annexes

Investor Relations

Stock Exchange Listing

The issued ordinary shares of the Citizens Development Business Finance PLC are listed on the main board of the Colombo Stock Exchange.

The unaudited Interim Financial Statements for the three quarters in the financial year 2013/14 have been submitted to the Colombo Stock Exchange within the stated 45 days period. The unaudited Interim Financial Statements for the final quarter was submitted to the Colombo Stock Exchange within the stated 60 days period.

The Audited Income Statement for the year ended 31st March 2014 and the Audited Balance Sheet of the Company as at 31st March 2014 will be submitted to the Colombo Stock Exchange within three months from the Balance Sheet date.

The stock exchange ticker symbol for Citizens Development Business Finance PLC is ‘CDB’. CDB voting shares are listed as CDB.N0000 and Non-voting shares are listed as CDB.X0000.

Compliance Report

The Company has complied with all the requirements of the Section 7.6 of the Listing Rules of the CSE on the contents of the Annual Report of a Listed Entity.

The table given below provides the references to the relevant sections of the Annual Report with the page references of the required information.

Rule No.	Disclosure Requirement	Section Reference
7.6 (i)	Names of persons who held the positions of Directors during the financial year	Annual Report of the Board of Directors
7.6 (ii)	Principal activities of the Entity and its Subsidiaries during the year and any changes therein	Notes to the Financial Statements - Reporting Entity Annual Report of the Board of Directors
7.6 (iii)	The names and the number of shares held by the 20 largest holders of voting and non-voting shares and the percentage of such shares held	Investor Relations
7.6 (iv)	The public holding percentage	Investor Relations
7.6 (v)	A statement of each Director’s holding and Chief Executive Officer’s holding in shares of the Entity at beginning and end of each financial year	Annual Report of the Board of Directors
7.6 (vi)	Information pertaining to material foreseeable risk factors of the Entity	Risk Management
7.6 (vii)	Details of material issues pertaining to employees and industrial relations of the Entity	Not applicable for the year as the Company did not encounter any situation of this nature which require disclosure
7.6 (viii)	Extent, locations, valuations and the number of buildings of the Entity’s land holdings and investment properties	Notes to the Financial Statements (Notes 24 and 25)
7.6 (ix)	Number of shares representing the Entity’s stated capital	Annual Report of the Board of Directors Investor Relations
7.6 (x)	A distribution schedule of the number of holders in each class of equity securities, and the percentage of their total holdings	Investor Relations
7.6 (xi)	Ratios and market price information: Equity Ratios Debt Any changes in credit rating	Investor Relations Investor Relations Investor Relations
7.6 (xii)	Significant changes in the Entity’s or its Subsidiaries fixed assets and the market value of land, if the value differs substantially from the book value	Notes to the Financial Statements (Note 25)
7.6 (xiii)	Details of funds raised through Public Issues, Rights Issues and Private Placements during the year	Investor Relations
7.6 (xiv)	Information in respect of Employee Share Option Schemes and Employee Share Purchase Schemes	Notes to the Financial Statements [Note 19(h)]
7.6 (xv)	Disclosures pertaining to Corporate Governance practices in terms of Rules 7.10.3, 7.10.5 c and 7.10.6 c of Section 7 of the Rules	Corporate Governance
7.6 (xvi)	Disclosure on Related Party Transactions exceeding 10% of the Equity or 5% of the total assets of the Entity as per Audited Financial Statements, whichever is lower	Not applicable

Investor Ratios

	2013/14	2012/13	2011/12	2010/11	2009/10*
Earnings per share (Rs.)	10.33	9.01	10.28	12.76	1.60
Net Assets per share (Rs.)	65.87	54.60	44.31	25.83	12.93
Return on equity (%)	17.16	18.57	30.49	65.98	13.45
Dividend per share (Rs.)	3.00**	2.75	2.50	2.00	0.50
Dividend payout ratio (%)	29.04	30.52	24.32	15.67	31.25

*Annualised figures for the fifteen months period ended 31st March 2010
**Proposed

Dividends

For the financial year ended 31st March 2013, CDB paid a cash dividend of Rupees Two and Cents Seventy Five (Rs 2.75) per share on both its 46,299,223 ordinary voting shares and 8,005,984 ordinary non-voting shares aggregating to a sum of Rupees One Hundred and Forty Nine Million Three Hundred and Thirty-Nine Thousand Three Hundred and Nineteen and Cents Twenty-Five only (Rs. 149,339,319.25/-) as the first and final dividend.

	2013/14	2012/13	2011/12	2010/11
Final - Cash Dividend	3.00*	2.75	1.00	2.00
Scrip Dividend			1.50
Total Dividend	3.00*	2.75	2.50	2.00

*Proposed dividend for this year would be a cash dividend of Rs. 3.00 per share which needs to be approved by the shareholders at the AGM.

Share Price Information

Prices	Voting		Non-Voting
	2013/14	2012/13	2013/14	2012/13
	Rs.	Rs.	Rs.	Rs.
High	54.90	47.50	44.80	57.80
Low	38.00	29.00	28.00	26.60
Last traded	46.00	40.10	37.50	29.10

Market Capitalisation

As at 31st March	2013/14	2012/13
	Rs.	Rs.
Voting	2,129,764,258	1,856,598,842
Non-Voting	300,224,400	232,974,134
Total	2,429,988,658	2,089,572,976

Share Trading Information

Annual Transaction Information	Ordinary - Voting Shares
	2013/14	2012/13	2011/12	2010/11
Transactions (Nos.)	2,233	2,571	8,270	12,181
Shares Traded (Nos.)	2,522,678	2,497,811	12,303,772	12,318,200
Value of Shares Traded (Rs.)	113,669,908	98,920,592	983,554,597	934,191,580

Annual Transaction Information	Ordinary - Non-Voting Shares
	2013/14	2012/13	2011/12	2010/11
Transactions (Nos.)	1,595	2,139	1,685	–
Shares Traded (Nos.)	2,164,520	3,577,448	4,048,206	–
Value of Shares Traded (Rs.)	77,314,979	109,944,947	221,117,475	–

Quarterly Summary

Period - Voting	High (Rs.)	Low (Rs.)	Close (Rs.)	Trade Volume	Share Volume	Turnover (Rs.)	Days Traded
2013/14 - Q4	52.00	42.00	46.00	525	792,062	37,124,621	55
2013/14 - Q3	47.90	40.50	42.00	317	220,445	9,247,798	56
2013/14 - Q2	46.00	38.00	41.00	506	540,491	22,447,917	61
2013/14 - Q1	54.90	38.00	43.50	885	969,680	44,849,572	55
Year	54.90	38.00	46.00	2,233	2,522,678	113,669,908	227

Period - Non-Voting	High (Rs.)	Low (Rs.)	Close (Rs.)	Trade Volume	Share Volume	Turnover (Rs.)	Days Traded
2013/14 - Q4	44.80	30.10	37.50	367	374,206	14,416,263	48
2013/14 - Q3	37.70	34.00	35.60	152	508,094	17,464,840	41
2013/14 - Q2	38.00	30.00	35.30	345	358,614	12,186,349	52
2013/14 - Q1	43.10	28.00	35.00	731	923,606	33,247,527	60
Year	44.80	28.00	37.50	1,595	2,164,520	77,314,979	201

Shareholder Analysis

Ordinary Voting Shares - Composition According to Shareholding

Shareholding Composition Voting	Resident			Non-Resident			Total
Shareholdings	Number of Shareholders	No. of Shares	(%)	Number of Shareholders	No. of Shares	(%)	Number of Shareholders	No. of Shares	(%)
1 to 1000 Shares	1,274	475,473	1.03	2	1,033	0	1,276	476,506	1.03
1001 to 10,000 Shares	645	2,507,241	5.42	7	40,200	0.09	652	2,547,441	5.51
10,001 to 100,000 Shares	209	5,690,793	12.29	3	104,172	0.22	212	5,794,965	12.51
100,001 to 1000,000 Shares	15	3,425,443	7.40	1	543,073	1.17	16	3,968,516	8.57
Over 1,000,000 Shares	6	33,511,795	72.38	–	–	–	6	33,511,795	72.38
	2,149	45,610,745	98.52	13	688,478	1.48	2,162	46,299,223	100.00

Type of Shareholders

Category of Shareholders - Voting	No. of Shareholders	No. of Shares
Individual	2,085	9,361,967
Institutional	77	36,937,256
Total	2,162	46,299,223

Ordinary Non-Voting Shares - Composition According to Shareholding

Shareholding Composition Voting	Resident			Non-Resident			Total
Shareholdings	Number of Shareholders	No. of Shares	(%)	Number of Shareholders	No. of Shares	(%)	Number of Shareholders	No. of Shares	(%)
1 to 1,000 Shares	1,776	235,043	2.94	6	1,562	0.02	1782	236,605	2.96
1,001 to 10,000 Shares	219	764,843	9.55	2	9,000	0.11	221	773,843	9.66
10,001 to 100,000 Shares	49	1,773,490	22.15	6	229,813	2.87	55	2,003,303	25.02
100,001 to 1000,000 Shares	14	3,577,445	44.69	3	363,497	4.54	17	3,940,942	49.23
Over 1,000,000 Shares	1	1,051,291	13.13	–	–	–	1	1,051,291	13.13
	2,059	7,402,112	92.46	17	603,872	7.54	2,076	8,005,984	100.00

Type of Shareholders

Category of Shareholders - Non-Voting	No. of Shareholders	No. of Shares
Individual	2,006	3,678,233
Institutional	70	4,327,751
Total	2,076	8,005,984

Information on Share Capital Movement

Year	Details	Share Type	Basis	No. of Shares Issued	No. of Voting Shares (After Issue)	No. of Non-Voting shares (After Issue)	New Capital Raised (Rs.)
	Prior to Introduction	Voting Shares			39,685,048
2010	Introduction				39,685,048
2011	Rights Issue	Voting Shares @ Rs. 70.00	1 for every 6 Voting shares	6,614,175	46,299,223		462,992,250
	Rights Issue	Non-Voting Shares @ Rs. 45.00	1 for every 7 Voting shares	5,669,293	46,299,223	5,669,293	255,118,185
2012	Scrip Issue	Non-Voting Shares	1 for every 22.222224 Voting shares & Non-Voting shares	2,336,691	46,299,223	8,005,984

Major Shareholders

Ordinary Voting Shares - List of 20 Major Shareholders as at 31st March 2014

No.	Name	Shareholding	Percentage (%)
1.	Ceylinco Insurance PLC A/C No. 1 (Life Fund)	14,642,163	31.63
2.	CDB ESOP Trust Fund (Pvt.) Limited	12,500,000	27.00
3.	Ceylinco Insurance PLC A/C No. 2 (General Fund)	1,853,287	4.00
4.	National Development Bank PLC/T.Senthilverl	1,664,100	3.59
5.	Perpetual Capital (Pvt.) Limited	1,602,245	3.46
6.	The Finance Company PLC A/C No. 1	1,250,000	2.70
7.	Asia Management Consultancy (Pvt.) Limited	706,622	1.53
8.	Mr. D Kotthoff	543,073	1.17
9.	E W Balasuriya & Co. (Pvt) Limited	535,103	1.16
10.	Little Smile Organic (Pvt) Limited	416,500	0.90
11.	MAS Capital (Pvt) Limited	289,492	0.63
12.	East India Holding (Pvt) Limited	243,833	0.53
13.	Mr. K Sabaratnam	149,000	0.32
14.	Mr. W S R Fernando	137,900	0.30
15.	Dr. C Gunasekara	131,700	0.28
16.	Pan Asia Banking Corporation PLC/Mr. S M P L Jayaratne	125,000	0.27
17.	Rev. J N Fernando	125,000	0.27
18.	Mr. A M Subramanium & Mr. S Ragulan	122,500	0.26
19.	Mrs. W M N Dabarera	118,942	0.26
20.	Mr. M A H Esufally	110,000	0.24
	Sub total of Top 20 Shareholders	37,266,460	80.49
	Others	9,032,763	19.51
	Total	46,299,223	100.00

The percentage of shares held by the public as at 31st March 2014 is 36.93%.

Ordinary Non-Voting Shares - List of 20 Major Shareholders as at 31st March 2014

No.	Name	Shareholding	Percentage (%)
1.	J B Cocoshell (Pvt.) Limited	1,051,291	13.13
2.	Deutsche Bank AG As Trustee For JB Vantage Value Equity Fund	866,492	10.82
3.	CDB ESOP Trust Fund (Pvt.) Limited	562,499	7.03
4.	Ceylinco Insurance PLC A/C No. 2 (General Fund)	320,541	4.00
5.	Askold (Pvt.) Limited	247,224	3.09
6.	Mr. M J Fernando	208,999	2.61
7.	Mr. H N Esufally	208,999	2.61
8.	E W Balasuriya & Co. (Pvt.) Limited	204,413	2.55
9.	Mr. M A H Esufally	194,000	2.42
10.	Mr. G H I Jafferjee	156,749	1.96
11.	Mr. I M Dabah	154,499	1.93
12.	Mr. S Prabagar	142,235	1.78
13.	Commercial Bank of Ceylon PLC A/C No. 04	123,950	1.55
14.	Mr. S R Fernando	120,000	1.50
15.	Captain M A L Ratnayake	116,845	1.46
16.	Mr. M A Valabji	104,499	1.31
17.	Jafferjees Investments (Pvt.) Limited	104,499	1.31
18.	Gold Investment Limited	104,499	1.31
19.	Trading Partners (Pvt.) Limited	100,000	1.25
20.	Mrs. S E Lokhandwalla	88,000	1.10
	Sub total of Top 20 Shareholders	5,180,233	64.70
	Others	2,825,751	35.30
	Total	8,005,984	100.00

The percentage of shares held by the public as at 31st March 2014 is 75.15%.

Debenture Information

CDB managed to successfully conduct a Rs. 1 Bn Listed Debenture Issue in December 2013 which was oversubscribed on the opening day itself. The issue comprised of 5,000,000 Subordinated Listed Rated Unsecured Redeemable Five year Debentures with an option to issue up to a further 5,000,000 debentures in the event of an over subscription of initial 5,000,000 debentures. The objectives of the issue were to finance the Company’s anticipated future business growth in lending portfolio of leases, hire purchase and other loans and to reduce the asset and liability mismatch of the company. This issue will also help to strengthen the Tier 2 capital base of the company in order to maintain a healthy capital adequacy ratio. The Debentures are assigned a rating of BBB - by Lanka Ratings Agency Limited (‘LRA’).

Listed Debentures

Listing	Debenture Description	Type	Interest Payment Frequency	Tenor	Issued Quantity as at 31.03.2014	Interest Rates		Comparable Government Security Yield
			Interest Payment Frequency	(Years)	Issued Quantity as at 31.03.2014	Coupon Rate (per annum) (%)	Annual Effective Rate (%)	Comparable Government Security Yield
Listed Debentures (Rs. 100)	Subordinated Listed Rated Unsecured Redeemable Debentures December 2013 - December 2018*	A	Annually	5	6,653,600	16.00	16.00	8.65**
		B	Semi-annually	5	3,103,600	15.50	16.10	8.65**
		C	Quarterly	5	242,800	15.00	15.87	8.65**

*Debentures have not been traded up to 31st March 2014. Therefore market price or yield information is not provided.
**Excluding 10% withholding tax

Unlisted Debentures

Issue Type	Purpose	Type*	Total Value	Issued Date	Tenure	Investor	Balance as at 31.03.2014
			Rs. Mn		(Months)		Rs. Mn
Rated Unsecured Redeemable Unlisted Debentures	To raise medium-term funds to expand the Company’s credit and leasing portfolios	Type III	62.50	30.12.2010	42	Ceylinco Insurance PLC - Life	62.50
Rated Unsecured Redeemable Unlisted Debentures		Type IV	62.50	30.12. 2010	48	Ceylinco Insurance PLC - Life	62.50

*The debentures are rated BBB by RAM Ratings Lanka (Pvt) Limited.

Proceeds of the debentures have been utilised for the intended purpose of the debenture issue.

Ratios

	2013/14
Debt/Equity Ratio	55%
Quick Asset Ratio (Times)	0.81
Interest Cover (Times)	1.20