The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 143Notes to the consolidated financial statements1. Reporting EntitySeylan Bank PLC (‘Bank’) is a public quoted company incorporated on 28th August 1987 and domiciled inSri Lanka. The registered office of the Bank is situated at No. 90, Galle Road, Colombo 03. The shares of theBank have a primary listing on the Colombo Stock Exchange.The staff strength of the Bank as at 31st December 2009 is 3,733 (2008 - 3,923).The Consolidated Financial Statements of the Bank for the year ended 31st December 2009 include theBank and its subsidiaries (together referred to as the ‘Group’ and individually as ‘Group entities’). The Bankdoes not have an identifiable Parent of its own. There were no significant changes in the nature of theprincipal activities of the Bank and the Group during the financial year under review.1.1 Principal Activities1.1.1 BankThe principal activities of the Bank are banking and related activities such as accepting deposits, personalbanking, trade financing, off-shore banking, resident and non-resident foreign currency operations, travelrelated services, corporate and retail credit, project financing, lease financing, rural credit, issuing of localand international credit cards, telebanking facilities, Internet banking, dealing in Government Securities, etc.1.1.2 SubsidiariesThe subsidiaries of the Bank are Seylan Bank Asset Management Limited, Seylan Developments PLC andSeylan Merchant Bank PLC (deconsolidated with effect from 1st October 2009) and the principal activitiesof these subsidiaries are primary dealing, property developing and providing financial services respectively.1.2 Basis of Preparation1.2.1 Statement of ComplianceThe Balance Sheet, Income Statement, Statement of Changes in Equity and Cash Flow Statement have beenprepared in accordance with the Sri Lanka Accounting Standards laid down by the Institute of CharteredAccountants of Sri Lanka and comply with the requirements of the Companies Act No. 07 of 2007 andBanking Act No. 30 of 1988 and amendments thereto.1.2.2 Approval of Financial Statements by DirectorsThe Financial Statements were authorised for issue by the board of directors on 17th February 2010.1.2.3 Basis of MeasurementThe Financial Statements have been prepared on the historical cost basis and applied consistently with noadjustments being made for inflationary factors affecting the Financial Statements, except for the following:• Land and buildings are measured at cost at the time of acquisition and subsequently at revaluedamounts, which are the fair values at the date of revaluation less accumulated depreciation andimpairment losses, if any.• Dealing securities are measured at market value, adjustments for changes in market values areaccounted for in the Income Statement.1.2.4 Functional and Presentation CurrencyThe Financial Statements are presented in Sri Lankan Rupees, which is the Bank’s functional currency. Exceptas indicated, financial information presented in Sri Lankan Rupees has been rounded to the nearest thousand.