The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 163Notes to the Consolidated Financial StatementsBANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’0006. Other IncomeDividend Income from Dealing Securities - Quoted 2,498 3,968 2,498 5,967Dividend Income from InvestmentSecurities - Quoted 540 127 540 127Dividend Income from InvestmentSecurities - Unquoted 2,161 2,588 2,161 2,616Dividend Income from Investmentsin Subsidiaries – 216,612 – –Gain on transfer of Investments to Trading Portfolio – 197,248 – 197,248Profit/(Loss) on Sale of Property,Plant & Equipment 2,978 100,080 22,531 103,696Profit/(Loss) on Sale of Investment Property – 53,765 – 56,476Profit/(Loss) on Sale of Investment Securities – – (7,590) (697)Share of Associate CompanyProfit/(Loss) after Tax – – (16,962) 4,365Profit/(Loss) on Sale of Shares ofSubsidiaries (6,630) – 187,825 5,788Profit/(Loss) on Sale of Dealing Securities (9,213) – (9,213) 17,750Bad Debts Recovered and Written Back 658,522 647,194 658,522 874,073Others – – 39,389 117,896650,856 1,221,582 879,701 1,385,3057. Operating ExpensesOperating Expenses include the following:Directors’ Emoluments 10,779 74,675 26,225 110,879Auditors’ Remuneration - Audit Fees & Expenses 6,043 4,317 7,642 7,186- Audit-Related Fee& Expenses 480 1,727 480 1,727- Non-Audit Services – 197 157 703Depreciation - Freehold Property,Plant & Equipment (Note 27) 785,318 707,205 * 816,072 752,954Depreciation - Leasehold Property,Plant & Equipment (Note 28)* 1,082 692 8,960 8,575Depreciation - Investment Property (Note 25) – – 20,066 22,151Donations 6,693 128,865 6,693 136,009Expenses on Litigation 79,890 109,958 79,889 113,724Issue Expenses on Debentures/Shares 18,758 5,307 18,758 5,307Value Added Tax on Financial Services 561,440 243,056 638,325 245,622Impairment Loss - Provision/(Reversal) (3,855) 301,280 (3,855) 374,030Provision for Doubtful Receivables 32,880 16,338 112,977 72,664* Includes depreciation charge of Seylan Merchant Bank PLC for the nine months period ended 30th September 2009 (Rs. 3.188 Mn.) .