Mohsin Annual Report-Final 1-91:Layout 1.qxd - Siemens Pakistan

108Notes to the Financial Statements5. ISSUED, SUBSCRIBED AND FULLY PAID-UP SHARE CAPITAL 2007 2006Note (Rupees in ‘000)Ordinary shares of Rs 10 each6,217,780 Issued for cash 62,178 62,17881,700 Issued for consideration other than cash 817 8171,526,800 Issued as bonus shares 15,268 15,268(56,683) Shares bought back (567) (567)477,440 Issued under a scheme of amalgamation 4 4,774 - .8,247,037 82,470 77,6965.1 Siemens AG held 5,451,120 ordinary shares (2006: 4,973,680 ordinary shares) of Rs 10 each of the Company as at September 30, 2007.5.2 Dividends and other appropriationsThe Board of Directors in their meeting held on November 15, 2007 have proposed a final cash dividend of Rs 60 per share (2006: Rs 30 per share)amounting to Rs 494.822 million (2006: Rs 233.088 million). The Board also proposed to transfer an amount of Rs 1,000 million (2006: Rs 200million) from retained earnings to general reserves.6. RESERVES 2007 2006Note (Rupees in ‘000)Share premium 6.1 619,325 9,635Capital repurchase reserve account 6.2 567 567Other capital reserve 4,300 4,300General reserve 2,023,026 1,823,0262,647,218 1,837,5286.1 This represents premium of Rs 50 per share on issue of 186,340 ordinary shares and Rs 70 per share on issue of 223,608 ordinary shares duringthe years ended September 30, 1988 and 1990 respectively and premium of Rs 1,277 per share on issue of 477,440 ordinary shares under thescheme of amalgamation during the year ended September 30, 2007. This amount has been reduced by Rs 15.334 million on account of 56,683shares bought back by the Company during the year ended September 30, 2003.6.2 This represents the amount by which the share capital of the Company was diminished on buy back of 56,683 shares of Rs 10 each and transferredfrom the distributable profits of the Company to 'capital repurchase reserve account' during the year ended September 30, 2003. This reserve wascreated to comply with the requirements of sub-section 10 of section 95A of the Companies Ordinance, 1984.7. STAFF RETIREMENT BENEFITS - Defined benefit plan7.1 The actuarial valuation of gratuity schemes were carried out at September 30, 2007. The Projected Unit Credit method, using the followingsignificant financial assumptions respectively for the Company and CTI, has been used for the actuarial valuation: Discount rate 11.00% and 10.00% per annum compound (2006: 10.78% and 8%). Expected rate of increase in salaries 8.89% and 9.00% per annum (2006: 8.66% and 8%). Expected rate of return on plan assets 11.00% and 12.00% per annum (2006: 10.78% and 12%).The amounts recognised in the balance sheet are as follows:2007 2006(Rupees in ‘000)Fair value of plan assets 368,633 405,731Present value of defined benefit obligation (377,690) (335,459)(Deficit) / surplus (9,057) 70,272Unrecognised net loss / (gain) 42,973 (13,920)Surplus carried forward in the balance sheet 33,916 56,352