Statement of Cash Flows

BANK GROUP
For the year ended 31 December 2017
LKR 000
2016
LKR 000
2017
LKR 000
2016
LKR 000
Cash flows from operating activities
Interest receipts 25,632,064 19,317,134 25,630,823 19,315,252
Interest payments (19,308,381) (13,071,125) (19,267,517) (13,039,859)
Recoveries from loans previously written off 36,769 24,499 36,769 24,499
Receipts from other operating activities 1,338,987 1,643,470 1,813,361 1,923,001
Cash payments to employees and suppliers (5,409,931) (4,657,702) (5,695,191) (4,802,292)
Value added tax and nation building tax on financial services (1,298,496) (798,410) (1,298,496) (798,410)
Other levies (185,529) (157,564) (185,529) (157,564)
Operating cash flows before changes in
operating assets and liabilities
805,483 2,300,302 1,034,220 2,464,627
(Increase)/decrease in operating assets:
Deposits held for regulatory or monetary control purposes (2,495,121) (2,508,759) (2,495,121) (2,508,757)
Funds advanced to customers (26,935,976) (33,070,446) (26,935,976) (33,070,447)
Others 690,451 (339,086) 723,354 (330,443)
Increase/(decrease) in operating liabilities:
Deposits from customers 50,738,651 27,978,909 50,599,577 28,239,834
Negotiable certificates of deposit (259,665) 32,898 (259,665) 32,898
Others 206,374 668,519 206,374 668,834
Net cash flows from/(used in) operating activities before income tax 22,750,197 (4,937,663) 22,872,763 (4,503,454)
Income tax paid (1,404,889) (649,287) (1,455,337) (694,286)
Net cash flows from/(used in) operating activities 21,345,308 (5,586,950) 21,417,426 (5,197,740)
Cash flows from investing activities
Dividends received 680,893 688,785 629,428 604,526
Interest received 6,122,521 3,190,625 6,171,449 3,226,799
Government Securities – net (9,062,415) (4,102,903) (9,062,415) (4,102,903)
Proceeds from sale and redemption of securities 2,960,619 748,838 2,960,619 748,838
Purchase of securities (1,661,972) (778,566) (1,674,972) (778,566)
Investment in joint venture (100,000) (100,000)
Investment in additional shares of subsidiaries –
(Synapsys Ltd)
(65,000)
Purchase of property, equipment, intangibles and
investment property
(880,905) (277,384) (992,860) (370,960)
Proceeds from sale of equipment and investment property 8,944 10,647 16,196 10,654
Net cash used in investing activities (1,897,315) (619,958) (1,952,555) (761,612)
Cash flows from financing activities
Issue of debentures 12,315,450 12,315,450
Redemption of debentures (5,000,000) (2,096,000) (5,000,000) (2,096,000)
Borrowing, medium and long-term 11,510,776 4,484,011 11,510,776 4,484,011
Other borrowings – net (15,718,589) (2,628,484) (15,718,589) (2,628,484)
Repayment of borrowing, medium and long term (3,943,757) (3,836,433) (3,943,757) (3,836,433)
Dividends paid (1,180,868) (654,832) (1,241,185) (835,442)
Net cash flows (used in)/from financing activities (14,332,438) 7,583,712 (14,392,755) 7,403,102
Net (increase) in cash and cash equivalents 5,115,555 1,376,804 5,072,116 1,443,750
Cash and cash equivalents at the beginning of year 5,682,051 4,305,247 5,760,245 4,316,495
Cash and cash equivalents at the end of year 10,797,606 5,682,051 10,832,361 5,760,245
Reconciliation of cash and cash equivalents with items reported in the statement offinancial position
Cash and cash equivalents (Note 24) 4,106,225 4,330,934 4,120,230 4,344,260
Placements with banks (Note 26) 6,691,381 1,351,117 6,712,131 1,415,985
10,797,606 5,682,051 10,832,361 5,760,245

The Statement of Cash Flows of the bank includes the results of associate, joint venture and subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards.

BANK GROUP
2017
LKR 000
2016
LKR 000
2017
LKR 000
2016
LKR 000
Profit for the period 4,414,964 3,288,723 4,433,757 3,469,074
Add/(deduct) items not using (providing) cash: 2,406,558 1,321,549 2,265,556 1,184,244
Depreciation – Property, equipment and investment property 259,548 233,079 300,142 271,332
Amortisation – Intangible assets 109,573 98,262 110,807 98,567
Unrealised gain on Trading securities (91,252) (164,110) (91,252) (164,110)
Net loss from financial instruments at fair value through
profit or loss
– Contracts with commercial banks 314,489 93,944 314,489 93,944
– CBSL Swap 86,277 83,606 86,277 83,606
Interest rate swap fair value changes 3,820 2,177 3,820 2,177
Amortisation of deferred income on Government grant 85,973 (180,106) 85,973 (180,106)
Foreign exchange loss 849,494 330,157 849,494 330,154
Impairment for loans and other losses 1,176,413 937,267 1,170,366 916,344
Notional tax credit on Treasury Bills and Bonds (505,381) (249,914) (505,381) (249,914)
Share of profits of associate and joint venture (185,030) (161,151)
Provision for defined benefit plans 117,604 137,187 125,851 143,401
Deduct items reported gross under investing activities: (7,321,541) (4,123,348) (7,036,539) (4,056,979)
Dividend income (889,883) (856,306) (798,420) (772,046)
Gains on sale of financial investment (1,151,927) (156,388) (950,342) (156,388)
Gain on sale of equipment and investment property (11,299) (7,694) (11,299) (13,631)
Interest income from investments (5,268,432) (3,102,960) (5,276,478) (3,114,914)
Deduct changes in operating assets and liabilities: 21,845,327 (6,073,874) 21,754,652 (5,794,079)
(Increase)/(decrease) in account receivables 2,922,640 (1,645,511) 2,468,411 (1,660,055)
Increase in account payables (2,309,758) 2,334,083 (1,847,605) 2,323,939
Increase/(decrease) an income tax payable (369,904) 446,392 (351,376) 509,872
(Increase)/decrease in deferred tax (342,365) 29,127 (353,321) 246
Increase in operating assets (28,740,646) (35,918,291) (28,707,743) (35,909,647)
Increase in operating liabilities 50,685,360 28,680,326 50,546,286 28,941,566
Net cash flow from/(used) in operating activities 21,345,308 (5,586,950) 21,417,426 (5,197,740)
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