MS AR 2018 (1)

NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
The Company takes in to account factors specific to the transaction and to the asset or liability, when determining
whether or not the fair value at initial recognition equals the transaction price. Except for long-term loans to
employees and long-term deposits, the fair value of financial assets and financial liabilities recognised in these
financial statements equals the transaction price at initial recognition. Due to immaterial effect, the fair value of
long-term loans to employees and long-term deposits has not been determined and their carrying value has
been assumed to be equal to their fair value. Accordingly, the carrying amount of financial assets and financial
liabilities recognized in these financial statements approximate their respective fair values.
Other financial Loans and Total
Rupees liabilities receivables
45.5 Financial instruments by category
Financial assets measured at amortized cost
Maturity within one year:
- Trade debts – 1,263,279,786 1,263,279,786
- Loans and advances – 28,058,616 28,058,616
- Deposits, prepayments and other receivables – 194,862 194,862
- Cash and bank balances – 1,251,171,472 1,251,171,472
Maturity after one year
- Long-term loan to employees – 6,570,659 6,570,659
- Long-term deposits – 20,845,317 20,845,317
June 30, 2018 – 2,570,120,712 2,570,120,712
Financial liabilities measured at amortized cost
Maturity within one year:
- Trade and other payables – 231,169,350 231,169,350
- Unclaimed dividend – 3,303,075 3,303,075
- Accrued profit / interest / mark-up – 101,322,923 101,322,923
- Short-term loans from banking companies – 7,540,375,822 7,540,375,822
- Short-term loans from Directors and their relatives – 300,000,000 300,000,000
Maturity after one year
- Long-term financing – 829,000,000 829,000,000
June 30, 2018 – 9,005,171,170 9,005,171,170
Other financial Loans and Total
Rupees liabilities receivables
Financial assets measured at amortized cost
Maturity up to one year:
- Trade debts – 1,347,038,735 1,347,038,735
- Loans and advances – 29,459,715 29,459,715
- Deposits, prepayments and other receivables – 5,661,350 5,661,350
- Cash and bank balances – 2,338,891,995 2,338,891,995
Maturity after one year
- Long-term loan to employees – 5,640,118 5,640,118
- Long-term deposits – 18,258,313 18,258,313
June 30, 2017 – 3,744,950,226 3,744,950,226
132 MUGHAL IRON & STEEL INDUSTRIES LIMITED