MS AR 2018 (1)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2018 19.2 Following are the shares held by related parties: 2018 2017 2018 2017 Percentage Number of shares Mirza Javed Iqbal 2.62% 21.95% 6,580,150 55,231,133 Mr. Jamshed Iqbal 22.40% 22.40% 56,369,969 56,369,969 Muhammad Mubeen Tariq Mughal 22.15% 22.15% 55,720,219 55,720,219 Mr. Khurram Javaid 10.84% 1.78% 27,266,343 4,489,508 Mr. Fahad Javaid 10.84% 1.83% 27,266,343 4,600,000 Mr. Fazeel Bin Tariq 2.21% 2.21% 5,554,500 5,554,500 Muhammad Mateen Jamshed 2.41% 2.41% 6,063,728 6,063,728 Mrs. Tabbasum Javaid 1.27% 0.00% 3,207,805 – Muhammad Waleed Bin Tariq 0.46% 0.46% 1,158,978 1,158,978 Syed Salman Ali Shah 0.00% 0.00% 230 230 Mr. Abdul Rehman Qureshi 0.00% 0.00% 100 – Mrs. Samira Shakeel Ahmed 0.00% 0.00% 5,450 5,450 19.3 Movement in share capital: 2018 2017 2018 2017 Number of shares Rupees 251,599,650 125,799,825 Opening balance 2,515,996,500 1,257,998,250 – 125,799,825 Issuance of ordinary shares of Rs. 10/- each fully paid in cash – 1,257,998,250 251,599,650 251,599,650 Closing balance 2,515,996,500 2,515,996,500 Rupees Note 2018 2017 20. RESERVES Capital reserves: - Share premium reserve 20.1 439,413,456 439,413,456 - Contingency reserve 20.2 980,000,000 980,000,000 1,419,413,456 1,419,413,456 Revenue reserve: - Unappropriated profit 20.3 2,606,885,582 1,477,651,114 4,026,299,038 2,897,064,570 20.1 Share premium reserve represents premium of Rs. 24/- per share charged on initial public issue of 27,350,000 ordinary shares of Rs. 10/- each in 2015. It has been accounted for in accordance with the provisions of Section 81 of the Companies Act, 2017. This reserve can be utilized by the Company only for the purposes specified in the said section. 20.2 This represents contingency reserve set aside from unappropriated profit for meeting future catastrophic events. 20.3 This represents unappropriated profit. 112 MUGHAL IRON & STEEL INDUSTRIES LIMITED
21. EQUITY CONTRIBUTION FROM DIRECTORS & THEIR RELATIVES This represents interest-free and unsecured loan provided by Directors & their relatives in previous years. Since, it is repayable at discretion of the Company, therefore, it has been recognized as part of equity. During the year amount of Rs. 300.000 million (2017: Rs. Nil) was transferred to short-term loans from Directors and their relatives and shall be repayable upon demand. Rupees Note 2018 2017 22. LONG-TERM FINANCING Bank Alfalah Limited: - LTTF 22.1 – 31,712,571 - Term finance 22.2 829,000,000 – 829,000,000 31,712,571 Current portion presented under current liabilities – (31,712,571) 829,000,000 – 22.1 LTTF: Opening balance 31,712,571 105,208,487 Payments during the year (31,712,571) (73,495,916) – 31,712,571 Current portion presented under current liabilities – (31,712,571) Closing balance – – The outstanding balance of this financing was completely repaid during the year. Rupees 2018 2017 22.2 Term finance: Opening balance – – Disbursements during the year 829,000,000 – 829,000,000 – Current portion presented under current liabilities – – Closing balance 829,000,000 – During year, the Company entered into term finance agreement with Bank Alfalah Limited for total limit of Rs. 1,500.000 million for the purpose of financing balancing, modernization and replacement (BMR) of bar re-rolling mill, procurement and installation of induction furnaces and civil works, if any, against which Rs. 829.000 million was availed. The outstanding principal is repayable in 5 years including grace period of 1 year, in 16 equal quarterly instalments, commencing from September 2019, with the last instalment due in June 2023. It carries mark up @ 6 MK + 1% p.a and is secured against 1st ranking charge of Rs. 1,600.000 million on plant and machinery of the Company and personal guarantees of all Directors except Independant Directors. Rupees Note 2018 2017 23. DEFERRED LIABILITIES Deferred taxation - net 23.1 601,373,754 525,593,971 Defined benefit obligation 23.2 150,775,595 107,115,416 Deferred income 23.3 18,807,150 10,343,150 770,956,499 643,052,537 Annual Report 2018 113
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COVER STORY Building a strong path
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KEY FIGURES Sales Revenue (2017: 18
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CONTENTS 02 DIRECTORS’ REPORT 24
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01 • COMPANY OVERVIEW Vision, Mis
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VISION STATEMENT To be a leading co
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FAIRNESS We are devoted to implemen
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EQUAL EMPLOYMENT OPPORTUNITIES AND
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PRODUCT PORTFOLIO The Company’s p
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A SIMPLE, EFFECTIVE AND ACHIEVABLE
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BOARD OF DIRECTORS Mirza Javed Iqba
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ORGANOGRAM OF COMPANY SHAREHOLDERS
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CALENDAR OF MAJOR EVENTS 2017-2018
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MIRZA JAVED IQBAL Chairman / Non -
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MR. FAZEEL BIN TARIQ Non - Executiv
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CHAIRMAN’S LETTER TO THE SHAREHOL
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CHIEF EXECUTIVE OFFICER’S REMARKS
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DIRECTORS’ REPORT TO THE SHAREHOL
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40 MUGHAL IRON & STEEL INDUSTRIES L
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03 • REVIEWS & REPORTS Additional
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DESCRIPTION OF ENTITY’S RESOURCES
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ANALYSIS OF PROSPECTS OF THE ENTITY
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BOARD COMMITTEES Audit Committee Co
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ANNUAL EVALUATION OF BOARD PERFORMA
Page 69 and 70: WHISTLE BLOWING POLICY As part of o
Page 71 and 72: STAKEHOLDERS’ ENGAGEMENT The deve
Page 73: • The internal audit function has
Page 76 and 77: HORIZONTAL ANALYSIS Statement of Fi
Page 78 and 79: SUMMARY OF STATEMENT OF CASH FLOWS
Page 80 and 81: ANALYSIS OF FINANCIAL RATIOS Ratio
Page 82 and 83: DUPONT ANALYSIS Year Return on Equi
Page 84 and 85: STATEMENT OF CASH FLOWS DIRECT METH
Page 86 and 87: GRAPHICAL ANALYSIS Market Ratios Ru
Page 88 and 89: DISTRIBUTION OF WEALTH 2018 2017 Rs
Page 91 and 92: 05 • FINANCIAL STATEMENTS Indepen
Page 93 and 94: STATEMENT OF COMPLIANCE WITH LISTED
Page 95 and 96: GLOBAL PRESENCE LOCAL EXCELLENCE FA
Page 97 and 98: internal control. • Obtain an und
Page 99 and 100: STATEMENT OF PROFIT OR LOSS & OTHER
Page 101 and 102: STATEMENT OF CASH FLOWS FOR THE YEA
Page 103 and 104: i) Property, plant and equipment an
Page 105 and 106: 5.2 Intangible asset This is stated
Page 107 and 108: taxable temporary differences and d
Page 109 and 110: An impairment loss in respect of a
Page 111 and 112: term loans from banking companies a
Page 113 and 114: calculating the capitalisation rate
Page 115 and 116: 7.1.1 The depreciation for the year
Page 117 and 118: Rupees Note 2018 2017 10. LONG-TERM
Page 119: 16.3 Government of Pakistan (GoP) i
Page 123 and 124: Rupees 2018 2017 23.2.2 Changes in
Page 125 and 126: Rupees Note 2018 2017 25. ACCRUED P
Page 127 and 128: these financial statements as the m
Page 129 and 130: Rupees Note 2018 2017 33. OTHER CHA
Page 131 and 132: Rupees 2018 2017 37. EARNINGS PER S
Page 133 and 134: Rupees 2018 2017 Al-Bashir (Private
Page 135 and 136: 45.1 Credit risk Credit risk repres
Page 137 and 138: 45.2 Liquidity risk Liquidity risk
Page 139 and 140: Rupees 2018 2017 Variable rate inst
Page 141 and 142: Other financial Loans and Total Rup
Page 143 and 144: The heading of following separate l
Page 145: Annual Report 2018 137
Page 148 and 149: PATTERN OF SHAREHOLDING AS ON JUNE
Page 150 and 151: CATEGORY OF SHAREHOLDERS AS ON JUNE
Page 152 and 153: NOTICE OF THE ANNUAL GENERAL MEETIN
Page 154 and 155: NOTICE OF THE ANNUAL GENERAL MEETIN
Page 156 and 157: 148 MUGHAL IRON & STEEL INDUSTRIES
Page 158 and 159: MUGHAL IRON & STEEL INDUSTRIES LIMI
Page 161 and 162: DEFINITIONS Gross Profit Ratio The
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