Notes to the Consolidated Financial Statements - Seylan Bank
Notes to the Consolidated Financial Statements - Seylan Bank
Notes to the Consolidated Financial Statements - Seylan Bank
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316 North Bound > <strong>Seylan</strong> <strong>Bank</strong> Annual Report 2011<br />
<strong>Notes</strong> <strong>to</strong> <strong>the</strong> <strong>Consolidated</strong> <strong>Financial</strong> <strong>Statements</strong><br />
27.2 Investment Properties (Group) - 2011<br />
GROUP<br />
Cost/<br />
Valuation<br />
Market<br />
Value<br />
Address Extent Date of Valuation Rs. ’000 Rs. ’000<br />
Kahapola, Piliyandala 20A 1R 39.5P 04.01.2012 114,429 140,000<br />
97, Station Road, Kandana 1A 1R 9.84P 06.01.2012 139,319 123,200<br />
<strong>Seylan</strong> Towers - West Tower*<br />
90, Galle Road, Colombo 3 111,191 Sq.Ft 29.12.2009 1,023,967 1,502,061<br />
257, Union Place, Colombo 2** 0A 1R 12.27P 28.12.2008 204,535 250,255<br />
1,482,250<br />
* The rent income from <strong>the</strong> <strong>Seylan</strong> Towers-West Tower for <strong>the</strong> year 2011 is Rs. 55.7 Mn. (2010 Rs. 53.4 Mn.).<br />
* The <strong>Seylan</strong> Towers (West Tower) was valued by A.Y Daniel & Son, Incorporated Valuer and having recent experience in <strong>the</strong> location<br />
and category of <strong>the</strong> investment property being valued. He has used capitalisation method in valuation, assuming,<br />
a. The prospect of ascending land values and expected improvements in economic conditions.<br />
b. Depreciation and obsolescence.<br />
c. The steep and continuing construction cost escalation.<br />
d. The acceptance and proliferation of <strong>the</strong> phenomenon of high rise buildings.<br />
e. The difference in <strong>the</strong> value impacting phenomena of Capital cost and Capital value.<br />
f. The corpus being in full occupation with stabilisation.<br />
g. The ranking norms of maintenance and repair.<br />
h. The steep slump in <strong>the</strong> national interest rates.<br />
** The Property at No. 257, Union Place was valued by Mr. G.J. Sumanasena, Incorporated Valuer and having recent experience in<br />
<strong>the</strong> location and category of <strong>the</strong> investment property being valued. He has used open market method in valuation.<br />
The open market value is intended <strong>to</strong> mean <strong>the</strong> best price at which an interest in a property might reasonably be expected <strong>to</strong><br />
be sold in <strong>the</strong> Private Treaty as <strong>the</strong> date of valuation, assuming,<br />
a. The property is prime and most suitable for high rise development<br />
b. Located in a prime commercial area.<br />
BANK<br />
GROUP<br />
2011 2010 2011 2010<br />
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000<br />
28. Deferred TaxAtion<br />
Balance Brought Forward 269,562 442,711 269,562 442,858<br />
(Charge)/Reversal for <strong>the</strong> Year (Note 13) (59,593) (174,776) (59,593) (175,424)<br />
Transfer from <strong>Seylan</strong> Asset Management Limited – (501) – –<br />
Transfer from Revaluation Reserve (Note 40.2) 1,875 2,128 1,787 2,128<br />
Transfer <strong>to</strong> Minority Interest – – (81) –<br />
Balance Carried Forward (Note 28.1 & 28.2) 211,844 269,562 211,675 269,562