MS AR 2018 (1)

NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
8. INTANGIBLE ASSET
This represents cost of ERP software. It is being amortised on straight line basis over a period of 60 months.
Rupees
ERP Software
Gross carrying value basis
As at June 30, 2017
Cost –
Accumulated amortisation –
Net book value –
Net carrying value basis
Year ended June 30, 2018
Opening net book value –
Transfers from capital work-in-progress 14,433,110
Amortisation charge (2,164,967)
Balance as at June 30, 2018 12,268,143
Gross carrying value basis
As at June 30, 2018
Cost 14,433,110
Accumulated amortisation (2,164,967)
Net book value 12,268,143
8.1 The amortisation charge for the year has been allocated to administrative expenses.
9. LONG-TERM LOANS TO EMPLOYEES
(Secured & considered good)
These loans have been provided to employees under the terms of their employment, free of interest, to facilitate
economical purchase of different kinds of vehicles and are repayable over a period up to five years from date
of disbursement. The loans are secured by registration of the said vehicle in the name of the Company and
against security cheques. No amount was provided to the Chief Executive Officer or any of the Directors during
the year ended June 30, 2018 (2017: Rs. Nil). The maximum amount of loans to the key management personnel
outstanding at the end of any month during the year ended June 30, 2018 was Rs. 0.270 million (2017: Rs. 0.390
million).
Rupees Note 2018 2017
Loans to:
- Key management personnel 60,000 280,000
- Executives 44.5 3,432,900 2,138,640
- Other employees 5,831,791 5,692,645
9,324,691 8,111,285
Amounts due within twelve months and shown
under current assets:
- Key management personnel (60,000) (120,000)
- Executives (1,232,780) (1,045,280)
- Other employees (1,461,252) (1,305,887)
(2,754,032) (2,471,167)
6,570,659 5,640,118
108 MUGHAL IRON & STEEL INDUSTRIES LIMITED