The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 121DonationsDuring the year, the Company made donations amounting to Rs. 6,692,798/- (Donations made in 2008amounted to Rs. 128,865,170/-).Preference DividendThe directors recommend the payment of a preference dividend of Rs. 1.84 per share to the preferenceshareholders registered with the Bank as at the entitlement date for the year ended 31st December 2009. Thedividend rate is a pre-determined rate as per the prospectus to the Issue, viz. one percentage point over theone year Weighted Average Treasury Bill rate at the primary auctions held during March of the preceding year;i.e. March, 2009. The dividend is payable on 31st March 2010. A preference dividend was not paid in 2009 inrespect of the year ended 31st December 2008.Ordinary DividendThe directors recommend the payment of a First and Final Ordinary Dividend of Rs. 0.50 per share tothe ordinary (voting and non-voting) shareholders, for the year ended 31st December 2009, payable on7th April 2010. There was no dividend payout to ordinary shareholders in 2009 in respect of the year ended31st December 2008.Solvency CertificationThe board of directors is satisfied that the Bank would meet the solvency test in terms of the provisions ofthe Companies Act No. 07 of 2007 immediately after the proposed dividend which will be paid in April 2010.The board has obtained a statement of solvency from the External Auditors in relation to the proposeddividend payment.TaxationProvision for taxation has been computed as shown in Note 11 to the Financial Statements.Capital ExpenditureThe total capital expenditure incurred on the acquisition of property, plant and equipment during the yearamounted to Rs. 227,235,000/- details of which are given in Note 27 to the Financial Statements.Property, Plant and EquipmentThe details of the property, plant and equipment are given in Note 27 to the Financial Statements. Valuationdetails of the properties are also disclosed therein. The Directors consider the market values of the property,plant and equipment not to be significantly different to the amounts disclosed.ReservesTotal reserves (including Statutory Reserve Fund) of the Group as at 31st December 2009 amountedto Rs. 5,541,319,769/- (Rs. 5,244,106,388/- in 2008) details of which are given in Notes 37 and 38 to theFinancial Statements.Stated CapitalThe Stated Capital of the Bank as at 31st December 2009 was Rs 5,567,820,324/- (Rs. 2,542,420,326/- in2008) comprising of 130,000,000 ordinary (voting) shares, 3,390,100 non-redeemable, non-cumulative, nonconvertibleand non-voting preference shares, 123,560,000 ordinary (non-voting) shares and share premiumof Rs. 837,319,324/-.