ROYAL SECURITIES EXCHANGE OF BHUTAN LTD.

Transcription

1 ANNUAL REPORT 2008 ROYAL SECURITIES EXCHANGE OF BHUTAN LTD. P.O. Box 742 : / Thimphu: BHUTAN Fax No. : rseb@druknet.bt Website :

2 CONTENTS 1. BOARD OF DIRECTORS 2. MANAGEMENT 3. DIRECTORS REPORT 4. MARKET HIGHLIGHTS Financial highlights of listed Companies Shareholding pattern Number of shareholders (yearwise) Comparison of Yearwise Market capitalization Primary market Traded volume (table 6.1) Traded value (table 6.2) Secondary market Traded volume (table 8.1) Traded value (table 8.2) Dematerialization & Bonus issues Market Prices SECURITIES RECORDS IN THE DEPOSITORY Dividend Records Brokers Performances. Dividend Records RMA DISCOUNT BILLS RGOB BONDS FINANCIAL STATEMENTS OF RSEB Balance Sheet. Profit and Loss Account Cash Flow i

3 1. BOARD OF DIRECTORS 1. Mr. Daw Tenzin, Managing Director, Royal Monetary Authority Chairman 2. Mr. Kipchu Tshering, MD, Bhutan National Bank Ltd. Director 3. Mr. Nawang Gyetse, MD, Bhutan Development Finance Corp.Ltd. Director 4. Mr. Namgyal Lhendup, MD, Royal Insurance Corp. of Bhutan Ltd. Director 5. Mr. G.P Sharma, CEO, BOB Securities Ltd. Director 6. Mr. Mr Sangay Wangdi, Director, Dept. of Trade, MoEA Director 7. Mr. T. Yezer, CEO, RSEB Member Secretary 2. MANAGEMENT 1. Mr. Tashi Yezer, CEO 2. Mr. Dophu Dorji, Manager 3. Mr. Nawang Lhendup, Incharge (Central Depository) 4. Ms. Khandu Wangmo, Programmer (Trading) 5. Mr. Pema Lhendup, Accountant 6. Mr. Dawa Dakpa, Research Officer 7. Mr. Kezang Dorji, Office Assistant 8. Mr. Dil Kumar Rai, Driver Brokerage Firms: RICB Securities Ltd. C/o Royal Insurance Corporation of Bhutan Ltd. Phuentsholing, Bhutan Tel # / BNB Securities Ltd. C/o Bhutan National Bank Ltd. Thimphu, Bhutan Tel # / BOB Securities Ltd. C/o Bank of Bhutan Ltd. Thimphu Branch, Bhutan Tel # Drook Securities Ltd. C/o Bhutan Development Finance Corporation Ltd. Thimphu, Bhutan Tel # ii

4 Directors Report 2008 Background History The Royal Securities Exchange of Bhutan Limited (RSEB) was established as a nonprofit, quasipublic organization, under the parenthood of the RMA in August 1993, in respond to the need to develop capital markets in the Kingdom. Since then, it has proven to be of significant importance to the economic growth of the country by mobilizing funds for financing and promoting private sector development. Although the capital market in Bhutan is still in its infancy stage, the Exchange has been instrumental in serving as the formal trading place for securities that have been sold to the public, and providing liquidity and leverage to the tradable instruments in the system. It has also helped to raise capital for the development of new companies as well as serving as one of the important sources of capital to corporations and the Royal Government through the issuance of debt instruments. Since its inception, the Exchange has witnessed growth in the number of listed companies from 4 to 19 and also a significant increase in market capitalization. However, the numbers of Bhutanese investors both in equity and debt markets remain relatively small compared to the extent of market capitalization. Till date, diversification of ownership in the enterprises demonstrates a shareholding pattern where a large percentage of holdings are owned either by the State or a group of promoters or institutional investors rather than the general public. In the past, divestment of state owned shares in BNB, PCAL, RICB, STCB and Kuensel Corporation Ltd. helped to diversify ownership towards domestic investors. However, the size of most of the initial public offerings (IPOs) was not more than 30 percent and insufficient to meet prevailing public demand. Therefore, numerous investors resorted to including family members to acquire additional shares from popular IPOs. The size of the listed companies paid up capital ranged from Nu.6 million to more than Nu million (in PCAL) as at the end of There are further proposals that Royal Insurance Corporation of Bhutan will increase its existing paid up capital to Nu.200 million, which would thus provide additional instruments for the market. Similarly, to broaden investment distribution of equities to the public, the Royal Government has proposed to divest 30 percent of Bank of Bhutan Ltd s shares to the public. In the same manner, privatization of other state owned companies such as Telecom Corporation Ltd, Bhutan Power Corporation and Druk Air Corporation Ltd. etc. is expected to further promote development of the domestic capital market. In spite of this, it prevails that given the small size of the Bhutanese market, the four brokerage firms and Royal Securities Exchange of Bhutan Ltd. face tremendous challenges in sustaining revenues generated without constant support from the Royal Monetary Authority of Bhutan and parent companies of the brokerage firms. Currently the Exchange operates through four brokerage firms as its members who are authorized to deal in securities listed on the Exchange and all buy and sell orders are 1

5 routed through authorized brokers. These brokers in turn represent the subsidiary companies of the four financial institutions, whose operational costs are financed by the parent companies. Notably, all four financial institutions have borne losses from their brokerage business portfolios. Meanwhile, the RSEB has dematerialized the physical share certificates into scripless form and also completed the splitting of shares from Nu.1000 to Nu.100 per share in PCAL, RICB, BTCL, BCCL, BFAL and BBPL. On the occasion of this Annual General Meeting (AGM), on behalf of Board, I would like to report the following activities of the Royal Securities Exchange of Bhutan Ltd. (RSEB) for the year ending Primary Market a. Bonus issue Following the requirement of the Royal Monetary Authority of Bhutan to increase the paidup capital of the Financial Institutions to Nu.300 million each, the Bhutan National Bank Ltd. issued bonus shares of 1,786,016 shares amounting to Nu.178,601,600 applying the ratio of 2:3 to its existing shareholders in June Further, the Penden Cement Authority Ltd. also issued bonus of 1,133,337 shares at the rate of 2:1 totaling worth Nu million. b. Rights issue Following its bonus issue, the BNB also issued Rights offers of 594,144 shares at the issue price of Nu.100 per share at the ratio of 5:1. Out of its total offer, only 579,101 shares were subscribed by 3,061 existing shareholders. The balance of 15,043 shares unsubscribed by existing shareholder has been surrendered back to the issuer. As a result of the above issues, the paid up capital of the BNB now stands at Nu million. c. Divestment With the interest of being listed on the Exchange, the Druk Ferro Alloys Limited (DFAL) divested a portion of its promoter s equity under private placement to further diversify and increase public holdings. However, the company is yet to apply for listing after its private placement. Private placement of shares are traded at the Exchange after the money of the preidentified individual, approved by the Registrar of Companies, is deposited in the consolidated client account of the Brokers for clearing and settlements of trade. d. Prospectus Under Review 2

6 The Exchange has received copies of prospectus from Tashi InfoCom Limited and Tashi Beverage Company Limited which are under review by the Registrar of Companies. These represent new and potential sources of market issued securities. As a result of various issues of bonus shares and rights offers the Exchange recorded total trading of 2,674,100 new shares in the primary market amounting to Nu million during the year, compared to 817,500 shares, worth Nu million in the previous year. 2. Secondary Market Transactions in the secondary market increased both in terms of volume and value from 50,531 shares valued at Nu million in the previous year to 77,123 shares amounting to Nu million in Overall Trading The year 2008 recorded an overall traded value including IPOs, secondary trading, bonus issues, rights issues and private placement amounting to 6,249,677 shares totaling Nu million. This is a considerable increase in contrast to the 1,868,031 shares amounting to Nu million traded as of Market Capitalization As a result, market capitalization of the 19 listed companies increased significantly to Nu.7, million compared to Nu.5,029 million as of This increase is largely attributed to the new listings, issue of bonus shares and rights issues by the BNB and PCAL, besides changes in the market prices of shares. 5. Number of Shareholders During the year the total number of shareholders increased slightly to 12,851 shareholders from 11,782 shareholders as of the previous year. 6. New listing Thus, the year 2008 records the listing of three more new companies on the RSEB namely: I. Druk Wang Alloys Ltd. (DWAL), in January II. Bhutan Times Ltd. (BTL) in January III. Jigme Mining Corporation Ltd. (JMCL) in August Number of Listed companies The total number of companies listed on the Exchange increased from 16 in the previous year to 19 in

7 Market information For the benefit of the general public, the compilation of companies information such as issued capital, face value, profits/loss, reserves and the calculation of book value, market value, earnings per share, and return on capital, debt equity ratio, dividend yields etc. are calculated manually on the basis of balance sheets. All listed companies are requested to file their draft accounts before March of each year. 8. Bonds No new government bonds were issued by the Royal Government during the year under review. Coupon Payments However, as per its coupon payment schedules the Central Depository (CD) has facilitated half yearly coupon payments of Nu million to the Druk Air and Rural Credit bond holders. Redemption A total of Nu.50 million against the Rural Credit Bond that was issued in 1998 was redeemed in September 2008, as a result of which the CD now holds Nu.1, million worth of bonds on behalf of bond holders, which is due to mature in the years 2013 and Corporate Bonds In the meantime, the RSEB has received RICB s proposal for the issue of Corporate Bonds whose prospectus was lately reviewed by the Registrar of the Companies. Once endorsed by the approving authority, the issue of RICB Bonds shall be issued through the facilities of the RSEB. 9. RMA Discount Bills During the year, the RSEB traded a total of 8 series of 90 to 91 day RMA Discount Bills aggregating to Nu.7, million compared to Nu.5,259.5 million in the previous year. The issue of RMA Bills towards the end of the year increased both in terms of its discount rate to 6 percent per unit from 5 percent, as well as in the issue amount from Nu.100 million to Nu.1 billion. In view of better investment opportunities offered by the RMA, many institutional investors and individuals shifted their capital from banks to invest in short term bills, following which some banks increased their interest rates in fixed deposits. The allotment of the Bills was continued as per the requirement of the Central Bank. This entails that the orders of the commercial banks are to be filled only after filling 4

8 the bids of public and institutional investors. Any changes to the allotment pattern are at the discretion of the RMA. 10. Overall Trading of Bills The overall trading of the Bills, since its first trading in 1994 to the year 2008, amounted to Nu.38, million. 11. Brokers Performance During the year 2008, of the total traded securities, BOB Securities Ltd traded percent followed by BNB with percent and RICB Securities Ltd with percent. Drook Securities Ltd. has made no transaction for two consecutive years. 12. Dematerialization Having completed the dematerialization in the previous year as per the companies Act of the Kingdom 2000, the RSEB fully conducts scripless trading based on trade confirmations issued by the brokers. 13. Trade Confirmation Note In the absence of physical share certificates in the market, trade confirmation issued by the brokers continues to serve as prime evidence of ownership of the listed companies. Until online trading is launched in the Bhutanese capital market, brokers shall also continue to collect trade confirmations from sellers to prevent sellers from claiming sold shares as theirs; funds are thereafter collected from purchasing clients by executing brokers during transaction time. However, in the case of noncommercial transactions, the RSEB endorses changes on the original Trade Confirmations and returns them to transferees as new beneficial owners. Any changes taken place must be updated in the record of the brokers, CD of the RSEB and in the Register of the issuing companies. 14. NonCommercial Transaction The RSEB permits transfer of share ownership in noncommercial transactions such as gifts, inheritance and other noncommercial transfers within the immediate family members being verified by the court. During the year, 69 cases of noncommercial transfers of share ownership worth Nu million calculated at face value for 3,725,361 shares were entertained at the RSEB. 15. Central Depository The volume of securities deposited in the Securities Depository grew by percent, to million shares, from million shares in the previous year or 5

9 99.23 percent of total securities during the year. This growth was fueled by new listings, bonus issues and rights offers. The Central Depository system has proven to be of immense benefit to the capital market, facilitating timely settlement of trades within three business days (T+3) after the trade date. The functions of the CD are very similar to other banking institutions where it opens and manages cash accounts of its clients, whereas in the case of the CD, it only accepts securities as deposits. Today the entire outstanding shares of the listed companies are deposited in the Central Depository. Clearing and Settlement The CD has enabled the clearing and settlement of 4.83 million shares resulting from primary, bonus, rights and secondary transactions. 16. Human Resource Development During the year, three employees of the Exchange participated in the Executive Course for Exchange Managers and Compliance Officers, organized by the South Federation of Exchanges (SAFE) in Islamabad, Pakistan. 17. Audited Accounts 2008 In 2008, the Exchange generated a profit after tax of Nu.2.52 million compared to a profit of Nu.0.26 million in Profits during the year are largely on account of revenue contributions other than fixed incomes such as noncommercial transaction and trading fees. The annual accounts of the RSEB as at 31 st December 2008 were audited by M/s T.K. Ghose & Co., Chartered Accountants, Kolkata, India. 18. Public Education As in the past the RSEB participated in the Oneday Seminar organized by the Ministry of Economic Affairs (MoEA) in Thimphu to share information on the operation of and developments within the Bhutanese capital market. Such awareness building measures and information exchange have been of considerable benefit not only to its development stakeholders but to investors and companies alike. 19. Acknowledgment On behalf of the Royal Securities Exchange of Bhutan Limited, the Directors would like to take this opportunity to acknowledge appreciation to the listed companies, the Brokerage Firms, the Royal Monetary Authority and the Department of Industry, MoEA, for their continued support and cooperation. 6 Chairman

10 Abbreviations for Listed Companies 1. BBPL Bhutan Board Products Limited 2. BCCL Bhutan Carbide & Chemicals Limited 3. BFAL Bhutan Ferro Alloys Limited 4. BDL Bhutan Dairy & Agro Products Limited 5. BNB Bhutan National Bank Limited 6. BPCL Bhutan Polymers Company Limited 7. BTCL Bhutan Tourism Corporation Limited 8. BTL Bhutan Times Limited 9. DPCL Druk Petroleum Corporation Limited 10. DPOP Druk Plaster & Chemicals Limited 11. DWAL Druk Wang Alloys Limited 12. DSML Druk Mining Limited 13. DSCL Druk Satair Corporation Limited 14. EBCC S.D Eastern Bhutan Coal Company Limited 15. KCL Kuensel Corporation Limited 16. PCAL Penden Cement Authority Limited 17. RICBL Royal Insurance Corporation of Bhutan Limited 18. STCB State Trading Corporation of Bhutan Limited 19. JMCL Jigme Mining Corporation Limited Disclaimer: The materials provided here are for general information purposes only. While every effort is being made to ensure the accuracy and completeness of information, the Exchange makes no guarantee and assumes no liability for any error or omissions of the information provided herein. Also, no one may use the information as the basis for any claim, demand or cause of action. 7

11 Table 1 Company/ year of listing Year Paid Up Capital P/Shares Reserves Net Profit Face Value (IPO) Debt Market Price Dividend (%) Book Value Earnings Per Share Price earnings Ratio Returns On Capital Dividend Yield Debt Equity Ratio BBPL ,001, ,400,014 18,005, ,822, ,147, ,001, ,400,014 28,692, ,686, ,001, ,400,014 39,953, ,260, ,001, ,400,014 62,663, ,710, ,001, ,400,014 67,250, ,986, BBCL* ,000, ,150,000 (9,559,274.63) ,160, (8.31) (29.47) (0.08) ,000, ,150,000 1,183, ,318, ,000, ,150,000 9,606, ,799, Delisted BCCL ,000, , ,637, ,918, ,000 5, , ,000, , ,016, ,427, ,000 92,000, , , ,000, , ,868, ,755, , ,950, , , ,000, ,000, ,492, ,100, ,572, ,000, ,000, ,986, ,494, ,169, BDL ,600, ,000 (877,463.41) 100 8,696, (10.20) (9.80) (0.10) ,092, ,929 (4,357,351.62) ,775, (30.92) (3.23) (0.31) ,092, ,929 (29,807,666.81) ,848, (211.51) (0.47) (2.12) ,092, ,929 (27,018,813.09) ,074, (191.72) (0.52) (1.92) BFAL ,000, ,500, ,842, ,207, ,911, ,000, ,500, ,533, ,191, ,909, ,000, ,500, ,929, ,281, ,734, ,000, ,500, ,985, ,114, ,573, ,000, ,500, ,995, ,510, ,757, BNB ,008, ,190, ,523, ,897, ,761,611, ,008, ,190, ,856, ,638, ,424,627, ,008, ,190, ,575, ,761, ,622,910, ,008, ,190, ,709, ,544, ,614,753, ,517, ,555, ,135, ,349, ,601,360, BPCL ,933, ,334 17,960, ,496, ,494, ,933, ,334 21,007, ,033, ,199, ,933, ,334 24,123, ,349, ,785, ,933, ,334 32,151, ,028, ,707, ,933, ,334 33,937, ,018, ,234, Book Value = Cap. + Reserves / No. of Shares 2. EPS = Net Profit/ No. of shares BBCL* Company wound up and delisted. 3. PE Ratio = Market Price / EPS 4. Return on Capital = Net Profit / Equity + Reserves 5. Div. Yield = Div. per share X 100 / MP per share 6. Debt Equity Ratio = Debt / Paid Up Capital 8

12 Table 1, Continued Company/ year of listing Year Paid Up Capital P/Shares Reserves Net Profit Face Value (IPO) Debt Market Price Dividend (%) Book Value Earnings Per Share BTCL ,940, ,940 29,862, ,522, ,000 45,297, , , ,940, ,940 37,064, ,083, ,000 41,022, , , ,940, ,400 38,683, ,223, ,587, ,940, ,400 52,462, ,031, ,503, ,940, ,400 70,573, ,255, ,541, DPCL ,237, ,370 (6,242,064.46) ,254, (100.08) (1.20) (1.00) ,237, ,370 (368,312.34) ,393, (5.91) (20.32) (0.06) ,237, , , ,637, ,237, ,370 (179,751.11) ,523, (2.88) (41.64) (0.03) ,237, ,370 1,556, ,962, DPOP ,000, , , ,586, ,000, ,000 1,000, ,960, ,696, ,000, ,000 2,397, ,896, ,464, ,000, ,000 3,341, ,944, ,747, ,000, ,000 4,451, ,610, ,010, DSCL ,403, ,032 68,814, ,782, ,403, ,032 58,570, ,209, ,654, ,543 45,961, ,571, , ,654, ,543 49,973, ,708, ,654, ,543 64,508, ,078, DSML ,770, , , ,834, ,770, ,702 (2,018,386.49) 100 3,282, (53.54) (5.60) (0.54) ,770, ,702 (1,816,550.08) 100 6,341, (48.18) (8.90) (0.48) ,770, , , ,873, ,770, ,702 7,065, ,091, PCAL ,667, , ,314, ,467, ,000 5, , ,667, ,266, ,773, ,792, ,667, ,266, ,628, ,855, ,667, ,266, ,766, ,138, ,000, ,400, ,539, ,107, RICB ,000, , ,447, ,322, , ,336, , , ,000, , ,956, ,611, ,288, ,000, , ,057, ,334, ,039, ,000, , ,537, ,335, ,402, ,000, , ,047, ,261, ,417, STCB ,000, ,000 50,504, ,739, ,000, ,000 54,725, ,221, ,000, ,000 52,528, ,196, (10.98) (17.30) (0.03) ,000, ,000 36,761, ,767, (78.84) (2.41) (0.28) ,000, ,000 75,556, ,794, Price earnings Ratio Returns On Capital Dividend Yield Debt Equity Ratio 1. Book Value = Cap. + Reserves / No. of Shares 2. EPS = Net Profit/ No. of shares 3. PE Ratio = Market Price / EPS 4. Return on Capital = Net Profit / Equity + Reserves 5. Div. Yield = Div. per share X 100 / MP per share 6. Debt Equity Ratio = Debt / Paid Up Capital 9

13 Table 1, Continued Company/ year of listing Year Paid Up Capital P/Shares Reserves Net Profit Face Value (IPO) Debt Market Price Dividend (%) Book Value Earnings Per Share EBCC ,100, ,000 1,125, ,982, ,225, ,100, , , ,985, ,077, ,100, ,000 1,816, ,377, ,222, ,100, ,000 18,832,321 58,695, ,726, KCL ,000, ,000 90,734, ,627, ,000, ,000 93,199, ,965, BTL ,000, ,000 4,390, ,832, ,000, ,000 12,758, ,367, DWAL ,000, ,670, ,755, ,000, ,940, ,344, JMCL ,430, ,300 24,749, ,662, ,711, Price earnings Ratio ,430, ,300 68,310, ,462, Returns On Capital Dividend Yield Debt Equity Ratio 1. Book Value = Cap. + Reserves / No. of Shares 2. EPS = Net Profit/ No. of shares 3. PE Ratio = Market Price / EPS 4. Return on Capital = Net Profit / Equity + Reserves 5. Div. Yield = Div. per share X 100 / MP per share 6. Debt Equity Ratio = Debt / Paid Up Capital 10

14 SHARE HOLDING PATTERN (2008) Table 2 ISSUING Holdings in Percent Major Shareholders PUBLIC COMPANY Paid up RGOB (Promoters) FIS Instituitional Foreign Individual Total Shares Investors Inst.Investors Investor BBPL 1,400, BCCL 1,000, BDL 140, BFAL 1,500, BNB 3,555, BPCL 249, BTCL 209, BTL 400, DPCL 62, DPOP 100, DSCL 456, DSML 37, DWAL 1,940, EBCC 520, JMCL 284, KCL 500, PCAL 3,400, RICB 960, STCB 200, NUMBER OF SHAREHOLDERS Table 3 Issuing Company BBPL BCCL BDL BFAL BNB 409 5,451 4,656 4,193 4,582 4,440 4,357 BPCL BTCL BTL 288 DPCL DPOP DSCL 1,200 1,186 1,264 1,150 1,277 1,277 1,276 DSML DWAL 504 EBCC 1,152 1,092 1,089 1,082 JMCL 426 KCL PCAL 1,620 1,520 1,477 1,477 1,482 1,471 1,472 RICB 1,871 1,715 1,670 1,641 1,614 1,585 1,556 STCB BBCL 4,820 4,443 4,407 4,372 4,334 Delisted Total : 11,461 15,867 15,110 15,616 16,045 11,782 12,851 Figure : 1 No. of Shareholders 20,000 15,000 10,000 5,000 11,461 15,867 15,110 15,616 16,045 11,782 12, YEAR 11

15 MARKET CAPITALIZATION Table 4 Market Capitalization Nu. in million Company BBCL delisted BBPL BCCL BDL BFAL BNB 1, , BPCL BTCL BTL DPCL DPOP DSCL DSML DWAL EBCC JMCL KCL PCAL 1, , , , , , , RICB STCB TOTAL 3, , , , , , , Figure : 2 Market Capitalization 8,000 7, Nu. in Million 7,000 6,000 5,000 4,000 3, ,000 2,000 1, , , , , , Year Note :Figures may not tally due to rounding 12

16 TOTAL TRADED VOLUME Table 5 No. of shares Traded Volume Company BBCL 1,160,153 27,346 3,912 2,965 1,867 BBPL 230 5, ,403, BCCL ,000, BDL BFAL BNB 2, ,369 51,106 20, ,383 23,444 2,413,164 BPCL 57,185 1, BTCL , ,400 19,160 BTL 400,000 DFAL * 407,530 1,222,600 DPCL 61,437 DPOP 33 70, DSCL ,941 5, ,665 3,063 DSML 38,130 24,185 2,026 DWAL 417,500 1,252,500 EBCC 537,013 4,500 11,607 2,986 JMCL 85, ,180 KCL 245, PCAL 2, ,260 5,260 1,134,737 RICB 1,583 82,012 6,860 2,350 3,500 5,010 3,500 STCB TOTAL 1,225, , , ,198 2,752,745 1,868,031 6,249,677 Figure YEAR : 3 Volume(thousNu. in million YEARWISE TRADED SECURITIES Volume in thousand 7, , , VOLUM E AMOUN T , , , , , , , Volu Volumes Amount Volumes Amount Volumes Amount 2, BBCL 1,196, ,552,949 1,196, ,552,949 1,196, ,552, BBPL 1,456, ,668,870 1,456, ,668,870 1,456, ,682,870 BCCL 10,889 20,006,454 1,010, ,006,454 1,011, ,782,454 1, BDL 12,250 1,225,000 12,250 1,225,000 12,250 1,225, BFAL 1,560, ,815,700 1,560, ,815,700 1,560, ,098,720 BNB 1,538, ,556,511 1,562, ,957,731 3,975, ,466, BPCL 176,493 25,523, ,564 25,530, ,564 25,530,475 BTCL 216,363 28,234, ,363 28,234, ,523 33,983,731 BTL 400,000 40,000, ,000 40,000,000 Figure DFAL : 4 407,530 40,753,000 COMPANY 407,530 WISE TRADED 40,753,000 SHARES 1,630, ,013,000 4,500,000 DPCL 74,889 7,656,240 74,889 7,656,240 74,889 7,656,240 1,000,000,000 DPOP 4,000, ,033 10,011, ,083 10,021, ,083 10,021, ,000,000 DSCL 583,387 95,066, ,450 TOTAL 95,934,438 VOLUME 586,450 95,934,438 3,500, ,000,000 DSML 70,087 22,746,206 72,113 TOTAL 23,615,360 VALUE 72,113 23,615, ,000,000 3,000,000 DWAL 417,500 41,750,000 1,670, ,000,000 2,500,000 EBCC 541,513 54,842, ,120 56,017, , ,000,000 56,561, ,000,000 JMCL 85,300 8,530,000 85,300 8,530, ,480 28,574,000 2,000,000 KCL 245,000 24,500, ,000 31,923, ,216 31,945, ,000,000 1,500,000 PCAL 2,350, ,040,903 2,356, ,681,703 3,490, ,133, ,000,000 1,000,000 RICB 993, ,140, , ,747,769 1,002, ,204, ,000, ,000 STCB 113,680 11,686, ,680 11,686, ,710 11,692, ,000,000 11,733,581 1,949,557,426 13,601,612 2,164,310,190 19,851,289 2,812,675,090 VOLUME 5, , ,196,243 1,456,504 1, ,011,859 12,250 1,560, ,975, , , ,000 1,630,130 74, , ,450 72,113 2, ,670, , ,480 1, ,216 3,490,773 1,002, , Nu. in million VALUE BBCL BBPL BCCL BDL BFAL BNB BPCL BTCL BTL DFAL DPCL DPOP Company DSCL DSML DWAL EBCC JMCL KCL PCAL RICB STCB Note :Figures may not tally due to rounding * Not listed on the Exchange 13

17 PUBLIC OFFERS (IPO) Table 6.1 TRADED VOLUME No. of shares COMPANY BBCL 1,150,000 BBPL BCCL BDL BFAL BNB 595, ,603 BPCL BTCL BTL 400,000 DFAL * 407,530 1,222,600 DPCL DPOP DSCL DSML DWAL 417,500 1,252,500 EBCC 521,000 JMCL 85, ,000 KCL 245,000 PCAL RICB STCB TOTAL 1,150, , , , ,500 2,674,100 Table 6.2 TRADED VOLUME Nu. in million COMPANY BBCL BBPL BCCL BDL BFAL BNB BPCL BTCL BTL * DFAL * DPCL DPOP DSCL DSML DWAL * EBCC JMCL * KCL PCAL RICB STCB TOTAL Figure : 5 PUBLIC OFFERS VOLUME 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Volume Value Nu. in million YEAR Note :Figures may not tally due to rounding * Not listed on the Exchange 14

18 DEMAT / BONUS/ RIGHTS Table 7.1 No. of shares COMPANY TRADED VOLUME TOTAL VOLUME Remarks BBPL 1,400,014 1,400,014 Demat BCCL 1,000,000 1,000,000 Demat BFAL 1,500,000 1,500,000 Demat BTCL 209, ,400 Demat BNB 2,365,117 2,365,117 Bonus/ Rights DSCL 152, ,511 Demat PCAL 2,266,670 1,133,337 3,400,007 Bonus RICB TOTAL 3,766,670 1,761,925 1,000,000 3,498,454 10,027,049 Table 7.2 Nu. in million Nu. in million COMPANY TRADED VALUE TOTAL VALUE Remarks BBPL 140,001, ,001, Demat BCCL 100,000, ,000, Demat BFAL 150,000, ,000, Demat BTCL 20,940, ,940, Demat BNB 236,511, ,511, Bonus/ Rights DSCL 15,251, ,251, Demat PCAL 226,667, ,333, ,000, Bonus RICB TOTAL 376,667, ,192, ,000, ,845, ,002,704, Figure : 6 TRADED DEMAT/BONUS VALUE vs TRADED DEMAT/BONUS VOLUME Volume Value 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , VOLUME Nu. in million YEAR Note :Figures may not tally due to rounding 15

19 SECONDARY MARKET Table 8.1 TRADED VOLUME No. of shares COMPANY BBCL 10,153 27,346 3,912 2,965 1,867 BBPL 230 5, , BCCL BDL BFAL BNB 2,898 12,329 51,106 20,997 16,780 23,444 48,047 BPCL 57,185 1, BTCL , ,000 19,160 DPCL 61,437 DPOP 33 70, DSCL ,941 5, ,063 DSML 38,130 24,185 2,026 EBCC 16,013 4,500 11,607 2,986 JMCL 180 KCL 216 PCAL 2, ,260 5,260 1,400 RICB 1, ,350 3,500 5,010 3,500 STCB TOTAL 75,043 42, ,075 49, ,387 50,531 77,123 Table 8.2 Nu. in million COMPANY BBCL BBPL BCCL BDL 0.00 BFAL 0.05 BNB BPCL BTCL DPCL 6.31 DPOP DSCL DSML EBCC JMCL 0.14 KCL 0.02 PCAL RICB STCB TOTAL ,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 VOLUME Figure : 7 TRADED DEMAT/BONUS VALUE vs TRADED DEMAT/BONUS VOLUME Volume Series3 Value Volume(%) Value IPO , , Secondary Market , Total 1, , , , , YEAR Nu. in million VOLUME Figure : YEARWISE TRADED VALUE vs TRADED VOLUME IN SECONDARY TRADE YEAR Nu. in million Note :Figures may not tally due to rounding 16

20 Table 9 MARKET PRICE Table 9.. Contd. MARKET PRICE Market Price Year End Market Price Year End Company Year High Low Closing Price Company Year High Low Closing Price BCCL ,200 5,000 5,000 BNB , ,000 5,000 5, ,000 5,000 6, ,000 6,000 6, N.A N.A 600 * RICB ,205 1,000 3,500 DPCL ,650 3,000 3, * N.A N.A N.A N.A 120 PCAL ,300 4,400 5,200 DSML ,500 4,000 5, * N.A N.A 429 BTCL ,500 1,000 1,000 BPCL ,701 1,000 1, ,701 1,701 1, * N.A N.A N.A N.A 100 BFAL STCB N.A N.A N.A N.A BBPL DSCL N.A N.A N.A N.A 300 BDL DPOP N.A N.A N.A N.A N.A N.A 200 BBCL EBBC KCL JMCL BTL 2008 N.A N.A 100 DFAL DWAL * Drop in figures are due to splitting of shares from Nu.1,000 to Nu.100 per shares Note : NA no secondary transactions 17

21 Table 10 YEARWISE SECURITIES HOLDINGS IN THE CENTRAL DEPOSITORY Yearwise turnover of Securities in Depository Percent Paid Up Face Value Last Sale Total Holdings holdings Company Shares (IPO) Price (Nu.) Nu. in Millions of securities for 2008 Price (2008) in Depository BBCL 1,150,000 1,150,000 1,150,000 1,150, BBPL 498, , ,100 1,400,014 1,400,014 1,400,014 1,400, ,001, % BCCL 43,204 43,204 43,204 43,204 1,000,000 1,000,000 1,000, ,000, % BDL 12,250 12,250 12,250 12,250 12,250 25, , ,500,000 18% BFAL 59,850 59,850 1,500,000 1,500,000 1,500,000 1,500,000 1,500, ,000, % BNB 1,190,080 1,190,080 1,190,080 1,190,080 1,190,080 3,555,175 3,555, ,422,070, % BPCL 117, , , , , , , ,933, % BTCL 10,220 10,416 10, , , , , ,029, % BTL 400, , ,000, % DPCL 62,370 62,370 62,370 62,370 62,370 62,370 62, ,484, % DPOP 30,000 30,000 30, , , , , ,000, % DSCL 304, , , , , , , ,962, % DSML 2,972 37,702 37,702 37,702 37,702 37,702 37, ,174, % DWAL 1,940,000 1,940, ,000, % EBCC 520, , , , , ,000, % JMCL 284, , ,440, % KCL 500, , , ,000, % PCAL 76,647 76,647 2,266,670 2,266,670 2,266,670 3,400,007 3,400, ,686,005, % RICB 96,000 96, , , , , , ,000, % STCB 200, , , , , , , ,000, % TOTAL: 3,853,163 3,888,089 9,034,158 10,357,567 10,664,363 16,799,845 16,915,774 7,385,601, % Figure : 9 YEARWISE SECURITIES HELD IN CENTRAL DEPOSITORY 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, YEAR 18

22 DIVIDEND RECORDS Table 11 (In Percent) Company BBPL BBCL BCCL BDL BFAL BNB BPCL BTCL BTL DPCL DPOP DSCL DSML DWAL EBCC JMCL KCL 7 9 PCAL RICB STCB Figure : 10 DIVIDENDS 120 PERCENT BBPL BBCL BCCL BDL BFAL BNB BPCL BTCL BTL DPCL DPOP DSCL DSML DWAL EBCC JMCL KCL PCAL RICB STCB

23 VALUE TRADED BY BROKERS ( ) Figure : Table Table Nu. in Million 1000 Nu. in Million Broker Bought Sold Total Percentage Broker Bought Sold Total Percentage 800 Drook Drook BOB BOB BNB BNB 1, , , RICB RICB TOTAL Drook BOB TOTAL BNB RICB Nu. in Million , , Bought Sold Figure : 12 Broker's Performance ( 2007 ) Table Table BOB Nu. in Million Nu. in Million 92.60% Broker Bought Sold Total % Broker Bought Sold Total % RICB RICB BOB BOB Drook Drook BNB BNB TOTAL TOTAL RICB 1.78% BNB 5.61% Drook 0.00% Figure : 13 Broker's Performance ( 2008 ) BOB 41.97% Drook 0.00% BNB 40.06% RICB 17.97% 20

24 Figure : RESERVES Net Profits Reserves Net Profits 2004 Reserves 2005 Net Profits2006 Reserves 2007 Net Profits 2008 Reserves Net Profits Reserves 1, Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. Nu. in mil. BBCL (9.56) BBPL BCCL BDL 0.19 (4.36) (27.02) BFAL BNB BPCL Nu.in Million BTCL BTL DPCL (62.24) (0.37) 0.51 (0.18) 1.56 DPOP DSCL DSML 0.48 (2.01) (1.82) DWAL EBCC JMCL BBCL BBPL BCCL BDL BFAL BNB BPCL BTCL BTL DPCL KCL PCAL RICB(200.00) STCB (2.20) YEAR (15.77) DPOP DSCL DSML DWAL EBCC JMCL KCL PCAL RICB STCB Figure : NET PROFITS Nu. in Million (100.00) COMPANY 1,200 BBCL ,000 BBPL BCCL BDL BFAL BNB BPCL BTCL BTL DPCL DPOP DSCL DSML EBCC JMCL KCL PCAL RICB STCB Ngultrum EARNINGS PER SHARE (Value in Nu.) Figure : 16 Earnings per share BBCL BBPL BCCL BDL BFAL BNB BPCL BTCL BTL DPCL DPOP DSCL DSML EBCC JMCL KCL PCAL RICB STCB 21

25 Figure : 17 Primary Issue of RMA Discount Bills 900 RMA Discount Bills 9,000 Table Year Volume in '000s Nu.in million , Volumes (in thousand) , , , , , , , , , , , , , , YEAR TOTAL: 3, , , , , , , , , , , VOLUME NGULTRUM COMPARISION OF PRICES 2008 Figure : 18 BOOK VALUE AGAINST MARKET PRICE (PERCENTAGE) PERCENTAGE OF BOOK VALUE OVER MARKET PRICE Book Value Market Price Percent Book Value Market Price Percent BBCL 300 BBPL BCCL BDL BFAL BNB BPCL PERCENT BTCL BTL DPCL DPOP DSCL DSML DWAL BBCL BBPL BCCL BDL BFAL BNB EBCC JMCL BPCL BTCL BTL DPCL KCL PCAL * Zero indicates Book Value Equals to Market Price RICB STCB DPOP DSCL DSML 0.00 DWAL EBCC JMCL KCL PCAL ,000 7,000 6,000 5,000 4,000 3,000 2,000 1, RICB STCB Nu. in million 22

26 Primary Figure Issue : 19of Govt. Bonds RGOB Bonds Table 1, Year Volume in '000s Nu.in million VOLUMES (in thousands) , , ,156 1, , VOLUME NGULTRUM ,400 1,200 1, Nu. in million TOTAL: 2, , YEAR RGOB Treasury Bills Table 12 Year Bills UNITS Nu.in million % Year 2001 T , Year 2002 T , Year 2003 T , Year 2004 T , Year 2005 T , Year 2006 Year 2007 Year 2008 TOTAL 2,300,000 2,300 Figure : 20 Year % RGOB Treasury Bills Year % Year % Year % Year % Year % Year % Year % 23

27 ROYAL SECURITIES EXCHANGE OF BHUTAN LIMITED BALANCE SHEET AS AT 31 DECEMBER 2008 Sources of Funds (Nu.) (Nu.) Share Capital 2,000, ,000, General Reserve 6,021, ,504, Capital Grants Total 8,021, ,504, Application of Funds Fixed Assets Gross Block 4,506, ,336, Less : Accumulated Depreciation (3,608,569) (3,313,357) 897, ,023, Investments 2,725, ,725, Current Assets: Cash and Bank Balances 5,987, ,313, Loans and Advances 130, , Other Assets 391, , ,509, ,657, Less: Current Liabilities 2,111, , Net Current Assets 4,398, ,756, Total 8,021, ,504,