We Design Your Financial Destiny


(Precious) Words of Wisdom : "Who is the ideal adviser? A person who likes you but doesn't care about your feelings." ~ Daniel Kahneman

Mukesh Ambani forgoes Rs.24 crore in salary - How Promoters and Media mislead people

As declared by Reliance Industries in its annual accounts for the FY 2012-13 "The Chairman and Managing Director's compensation has been set at Rs.15 crore as against Rs.38.93 crore he is eligible as per shareholders' approval reflecting his desire to continue to set a personal example in managerial compensation levels".

Accordingly, as widely reported by the media, by taking only Rs.15 crore Mr. Mukesh Ambani is forgoing Rs.24 crore as salary.

What a 'cruel' joke to play on the unsuspecting public!


As per the results declared for FY 2012-13, Reliance will pay out Rs.2628 crore as dividend.

As per the shareholding pattern as on Mar 31, 2013, promoter and promoter companies hold 45.35%.

This works out to Rs.1192 crore that Mr. Mukesh Ambani and his family and family-owned companies would receive as dividend.

So the seemingly huge sum of Rs.24 crore forgone by Mr. Mukesh Ambani works out to a mere 2%.

To put the numbers in perspective : Suppose your salary is Rs.50,000 p.m. i.e. Rs.6 lakh per annum. Then forgoing 2% would mean an amount of mere Rs.12,000. I guess you too can afford to forgo this petty amount (especially if you get this kind of publicity). So what's the big deal if Mr. Mukesh Ambani is doing so.

I am sure the so-called 'informed media' could have reported the dividend numbers too to give a right perspective to the news. 


By the way, these numbers pertain to Reliance Industries only. What about salary/dividends from the other group companies in the Reliance Group? 

(Also, as you may be aware, on salary the income tax is 30%, whereas dividend is taxed at 15% only.)

Of course, there are absolutely no issues with Mr. Ambani taking a Rs.1000+ crore payout. He fully deserves it. However, trying to take a moral high ground, on such an insignificant amount,is not in the right spirit.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Powered by Blogger.

... Three VALUABLE Tips ...

1. How Rs.1 Lakh Became Rs.1 Crore In Mutual Fund Scheme
Reliance Growth Fund
Stay invested through all the rough and tough times.

 


2. Guaranteed Income Insurance Plans Misinform Misguide Mislead
Guaranteed Income Insurance Plan
I sincerely hope you spill coffee over guaranteed income insurance form.

 


3. Should You Opt For Home Loan With An Overdraft Facility?
Home Loan With Overdraft Facility
Wondering whether an Overdraft Account linked to Home Loan is Ok or not?