MS AR 2018 (1)
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
NOTES TO THE<br />
FINANCIAL STATEMENTS<br />
FOR THE YE<strong>AR</strong> ENDED JUNE 30, <strong>2018</strong><br />
23.1 Net deferred tax liability is recognized in respect of following temporary differences:<br />
Rupees <strong>2018</strong> 2017<br />
Accelerated tax depreciation 645,063,565 555,501,936<br />
Defined benefit obligation (43,689,811) (29,907,965)<br />
601,373,754 525,593,971<br />
23.1.2 Movement in the net deferred tax liability during the year is as follows:<br />
Accelerated tax Equity potion Defined Unused Total<br />
depreciation of sponsor benefit tax credits<br />
shareholders’ obligation minimum<br />
Rupees loan taxes etc.<br />
Balance as at June 30, 2016 535,760,534 191,251,704 (24,306,522) (78,778,744) 623,926,972<br />
Charge / (credited) to:<br />
- Statement of profit or loss in respect of:<br />
- Current year 37,024,000 – (4,629,166) 78,778,744 111,173,578<br />
- Changes in tax rates (17,282,598) – 784,081 – (16,498,517)<br />
- Equity – (191,251,704) – – (191,251,704)<br />
- Other comprehensive income – – (1,756,358) – (1,756,358)<br />
19,741,402 (191,251,704) (5,601,443) 78,778,744 (98,333,001)<br />
Balance as at June 30, 2017 555,501,936 – (29,907,965) – 525,593,971<br />
Charge / (credited) to:<br />
- Statement of profit or loss in respect of:<br />
- Current year 108,078,360 – (10,685,827) – 97,392,533<br />
- Changes in tax rates (18,516,731) – 996,932 – (17,519,799)<br />
- Other comprehensive income – – (4,092,951) – (4,092,951)<br />
89,561,629 – (13,781,846) – 75,779,783<br />
Balance as at June 30, <strong>2018</strong> 645,063,565 – (43,689,811) – 601,373,754<br />
23.2 This represents the present value of the defined benefit obligation recognized in the statement of financial<br />
position (refer note 5.7). The latest actuarial valuation was carried out on June 30, <strong>2018</strong> using Projected unit credit<br />
(PUC) actuarial cost method by an approved actuary. It includes Rs. 19.418 million (2017: Rs. 13.544 million) on<br />
account of present value of defined benefit obligation of key management personnel.<br />
23.2.1 Changes in net liability recognized in statement of financial position:<br />
Rupees <strong>2018</strong> 2017<br />
Opening balance 107,115,415 81,675,140<br />
Expense charged to statement of profit or loss 35,432,381 25,089,859<br />
Remeasurements recognized in other comprehensive income 14,113,625 5,854,525<br />
156,661,421 112,619,524<br />
Defined benefits paid (5,885,829) (5,504,109)<br />
150,775,592 107,115,415<br />
114 MUGHAL IRON & STEEL INDUSTRIES LIMITED
Change language