MS AR 2018 (1)
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NOTES TO THE<br />
FINANCIAL STATEMENTS<br />
FOR THE YE<strong>AR</strong> ENDED JUNE 30, <strong>2018</strong><br />
Metric ton <strong>2018</strong> 2017<br />
40. CAPACITY AND ACTUAL PRODUCTION<br />
Total active capacity<br />
- Melting 340,700 340,700<br />
- Re-Rolling 446,000 446,000<br />
Actual production<br />
- Melting 211,934 116,207<br />
- Re-Rolling 251,950 241,773<br />
Total active capacity available comprises of currently active mills. Melting production is dependant on availability<br />
of surplus load capacity after meeting re-rolling production requirements. Short-fall in actual production is due to<br />
electricity and raw material constraints and due to production of different sizes according to sales mix.<br />
Number <strong>2018</strong> 2017<br />
41. NUMBER OF EMPLOYEES<br />
Employees employed as at June 30,<br />
- Total employees 772 706<br />
- Factory employees 719 665<br />
Average number of employees during the year in respect of:<br />
- Total employees 779 621<br />
- Factory employees 735 585<br />
42. RELATED P<strong>AR</strong>TY DISCLOSURE<br />
The Company in the normal course of business carries out transactions with various related parties. Related<br />
parties comprise of entities regarded as related due to common directorship or common management, major<br />
shareholders, key management personnel and their relatives. Major shareholders are those persons having<br />
control of or significant influence over the Company. Key management personnel are those persons having<br />
authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly<br />
including Directors (whether executive or otherwise) of the Company.<br />
Detail of related parties with whom the Company had entered into transactions or had agreements and /or<br />
arrangements in place during the year, along with the basis of relationship, percentage of shareholding and<br />
details of transactions (other than those which have been disclosed elsewhere in these financial statements) are<br />
as follows:<br />
Rupees <strong>2018</strong> 2017<br />
Entities<br />
Mughal Steel Metallurgies Corporation Limited<br />
Relationship<br />
Common directorship<br />
Percentage of shareholding<br />
Nil<br />
Detail of transactions<br />
- Raw material purchases 536,307,231 752,868,880<br />
- Re-rolling sales 32,285,530 4,074,860<br />
- Rental income 2,400,000 2,800,000<br />
- Rent paid 600,000 –<br />
124 MUGHAL IRON & STEEL INDUSTRIES LIMITED
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