MS AR 2018 (1)

NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
23.2.7 Sensitivity analysis for actuarial assumptions:
The sensitivity of the defined benefit obligation to changes in the weighted principle assumptions is:
Change in Increase in Decrease in
Rupees assumption assumption assumption
Discount rate +- by 100 bps 129,336,011 155,114,877
Salary increase +- by 100 bps 155,405,862 128,873,071
There is no significant change in the obligation if the life expectancy increases by 1 year.
The sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
Based on actuary’s advice, the amount of expected liability in respect of the defined benefit plan in 2018-19 will
be Rs. 46.465 million.
The average duration of the defined benefit obligation is 9 years.
23.2.8 Experience adjustments in respect of defined benefit obligation:
Rupees 2018 2017 2016 2015 2014 2013
13,618,878 5,712,348 6,820,112 715,048 13,847,244 993,973
23.3 This represents unearned income in respect of long-term loans to employees against vehicles.
Rupees Note 2018 2017
24. TRADE AND OTHER PAYABLES
Creditors 41,787,325 271,950,067
Accrued liabilities 65,623,060 38,795,396
Utilities payable 123,758,965 112,010,358
Withholding taxes payable 2,037,099 2,420,026
Advances from customers 117,764,394 106,140,652
Workers’ profit participation fund payable 24.1 85,811,127 65,304,280
Workers’ welfare fund payable 24.2 26,683,476 18,483,538
463,465,446 615,104,317
24.1 Workers’ profit participation fund payable:
Opening balance 65,304,280 68,013,042
Allocation for the year 33. 85,811,127 65,304,280
151,115,407 133,317,322
Paid during the year (65,304,280) (68,013,042)
Closing balance 85,811,127 65,304,280
24.2 Workers’ welfare fund payable:
Opening balance 18,483,538 14,929,449
Allocation for the year 33. 26,683,476 18,483,538
45,167,014 33,412,987
Adjustments during the year (18,483,538) (14,929,449)
Closing balance 26,683,476 18,483,538
116 MUGHAL IRON & STEEL INDUSTRIES LIMITED