KATHMANDU: The AGM has approved a 30 percent cash dividend proposed by Reliance Spinning Mills Limited to be paid to shareholders from the profit of the financial year 2082/83.

The AGM held in Kathmandu on Thursday endorsed the proposal of the Board of Directors.

With this decision, a cash dividend of Rs 570 million will be distributed to 30 percent of the company’s paid-up capital of Rs 1.90 billion. The proposed dividend will also include the tax levied as per the prevailing law.

The AGM approved the annual report of the Board of Directors for the financial year 2082/83 and the audited financial report. Reliance Spinning Mills, a subsidiary of the Golyan Group, is the largest export-oriented and employer company in Nepal to be listed on NEPSE in the last financial year.

The AGM also approved an important plan proposal for the expansion of the business presented by the Board of Directors. The plan includes the objective of establishing a state-of-the-art industry by amending the Memorandum of Association of the company and producing different types of fibres. “Yarn will be produced from natural fibres such as aloe, hemp and banana, as well as various types of fabrics and garments will be produced and fibre, yarn and fabric will be dyed,” the amended provision states.

The company plans to pursue an industrial expansion, natural fiber-based products, and entry into the textile and garment industries. The company’s proposed business expansion aims to add value by combining traditional and locally source-based fibers with modern technology. Specifically, the plan to enter the production of fibers, yarns, textiles and readymade garments is seen as an important step in the company’s business diversification.

The AGM has also changed the composition of the board of directors of the company. According to the amended provision, the company will have a 6-member board of directors, including four from the promoter shareholders’ group, one from the general shareholder group and one independent director. Pawan Kumar Golyan, Shashi Kant Agrawal, Akshay Golyan and Kiran Devi Agrawal have been elected as directors from the promoter shareholders’ group. Basanta Nahata has been elected unopposed from the general shareholders’ group. The AGM also approved the appointment of senior advocate Harishchandra Subedi as an independent director of the company.