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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North Bound > <strong>Seylan</strong> <strong>Bank</strong> Annual Report 2011<br />
335<br />
BANK<br />
GROUP<br />
2011 2010 2011 2010<br />
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000<br />
40.6 Movement in Investment<br />
Fund Reserve<br />
Balance as at 01st January – – – –<br />
Add: Transferred during <strong>the</strong> Year 272,986 – 272,986 –<br />
Balance as at 31st December 272,986 – 272,986 –<br />
As per <strong>the</strong> Value Added Tax (Amendment) Act No. 09 of 2011 and Inland Revenue Amendment Act No. 22 of<br />
2011, <strong>Bank</strong> transfers 8% on Value Addition attributable <strong>to</strong> <strong>Financial</strong> Services and 5% of taxable profits, from<br />
retained profits <strong>to</strong> Investment Fund Reserve with effect from 01st January 2011.<br />
Transfers during <strong>the</strong> Year<br />
8% on <strong>the</strong> Value Addition Attributable <strong>to</strong> <strong>Financial</strong> Services 217,160<br />
5% of Taxable Profits 55,826<br />
272,986<br />
The respective funds have been invested in Long-Term Government Securities with a maturity period more<br />
than 7 years in full.<br />
Details of Government Securities are as follows:<br />
Maturity Value (Rs.) Date of Maturity Rate of Interest<br />
Treasury Bond 200,000,000 01.08.2020 6.20%<br />
Treasury Bond 150,000,000 15.08.2018 7.50%<br />
41. Commitments and Contingencies<br />
In <strong>the</strong> normal course of business, <strong>the</strong> <strong>Bank</strong> makes various commitments and incurs certain contingent<br />
liabilities with legal recourse <strong>to</strong> its cus<strong>to</strong>mers. No material losses are anticipated as a result of <strong>the</strong>se<br />
transactions.<br />
BANK<br />
GROUP<br />
2011 2010 2011 2010<br />
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000<br />
41.1 Commitments<br />
Undrawn Credit Lines 14,675,341 11,966,858 14,675,341 11,966,858<br />
Capital Commitments (Note 43.1) 23,985 21,892 35,204 21,892<br />
14,699,326 11,988,750 14,710,545 11,988,750<br />
41.2 Contingencies<br />
Acceptances 4,440,085 4,066,223 4,440,085 4,066,223<br />
Stand by Letters of Credit 359,770 25,565 359,770 25,565<br />
Guarantees 7,629,741 8,262,274 7,629,741 8,329,274<br />
Documentary Credit 6,039,245 3,952,136 6,039,245 3,952,136<br />
Bills for Collection 3,152,133 1,919,301 3,152,133 1,919,301<br />
Forward Exchange Contracts (Net) (73,084) (17,171) (73,084) (17,171)<br />
21,547,890 18,208,328 21,547,890 18,275,328<br />
Total Commitments & Contingencies 36,247,216 30,197,078 36,258,435 30,264,078