| For the year ended 31 December | Stated capital | Reserves | ||||
| Ordinary voting shares LKR |
Statutory reserve fund LKR |
Retained earnings LKR |
Available for sale reserve/Fair value through OCI LKR |
General reserves LKR |
Total equity LKR |
|
| Balance as at 31 December 2017 | 5,758,689,211 | 197,763,963 | 1,340,503,863 | (12,453,979) | 46,656,973 | 7,331,160,031 |
| Impact of adoption of SLFRS 9 as at 1 January 2018 | – | – | (37,054,387) | – | – | (37,054,387) |
| Restated balance under SLFRS 9 as at 1 January 2018 | 5,758,689,211 | 197,763,963 | 1,303,449,476 | (12,453,979) | 46,656,973 | 7,294,105,644 |
| Profit for the year | – | – | 356,950,119 | – | – | 356,950,119 |
| Other comprehensive income (net of tax) | – | – | (33,116,620) | (3,388,111) | – | (36,504,731) |
| Total comprehensive income for the year | – | – | 323,833,499 | (3,388,111) | – | 320,445,388 |
| Transactions with equity holders, recognised directly in equity | ||||||
| Scrip dividend | 162,848,915 | – | (191,726,035) | – | – | (28,877,120) |
| Dividends to equity holders | – | – | (136,947,168) | – | – | (136,947,168) |
| Transfer to statutory reserve fund | – | 17,847,506 | (17,847,506) | – | – | – |
| Total transaction with equity holders | 162,848,915 | 17,847,506 | (346,520,708) | – | – | (165,824,287) |
| Closing balance as at 31 December 2018 | 5,921,538,126 | 215,611,469 | 1,280,762,267 | (15,842,090) | 46,656,973 | 7,448,726,745 |
| Opening balance as at 1 January 2019 | 5,921,538,126 | 215,611,469 | 1,280,762,267 | (15,842,090) | 46,656,973 | 7,448,726,745 |
| Profit for the year | – | – | 253,405,096 | – | – | 253,405,096 |
| Other comprehensive income (net of tax) | – | – | (29,943,202) | (3,209,534) | – | (33,152,736) |
| Total comprehensive income for the year | – | – | 223,461,894 | (3,209,534) | – | 220,252,360 |
| Transfer to statutory reserve fund | – | 12,670,255 | (12,670,255) | – | – | – |
| Closing balance as at 31 December 2019 | 5,921,538,126 | 228,281,724 | 1,491,553,906 | (19,051,624) | 46,656,973 | 7,668,979,105 |
Every licensed specialised bank has to make a provision not less than 5% out of profit after tax to the statutory reserve fund. Such provision should be made annually as stipulated by the Banking Act No. 30 of 1988 as amended by Banking (Amendment) Act No. 33 of 1995 until the said reserve fund is equal to 50% of the equity capital of the Bank. Thereafter, the Bank has to make a provision not less than 2% out of profit after tax to the statutory reserve fund until the said fund is equal to the Equity Capital of the Bank.
The general reserve is created after provisioning for a statutory reserve fund and interim dividend payments for the respective shareholders, this reserve will be used by the Bank for the future capitalisation purposes of the Bank.
The available for sale/Fair value through OCI reserve is consist of fair value adjustment made to unquoted equity investment.
The Accounting Policies and Notes on pages 140 through 190 form an integral part of the Financial Statements.