The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 127Going ConcernThe directors are satisfied that having considered the financial position, operating conditions, regulatoryand other factors and such other matters required to be addressed in the Corporate Governance Code,that the Bank has adequate resources to continue its operations in the foreseeable future. The FinancialStatements of the Bank have accordingly been prepared on a going concern basis.Human ResourcesEffective management of people is closely linked with the organisation’s performance and profitability.Therefore, it is essential to have well trained motivated staff to achieve the objectives of the Bank.Moving on to specific challenges where human resource policies and practices can make a competitivedifference in people management, development of human capital becomes a primary goal in achieving acompetitive advantage. The emerging role of human resource management is that of creating a humanorganisation that can provide a competitive advantage.The key challenge in people development is, to ensure that the focus is on business goals and theoverall strategy of the Bank. Developing capabilities to ensure higher performance is closely linked to theorganisation’s performance and profitability.Attracting, retaining and developing its workforce is the best way to achieve the resilience that is requiredto survive in an increasingly turbulent business environment and the Bank is committed towards developingits human capital as an ongoing process to stay ahead of the competition.Statutory PaymentsThe directors are satisfied that to the best of their knowledge and belief, all statutory payments due to theGovernment and to the employees of the Bank have been made up to date.Employees’ Share Owning SchemeThe Bank has in place several employee share owning trusts established with the objective of providing anadditional benefit to the employees at the time of their retirement/resignation in terms of the trust deeds. Thetrusts have acquired shares of the Bank from time to time as and when formed. All shares held by the trustshave been purchased at the market prices prevailing at the time. Details of facilities granted to the trusts andoutstanding as at the Balance Sheet date are provided in Notes 43 and 19.h to the Financial Statements.In October 2009, under the Bank’s Public Share Issue, one of its employee share owning trusts, Seyfest(Pvt) Limited was allotted 700,000 ordinary voting shares at the issue price of Rs. 35/- per share. The shareswere purchased by the trust company out of its own funds.Post-Balance Sheet EventsNo events have occurred after the Balance Sheet date which would require adjustments to or disclosure inthe Accounts, other than those given in Note 41 to the Financial Statements.