The Financial Statements of SANASA Development Bank PLC (Bank) as at 31 December 2018 are prepared in compliance with the requirements of the following:
The formats used in the preparation of the Financial Statements and disclosures made comply with the formats prescribed by the Central Bank of Sri Lanka, which is also in compliance with the disclosure requirements of the Sri Lanka Accounting Standard (LKAS 1) “Presentation of Financial Statements”.
The Accounting Policies used in the preparation of the Financial Statements are appropriate and are consistently applied by the Bank. The significant accounting policies and estimates that involve a high degree of judgement and complexity were discussed with the Audit Committee and External Auditors. Comparative information has been restated wherever necessary to comply with the current presentation and material departures, if any, have been disclosed and explained in the Notes to the Financial Statements.
The estimates and judgements relating to the Financial Statements were made on a prudent and reasonable basis; in order that the Financial Statements reflect in a true and fair manner, the form and substance of transactions and that the Bank’s state of affairs is reasonably presented. To ensure this, the Bank has taken proper and sufficient care in installing a system of internal controls and procedures for safeguarding assets, preventing and detecting frauds and/or errors as well as other irregularities which are reviewed, evaluated and updated on an ongoing basis. Our Internal Auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures were consistently followed. However, there are inherent limitations that should be recognised in weighing the assurances provided by any system of internal controls and accounting.
We confirm, compliance with Section 3 (8) (ii) of the Banking Act Direction No. 12 of 2007 on Corporate Governance (Internal Control Over Financial Reporting – ICOFR) issued by the Central Bank of Sri Lanka as of 26 December 2007 and that the Bank’s Internal Controls over Financial Reporting is adequate and effective. The Annual Report of the Directors on pages 107 to 115 has briefly covered the Bank’s Internal Control over Financial Reporting. In addition, Directors’ Statement on Internal Control over Financial Reporting is provided on pages 116 and 117 The Bank’s External Auditors, Messrs. Ernst & Young, have audited the effectiveness of the Bank’s Internal Controls over financial reporting and have given an unqualified opinion on page 118 of this Annual Report.
The Financial Statements of the Bank were audited by Messrs. Ernst & Young, Chartered Accountants, the Independent External Auditors. Their report is given on pages 121 to 123 of this Annual Report.
The Audit Committee of the Bank meets periodically with the Internal Auditors and the Independent External Auditors to review the manner in which these Auditors are performing their responsibilities and to discuss issues relating to auditing, internal controls and financial reporting issues. To ensure complete independence, the External Auditors and the Internal Auditors have full and free access to the members of the Audit Committee to discuss any matter of substance. The Audit Committee report is given on pages 96 to 99.
The Audit Committee approves the audit and non-audit services provided by Messrs. Ernst & Young, in order to ensure that the provision of such services does not impair Messrs. Ernst & Young’s independence.
We confirm that to the best of our knowledge –
Chief Executive Officer
Chief Financial Officer
8 March 2019
Colombo, Sri Lanka