued by the Bangladesh Securities and Exchange Commission (BSEC) vide BSEC/CMRRCD/2021-386/03 dated January 14, 2021. This Policy applies to all ordinary equity shares of the Company, as it currently has only one class of equity shares outstanding.

The objective of this Policy is to provide clarity and transparency to stakeholders regarding the Company’s approach to dividend distribution. The Policy is aligned with the Company's medium- and long-term strategic goals, investment and financial planning, prevailing economic and industry conditions, and aims to balance shareholder expectations with the Company's growth requirements. It complies with the Companies Act, 1994, BSEC directives, and other applicable laws and regulations.

Dividend distribution is subject to various internal and external factors. The Board of Directors will consider the following key parameters when determining the dividend amount:

• Availability of distributable profits.
• Favorable debt-to-equity ratio
• Liquidity position and projected cash flow requirements.
• Future capital expenditure plans.
• Working capital requirements
• Profit growth trends
• Macroeconomic conditions
• Industry outlook and competitive dynamics
• Changes in government policies or regulatory framework
• Any other factors deemed relevant by the Board

The Company may utilize retained earnings in ways that benefit both the business and its stakeholders. Key areas for deployment may include:

• Issuance of bonus shares.
• Declaration of interim or final dividends.
• Expansion, diversification, or modernization initiatives
• Capital expenditure and infrastructure development
• Capacity enhancement
• Debt repayment, especially high-cost debt

The Board may choose to withhold or reduce dividend payouts in any financial year due to anticipated business opportunities, potential threats, or in light of adverse market conditions. Unallocated profits will be reinvested in the Company to support operational and strategic goals.

The company shall determine the record date of members. Members whose names shall appear in the Members / Depository Register on the Record date will be eligible to receive dividend.

The Company shall fix a Record Date or Book Closure Date to determine shareholder eligibility for dividends. Advance notice of at least 14 working days (excluding the date of intimation and the record date) shall be given to the stock exchange(s) indicating the purpose. Shareholders whose names appear in the Members’ Register/Depository Register on the Record Date shall be entitled to receive the dividend.

This Dividend Distribution Policy shall be:

• Disclosed in the Annual Report of the Company.
• Published on the official website of the Company

The Board of Directors reserves the right to amend, alter, or revise this Policy at its sole discretion, or in accordance with any changes in applicable laws and regulations.

This Policy does not constitute an offer or solicitation to invest in the Company's securities. It should not be interpreted as a promise or assurance of guaranteed returns in any form on investments made in the Company's equity shares.