The Case Study - Seylan Bank

202Seylan Bank PLC Annual Report 2009Notes to the Consolidated Financial StatementsBANKGROUP2009 2008 2009 2008(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00038.b Movement in Revaluation ReserveBalance as at 01st January 125,238 198,918 490,562 564,242Transferred to/from Revaluation Reserve – (73,680) (6,670) (73,680)Balance as at 31st December 125,238 125,238 483,892 490,562In addition to the Bank’s Revaluation Reserve, Group includes the surplus on revaluation of fixed assets ofSeylan Developments PLC.BANKGROUP2009 2008 2009 2008(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00038.c Movement in General ReserveBalance as at 01st January 33,787 33,787 33,787 33,787Balance as at 31st December 33,787 33,787 33,787 33,787Consist of Rs. 25 Mn. transferred in 1995 to General Reserve, Rs. 2.7 Mn. transferred from Bad DebtsReserve and Rs. 6 Mn. transferred from Contingency Reserve in 2002 to General Reserve.BANKGROUP2009 2008 2009 2008(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00038.d Movement in Capital RedemptionReserve FundBalance as at 01st January – – 258,997 258,997Add: Transferred during the Year – – – –Less: Adjustment on Consolidation – – (3,784) –Balance as at 31st December – – 255,213 258,997Capital Redemption Reserve Fund was created at the time of redeeming the preference shares ofSeylan Developments PLC.BANKGROUP2009 2008 2009 2008(Restated)Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’00038.e Movement in Special Risk ReserveBalance as at 01st January – – 4,515 4,515Add: Transferred during the Year – – 38,080 –Balance as at 31st December – – 42,595 4,515According to the circular Ref. No. 08/24/002/005/003 issued by the Central Bank of Sri Lanka, Seylan BankAsset Management Ltd. is required to appropriate 25% of the net profit after tax for the year towards theSpecial Risk Reserve Fund.