Professional Documents
Culture Documents
MCOM 2nd(M)
Millat Tractors Limited (MTL) is an ISO 9002 certified company for its Assembly Plants
(Tractor Assembly, Engine Assembly, Industrial/Agricultural Products), Material Testing
and Gauge Control Laboratory. It is Pakistan’s leading engineering concern in the
automobile sector, that manufactures;
The company is also dedicated to customize its Diesel Generating Sets and Prime
Movers as per requirements of its Customers.
Millat Tractors Limited (MTL) was established in 1964 as Rana tractors and equipment
limited and changed its name to Millat tractors limited in 1972 at the time of take-over.
The main activity of the company is to introduce and market Massey Ferguson (MF)
Tractors in Pakistan. An assembly plant was set up in 1967 to assemble tractors imported
in semi-knocked down (SKD) condition.
The company was nationalized under Economic Reforms Order in 1972 and started
assembling and marketing tractors on behalf of Pakistan Tractor Corporation (PTC)
which was formed by the Government for import of tractors in SKD condition. In 1980
the Government decided on indigenization of the tractors and entrusted this task to PTC.
PTC transferred this role of indigenization in 1981 to MTL. This was the turning point in
the Company’s history and it went about the task methodically and rapidly. The
Company undertook this new role with enthusiasm and in the spirit of national
development and proved its engineering capabilities by surprising the deletion targets set
by the Government. Just in one year's time, the company took a giant step towards self-
reliance by setting up the first engine assembly plant in Pakistan.
The Company made a strategic decision right in the beginning to bring those
manufacturing facilities in-house for which capabilities did not exist in the country and
for parts which required high precision and investment. Therefore, in 1984, sophisticated
1
MILLAT TRACTORS Ltd. MCOM 2nd(M)
manufacturing facilities for the machining of intricate components were set up. These
were previously not available in Pakistan. Currently, critical components like Engine
Blocks, Sump, Transmission Case, Axle Housing, Hydraulic Lift Cover, Front Axle
Support and Centre Housing are all being machined most successfully in-house at MTL
from locally sourced castings.
At MTL, we firmly believe that producing to International quality standards is the key to
our continued success and growth, and our quality control department converts this belief
into reality.
In 1992, the company was privatized. The employees joined hands and took over the
management by winning an open bid.
To maintain its leadership role in tractor manufacturing in the country, MTL continues to
look toward future, to identify and exploit new opportunities and to consolidate existing
ones. The Tractor Assembly Plant is part of this philosophy. This plant started its
production in 1992. The establishment of this modern plant not only increased production
capacity to 16000 tractors per year on a single shift basis, but also provided a quantum
jump to the quality of the assembled tractors and pushed MTL into ranks of the major
tractor manufacturing companies of the World.
After successful takeover, MTL also acquired the management control of Bolan Castings
Limited (a Public Limited Company specializing in intricate automotive castings) in
partnership with employees of the company, in 1993. The company has been the regular
recipient of the Corporate Excellence Award of Management Association of Pakistan and
the Top Companies Award of Karachi Stock Exchange, since early eighties. MTL's
Annual Report has been acknowledged as the Best Annual Report by the Institute of
Chartered Secretaries and Admin Association of Pakistan for several years.
Future Outlook
The Company looks to the future with optimism and plans to broaden its customer base.
Consequently the opportunities are being explored in multi-application of engines and
tractors in areas other than farming sectors. Mass Production of Generating Sets was
started in 1994, while a 3-Ton Fork Lift Truck branded as Millat, based on TCM
technology was launched in the year 2002.
The company has established a wholly new company named Millat Industrial Products
(Pvt) Limited to manufacture quality automotive batteries.
It is mission of the company to provide total satisfaction to the customers. The employees
of the company ably supported by our engineers continue to work with full vigor to
further enhance products, performance and reliability.
2
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Millat is a global group of companies, recognized for a range of quality products with
innovative design capabilities.
Profitability for the prosperity of our stakeholders that allows us to constantly invest,
improve and succeed
Recognition and reward for the talented and high performing employees
3
MILLAT TRACTORS Ltd. MCOM 2nd(M)
BOARD OF DIRECTORS
Chairman
Cheif Executive
Sohail Bashir Rana
M.C.B Nominee
Latif Khalid Hashmi
Laeeq Uddin Ansari
Mian Muhammad Saleem
Bashir Ahmad Chaudhry
Rana Muhammad Saddique
Syed Kokub Mohyuddin
Mian Nawaz Tishna
S.M. Tanveer
Mian Muhammad Saleem
4
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Company Secretary
Mian Muhammad saleem
Auditors
M/s, ford Rhodes sidat hyder & co.
chartered accountant
legal advisors
Walker martineau saleem
Advocates & legal consultants
Bankers
ABN Amro Bank
Bank Alfalah Ltd.
Habib Bank Ltd.
MCB Bank Ltd.
Standard Chartered Bank
Meezan Bank Ltd.
United Bank Ltd.
5
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Audit committee
Management Committees
Remuneration Committee
Environment Committee
Safety committee
7
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Budget Committee
8
MILLAT TRACTORS Ltd. MCOM 2nd(M)
9
MILLAT TRACTORS Ltd. MCOM 2nd(M)
PRODUCTS
PRODUCTS ARE AS FOLLOW:
1. TRACTORS
2. Industrial Products
3. Agricultural Implements
1.TRACTORS
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 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.
MF240
• Most economical in 50 HP range
• Rugged, maneuverable and compact
• Easy accessability to service points
• Ideal, versatile, all round tractor
• Spring suspension deluxe Seat
• Availability of parts and service facilities at your doorstep
MF260
• High performance, fuel efficient, Perkins Turbocharged Engine
• Less Smoke emmission due to better fuel burning
• Oil cooler added for effective cooling
• High PTO power for efficient operation of Tube Wells, Rotavators, Threshers etc.
10
MILLAT TRACTORS Ltd. MCOM 2nd(M)
MF375S
• Environment friendly, High performance Perkins 4.41 Engine
• Oil Cooler for effective cooling
• Gaseous Emmisions under ECE R49
• Robust Straddle Rear Axle
• Efficient oil-Immersed Disc Brakes
• Heavy-Duty Front Support
• Spring Suspension Deluxe Seat
• Easy Accessibility to Service points
• Heavy-Duty Spindle and Steering Arm
• Specious Operator's Area
• New Sheet Metal Style
MF385
• HighPerformance 4.41, low noise Engine
• Gaseous Emmissions under ECE R49
• Reduced Smoke Level
• Oil Cooler added for effective cooling
• Hydrostatic Power Steering
• Efficient Oil Immersed Disc Brake System
11
MILLAT TRACTORS Ltd. MCOM 2nd(M)
MF385 4WD
• EDGE OVER 2WD
• Traction (30% More)
• Drawbar Power (16% More)
• Drawbar Pull (34% More)
• Tyre Wear (15% less)
• Fuel Efficiency (15% More)
• Field Work Speed (13-20% More)
12
MILLAT TRACTORS Ltd. MCOM 2nd(M)
2.Industrial Products
Industrial Products of Millat Tractors Limited (Millat) include:
MPG-42
40kVA Manual
13
MILLAT TRACTORS Ltd. MCOM 2nd(M)
MODELS
15
MILLAT TRACTORS Ltd. MCOM 2nd(M)
FEATURES
16
MILLAT TRACTORS Ltd. MCOM 2nd(M)
(IV).Prime Movers
FEATURES
• Total power package easy to install & ready to operate reducing on-site
installation and labour cost.
• Long life & fuel efficient.
• An extensive after-sale service backup through Millat nationwide dealer's
network.
• Assured ready avilability of full range of spare parts.
• Realiability on Millat/Perkins Engine reduces down-time and operational cost.
17
MILLAT TRACTORS Ltd. MCOM 2nd(M)
3.Agricultural Implements
The most Impotant plough for primary tillage in canal irrigated or heavy rain areas
where too much weeds grow. The objective for ploughing with a Mould Board is to
completely invert and pulverize the soil, up-root all weeds, trash and crop residues
and bury them under the soil. The shape of mould Board is designed to cut down the
soil and invert it to right side, completely burying the undesired growth which is
subsequently turned into manure after decomposition.
The Agricultural Implements include different types of ploughs, farm trailers, lawn
mowers, jib cranes, agricultural loader
Chisel Plough [MT-01] Disc Plough [MT-765] Mould Board Plough [MT-02(M)]
19
MILLAT TRACTORS Ltd. MCOM 2nd(M)
20
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Quick Ratio:
A measure of liquidity calculated by dividing the firm’s current
assets minus inventory by its current liability, it is also known as Liquid
Ratio and Acid-Test Ratio.
The standard of Quick Ratio is 1:1.
Quick Ratio= Quick assets
Current liabilities
21
MILLAT TRACTORS Ltd. MCOM 2nd(M)
22
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Comments:
Result:
The overall liquidity of the firm is seems to be a good shape. Its Current
Ratio, Quick Ratio and Absolute Quick Ratio are good relative to the
previous year.
The company is capable to meet short term obligations.
Working capital is being properly utilized.
Reasons:
Effects:
23
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Inventory Turnover:
Inventory turnover also known as stock turnover is the relationship between
Cost of Gods Sold during a particular period of time and cost of Average
Inventory during that period. It is expressed in number of times. This ratio
indicated the number of times the stock has been turned over during the
period and evaluated the efficiency with which the firm is able to mange its
inventory. This ratio indicates whether investment in stock is with in proper
limit or not.
25
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Comments:
Result:
The company’s activity ratios appear in a good shape. And the ratio
stands favorable for Millat tractor’s company.
Reasons:
Its inventory turnover seems to have improved. In 2007, it has low level
of stock as compared to pervious year which causes of good inventory
turnover. The firm is facing difficulty in receiving its debts as compared
to previous year, so this could adversely affect the firm’s credit
standing. Its collection period is poor. Its total assets decreased which
results in increase its sales so its total assets turnover is Favorable.
Effects:
The overall activity position of the company is Good and so we can say
that there is a speedy disposable of finished goods stock; effective use of
working capital, efficient operations that have a positive and healthy
impact on the success and the profitability of the Millat tractors.
26
MILLAT TRACTORS Ltd. MCOM 2nd(M)
return on its investment. This ratio also indicates the firm’s capacity to face
adverse economic conditions such as price competition, law demand etc.
obviously, higher the ratio the better is the profitability.
Return on Assets:
The return on assets, often called the return on investment measure the
overall effectiveness of management in generating profits with its available
assets. The higher the firm’s return on total assets, the better.
Return on Assets=
Earning available for common stockholders
Total assets
Return on Equity:
Return on equity measures the return earned on the common stock
holder’s investment in the firm. Generally, the higher this return, the better
off is the owners. In the real sense, the common stock holders are the real
owner of the company. They assume the highest risk in the company. This
ratio is more meaningful to the equity shareholders who are interested to
know the profit earned by the company and those profits which can be made
available to pay dividend to them.
Return on Equity=
Earning available for common stockholders
Common stock equity
28
MILLAT TRACTORS Ltd. MCOM 2nd(M)
29
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Comments:
Results:
Reasons:
It’s Gross Profit, Operating Profit and Net Profit is not better than the
previous year and its sales increased but decrease in Gross Profit,
Operating Profit and Net Profit adversely affects profitability ratios of
the firm.EPS is also not better in this year due to decrease in earning
available for common stock holders. But its return on assets is quite
similar in this year. Shareholders equity remained low as compare to
previous year which affects the return on equity; it shows that firm is
not performing well.
Effects:
30
MILLAT TRACTORS Ltd. MCOM 2nd(M)
The debt position of a firm indicates the amount of other people’s money
being used to generate profits.
1. Debt Ratio.
2. Time Interest Earned Ratio.
3. Fixed Payment Coverage Ratio.
Debt Ratio:
It measure the proportion of total assets financed by the firm’s
creditors the higher the ratio, the greater the amount of other people’s money
being used to generate profit and the more financial leverage it has.
Debt Ratio=
Total liabilities
Total assets
31
MILLAT TRACTORS Ltd. MCOM 2nd(M)
32
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Comments:
Result:
The overall solvency ratio of company is not favorable for the firm.
Reason:
Effects:
The firm’s ability to pay its contractual interest payments became less
in this year.
In short, it appears that the company’s ability to pay debts in 2007 does
not compensate for its increased degree of indebtedness.
33
MILLAT TRACTORS Ltd. MCOM 2nd(M)
34
MILLAT TRACTORS Ltd. MCOM 2nd(M)
35
MILLAT TRACTORS Ltd. MCOM 2nd(M)
Comments:
Results:
Reasons:
Effects:
36