Mahindra Ltd., earned a profit of Rs. 500 crores but the company decided to distribute only Rs. 50
crores as dividend to shareholders. Why did not the company distribute all the profits to the
shareholders? Give three reasons.
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Well the profit is quite good....
They can't distribute all shareholders as-
*They have to maintain growth of company.
*The money would help in increment of production.
*Although they would likely to donate in NGO's .And that's really good.
*For the next generation they know that they have to work lot cause natural resources are being lesser day by day and future need is focused on electric cars.
*Well Tesla is a good car company but India should invest to Mahindra,Tata etc (Indian companies) for better outcomes and trust.
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