MS AR 2018 (1)

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CHIEF EXECUTIVE OFFICER’S REMARKS “ FY 2018 was a year of significant progress across each of our strategic imperatives. We have overcome our constraints, mitigated our risks, wisely invested to drive growth and prioritized our time and resources to create a strong, durable and sustainable future for your Company.
I am pleased with the great progress we made in 2018 to strengthen the overall foundation of our Company and drive a long term, sustainable increase in shareholder value. Our performance was very solid in terms of operational execution, employee safety, product quality, and environmental compliance. The Company’s efforts to penetrate into housing market for steel rebars, limit its exposure to Government related projects, remove constraints, optimize its operations and grow its business have paid off, allowing it to achieve sustainable and improved performance in FY 2018. Our intensified marketing efforts have also led to an expansion of Mughal Steel’s portfolio of markets, customers and products. We managed to overcome energy constraints in the form of enhancement of our sanctioned grid station load from 19.99 MW to 79.99 MW, enhancement of gas load from 2.80 MMCFD to 6.30 MMCFD and commissioning of six (6) further gas engines for generation of in-house electricity. These achievements will not only overcome energy constraints but also help to eliminate raw material constraints. Subsequent to the availability of electricity load, the Phase II of earlier expansion plan was also approved by the Board which amongst other things included procurement and installation of further induction furnaces. The addition of furnaces will help to reduce reliance on expensive outsourced billet and ensure competitiveness and sustainability of operations. We continue to strive for growth and increasing shareholder value and I am yet again overwhelmed and highly pleased to report yet another hallmark year for Mughal Steel, which saw increase in sales revenue from Rs. 18,802.811 million in FY 2017 to Rs. 22,225.842 million in FY 2018. Consequently the profit for the year increased from Rs. 990.760 million in FY 2017 to Rs. 1,290.215 million in FY 2018 resulting in earnings per share of Rs. 5.13, compared to earnings per share of Rs. 4.21 in the last year. As management we are strongly committed towards continuously improving the operational performance of your Company. The Company has not defaulted in any repayment of debts. During the year, the Company has contributed approximately Rs. 2,309.199 million towards national exchequer in shape of taxes, duties, cess, levies etc. Lastly, I’d like to thank our employees and our members for their support. In 2019, we will further work to enhance our profitability and align all of our resources with the needs of our business. I am confident that the entire Mughal Steel team will collectively work to make us a stronger Company. KHURRAM JAVAID Chief Executive Officer Lahore: September 19, 2018 Annual Report 2018 27
Page 2 and 3: COVER STORY Building a strong path
Page 4 and 5: KEY FIGURES Sales Revenue (2017: 18
Page 6 and 7: CONTENTS 02 DIRECTORS’ REPORT 24
Page 9 and 10: 01 • COMPANY OVERVIEW Vision, Mis
Page 11 and 12: VISION STATEMENT To be a leading co
Page 13 and 14: FAIRNESS We are devoted to implemen
Page 15 and 16: EQUAL EMPLOYMENT OPPORTUNITIES AND
Page 17 and 18: PRODUCT PORTFOLIO The Company’s p
Page 19 and 20: A SIMPLE, EFFECTIVE AND ACHIEVABLE
Page 21 and 22: BOARD OF DIRECTORS Mirza Javed Iqba
Page 23 and 24: ORGANOGRAM OF COMPANY SHAREHOLDERS
Page 25 and 26: CALENDAR OF MAJOR EVENTS 2017-2018
Page 27 and 28: MIRZA JAVED IQBAL Chairman / Non -
Page 29: MR. FAZEEL BIN TARIQ Non - Executiv
Page 32 and 33: CHAIRMAN’S LETTER TO THE SHAREHOL
Page 36 and 37: DIRECTORS’ REPORT TO THE SHAREHOL
Page 48 and 49: 40 MUGHAL IRON & STEEL INDUSTRIES L
Page 59 and 60: 03 • REVIEWS & REPORTS Additional
Page 61 and 62: DESCRIPTION OF ENTITY’S RESOURCES
Page 63 and 64: ANALYSIS OF PROSPECTS OF THE ENTITY
Page 65 and 66: BOARD COMMITTEES Audit Committee Co
Page 67 and 68: ANNUAL EVALUATION OF BOARD PERFORMA
Page 69 and 70: WHISTLE BLOWING POLICY As part of o
Page 71 and 72: STAKEHOLDERS’ ENGAGEMENT The deve
Page 73: • The internal audit function has
Page 76 and 77: HORIZONTAL ANALYSIS Statement of Fi
Page 78 and 79: SUMMARY OF STATEMENT OF CASH FLOWS
Page 80 and 81: ANALYSIS OF FINANCIAL RATIOS Ratio
Page 82 and 83: DUPONT ANALYSIS Year Return on Equi
Page 84 and 85:
STATEMENT OF CASH FLOWS DIRECT METH
Page 86 and 87:
GRAPHICAL ANALYSIS Market Ratios Ru
Page 88 and 89:
DISTRIBUTION OF WEALTH 2018 2017 Rs
Page 91 and 92:
05 • FINANCIAL STATEMENTS Indepen
Page 93 and 94:
STATEMENT OF COMPLIANCE WITH LISTED
Page 95 and 96:
GLOBAL PRESENCE LOCAL EXCELLENCE FA
Page 97 and 98:
internal control. • Obtain an und
Page 99 and 100:
STATEMENT OF PROFIT OR LOSS & OTHER
Page 101 and 102:
STATEMENT OF CASH FLOWS FOR THE YEA
Page 103 and 104:
i) Property, plant and equipment an
Page 105 and 106:
5.2 Intangible asset This is stated
Page 107 and 108:
taxable temporary differences and d
Page 109 and 110:
An impairment loss in respect of a
Page 111 and 112:
term loans from banking companies a
Page 113 and 114:
calculating the capitalisation rate
Page 115 and 116:
7.1.1 The depreciation for the year
Page 117 and 118:
Rupees Note 2018 2017 10. LONG-TERM
Page 119 and 120:
16.3 Government of Pakistan (GoP) i
Page 121 and 122:
21. EQUITY CONTRIBUTION FROM DIRECT
Page 123 and 124:
Rupees 2018 2017 23.2.2 Changes in
Page 125 and 126:
Rupees Note 2018 2017 25. ACCRUED P
Page 127 and 128:
these financial statements as the m
Page 129 and 130:
Rupees Note 2018 2017 33. OTHER CHA
Page 131 and 132:
Rupees 2018 2017 37. EARNINGS PER S
Page 133 and 134:
Rupees 2018 2017 Al-Bashir (Private
Page 135 and 136:
45.1 Credit risk Credit risk repres
Page 137 and 138:
45.2 Liquidity risk Liquidity risk
Page 139 and 140:
Rupees 2018 2017 Variable rate inst
Page 141 and 142:
Other financial Loans and Total Rup
Page 143 and 144:
The heading of following separate l
Page 145:
Annual Report 2018 137
Page 148 and 149:
PATTERN OF SHAREHOLDING AS ON JUNE
Page 150 and 151:
CATEGORY OF SHAREHOLDERS AS ON JUNE
Page 152 and 153:
NOTICE OF THE ANNUAL GENERAL MEETIN
Page 154 and 155:
NOTICE OF THE ANNUAL GENERAL MEETIN
Page 156 and 157:
148 MUGHAL IRON & STEEL INDUSTRIES
Page 158 and 159:
MUGHAL IRON & STEEL INDUSTRIES LIMI
Page 161 and 162:
DEFINITIONS Gross Profit Ratio The
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MS AR 2018 (1)

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