MS AR 2018 (1)

NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
44. REMUNERATION OF CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES
Chief Executive Officer Executive Directors Executives (refer note 44.5)
Rupees 2018 2017 2018 2017 2018 2017
Managerial remuneration 12,000,000 11,300,000 26,400,000 22,560,000 51,337,849 29,707,331
Defined benefit charge 1,033,651 1,000,000 2,274,031 2,200,000 7,685,178 3,581,500
Other benefits – – – – 20,293,755 10,516,928
13,033,651 12,300,000 28,674,031 24,760,000 79,316,782 43,805,759
Number of persons 1 1 2 2 25 15
44.1 Four Non-Executive Directors including the Chairman, were paid remuneration aggregating to Rs. 12.880 million
(2017: Rs. 6.920 million) with view of encouraging retention and value creation within the Company.
44.2 Aggregate amount charged in these financial statements in respect of salary and benefits to key management
personnel (other than Directors) amounted to Rs. 24.837 million (2017: Rs. 17.807 million).
44.3 Amount charged in these financial statements in respect of meeting fee includes meeting fee paid to:
Chairman Non - Executive Directors Independent Directors
Rupees 2018 2017 2018 2017 2018 2017
Meeting fee – 150,000 – 600,000 500,000 275,000
– 150,000 – 600,000 500,000 275,000
Number of persons – 1 – 4 2 1
44.4 Chief Executive Officer, Executive Directors and some of the Executives are provided with Company maintained
cars in accordance with their terms of employment. The Company bears travelling expenses of Chairman, Chief
Executive Officer and Directors relating to travel for official purposes including expenses incurred in respect of
attending Board and Committee meetings.
44.5 Comparative figures have been restated to reflect changes in the definition of ‘Executive’ as per Companies Act,
2017. As per revised definition ‘Executives’ mean employees other than the Chief Executive Officer and Directors,
whose basic salary exceeds Rs. 1,200,000/- in a financial year.
45. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework and for developing and monitoring the Company’s risk management policies. The
Company’s risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. No changes were made in
the objectives, policies or processes and assumptions during the year ended June 30, 2018.
The Company has exposure to the following risks arising from its use of financial instruments, the management
of which is overseen by the Company’s finance and treasury departments:
- Credit risk
- Liquidity risk
- Market risk
126 MUGHAL IRON & STEEL INDUSTRIES LIMITED