The Case Study - Seylan Bank

134Seylan Bank PLC Annual Report 2009Directors’ Responsibility for Financial ReportingIn terms of the provisions of the Companies Act No. 07 of 2007, the directors are responsible for ensuringthat the Bank maintains proper books of account of all its transactions so as to -(i) enable the financial position of the Company to be determined with reasonable accuracy at any time;(ii) enable the directors to prepare Financial Statements in accordance with the Act; and to(iii) enable the Financial Statements of the Company to be readily and properly audited.In terms of Sections 150 (1), 151 (1), 152 (1) and 153 (1) of the Companies Act, the directors are requiredto ensure that Financial Statements are prepared that give a true and fair view of the state of affairs of theCompany and the Group and the profit or loss for the year ended on the Balance Sheet date.Accordingly, the directors have ensured that proper books of account have been maintained and have alsotaken reasonable steps to ensure the accuracy and reliability of accounting records. The financial reportingsystem is also reviewed by the board through the management accounts submitted at board meetings andby the Audit Committee. The Bank’s Interim and Audited Financial Statements are also reviewed by the AuditCommittee and the board prior to their release.The Financial Statements of the Bank and the Group give a true and fair view of the state of affairs ofthe Bank and its subsidiaries and the profit/loss for the year ended 31st December 2009. The FinancialStatements of the Bank and the Group have been certified by the Bank’s Chief Financial Officer, the personresponsible for their preparation and signed by two directors and the Company Secretary of the Bank on17th February 2010.The Bank’s Financial Statements for the year ended 31st December 2009 and presented in this AnnualReport are consistent with the underlying books of account of the Bank and are in conformity with theSri Lanka Accounting Standards, Companies Act No. 07 of 2007, Sri Lanka Accounting and AuditingStandards Act No. 15 of 1995, the Banking Act No. 30 of 1988 (as amended), the Listing Rules of the ColomboStock Exchange and the Code of Best Practice on Corporate Governance issued jointly by the Securities andExchange Commission of Sri Lanka (SEC) and The Institute of Chartered Accountants of Sri Lanka (ICASL).The directors also confirm that in preparing the Financial Statements for the year ended 31st December2009 published on pages 136 to 226 of this Annual Report, appropriate accounting policies have been selectedand applied on a consistent basis with material departures (if any) disclosed in the Financial Statements andthe rationale for same provided.The directors also confirm that the Bank and its quoted subsidiaries have met all the requirements underSection 7 of the Listing Rules of the Colombo Stock Exchange.The board has also taken reasonable measures to safeguard the Bank’s assets and ensure continuity ofoperations. To this end, effective internal control systems are in place to prevent frauds and irregularitiesand ensure as far as practicable the accuracy and reliability of records.The Bank’s Auditors, Messrs KPMG Ford, Rhodes, Thornton & Co. carry out reviews and sample checks onthe effectiveness of the systems of internal control, as they consider appropriate and necessary in providingtheir opinion on the Financial Statements. Messrs KPMG Ford, Rhodes, Thornton & Co. have examined theFinancial Statements made available together with all other financial records, minutes of shareholders’ anddirectors’ meetings and related information and have expressed their opinion which appears on pages 136and 137 of this Annual Report.