Dear SEBON, Here's How A Technical Glitch Made Me Profitable; Please Fix It
Thu, May 20, 2021 6:46 AM on Stock Market, Latest,
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To
Securities Board of Nepal (SEBON)
Khumaltar, Lalitpur, Nepal
Subject: Miscalculation of WACC
Respected Sir/Madam,
I believe that the WACC Rate of my share Scrip: "NRIC" has been wrongly calculated on "Mero Share" resulting in profit despite being in the loss. Here is the scenario:
|
Business Date |
Particulars |
Units (Kitta) |
Total cost of Capital |
WACC Rate |
EDIS Rate |
|
Dec 2, 2020 |
Opening |
70 |
37,926.875 |
541.8125 |
|
|
Dec 3, 2020 |
Purchased via Tranx no:(2020120303012999) |
40 |
69,937.79 |
|
|
|
Dec 7, 2020 |
Sold via Tranx no: (2020120703004832) |
(60) |
|
|
541.8125 |
|
Sold via Tranx no: (2020120703011648)
|
(10) |
|
|
541.8125 |
|
|
Despite having an actual WACC Rate of 980.5878 on 110 units, I could not revise my WACC rate because of not receiving the shares on the DEMAT account that were purchased on Dec 3-2020 by the date Dec 8, 2020, @ 2 pm (the time when I made EDIS to the broker pool account through "Mero Share"). This leads me to made EDIS on earlier WACC Rate. ie 541.8125. Accordingly, 5% Capital Gain Tax was deducted on the gain taking the WACC Rate of 541.8125 and the rest amount was deposited in my account. After then, on a later day: |
|||||
|
Dec 27, 2020 |
Purchased via Tranx no: ( 2020122703004657) |
10 |
13,510 |
|
|
|
|
Closing Balance |
50 |
|
|
|
Now, WACC Rate for 50 units should be NRs. 1,668.9558 per Unit. {(69937.79+13510)/(40+10)}
BUT the WACC Rate for 50 units has been calculated as NRs. 1,054.66 in "Mero Share".
Here’s how:
I found that the System has automatically revised the WACC Rate on 110 units considering all the purchase units though that have not deposited in the DEMAT account. In fact, EDIS been made on earlier WACC Rate and payment of Capital Gain Tax on the same base has not been considered.
|
Particulars |
Units |
Total Cost |
WACC Rate |
Remarks |
|
Opening Balance |
70 |
37,926.875 |
541.8125 |
|
|
Purchased |
40 |
69,937.79 |
|
|
|
Total |
110 |
107,864.665 |
980.5878 |
WACC on 110 units |
|
Sold |
(70) |
68,641.146*
|
(980.5878) |
*System Assumed EDIS WACC Rate as NRs.980.5878 per unit. |
|
Remaining Balance |
40 |
39,223.512 |
980.5878 |
|
|
Purchased |
10 |
13,510 |
|
|
|
Closing Balance |
50 |
52,733.512 |
1054.67 |
(39223.512+13510)/50 |
This is how the WACC Rate for 50 units became NRs. 1,054.66.
I believe that the above WACC Rate, no longer stands valid, since I have done EDIS of sold units at the WACC Rate of NRs. 541.8125 on Dec 8, 2020, and have paid the said Capital Gain tax accordingly.
- Reference from TMS for Paid Capital Gain Tax:
Capital Gain tax: 5%(103,120-574.77-15.47-25-541.8125*70) = 3,228.88
|
S.N |
TRANSACTION NO |
STOCK |
RATE (NPR) |
QNTY |
AMOUNT (NPR) |
COM RATE (NPR) |
COMM AMOUNT (NPR) |
SEBO COM(NPR) |
DP AMOUNT (NPR) |
CGT (NPR) |
TOTAL (NPR) |
|
1 |
2020120703011648 |
NRIC |
1,522.00 |
10 |
15,220.00 |
0.6 |
91.32 |
2.28 |
3.57 |
485.23 |
14,637.59 |
|
2 |
2020120703004832 |
NRIC |
1,465.00 |
60 |
87,900.00 |
0.55 |
483.45 |
13.19 |
21.43 |
2,743.65 |
84,638.29 |
|
|
Total |
|
|
70 |
103,120.00 |
|
574.77 |
15.47 |
25 |
3228.88 |
99,275.88 |
*Broker has deposited the same amount NRs.99,275.88 via Global IME Bank Ltd. by cheque no.2020121355000000049.
Having a lower WACC Rate than the Actual WACC Rate has resulted in a net gain on the present market price despite actually being in the loss which would result in the imposition of capital gain tax in the event if I sell my share at present. I believe that tax is levied only in the case of gain, not in the case of loss. Moreover, this case has restricted me to sell my share at the time of need.
As being a rational Investor, I feel it's my duty to report this anomaly. Please, kindly consider my case and resolve it through appropriate measures.
Thanking you for your consideration & time. I appreciate your quick response.
With regards,
Ajaya Malla Thakuri
Email Address: iamayjay20530130@gmail.com
DEMAT No: 1301370000XXXXXX [Redacted]
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