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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330 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 />
BANK<br />
GROUP<br />
2011 2010 2011 2010<br />
(Reclassified)<br />
(Reclassified)<br />
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000<br />
37. O<strong>the</strong>r Liabilities<br />
Accrued Expenses and Interest Payable 4,413,687 4,134,829 4,434,418 4,183,474<br />
Margin Accounts 734,230 820,571 734,230 820,571<br />
Deposit Funding Accounts 1,383,296 1,786,834 1,383,296 1,786,834<br />
Dividend Payable 23,535 22,398 29,528 23,044<br />
Provision for Defined Benefit<br />
Obligations (Net) (Note 37.1) (60,092) (44,508) (60,318) (48,824)<br />
Sundry Credi<strong>to</strong>rs 303,386 340,570 303,386 340,570<br />
Value Added Tax and O<strong>the</strong>r Statu<strong>to</strong>ry Payables 120,888 255,724 120,888 255,724<br />
Cheques & Drafts Payable 567,459 536,201 567,459 536,201<br />
O<strong>the</strong>rs 847,049 2,015,889 897,459 2,081,624<br />
8,333,438 9,868,508 8,410,346 9,979,218<br />
37.1 Defined Benefit Obligations<br />
The <strong>Bank</strong> pays half a month’s salary (last drawn) for each completed year of service as gratuity for employees<br />
who have worked for more than 5 years at <strong>the</strong> time of retirement/resignation.<br />
BANK<br />
GROUP<br />
2011 2010 2011 2010<br />
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000<br />
37.1.1 The Amount Recognised in <strong>the</strong> Balance Sheet<br />
Present Value of Defined Benefit<br />
Obligations (Note 37.1.3) 834,075 708,494 844,177 717,844<br />
Fair Value of Plan Assets (Note 37.1.4) (704,537) (713,180) (714,865) (726,846)<br />
Unrecognised Actuarial Gain or (Loss) (Note 37.1.5) (189,630) (43,367) (189,630) (43,367)<br />
Unrecognised Past Service Gain<br />
Non-Vested (Note 37.1.6) – 3,545 – 3,545<br />
Provision for Defined Benefit Obligations (60,092) (44,508) (60,318) (48,824)<br />
37.1.2 Plan Assets Consist <strong>the</strong> Following<br />
Balance with <strong>Bank</strong>s 40,378 31,859 46,369 37,511<br />
Investment in Treasury Bills and Bonds 664,159 681,321 668,496 689,335<br />
704,537 713,180 714,865 726,846<br />
Plan Assets are held by an approved external gratuity fund.<br />
37.1.3 Movement in <strong>the</strong> Present Value of<br />
Defined Benefit Obligations<br />
Liability for Defined Benefit Obligations<br />
as at 1st January 708,494 663,119 717,844 693,568<br />
Current Service Cost 62,551 54,853 63,512 55,804<br />
Interest Cost 74,392 72,943 75,141 76,118<br />
Unrecognised Actuarial (Gains)/Losses 188,232 (4,714) 190,511 (20,336)<br />
Payments Made (Including Benefits<br />
Paid by <strong>the</strong> Plan) (199,594) (77,707) (202,831) (85,725)<br />
Adjustment on Deconsolidation/Amalgamation – – – (1,585)<br />
Liability for Defined Benefit Obligations<br />
as at 31st December 834,075 708,494 844,177 717,844
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