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| Note |
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1. |
Accounting policies |
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The accounting policies and methods of computation are consistent with those policies and methods followed during the previous financial year except for reduction in Bank's own general provision for finance leases. For new leases from 1 July 2010 the general provision is 2 Pc while for the earlier lease portfolio the general provision remains unchanged at 3 Pc. |
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| Note |
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2. |
Accounting for investments in associate companies and subsidiary companies |
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|
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Accounted under cost method in Bank's financial statements. Amounts are based on unaudited financial statements of the associate and subsidiary companies |
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| Note |
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3. |
Accounting for investment in Joint Venture Company. |
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Accounted under partial consolidation method in group's financial statements. Amounts are based on unaudited financial statements of the joint venture company. |
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| Note |
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4. |
31 December financial year companies. |
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These are DFCC Vardhana Bank Ltd and Synapsys Ltd (subsidiaries) Acuity Partners (Pvt) Limited (joint venture).
Results of these companies are consolidated with DFCC Bank with a three months gap. Thus the consolidated results for the period ended 30.09.2010 include profits of these companies for the period 01.01.2010 to 30.06.2010. |
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| Note |
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5. |
Reclassification of investment in Commercial Bank of Ceylon PLC (CBC). |
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This is no longer an investment in associate as reported in the previous quarter ended 30 June 2010. |
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| Note |
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6. |
Foreign Exchange Income |
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|
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All forward exchange contracts of the bank are in respect of funding swaps to take advantage of interest rate differential between LKR and USD. The income derived from LKR is included under net interest income while the premium on forward purchases to cover foreign exchange risk is expensed to foreign exchange income. |
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| Note |
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7. |
Non-Interest Income |
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|
|
|
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|
|
| |
Bank |
Group |
| |
30.09.2010
Rs. 000 |
30.09.2009
Rs. 000 |
30.09.2010
Rs. 000 |
30.09.2009
Rs. 000 |
| |
|
|
|
|
| Dividend income |
409,445 |
386,874 |
99,038 |
155,454 |
| Transactions of Investment in CBC |
6,701,346 |
0 |
4,341,239 |
0 |
| |
Profit on sale of shares as a Associate |
|
4,732,973 |
0 |
2,997,602 |
0 |
| |
Profit on sale of shares as investment securities |
|
303,226 |
0 |
203,687 |
0 |
| |
Marked to market gain on other dealing securities |
|
1,665,147 |
0 |
1,139,950 |
0 |
Net gain on sale of
investment securities |
22,549 |
84,862 |
30,890 |
90,963 |
| Marked to market gain on other dealing securities |
50,489 |
32,366 |
50,489 |
32,366 |
| Other income |
117,417 |
88,140 |
530,852 |
244,811 |
| Non-interest income |
7,301,246 |
592,242 |
5,052,508 |
523,594 |
|
|
| |
|
|
|
|
| Note |
|
8. |
VAT on Financial Services |
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|
|
|
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|
|
| |
Bank |
Group |
| |
30.09.2010
Rs. 000 |
39.09.2009
Rs. 000 |
30.09.2010
Rs. 000 |
30.09.2009
Rs. 000 |
| Transactions of investment in CBC |
1,340,269 |
0 |
1,340,269 |
0 |
| Others |
285,809 |
335,013 |
389,229 |
400,780 |
| |
1,626,078 |
335,013 |
1,729,498 |
400,780 |
|
|
| |
|
|
|
| Note |
|
9. |
Taxation |
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|
|
|
| |
|
|
| |
Bank |
Group |
| |
30.09.2010
Rs. 000 |
30.09.2009
Rs. 000 |
30.09.2010
Rs. 000 |
30.09.2009
Rs. 000 |
| Current Income Tax |
425,519 |
435,389 |
614,278 |
522,636 |
| Deferred tax |
(27,504) |
(31,716) |
(24,012) |
13,042 |
| |
398,015 |
403,673 |
590,266 |
535,678 |
|
|
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| Note |
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10.
|
Post balance sheet events |
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On 29th September 2010 Board has approved a bonus issue of one new share for every existing share. With this bonus issue share capital will increase to Rs.2, 649 million and this will decrease the share premium by the same amount. The allotment of the Bonus Shares will be on 1 November 2010.
As per the direction issued by the Central Bank on 27 September 2010 bank will change the existing mandatory general provision requirement of 1% to 0.5% at the rate of 0.1% per quarter during the five quarters commencing 1 October 2010.
Commencing from 1 October 2010 DFCC Bank and its Commercial Banking Subsidiary, DFCC Vardhana Bank Limited is liable for mandatory deposit insurance premium payments. The applicable rate for both banks is currently 0.10 Pc per annum payable quarterly.
No other circumstances have arisen which would require disclosure or adjustment to the accounts |
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| Note |
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11. |
Intra group transactions |
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Transactions are eliminated on consolidation where the financial year of subsidiary company coincides with the financial year of the Bank except in instances where the consolidation is with a three months gap due to differences in financial years.
These exceptions, which will be eliminated in quarter ending 31.12.2010, were: |
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|
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|
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|
|
| Entity |
Transaction |
Rs.’000 |
| DFCC Vardhana Bank Limited |
Loan – short term |
550,000 |
| |
Deposit – short term |
619,180 |
| |
|
|
| Acuity Partners (Pvt) Limited |
Equity investment by DFCC Bank |
405,000 |
|
| |
|
|
|
| Note |
|
12. |
Disclosures under Appendix 7B of the Listing Rules |
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|
12.1 |
Bank has not incurred management fees or any other similar expenditure |
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12.2 |
Share Capital |
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Number of shares issued as at 30 September 2010 is 132,427,718 (as at 31 March 2010 -132,375,305)
The Financial Statements of the Bank has retained the concept of par value, authorized capital and share premium account instead of the Stated Capital introduced by the Companies Act No. 7 of 2007 in accordance with section 7 of the DFCC Bank Act No. 35 of 1955 as amended |
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12.3 |
Twenty Major Shareholders as at 30.09.2010
|
| |
|
|
|
Name of Shareholder/Company |
Shareholding |
% |
| |
|
|
|
| 1 |
Bank of Ceylon No.2 A/c |
19,019,997 |
14.360 |
| 2 |
Sri Lanka Insurance Corporation Ltd-Life Fund |
17,211,766 |
12.990 |
| 3 |
Hatton National Bank PLC A/c No.1 |
16,054,570 |
12.120 |
| 4 |
Mr M A Yaseen |
11,420,850 |
8.620 |
| 5 |
Distilleries Company of Sri Lanka Ltd |
8,521,428 |
6.430 |
| 6 |
Seafeld International Ltd |
7,643,397 |
5.770 |
| 7 |
HSBC Intl NomLtd-BPSS Lux-Aberdeen Global Asia Pacific Equity Fund |
6,108,073 |
4.610 |
| 8 |
Employee Provident Fund |
4,923,100 |
3.710 |
| 9 |
Renuka City Hotels Ltd |
3,463,435 |
2.610 |
| 10 |
HSBC Intl Nom Ltd-BPSS LDN-Aberdeen Asia Pacific Fund |
3,375,000 |
2.550 |
| 11 |
RBC Dexia Investor Services Trust S/A Edinburgh Dragon Trust Plc |
2,364,400 |
1.780 |
| 12 |
Renuka Hotels Limited |
2,024,180 |
1.530 |
| 13 |
HSBC Intl Nominees Ltd-SSBT- Aberdeen Commingled Funds, LLC |
1,271,250 |
0.960 |
| 14 |
Cargo Boat Development Company Limited |
1,024,000 |
0.770 |
| 15 |
HSBC Intl Nominees Ltd-BP2S London-Aberdeen Asia Smaller Companies Investment Trust |
900,000 |
0.680 |
| 16 |
HSBC Intl Nominees Ltd-SSB TL-Aberdeen New Dawn Investment Trust XCC6 |
900,000 |
0.680 |
| 17 |
HSBC Intl Nominees Ltd-SSBT -Deutsche Bank AG Singapore A/c 01 |
888,400 |
0.670 |
| 18 |
Employee Trust Fund Board |
769,733 |
0.580 |
| 19 |
Mellon Bank N.A. - Florida Retirement Scheme |
750,000 |
0.570 |
| 20 |
Sri Lanka Insurance Corporation Ltd- General Fund |
621,900 |
0.460 |
|
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12.4 |
Public holding as at 30.09.2010 is 60.40% |
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12.5 |
Directors’ Interests in Shares |
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|
|
| |
No of Shares*
As at
30.09.2010 |
| Brito, J M S |
9,380 |
| Fonseka, A N |
66,499 |
| Palihena,S N P |
5,000 |
| Perera, C P R |
13,000 |
| Abeywardena, A S |
5,190 |
| Bandaranayake, T K |
1,478 |
Dayasri, G.K |
518 |
Jansz, C R |
500 |
Thambiayah, R B |
52,600 |
Ms.Gunawardana, H M N S |
Nil |
|
|
| |
|
|
|
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|
|
*Directors’ shareholding includes shares held by the spouse, and children under 18 years of age. |
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Certification |
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|
We, the undersigned, being the Chairman, the Chief Executive Officer and the Chief Financial Officer of DFCC Bank certify that: |
| |
|
| (a) |
the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka. |
| (b) |
the information contained in these statements have been extracted from the unaudited financial statements of the Bank unless indicated as audited . |
|
| |
|
J M S Brito
Chairman
29/10/2010
|
A.N Fonseka
Ex-officio Director & Chief Executive
|
S. Nagarajaha
Chief Financial Officer
|
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