Sampath Bank | Annual Report 2013

Subsidiary Company YA subsidiary is an enterprise that is controlled by Yield to Maturityanother enterprise (known as the parent). Discount rate at which the present value of future payments would equal the security’s current price.Substance Over FormThe consideration that the accounting treatmentand the presentation in Financial Statements oftransactions and events should be governed by theirsubstance and financial reality and not merely bylegal form.SWAPS (Currency)The simultaneous purchase of an amount of acurrency for spot settlement and the sale of thesame amount of the same currency for forwardsettlement. Alternatively a simultaneous spot saleand forward purchase of a currency.TTier I Capital (Core Capital)Core Capital includes selected items of capital funds.Ma jor core capital items are share capital, sharepremium, statutory reserve funds, retained profits,general reserves, surpluses/losses after tax arisingfrom the sale of fixed and long-term investments.Tier II Capital (Supplementary Capital)Supplementary Capital includes, approvedrevaluation reserves, general provisions, hybrid(debt/equity) capital items and approvedsubordinated term debts.Total CapitalCapital base is summation of the core capital (Tier I)and the supplementary capital (Tier II).Transaction CostsTransaction costs are incremental costs that aredirectly attributable to the acquisition, issue ordisposal of a financial asset or financial liabilityU Annual Report 2013 Sampath Bank PLCUnit TrustAn undertaking formed to invest in securities underthe terms of a trust deed.VValue AddedWealth created by providing banking and otherservices less the cost of providing such services. Thevalue added is allocated among the employees, theproviders of capital, to government by way of taxesand retained for expansion and growth. 349

NOTICE OF ANNUALGENERAL MEETINGNotice is hereby given that the 28th Annual General 8. To re-appoint M/s Ernst & Young, CharteredMeeting of Sampath Bank PLC will be held at the Accountants as Auditors of the Company for the“Balmoral” Hall, The Kingsbury, No 48, Janadhipathi ensuing year and to authorize the Directors toMawatha, Colombo 01, on 31st March 2014 at 9.30 determine their remuneration.a.m. for the following purposes. By Order of the Board1. To receive and consider the Annual Report of the Board of Directors on the affairs of the Company S Sudarshan and the Statement of Audited Accounts for the Group Company Secretary year ended 31st December 2013 with the Report of the Auditors thereon. 18th February 20142. To declare the recommended Cash Dividend of Note:- Rs 8.00 per share for the Financial Year 2013. A member is entitled to appoint a Proxy to attend and vote on his/her behalf and a Proxy need not be a3. To re-elect Mr Channa Palansuriya who retires member of the Company. A Form of Proxy is attached at the Annual General Meeting as a Director for the purpose. The instrument appointing a Proxy in terms of Article No 87 of the Articles of must be deposited at the Registered Office of the Association of the Company. Bank at No 110, Sir James Peiris Mawatha, Colombo 02, not less than forty eight (48) hours before the4. To re-elect Mr Deshal De Mel who retires at the time fixed for holding of the Meeting. Annual General Meeting as a Director in terms of Article No 87 of the Articles of Association of the You are kindly requested to bring with you, your Company. National Identity Card or any valid source of identification (eg Driving license, Passport).5. To re-elect Miss Annika Senanayake who retires at the Annual General Meeting as a Director in terms of Article No 87 of the Articles of Association of the Company.6. To re-elect Mr Ranil Pathirana who retires at the Annual General Meeting as a Director in terms of Article No 87 of the Articles of Association of the Company.7. To approve the Donations and Contributions made by the Directors during the year under Review.350

FORM OF PROXY Annual Report 2013 Sampath Bank PLCTwenty Eighth Annual General MeetingSampath Bank PLC110, Sir James Peiris MawathaColombo 02I/We, ............................................................................................................... of ..............................................................................................................being a member/members of Sampath Bank PLC hereby appoint Mr/Mrs/Miss/Ven/Rev ......................................................................................................................................................................................................................................................................................................of………………………………………………………………………………………………………………………………………………………………………………….......................................Failing him/her Mr Dhammika Perera of 27th Floor, East Tower, World Trade Centre, Echelon Square, Colombo01, failing him Mr Channa Palansuriya of 110/1 Dr N M Perera Mawatha, Colombo 08, failing him Mr SanjivaSenanayake of 164/16, Nawala Road, Nugegoda, failing him Mr Aravinda Perera of 370 F/2, Lake Road,Averihena, Hokandara (South), failing him Mr Ranjith Samaranayake of 51A, Weerapuranappu Mawatha,Laxapathiya, Moratuwa, failing him Mr Deepal Sooriyaarachchi of 28/10 Birnamwood, Wijesekera Mawatha,Mirihana, Nugegoda, failing him Prof Malik Ranasinghe of 18, Layards Road, Colombo 05, failing him Mrs DharaniWijayatilake of 78/1, Old Road, Nawala, failing her Mr Deshal De Mel of 103/1, Rosemead Place, Colombo 07,failing him Mr. Ranil Pathirana of 243/5, Lake Gardens, Sri Jayawardenapura Mawatha, Ra jagiriya, failing himMiss Annika Senanayake of 18/1, Alfred Place, Colombo 03, failing her Mrs Saumya Amarasekera of 03, SravastiPlace, Colombo 07. as my/our proxy to attend and vote for me/us on my/our behalf at the Twenty Eighth AnnualGeneral Meeting of the Company to be held on “ Balmoral”, The Kingsbury, No 48, Janadhipathi Mawatha,Colombo 01, on 31st March 2014 at 9.30a.m. and at any adjournment thereof. FOR AGAINST1. To receive the Audited Financial Statements and the Annual Report of the Board for the year ended 31st December 2013.2. To declare the recommended Cash Dividend of Rs 8.00 per share for the Financial Year 2013.3. To re-elect Mr Channa Palansuriya as a Director under Article No 87 of The Articles of Association of the Company.4. To re-elect Mr Deshal De Mel as a Director under Article No 87 of The Articles of Association of the Company.5. To re-elect Miss Annika Senanayake as a Director under Article No 87 of The Articles of Association of the Company.6. To re-elect Mr Ranil Pathirana as a Director under Article No 87 of The Articles of Association of the Company.7. To approve donations/contributions made by the Directors during the year under review.8. To re-appoint M/s Ernst & Young, Chartered Accountants as Auditors of the Company for the ensuing year and authorise the Directors to determine their remuneration.Mark your preference with “X”Signed on this ...................... Day of ........................... 2014Signature ..........................................................Note: 1.  Proxy need not be a member of the Company 2.  Instructions regarding completion of Proxy are given in next page 351

FORM OFPROXY INSTRUCTIONS AS TO COMPLETION 1. Kindly perfect the form of proxy, after filling in legibly your full name and address, and by signing on the space provided. 2. The completed form of proxy should be deposited at the Registered Office of the Company at No 110, Sir James Peiris Mawatha, Colombo 02, not less than 48 hours before, the appointed time for the holding of the meeting. 3. If you wish to appoint a person other than Chairman, Deputy Chairman or a Director of the Company as your proxy, please insert the relevant details in the space provided [above names of the Board of Directors] on the Proxy Form. 4. Article No 73 of the Articles of Association of Company provides that: “Any corporation which is a member of the Company may by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of members of the Company, and the person so authorised shall be entitled to exercise the same powers on behalf of such corporation as the corporation could exercise if it were an individual member of the Company”. 5. Please indicate with an ‘X’ in the space provided how your Proxy is to vote on each resolution, if no indication is given, the Proxy, at his discretion, will vote as he thinks fit. 6. In the case of a Company/Corporation, the Proxy must be under its Common Seal which should be affixed and attested in the manner prescribed by its Articles of Association. 7. In the case of a Proxy signed by an Attorney, the Power of Attorney must be deposited at the Registered Office of the Company for registration. Name of Shareholder :..................................................................................................... N I C No of Shareholder :..................................................................................................... Share Certificate No / Membership No :..................................................................................................... CDS A/C No [if applicable] :..................................................................................................... No of shares :..................................................................................................... Name of Proxyholder :..................................................................................................... N I C No of Proxyholder :.....................................................................................................352

CORPORATEINFORMATIONName of Company VAT Registration NumberSampath Bank PLC 134001194 – 7000Legal Form Credit RatingA Public Limited Liability Company incorporated in Fitch Rating: Fitch Rating Lanka Limited has affirmedSri Lanka on 10th March 1986 under the Companies National Long Term Rating of AA-(lka) stable toAct No 17 of 1982 and listed in the Colombo Stock Sampath Bank.Exchange. A licensed Commercial Bank under theBanking Act No 30 of 1988. Re-registered on 28th April Ram Rating: AA (stable)2008 under the Companies Act No 7 of 2007. Board of DirectorsRegistration NumberPQ 144 Mr Dhammika Perera - ChairmanHead Office & Registered Office Mr Channa Palansuriya - Deputy Chairman110, Sir James Peiris Mawatha, Colombo 02, Sri Lanka. Mr Sanjiva Senanayake - Senior DirectorTelephone+94 (011) 2300260, +94 (011) 2358358, Mr Deepal Sooriyaarachchi - Non Executive Director+94 (011) 4730630, +94 (011) 5331441,+94 (011) 5600600 Prof Malik Ranasinghe - Non Executive DirectorFax Mrs Dhara Wijayatilake - Non Executive Director+94 (011) 2303085 Miss Annika Senanayake - Non Executive DirectorSWIFT CodeBSAMLKLX Mr Deshal De Mel - Non Executive DirectorE-mail Mr Ranil Pathirana - Non Executive [email protected]@sampath.lk Mrs Saumya Amarasekera - Non Executive DirectorWeb Page Mr Aravinda Perera - Managing Directorwww.sampath.lk Mr Ranjith Samaranayake - Group Chief Financial AuditorsErnst & Young Officer /Executive DirectorChartered Accountants Subsidiary CompaniesLawyersNithya Partners Name of the Holding Nature of BusinessAttorneys- at-Law Company % Renting of CommercialGroup Company Secretary Sampath 97.14 PropertyS Sudarshan Centre LtdACIS (UK), MBA (Lincoln-UK) SC Securities 100.00 Stock Broking (Pvt) LtdStock Exchange Listings 100.00 Leasing, Factoring167,787,605 Ordinary Shares Siyapatha 100.00 and Accepting Fixed & Finance Ltd Savings Deposits15,000,000 Listed Unsecured SubordinatedRedeemable Debentures of Rs 100/- each - 2012/2017 Sampath Developing Software Information Solutions and50,000,000 Listed Unsecured Subordinated Technology Maintenance ofRedeemable Debentures of Rs 100/- each - 2013/2018 Solutions Ltd Hardware For Investor Relations and Clarifications on the Report, Please Contact Group Company Secretary Sampath Bank PLC No 110, Sir James Peiris Mawatha, Colombo 02, Sri Lanka E-mail: [email protected] Tel: +94 (011) 4730418/420/548 Help the environment and minimize wastage by informing the Group Company Secretary, Sampath Bank PLC, to update the mailing list if you received more than one Annual Report.