The Case Study - Seylan Bank

162Seylan Bank PLC Annual Report 2009Notes to the Consolidated Financial StatementsBANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’0002. IncomeInterest Income (Note 3) 20,708,034 21,552,070 21,796,473 23,156,161Foreign Exchange Profit 521,388 670,731 521,388 670,731Fee and Commission Income (Note 5.a) 1,274,251 1,801,826 1,341,416 1,841,754Other Income (Note 6) 650,856 1,221,582 879,701 1,385,30523,154,529 25,246,209 24,538,978 27,053,951Income of the Company resulted mainly from the business of banking and related activities.3. Interest IncomeCustomer Advances 14,836,462 17,898,073 15,074,475 18,402,956Treasury Bills, Bonds & Placements withOther Banks 5,820,916 3,511,299 6,603,455 4,422,303Debentures – 24,967 – 1,161Other 50,656 117,731 118,543 329,74120,708,034 21,552,070 21,796,473 23,156,161According to the Section 137 of the Inland Revenue Act No. 10 of 2006, any person who derives income fromthe secondary market transactions in Government Securities is entitled to a notional tax credit in relationto the tax payable by such person. Notional tax credit would be determined by grossing up of the incomefrom the secondary market transactions to an amount equal to 1/9 of same and credit to be afforded fora like sum. Accordingly, Bank has accounted for Rs. 439,968,584/- as notional tax credit for the year 2009(Rs. 251,033,272/- for 2008).BANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’0004. Interest expensesCustomer Deposits 11,106,062 12,415,244 11,105,997 12,667,038Borrowings 249,884 586,400 729,053 979,659Refinance 108,292 117,766 108,292 117,766Treasury Bills Repurchased 1,300,100 498,838 1,691,580 1,290,211Debentures 727,715 743,204 744,942 751,642Other – – 9,439 69,18813,492,053 14,361,452 14,389,303 15,875,5045. Net Fee & Commission Income5.a Fee & Commission IncomeFee Income 499,842 765,964 567,528 806,898Commission Income 774,409 1,035,862 773,888 1,034,8561,274,251 1,801,826 1,341,416 1,841,7545.b Fee & Commission ExpensesCommission Expenses 105,127 52,089 116,106 63,434105,127 52,089 116,106 63,434Net Fee & Commission Income 1,169,124 1,749,737 1,225,310 1,778,320