The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 201Notes to the Consolidated Financial StatementsBANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00036.c Preference SharesBalance as at 01st January -3,390,100 Shares of Rs. 10/- each 33,901 33,901 33,901 33,9013,390,100 Preference Shares 33,901 33,901 33,901 33,90136.d Movement in Share PremiumBalance as at 01st January 837,319 837,319 837,319 837,319Balance as at 31st December 837,319 837,319 837,319 837,319BANK GROUP2009 2008 2009 2008(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00037. Statutory Reserve FundBalance as at 01st January 479,754 468,250 481,650 470,146Add: Transferred During the Year 27,165 ** 7,762 ** 27,165 7,762Adjustments During the Year – 3,742 – 3,742Adjustment on Deconsolidation – – (1,896) –Balance as at 31st December 506,919 479,754 506,919 481,650** 5% of Net Profit After TaxStatutory Reserve Fund represents the statutory requirement in terms of the Section 20 (1) and (2) of the Banking Act No. 30 of 1988.BANKGROUP2009 2008 2009 2008(Reclassified)(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00038. reservesCapital Reserve (Note 38.a) 418,021 418,021 418,021 418,021Revaluation Reserve (Note 38.b) 125,238 125,238 483,892 490,562General Reserve (Note 38.c) 33,787 33,787 33,787 33,787Capital Redemption Reserve Fund (Note 38.d) – – 255,213 258,997Special Risk Reserve (Note 38.e) – – 42,595 4,515Reserve on Script Issue – – – 3,521Retained Profits 3,930,689 3,420,791 3,800,891 3,553,0524,507,735 3,997,837 5,034,399 4,762,45538.a Movement in Capital ReserveBalance as at 01st January 418,021 418,021 418,021 418,021Balance as at 31st December 418,021 418,021 418,021 418,021Consists of the Debenture Redemption Reserve Fund of Rs. 400 Mn. transferred to Capital Reserve in 2004.Debenture Redemption Reserve Fund was created for the redemption of five-year debentures amounting toRs. 400 Mn. issued in November 1999. Balance consisting of Rs. 18 Mn. transferred to Capital Reserve in 1991.