Pushing the Pace in
a Resurgent Sri Lanka
a Resurgent Sri Lanka
The Statement of Cash Flow has been prepared by using ‘The Direct Method’, whereby gross cash receipts and gross cash payments of operating, investing and financing activities have been recognized. For the purpose of the preparation of the Statement of Cash Flow, cash and cash equivalents include cash and cash equivalents, balances with Central Bank and placements with banks net of unfavourable Nostro balances, as presented in the Statement of Financial Position.
| BANK | GROUP | |||
| For the year ended 31 December | 2014
LKR ’000 |
2013
LKR ’000 |
2014
LKR ’000 |
2013
LKR ’000 |
| Cash flows from operating activities | ||||
| Interest received | 20,919,252 | 20,603,610 | 21,111,971 | 20,841,634 |
| Fee and commission income received | 1,856,202 | 1,623,266 | 2,319,114 | 1,982,017 |
| Dividend income received | 339,962 | 718,461 | (13,856) | 45,116 |
| Other income received | 1,671,597 | 1,449,324 | 1,671,965 | 1,672,511 |
| Interest paid | (13,195,780) | (13,791,503) | (13,197,274) | (13,791,743) |
| Personnel costs paid | (2,857,404) | (2,469,540) | (2,857,404) | (2,714,920) |
| General expenses paid | (2,267,278) | (2,040,890) | (2,351,710) | (2,057,470) |
| Operating profit before changes in operating assets and liabilities | 6,466,551 | 6,092,728 | 6,682,806 | 5,977,145 |
| Net increase in loans and receivables | (38,496,570) | (21,548,181) | (38,496,570) | (21,548,181) |
| Net increase due to other customers | 22,505,047 | 22,229,446 | 22,505,047 | 22,229,446 |
| Net (increase)/decrease in other receivables | (570,535) | 406,097 | (375,769) | 409,522 |
| Net increase/(decrease) in other liabilities | 2,266,544 | (616,508) | 2,042,163 | (585,420) |
| Net cash inflow/(outflow) from operating activities before taxation | (7,828,963) | 6,563,582 | (7,642,323) | 6,482,512 |
| VAT on Financial Services paid | (840,240) | (806,647) | (840,240) | (806,647) |
| Income taxes paid | (652,006) | (1,244,414) | (699,930) | (1,293,080) |
| Net cash provided by/(used in) operating activities (Note a) | (9,321,209) | 4,512,521 | (9,182,493) | 4,382,785 |
| Cash flows from investing activities | ||||
| Net changes in financial investments | (17,009,180) | (23,389,900) | (16,959,756) | (17,292,330) |
| Disposal of subsidiaries/associates | 147,068 | 5,954,774 | 147,068 | (13,016) |
| Expenditure on property, plant & equipment | (392,997) | (308,681) | (443,312) | (309,257) |
| Proceeds from sale of property, plant & equipment | 14,765 | 3,981 | 14,765 | 3,981 |
| Net cash used in investing activities | (17,240,344) | (17,739,826) | (17,241,235) | (17,610,622) |
| Cash flows from financing activities | ||||
| Issue of shares | 52,258 | – | 52,258 | – |
| Net proceeds from issue of subordinated debts | – | 9,488,350 | – | 9,488,350 |
| Interest paid on subordinated debts | (1,573,625) | (282,446) | (1,573,625) | (282,446) |
| (Decrease)/increase in other borrowings | 34,403,497 | 2,547,719 | 34,403,501 | 2,547,719 |
| Dividends paid to non-controlling interests | – | – | (25,377) | (96,867) |
| Dividends paid to shareholders of the parent Company | (1,966,761) | (3,430,480) | (1,966,755) | (3,430,480) |
| Net cash provided by/(used in) financing activities | 30,915,369 | 8,323,143 | 30,890,002 | 8,226,276 |
| Net increase in cash and cash equivalents | 4,353,816 | (4,904,162) | 4,466,274 | (5,001,561) |
| Cash and cash equivalents at the beginning of the year | 8,077,934 | 12,982,096 | 8,135,121 | 13,136,682 |
| Cash and cash equivalents at the end of the year | 12,431,750 | 8,077,934 | 12,601,395 | 8,135,121 |
| Reconciliation of cash and cash equivalents | ||||
| Cash and cash equivalents | 3,104,391 | 2,611,075 | 3,274,036 | 2,668,262 |
| Balances with Central Bank | 6,740,590 | 5,339,000 | 6,740,590 | 5,339,000 |
| Placements with banks | 2,721,891 | 130,751 | 2,721,891 | 130,751 |
| 12,566,872 | 8,080,826 | 12,736,517 | 8,138,013 | |
| Amount due to foreign banks | 135,122 | 2,892 | 135,122 | 2,892 |
| 12,431,750 | 8,077,934 | 12,601,395 | 8,135,121 | |
The balances with Central Bank represent the reserve for the rupee deposits of the Bank and it is not available to finance the Bank's day-to-day operations.
| BANK | GROUP | |||
| For the year ended 31 December | 2014
LKR ’000 |
2013
LKR ’000 |
2014
LKR ’000 |
2013
LKR ’000 |
| Note a | ||||
| Reconciliation of operating profit | ||||
| Operating profit before value added tax on financial services | 5,786,773 | 9,682,512 | 6,526,732 | 4,724,401 |
| Non-cash items included in the profit | 679,784 | (3,589,784) | 156,076 | 1,252,745 |
| Net increase in loans and receivables | (38,496,570) | (21,548,181) | (38,496,570) | (21,548,181) |
| Net increase in due to other customers | 22,505,047 | 22,229,446 | 22,505,047 | 22,229,446 |
| Net (increase)/decrease in operating receivables | (570,535) | 406,098 | (375,771) | 409,519 |
| Net increase/(decrease) in operating liabilities | 2,266,538 | (616,510) | 2,042,162 | (585,418) |
| VAT on financial services paid | (840,240) | (806,647) | (840,240) | (806,647) |
| Income taxes paid | (652,006) | (1,244,413) | (699,929) | (1,293,080) |
| Net cash provided by/(used in) operating activities | (9,321,209) | 4,512,521 | (9,182,493) | 4,382,785 |
The Notes to the Financial Statements are an integral part of these Financial Statements.