1.

COMPANY OWNERSHIP STRUCTURE:

 2. Incorporation date, Listing date:

Millat Tractors Limited (MTL) was established in 1964. The company

was nationalized under Economic Reforms The company is a public limited
company incorporated in Pakistan under the Companies Ordinance 1984,
and is listed on the Karachi, Islamabad and Lahore Stock Exchanges.
The  registered  office  of  the  company  is  situated  at  Sheikhupura  Road,
District S h e i k h u p u r a . I t i s p r i n c i p a l l y e n g a g e d i n a s s e m b l y a n d
m a n u f a c t u r e o f a g r i c u l t u r a l tractors, implements and multiplication
products.

3. Company’s principal lines of business :

Product Line:

Following are the main products in which the company deals;

Tractors:

Millat Tractors Limited (MTL) offers five models that range from 50 horse power(hp) to 85
horse power. All models are meant to fulfill specific requirements of our valued customers

Industrial products:

Industrial Products of Millat Tractors Limited (Millat) include:

 Millat Generating Sets

 Prime Mover
 Fork Lift Truck

Agricultural Implements:

Millat Tractors Limited (MTL) deals in different types of Agricultural Implements, which give
MTL a unique position in agricultural driven market place.

Some of them are:

Chisel plough, Disc plough, Moald Bold plough…..etc.

A wide range of Massey Ferguson Tractors from 50 hp to 85 hp is available to cater to the
needs of farmers. These Tractors can be procured against Cash, as well as through Bank
Financing.

The company also offers a range of tractors from 50 horse power to 80 hp,diesel engines,diesel
generating cells and prime movers and forklift trucks. Further the company through it’s
subsidiary manufactures vehicles, industrial and domestic batteries, cells and components.

Major Competitors:
Al Ghazi tractor limited is one of the major competitors of the company.

4. Number of shares outstanding are :

=29,284000

5. Total market Capitalization:

=(No. of shares O/S )(Current Stock Price)

=(29,284000)(522.88)
= 15312017920

6. Book value per share:

= Stockholders Equity - Preferred Stock

Average Outstanding Shares

= 4192000000 - 0

29,284000

=143.15

7. Market / Book Value (M/B) Ratio:

 Market / Book Value (M/B) Ratio = Current Share Price / Book Value Per Share

M/B = 522.88/143.1

=3.6526

8. Date of Company’s fiscal year end:

Millat Tractors Limited fiscal year ended on June 30.

9. Capital structure / complex capital structure:

The capital structure of the company is equity based with no financing through
long term or short term borrowings.

10.Dividend Policy:

Dividend distribution to the company's shareholders is recognised as a liability in

the period in which the dividends are approved.
Company is currently paying dividend 65 rupees per share, although in previous
year the company was paying only 45 rupees per share. In addition to it the
B.O.Ds have also announced to pay 25% bonus shares to the shareholders also.
The dividend and the bonus shares recommended are subject to the approval by
the shareholders in the forthcoming annual general meeting.

11.Leasing Information:

Millat Tractor Limited provides purchase on leasing by Millat’s

approved leasing companies.

12.Method of depreciation:

Depreciati on on all items of property, plant and equipment except

for leasehold offi ce building is charged to income applying the
diminishing balance method so as to write-off the depreciable amount of
an asset over its useful life. Depreciation on leasehold o ffi c e b u i l d i n g i s
p r o v i d e d o n a s t r a i g h t l i n e 8 b a s i s s o a s t o w r i t e - o ff t h e
d e p r e c i a b l e amount of an asset over t2he life of the asset.
Depreciati on is being charged at the rates given. Depreciati on on
additi ons to property, plant and equipment is charged from the
 month in which an asset is acquired or capitalized while no
depreciati on is charged for the month in which the asset is disposed off the
cost method, at cost less any identified.

13.Inventory method:

Owing to increase in demand for tractors and related agro-

implements, inventory of the company increased exorbitantly. Thus,
inventory turnover has been historically higher than the industry average. As a
result, the operating cycle of MTL has also lengthened over the years under
review. This improvement can be mainly att ributed to the contracts
for supply of spare parts of Millat Generati ng Sets and Forklift Trucks to
institutions.