Annual Report 2012 - National Savings Bank

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210THE RESULTS OF A CHALLENGING YEARSTATEMENT OF CASH FLOWSBankGroupFor the year ended 31st December 2012 2011 2012 2011Note Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000Cash flow from operating activitiesProfit before tax 6,169,259 9,254,681 6,221,286 9,411,069Adjustment for:Non-cash items included in profit before tax 41 487,828 557,132 488,233 557,583Change in operating assets 42 (44,144,956) (64,579,569) (42,934,983) (67,793,455)Change in operating liabilities 43 36,594,698 57,636,218 33,037,640 61,970,487Net gains from investing activities - - - -Others balances with banks (693,057) (1,344,536) (693,057) (1,344,536)Contribution paid to defined benefit plans (873,449) (854,257) (873,449) (854,257)Tax paid (1,810,194) (3,777,513) (1,850,879) (4,036,538)Net cash used in operating activities (4,269,871) (3,107,844) (6,605,209) (2,089,647)Cash flows from investing activitiesPurchase of property, plant and equipment (353,729) (665,666) (353,975) (742,133)Proceeds from the sale of property, plant and equipment - - - -Purchase of financial investment 305,299 (3,717) 305,299 (3,717)Proceeds from the sale and maturity of financial investments 765,650 4,524,104 3,956,193 4,524,104Net purchase of intangible assets (19,667) (24,701) (19,666) (24,701)Contribution to Consolidated fund (3,048,035) (5,512,013) (3,060,968) (5,512,013)Net cash (used in)/from investing activities (2,350,482) (1,681,993) 826,883 (1,758,460)Cash flow from financing activitiesOther Borrowings 6,479,416 4,827,426 5,705,106 4,827,426Net cash from financial activities 6,479,416 4,827,426 5,705,106 4,827,426Net increase/(decrease) in cash & equivalents (140,937) 37,589 (73,220) 979,319Cash and cash equivalents at the beginning of the year 1,269,465 1,231,876 2,213,227 1,233,908Cash and cash equivalents at the end of the year 1,128,528 1,269,465 2,140,007 2,213,227NATIONAL SAVINGS BANK . ANNUAL REPORT 2012
211THE RESULTS OF A CHALLENGING YEARNOTES TO THE FINANCIAL STATEMENTS1. Corporate InformationReporting EntityNational Savings Bank (NSB) is a saving Bankincorporated in Sri Lanka. The registeredoffice of the Bank is located at No. 255,‘Saving House’, Galle Road, Colombo - 03,Sri Lanka. The ‘Group’ Financial Statementsfor the year ended 31 December 2012comprise of the Bank (parent) and its fullyownedSubsidiary, NSB Fund ManagementCompany Ltd. The Bank prepares financialstatements of the ‘Bank’ and the ‘Group’for the twelve months period ended31 December each year to be tabled in theParliament.The staff strength of the Bank as at31 December 2012 was 3,128 (2011-3,275).The Financial Statements for the year ended31 December 2012 were authorized forissue on 28th March 2013, by a resolutionof the Board of Directors.The Bank possesses 219 Branches,1,185 school Bank units and 231 ATMsof its service outlets and 641 Post officesand 3,412 sub-post offices as its agencynetwork.2. Main Accounting Policies2.1 Basis of PreparationThe Consolidated Financial Statements havebeen prepared on a historical cost basis,except for available-for-sale investments,derivative financial instruments, otherfinancial assets and liabilities held fortrading, financial assets and liabilitiesdesignated at fair value through profit orloss, which have all been measured atfair value. The Consolidated FinancialStatements are presented in Sri LankanRupees (Rs.) and all values are rounded tothe nearest thousand rupees, except whenotherwise indicated.2.1.1 Statement of complianceThe Financial Statements of the Bank andGroup are prepared in accordance withSri Lanka Accounting Standards (LKASsand SLFRSs) as issued by the Institute ofChartered Accountants of Sri Lanka.2.1.2 Presentation of financial statementsThe Bank and Group presents its statementof financial position broadly in order ofliquidity.2.1.3 Offsetting financial instrumentsFinancial assets and financial liabilities areoffset and the net amount reported in thestatement of financial position if and onlywhen there is a legally enforceable right tooffset the recognised amounts and thereis an intention to settle on a net basis, orto realise the assets and settle the liabilitysimultaneously. Income and expensesare not offset in the income statementunless required or permitted by anyaccounting standard or interpretation, andas specifically disclosed in the accountingpolicies of the Bank.2.1.4 Basis of consolidationThe Financial Statements of the Bank andGroup comprise the financial statementsof the Bank and its Subsidiary for the yearended 31 December 2012. The financialstatements of the Bank’s Subsidiary for thepurpose of consolidation are prepared forthe same reporting year as that of NationalSavings Bank, using consistent accountingpolicies.All intra–group balances, transactions,income and expenses are eliminated in full.Subsidiary are fully consolidated from thedate on which control is transferred to theBank. Control is achieved where the Bankhas the power to govern the financial andoperating policies of an entity so as toobtain benefits from its activities.2.2 Significant Accounting Judgments,Estimates and AssumptionsIn the process of applying the Bank’saccounting policies, management hasexercised judgement and estimates indetermining the amounts recognised in thefinancial statements. The most significantuses of judgements and estimates are asfollows:2.2.1 Going concernThe Bank’s management has made anassessment of its ability to continue as agoing concern and is satisfied that it hasthe resources to continue in businessfor the foreseeable future. Furthermore,management is not aware of any materialuncertainties that may cast significantdoubt upon the Bank’s ability to continueas a going concern. Therefore, the financialstatements continue to be prepared on thegoing concern basis.2.2.2 Fair value of financial instrumentsWhere the fair values of financial assets andfinancial liabilities recorded on the statementNATIONAL SAVINGS BANK . ANNUAL REPORT 2012
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ROOTEDANNUAL REPORT 2012
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ROOTEDNATIONAL SAVINGS BANK l ANNUA
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5MISSIONProviding our customers wit
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7ROOTEDFor over 40 years, the Natio
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92000Establishment of subsidiary co
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11HOW WE PERFORMED IN 2012FINANCIAL
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13CHAPTER 1FIRMLY ANCHOREDSTRATEGY
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15A MESSAGE FROM MR SUNIL S. SIRISE
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17A MESSAGE FROM MR SUNIL S. SIRISE
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19A REVIEW BYMR. HENNAYAKE BANDARAG
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21A REVIEW BY MR HENNAYAKE BANDARAG
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23A REVIEW BY MR HENNAYAKE BANDARAG
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25CHAPTER 2HOW WE PERFORMED IN 2012
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33HOW WE PERFORMED IN 2012ECONOMIC
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35HOW WE PERFORMED IN 2012ECONOMIC
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37HOW WE PERFORMED IN 2012ACHIEVEME
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39HOW WE PERFORMED IN 2012OPERATION
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51HOW WE PERFORMED IN 2012FUTURE PL
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53CHAPTER 3ROOTED IN OUR HERITAGEGO
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55ROOTED IN OUR HERITAGEGOVERNANCE
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85ROOTED IN OUR HERITAGEBOARD OF DI
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87ROOTED IN OUR HERITAGEBOARD OF DI
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89ROOTED IN OUR HERITAGEGENERAL MAN
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91ROOTED IN OUR HERITAGECORPORATE M
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93ROOTED IN OUR HERITAGEEXECUTIVE M
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95ROOTED IN OUR HERITAGEREPORT OF T
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101ROOTED IN OUR HERITAGEREPORT OF
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103CHAPTER 4ASSESSING AND MANAGING
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105ASSESSING AND MANAGING OUR RISK
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137CHAPTER 5BRANCHING OUT INTO NEW
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139BRANCHING OUT INTO NEW VENTURESS
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Page 161 and 162: 159BRANCHING OUT INTO NEW VENTURESS
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Page 185 and 186: 183CHAPTER 6THE RESULTS OF A CHALLE
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Page 253 and 254: 251CHAPTER 7ANNEXURESNATIONAL SAVIN
Page 255 and 256: 253STATEMENT OF FINANCIAL POSITION
Page 257 and 258: 255TEN YEARS AT A GLANCE(Rs Mn)Year
Page 259 and 260: 257OUR PRODUCTS AND SERVICESSAVINGS
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261OUR PRODUCTS AND SERVICESOUR EXT
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263BRANCH NETWORKCentral Province1.
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265CORRESPONDENT BANKSCiti Bank NA,
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267EXCHANGE COMPANIESHabib Qatar In
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269GLOSSARYCredit RatingsAn evaluat
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271GLOSSARYReturn on Average Assets
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273CORPORATE INFORMATIONCOMPLIANCE
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Annual Report 2012 - National Savings Bank

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