MS AR 2018 (1)
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21. EQUITY CONTRIBUTION FROM DIRECTORS & THEIR RELATIVES<br />
This represents interest-free and unsecured loan provided by Directors & their relatives in previous years. Since,<br />
it is repayable at discretion of the Company, therefore, it has been recognized as part of equity. During the year<br />
amount of Rs. 300.000 million (2017: Rs. Nil) was transferred to short-term loans from Directors and their relatives<br />
and shall be repayable upon demand.<br />
Rupees Note <strong>2018</strong> 2017<br />
22. LONG-TERM FINANCING<br />
Bank Alfalah Limited:<br />
- LTTF 22.1 – 31,712,571<br />
- Term finance 22.2 829,000,000 –<br />
829,000,000 31,712,571<br />
Current portion presented under current liabilities – (31,712,571)<br />
829,000,000 –<br />
22.1 LTTF:<br />
Opening balance 31,712,571 105,208,487<br />
Payments during the year (31,712,571) (73,495,916)<br />
– 31,712,571<br />
Current portion presented under current liabilities – (31,712,571)<br />
Closing balance – –<br />
The outstanding balance of this financing was completely repaid during the year.<br />
Rupees <strong>2018</strong> 2017<br />
22.2 Term finance:<br />
Opening balance – –<br />
Disbursements during the year 829,000,000 –<br />
829,000,000 –<br />
Current portion presented under current liabilities – –<br />
Closing balance 829,000,000 –<br />
During year, the Company entered into term finance agreement with Bank Alfalah Limited for total limit of Rs.<br />
1,500.000 million for the purpose of financing balancing, modernization and replacement (BMR) of bar re-rolling<br />
mill, procurement and installation of induction furnaces and civil works, if any, against which Rs. 829.000 million<br />
was availed. The outstanding principal is repayable in 5 years including grace period of 1 year, in 16 equal<br />
quarterly instalments, commencing from September 2019, with the last instalment due in June 2023. It carries<br />
mark up @ 6 MK + 1% p.a and is secured against 1st ranking charge of Rs. 1,600.000 million on plant and<br />
machinery of the Company and personal guarantees of all Directors except Independant Directors.<br />
Rupees Note <strong>2018</strong> 2017<br />
23. DEFERRED LIABILITIES<br />
Deferred taxation - net 23.1 601,373,754 525,593,971<br />
Defined benefit obligation 23.2 150,775,595 107,115,416<br />
Deferred income 23.3 18,807,150 10,343,150<br />
770,956,499 643,052,537<br />
Annual Report <strong>2018</strong><br />
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