The Investment in Sampath Bank PLC of the group was accounted as equity accounted investee as per the provisions of LKAS 28 on the
following grounds where it demonstrated significant influence over the investee.
Vallibel One PLC is the single largest shareholder of Sampath Bank PLC owning 26,463,803 shares representing 14.95% of the
issued shares of the Bank.
Mr. Dhammika Perera who is the Chairman and Managing Director and the major shareholder of Vallibel One PLC, was the
Chairman of Sampath Bank PLC.
Mr. Dhammika Perera, also served as the Chairman of the Strategic Planning Committee of Sampath Bank PLC and a member of
the Nominations Committee of the Bank.
However, with effect from 31 July 2016, Mr. Dhammika Perera relinquished as Chairman of Sampath Bank PLC since he completed his
term of nine years as a Director. Consequently, the Board of directors of Vallibel One PLC decided that the existence of significant
influence over Sampath Bank PLC by Vallibel One PLC was no longer applicable as per the provisions of LKAS 28.Hence, the
Company discontinued the use of equity method of accounting and in terms of LKAS 39 decided to exercise the option to treat the
investment as being available for sale. Accordingly the effect of mark to market value of Rs.828 Mn as at 31st July 2016 and share of
profits of Rs.2,469 Mn which were recognized in previous years were reversed in this quarter’s statement of income.
The total Loss of Vallibel One PLC after considering the reclassification to Available For Sale financial Assets is Rs. 451
if the results of Sampath Bank PLC and the adjustments resulting from the reclassification is not considered, the Vallibel One PLC
would have earned a total profit of Rs.3,053Mn