The Case Study - Seylan Bank

78Seylan Bank PLC Annual Report 2009Disclosure requirement(c) The external auditor’s certification onthe effectiveness of the internal controlmechanism referred to in Direction 3(8)(ii)(b) above, in respect of anystatements prepared or publishedafter 31st December 2008.(d) Details of directors, includingnames, fitness and propriety,transactions with the bank and the totalof fees/remuneration paid by the bank.Level of compliancePending auditing guidelines being issued by the ICASL inrespect to the nature, extent and reporting formats for suchcertification, the Central Bank of Sri Lanka is consideringdeferment of this directive.However, the board has put in place processes and monitorsthe effectiveness of internal controls through the followingboard subcommittees:• Audit Committee• Integrated Risk Management CommitteeComplied.Profiles of the board of directors and other details areprovided on pages 228 to 229 of the Annual Report and alsoin the Annual Report of the Board appearing on pages 119 to128 of the Annual Report.Details of directors’ interest in contracts and related partytransactions are given in Notes 42 and 43 of the FinancialStatements and on pages 129 to 133 of the Annual Report.Aggregate remuneration paid to directors andaccommodation granted are indicated in Note 7 and Note 42to the Financial Statements.(e) Total net accommodation as defined in3(7)(iii) granted to each category of relatedparties. The net accommodation grantedto each category of related parties shallalso be disclosed as a percentage of thebank’s regulatory capital.(f) The aggregate values ofremuneration paid by the bank to itskey management personnel and theaggregate values of the transactionsof the bank with its key managementpersonnel, set out by broad categoriessuch as remuneration paid,accommodation granted and deposits orinvestments made in the bank.(g) The external auditor’s certification ofthe compliance with these Directions inthe annual corporate governance reportspublished after 1st January 2010.Complied.Details of accommodation granted to related partiesare disclosed on pages 129 to 133 and in Notes 42 and 43 ofthe Financial Statements.Net accommodation granted to related parties was 13.18% ofthe Bank’s regulatory capital.Complied.Please refer Notes 7 and 42 to the Financial Statements.The Central Bank of Sri Lanka is considering the defermentof this directive.