The Case Study - Seylan Bank

200Seylan Bank PLC Annual Report 2009Notes to the Consolidated Financial StatementsBalance beforeReducing of Benefitsfor Future ServiceRs. ’000Gain onReductionof BenefitsRs. ’000Balance afterReducing theBenefitsRs. ’00035.a.8 Movement in Defined Benefit Plan with theReduction of Benefits - BankNet Present Value of Obligations (Note 35.a.3) 1,258,285 595,166 663,119Fair Value of Plan Assets (Note 35.a.4) (542,563) 53,357 (595,920)715,722 648,523 67,199Unrecognised Actuarial Gains (Note 35.a.5) 189,550 151,584 37,966Unrecognised Past Service GainNon-Vested (Note 35.a.6) – (7,089) 7,089Adjustment to Net Liability Recognisedin Balance Sheet 526,172 489,850 36,322BANK2009 200835.a.9 Actuarial Assumptions- BankNormal Retirement Age 55 years 55 yearsRate of Discount 11% 12%Salary Increase 5%,7.5% and thereafter 8% 10% increase per annum forper annum. (Next increment first 5 years and 8% perdue on 1st July 2010)annum thereafterBANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00036. Stated CapitalOrdinary Shares - Voting (Note 36.a) 3,461,000 435,600 3,461,000 435,600Ordinary Shares - Non-Voting (Note 36.b) 1,235,600 1,235,600 1,235,600 1,235,600Preference Shares - Non-Redeemable,Non-Cumulative, Non-Convertible andNon-Voting (Note 36.c) 33,901 33,901 33,901 33,901Share Premium (Note 36.d) 837,319 837,319 837,319 837,3195,567,820 2,542,420 5,567,820 2,542,42036.a Ordinary Shares - VotingBalance as at 01st January -43,560,000 Ordinary Shares 435,600 435,600 435,600 435,600Issued during the year -86,440,000 Ordinary Shares of Rs. 35/- each 3,025,400 – 3,025,400 –130,000,000 Ordinary Shares - Voting 3,461,000 435,600 3,461,000 435,60036.b Ordinary Shares - Non-VotingBalance as at 01st January -123,560,000 Ordinary Shares 1,235,600 1,235,600 1,235,600 1,235,600123,560,000 Ordinary Shares - Non-Voting 1,235,600 1,235,600 1,235,600 1,235,600