MS AR 2018 (1)

NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
(iv)
The Company’s principal classes of products accounted for the following percentages of sales:
Percentage 2018 2017
Steel re-bars 63% 58%
Girders 33% 41%
Others 5% 2%
100% 100%
48. CAPITAL RISK MANAGEMENT
The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market
confidence and to sustain the future development of its business. The Board of Directors monitors the return on
capital employed, which the Company defines as operating income divided by total capital employed. The Board
of Directors also monitors the level of dividends to ordinary shareholders.
The Company’s objectives when managing capital are:
(i)
to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns
for shareholders and benefits for other stakeholders and;
(ii)
to provide an adequate return to shareholders.
The Company manages the capital structure in the context of economic conditions and the risk characteristics
of the underlying assets. In order to maintain or adjust the capital structure, the Company may, for example,
adjust the amount of dividends paid to shareholders, issue new shares, or sell assets to reduce debt. There was
no changes in the Company’s approach to capital management during the year. The Company is not subject
to externally imposed capital requirements, except those, related to maintenance of debt covenants commonly
imposed by the providers of debt finance which the Company has complied with.
49. PRESENTATION CHANGES AND RECLASSIFICATION OF ITEMS IN FINANCIAL STATEMENTS
The Company has changed the presentation of certain items in its financial statements to ensure compliance with
disclosure requirements of the Act and for purpose of better presentation, details of which are as follows:
Presentation changes:
During the year the Company has opted to present a single statement of profit or loss & other comprehensive
income instead of two separate statements for better presentation. Accordingly comparative information has also
been re-presented. Further, the headings of following separate line items presented in the statement of financial
position have been changed for better presentation:
Previous heading
New heading
Property, plant & equipment
Property, plant & equipment
- Operating assets - Tangible fixed assets
Current assets
Current assets
- Advances - Loans and advances
- Short-term deposits & prepayments - Deposits, prepayments and other receivables
Current liabilities
Current liabilities
- Short-term borrowings - Short-term loans from banking companies
134 MUGHAL IRON & STEEL INDUSTRIES LIMITED