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Annual Report of the Board of Directors
The Directors have pleasure in presenting the Annual Report for the year ended December 31, 2008 which includes business strategy and review, risk management, governance, audited Group accounts, investor relations and a sustainability supplement. The latter makes relevant cross references, so as to minimise repetition and keep the content of the whole simple, clear and succinct.
Pages 1 to 91 of this Annual Report comprise a Report of the Directors that has been drawn up and presented in accordance with Section 168 of the Companies Act No. 7 of 2007 and the Listing Rules of the Colombo Stock Exchange. The information on Directors
is given on pages 65 to 74 while the details on their remuneration and other benefits are given in Note 5 to the Financial Statements on page 124 of this Annual Report.
The Financial Statements, Significant Accounting Policies used and the Notes thereto of the Bank and the Group, and the additional disclosures included in the Annual Report designated as audited, comply with the requirements of the Sri Lanka Accounting Standards and the Companies Act No. 7 of 2007. These Financial Statements and Notes thereto give a true and fair view of the Bank’s and the Group’s financial position as at December 31, 2008 and of their performance for the year ended on that date.
There were no significant changes in the nature of principal activities of the Bank or any of its subsidiaries during the financial year under review, except for the disposal of the 30% stake in the equity of Commercial Leasing Company PLC, one of the former Associates of the Bank.
The Bank’s External Auditors, Messrs Ernst & Young, who were reappointed in accordance with a resolution passed at the last
Annual General Meeting, have expressed their opinion which appears on page 97 of this Annual Report. The details on their remuneration are given in Note 5 to the Financial Statements on page 124. As far as the Directors are aware, the Auditors do not
have any other relationship with the Bank, or any of its subsidiaries. The Auditors do not have any interest in contracts with the Bank, or any of its subsidiaries.
The Bank adopted the Sri Lanka Accounting Standard No. 16 (Revised 2006) on Employee Benefits in 2008, which became effective for financial years beginning on or after July 1, 2007.
The Directors, to the best of their knowledge and belief are satisfied that all statutory payments to the Government, other regulatory institutions and related to the employees have been made in time.
The Interests Register is maintained by the Bank, as per the Companies Act No. 7 of 2007. All Directors have made declarations as provided for in Section 192 (2) of the Companies Act aforesaid. The related entries were made in the Interests Register during the year under review. Entries were made in the Interests Register on share disposals, Directors’ interests in contracts, remuneration paid to the Directors etc. The Interests Register is available for inspection as required under the Companies Act.
Donations made during the year amounted to Rs. 23,220,181/- (Rs. 29,740,726/- in 2007). Of this, a sum of Rs. 2,594,500/-
(Rs. 1,992,270/- in 2007) was made to approved charities.
The Board of Directors has reviewed the Bank’s business plans and is satisfied that the Bank has adequate resources to continue its operations in the foreseeable future. Accordingly, the Financial Statements are prepared based on going concern concept.
Signed in accordance with a resolution of the Directors.
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M.J.C. Amarasuriya
Chairman |
B.R.L. Fernando
Deputy Chairman |
A.L. Gooneratne
Managing Director |
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Dr. H.S. Wanasinghe
Director |
L.J.A. Fernando
Director |
D.S. Weerakkody
Director |
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P.M. Martelli
Director |
R.M.S. Fernando
Director |
Mrs. R.R. Dunuwille
Company Secretary |
Colombo
February 18, 2009 |
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