The Board of Directors is pleased to present to the shareholders the 52nd Annual Report of the Bank comprising an integrated report, the Audited Financial Statements of the Group and the Bank for the year ended December 31, 2020, and the Independent Auditors’ Report on the Financial Statements conforming to all applicable statutory requirements.
This Report, where applicable is presented in accordance with the Guiding Principles and Content Elements as stipulated by the International <IR> Framework issued by the International Integrated Reporting Council (IIRC).
Sections 150 (1), 151, 152 and 153 (1) & (2) of the Companies Act No. 07 of 2007 and amendments thereto make it a responsibility of the Board of Directors of the Bank to prepare the Financial Statements of the Group and the Bank, which reflect a true and fair view of the financial position and performance of the Group and the Bank. In this regard, the Board of Directors wishes to confirm that the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Significant Accounting Policies and Notes thereto appearing on pages 143 to 290 have been prepared and presented in conformity with the requirements of the Sri Lanka Accounting Standards as mandated by the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and the Companies Act No. 07 of 2007 and amendments thereto.
This Report also provides the information and disclosures as required by the Companies Act No. 07 of 2007 and amendments thereto, Banking Act No. 30 of 1988 and amendments thereto, the Directions issued thereunder including the Banking Act Direction No. 11 of 2007 and subsequent amendments thereto, the Listing Rules of the Colombo Stock Exchange (CSE) including the Rules pertaining to Related Party Transactions as required by Section 9.3.2 (c) and (d) thereof and the recommended best practice.
The Financial Statements of the Group and the Bank for the year ended December 31, 2020, including comparatives for 2019, were approved and authorised for issue by the Board of Directors in accordance with the Resolution of the Directors on February 24, 2021. The appropriate number of copies of the Annual Report will be submitted to the CSE and to the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) within the statutory deadlines and soft copies of same will be hosted in the website of the Bank, www.combank.net.
This Report has been structured to effectively communicate the Bank’s efforts to create value to all its stakeholders across the short, medium and long term through its business model (pages 36 and 37). Accordingly, the Bank identified the emerging developments and trends that are likely to impact its business model and value creation process. These trends were then categorised into risks and opportunities based on their importance to the Bank and its stakeholders, together with the stakeholders that are likely to be affected most. The Bank identified its strategic imperatives through its annual strategic planning exercise and continued to execute the required strategies to mitigate risks and exploit opportunities.
The Management Discussion and Analysis (pages 41 to 62) contained in this Report provides a detailed account of such imperatives and strategies. The underlying governance structure and the risk management framework are detailed on pages 77 and 120.
The Bank’s External Auditors, Messrs Ernst & Young, who were appointed in accordance with a resolution passed at the 51st Annual General Meeting held on June 25, 2020 (which was postponed to the above date from its originally planned date of March 30, 2020, due to curfew and lockdowns in many parts of the country following the outbreak of COVID-19), have expressed their opinion, given on pages 138 to 140 of this Annual Report. The details on the remuneration of External Auditors are given in Note 21 on page 186 to the Financial Statements. As far as the Directors are aware, the Auditors do not have any other relationship with the Bank, or any of its subsidiaries and its associate. The External Auditors do not have any interest in contracts with the Bank, or any of its subsidiaries and its associate.
The Directors, to the best of their knowledge and belief are satisfied that all statutory payments to the Government, other regulatory institutions, and to employees have been made in time.
The Board of Directors reviewed the business plans of the Bank and its subsidiaries and is satisfied that the Bank and its subsidiaries have adequate resources to continue their operations in the foreseeable future. Accordingly, the Financial Statements of the Group and the Bank are prepared based on a going concern basis.
The Board has carefully considered matters material to the Bank and its stakeholders in preparing this Report and acknowledges that reasonable care has been exercised in the preparation and presentation of this Integrated Annual Report while preserving its integrity.
The extent of compliance with the requirements of Section 168 of the Companies Act No. 7 of 2007 and amendments thereto and other relevant statutes is disclosed in detail on pages 101 to 106.
Signed in accordance with a resolution of the Directors.
Justice K Sripavan
Prof A K W Jayawardane
Managing Director/Chief Executive Officer
L D Niyangoda
Ms N T M S Cooray
T L B Hurulle
S C U Manatunge
Director/Chief Operating Officer
Ms J Lee
R A P Rajapaksha
February 24, 2021