| MILLAT TRACTORS LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ANNUAL
REPORT 1997 |
|
|
| CONTENTS |
|
| Notice
of Meeting |
|
| Directors'
Report to the Shareholders |
|
| Chairman's
Review |
|
| Pattern
of Shareholding |
|
| Decade
at a Glance |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
| Accounts
of Subsidiary |
|
|
|
|
|
| BOARD
OF DIRECTORS |
|
|
| Sikandar
Mustafa Khan |
|
| Chairman
& Chief Executive |
|
|
| EMPLOYEES
GROUP |
|
|
| Latif
Khalid Hashmi |
|
| Sohail
Bashir Rana |
|
| Laeeq
Uddin Ansari |
|
| S.R.
Bokhari |
|
| Rana
Mohammad Siddique |
|
| Mian
Mohammad Saleem |
|
|
| Mian
Mohammad Saleem |
|
| Company
Secretary |
|
|
| OTHERS |
|
|
| A.K.M.
Sayeed |
|
| NIT
Nominee |
|
|
| S.M.
Tanvir |
|
| M.C.B.
Nominee |
|
|
|
| MANAGEMENT |
|
|
| Sikandar
Mustafa Khan |
|
| Chairman
& Chief Executive |
|
|
| Latif
Khalid Hashmi |
|
| Director
Marketing |
|
|
| Sohail
Bashir Rana |
|
| Director
Technical |
|
|
| Laeeq
Uddin Ansari |
|
| Director
Finance |
|
|
| Mian
Mohammad Saleem |
|
| Gen.
Manager Finance |
|
|
| Bashir
A. Chaudhry |
|
| Gen.
Manager Marketing |
|
|
| S.R.
Bokhari |
|
| Gen.
Manager SA & CP |
|
|
| Shaukat
Ali Sheikh |
|
| Gen.
Manager Production Control |
|
|
| Dr.
Syed Amer Ali |
|
| Gen.
Manager Projects |
|
|
| Mubashar
Iqbal |
|
| Gen.
Manager Admn/Purchase |
|
|
| Pir
Asad Iqbal |
|
| Dy.
Gen. Manager R & D |
|
|
| M.
Aslam Khokhar |
|
| Dy.
Gen. Manager HRD |
|
|
| Javed
Munir |
|
| Dy.
Gen. Manager Finance |
|
|
|
| ORGANISATION
STRUCTURE |
|
|
|
| Sikandar
Mustafa Khan |
|
| Chairman
& Chief Executive |
|
|
|
|
| Mian M. Saleem |
|
|
|
| Company
Secretary |
|
|
| Sohail
Bashir Rana |
|
| Director
Technical |
|
|
| Shaukat
Ali Sh. |
|
| Gen.
Manager P.C. |
|
|
| Dr.
Syed Amer Ali |
|
| Gen.
Manager Projects |
|
|
| Pir
Asad Iqbal |
|
| Dy.
Gen. Manager R&D |
|
|
| Pervaiz
Aslam |
|
| Sr.
Manager Procurement |
|
|
| Ch.
Abdul Ghafoor |
|
| Sr.
Manager Tractor Assy. |
|
|
| Shafaat
Ahmed |
|
| Sr.
Manager Mfg./Maint. |
|
|
| M.
Ashfaq Farooqi |
|
| Sr.
Manager Dev. |
|
|
| Jehangir
Qureshi |
|
| Sr.
Manager Eng./NPA |
|
|
| Rehan
A. Qureshi |
|
| Manager
Maintenance |
|
|
| M.
Akbar Sheikh |
|
| Manager
Mfg. |
|
|
| Athar
Zubair |
|
| Manager
Projects |
|
|
| M.
Amir Khan |
|
| Manager
Research |
|
|
| Imtiaz
Ahmad |
|
| Manager
Mfg. |
|
|
| M.
Naeem Tahir |
|
| Manager
Projects |
|
|
| Laeeq
Uddin Ansari |
|
| Director
Finance |
|
|
| Mian
M. Saleem |
|
| Gen.
Manager Finance |
|
|
| Javed
Munir |
|
| Dy.
Gen. Manager Finance |
|
|
| M.
Aslam Qureshi |
|
| Sr.
Manager Corporate Affairs |
|
|
| Tariq
Masood |
|
| Sr.
Manager Data Processing |
|
|
| Farogh
Iqbal |
|
| Sr.
Manager Data Processing |
|
|
| Masood
A. Chaudhry |
|
| Manager
Accounts |
|
|
| M.
Pervaiz Butt |
|
| Manager
Budget & MIS |
|
|
| Rustam Ali |
|
| Manager
Finance |
|
|
| Javed
Akbar Gill |
|
| Manager
Data Processing |
|
|
| Latif
Khalid Hashmi |
|
| Director
Marketing |
|
|
| Bashir
A. Chaudhry |
|
| Gen.
Manager Marketing |
|
|
| Idrees
Zubair |
|
| Sr.
Manager Sales |
|
|
| Ahsan
Imran |
|
| Sr.
Manager Multi App. |
|
|
| Mansoor
Abbasi |
|
| Sr.
Manager Service |
|
|
| M.A.
Kakakhail |
|
| Manager
Parts |
|
|
| Nasim
A. Sindhu |
|
| Manager
Reg. Off. Multan |
|
|
| M. Akram |
|
| Manager
Reg. Off. Islamabad |
|
|
| Mubashar
Iqbal |
|
| Gen.
Manager Admn./Pur. |
|
|
| Zaair
Farid Shah |
|
| Sr.
Manager Admn./Pers. |
|
|
| Mian
M. Anwar |
|
| Manager
Purchase |
|
|
| S.
Imtiaz Ali |
|
| Manager
Reg. Off. Karachi |
|
|
| Saif-ur-Rehman |
|
| Manager
Reg. off. Karachi |
|
|
| Shahid
S. Toor |
|
| Sr.
Manager Q.C. |
|
|
| M.
Anwar Chaudhry |
|
| Manager
Q.C. Assy. |
|
|
| Abdul
Razzak |
|
| Manager
Q.C. BOF |
|
|
| M.
Aslam Khokhar |
|
| Dy.
Gen. Manager HRD |
|
|
| Abdul
Qayyum Butt |
|
| Manager
HRD |
|
|
| S.R.
Bokhari |
|
| Gen.
Manager SA & CP |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that 34th |
|
|
|
|
| Annual
General Meeting of |
|
|
|
|
| Millat
Tractors Limited will be held |
|
|
|
|
| at
the Company's Registered Office, |
|
|
|
|
| 9
K.M. Sheikhupura Road, Shahdara, |
|
|
|
|
| Lahore,
on Wednesday, December |
|
|
|
|
| 24,
1997 at 12 Noon to transact the |
|
|
|
|
| following
business: |
|
|
|
|
|
|
|
|
|
| 1.
ORDINARY BUSINESS |
|
|
|
|
| i)
To confirm minutes of the 33rd |
|
|
|
|
| Annual
General Meeting. |
|
|
|
|
|
|
|
|
|
| ii)
To receive, consider and adopt |
|
|
|
|
| the
audited accounts of the |
|
|
|
|
| Company
for the year ended |
|
|
|
|
| June
30, 1997 together with the |
|
|
|
|
| Directors'
and Auditors' |
|
|
|
|
| Reports
thereon. |
|
|
|
|
|
|
|
|
|
|
|
|
| iii)To
approve payment of cash |
|
|
|
|
| dividend
at the rate of Rs. 7.50 |
|
|
|
|
| per
share (75%). |
|
|
|
|
|
|
|
|
|
|
| iv)
To appoint auditors and fix their |
|
|
|
|
| remuneration
for the year |
|
|
|
|
| ending
June 30, 1998. The |
|
|
|
|
| present
joint auditors Messrs |
|
|
|
|
| Ilyas
Saeed & Co., Chartered |
|
|
|
|
|
| Accountants
and Messrs Ford, |
|
|
|
|
|
| Rhodes,
Robson, Morrow, |
|
|
|
|
|
| Chartered
Accountants, |
|
|
|
|
|
| retire
and are eligible for |
|
|
|
|
|
| re-
appointment. |
|
|
|
|
|
|
|
|
|
|
|
|
| v)
To elect nine directors for a |
|
|
|
| period
of three years. The |
|
|
|
| retiring
directors are:- |
|
|
|
|
|
|
|
|
| Mr.
Sikandar Mustafa Khan, |
|
|
|
| Mr.
Latif Khalid Hashmi, |
|
|
|
| Mr.
Sohail Bashir Rana, |
|
|
|
| Mr.
Laeeq Uddin Ansari, |
|
|
|
| Mian
Muhammad Saleem, |
|
|
|
| Mr.
S.R. Bokhari, Rana |
|
|
|
| Muhammad
Siddique & |
|
|
|
|
| Mr.
A.K.M. Sayeed. |
|
|
|
|
| The
Board of Directors in their |
|
|
|
| meeting
held on Nov. 10, 1997, |
|
|
|
| has
decided that the Board |
|
|
|
| would
consist of nine elected |
|
|
|
| directors. |
|
|
|
|
|
|
|
|
|
| 2.
SPECIAL BUSINESS |
|
|
|
|
|
|
|
|
|
| To
approve investment of Rs. 2.03 |
|
|
|
| lac
in Bolan Castings Ltd. by |
|
|
|
| passing
the following resolution: |
|
|
|
| "RESOLVED
that an |
|
|
|
|
| investment
of Rs. 2.03 lac by |
|
|
|
| way
of acquisition of 25,000 |
|
|
|
| ordinary
shares of Rs. 10/- each |
|
|
|
| of
Bolan Castings Limited be |
|
|
|
| and
is hereby approved." |
|
|
|
|
|
|
|
|
| 3.
ANY OTHER BUSINESS |
|
|
|
| To
transact any other business with |
|
|
|
| the
permission of the Chair. |
|
|
|
|
|
|
|
|
| Notes |
|
|
|
|
| 1.
The share transfer books of the |
|
|
|
| Company
will remain closed from |
|
|
|
| Dec.
5, 1997 to Dec. 24, 1997 |
|
|
|
| (both
days inclusive) and no |
|
|
|
| transfer
will be accepted during |
|
|
|
| this
period. The members whose |
|
|
|
| names
appear in the register of |
|
|
|
| members
as at the close of business |
|
|
|
| on
December 4, 1997 will qualify |
|
|
|
| for
the payment of cash dividend. |
|
|
|
|
|
|
|
|
| 2.
A member entitled to attend and |
|
|
|
| vote
at this meeting may appoint |
|
|
|
| another
member as his/her proxy |
|
|
|
| to
attend the meeting and vote for |
|
|
|
| him/her.
Proxies in order to be |
|
|
|
| effective
must be received by the |
|
|
|
| Company
not less than 48 hours |
|
|
|
| before
the meeting. |
|
|
|
|
|
|
|
|
|
| 3.
Any proposal for the election of |
|
|
|
| Directors,
as aforesaid, must reach |
|
|
|
| the
Company Secretary at |
|
|
|
| Millat
Tractors Limited, 9 K.M. |
|
|
|
| Sheikhupura
Road, Shahdara, |
|
|
|
| Lahore,
at least fourteen days |
|
|
|
| before
the meeting. |
|
|
|
|
|
|
|
|
|
| 4.
Shareholders are requested to |
|
|
|
| notify
the change of address, if |
|
|
|
| any,
immediately. |
|
|
|
|
|
|
|
|
|
| STATEMENT
U/S 160 OF THE |
|
|
|
| COMPANIES
ORDINANCE, 1984 |
|
|
|
|
|
|
|
|
| In
order to broaden equity base of |
|
|
|
| the
Company in its subsidiary, Bolan |
|
|
|
| Castings
Ltd., the Company has |
|
|
|
| purchased
25,000 shares of Bolan |
|
|
|
| Castings
Ltd. through Karachi Stock |
|
|
|
| Exchange
@Rs. 8.13 per share. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By order of the Board |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lahore: |
|
Mian Muhammad Saleem |
|
|
|
| Dec.
2, 1997 |
Company Secretary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DIRECTORS'
REPORT TO THE SHAREHOLDERS |
|
|
|
|
|
| Your
directors feel pleasure in submitting their 34th report together with the
audited |
|
| accounts
of the company for the year ended June 30, 1997. |
|
|
|
| APPROPRIATIONS |
|
|
|
| Your
directors recommend the payment of cash dividend at the rate of Rs. 7.50 per
share |
|
| (75%)
out of the profits available for appropriations. Accordingly, the following |
|
| appropriations
have been made: |
|
|
|
| ACCOUNTS |
|
|
|
|
|
Rupees |
|
|
|
in thousands |
|
|
|
|
|
| Profit
before taxation |
|
97,399 |
|
| Less:
Taxation |
|
31,543 |
|
|
|
---------- |
|
| Profit
after taxation |
|
65,856 |
|
|
|
| Add:
Unappropriated profit brought forward |
|
219 |
|
|
|
---------- |
|
| Profit
available for appropriations |
|
66,075 |
|
| Less:
Appropriations |
|
|
|
| Transfer
to general reserves |
|
6,000 |
|
| Proposed
dividend @75% |
|
60,070 |
|
|
|
---------- |
|
|
|
66,070 |
|
|
|
---------- |
|
| Unappropriated
profit carried forward |
|
5 |
|
|
|
========== |
|
|
|
| DIRECTORS |
|
|
| Mr.
Omer Mahmood Rana, a Director on the Board of Directors of the Company,
ceased to hold office |
|
| of
directorship w.e.f. December 11, 1996 pursuant to Section 205 of the
Companies Ordinance, 1984 and |
|
| Article
96(i) of the Articles of Association of the Company after having exhausted
his |
|
| share
holding in the Company. |
|
|
| Mr.
S.M. Tanvir was coopted nominee director of Muslim Commercial Bank Ltd.
w.e.f. |
|
| November
10, 1997 in place of Mian Muhammad Mansha who had earlier resigned from the
Board of |
|
| Director
of the Company in pursuance of Article 76 of the Articles of Association of
the Company. |
|
|
| The
Board of Directors in their meeting held on Nov. 10, 1997 has decided that
the Board would consist |
|
| of
nine elected directors. As such, nine directors are to be elected in the |
|
| 34th
Annual General Meeting for a period of three years in place of the following
directors who were elected |
|
| at
the 31st Annual General Meeting held on December 24, 1994; |
|
|
| Messrs
Sikandar Mustafa Khan, Latif Khalid Hashmi, Sohail Bashir Rana, Laeeq Uddin
Ansari, |
|
| Mian
Muhammad Saleem, S.R. Bokhari, A.K.M. Sayeed, Rana Mohammad Siddique and Omer
Mahmood Rana. |
|
|
| AUDITORS |
|
|
|
|
| The
present joint auditors Messrs Ilyas Saeed & Company, Chartered
Accountants, and Messrs Ford, |
|
| Rhodes,
Robson, Morrow, Chartered Accountants, retire and are eligible for
re-appointment. |
|
|
| CHAIRMAN'S
REVIEW |
|
|
| Your
directors endorse the contents of the Chairman Review dealing with the
Company affairs which are |
|
| included
in his Review and form part of the Director's Report. |
|
|
| PATTERN
OF SHAREHOLDING |
|
|
| The
pattern of shareholding is annexed. |
|
|
| For
and on behalf of the Board |
|
|
| Sikandar
Mustafa Khan |
|
| Chairman
& Chief Executive |
|
|
|
| CHAIRMAN'S
REVIEW |
|
|
| Dear
Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| I
feel pleasure to welcome you to |
|
|
|
|
|
|
| the
34th Annual General Meeting of |
|
|
|
|
|
|
| the
Company and present audited |
|
|
|
|
|
|
| accounts
and my review of |
|
|
|
|
|
|
| operations
for the year ended |
|
|
|
|
|
|
| June
30, 1997. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MARKETING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The
year 1996-97 turned out to be |
|
|
|
|
|
|
| an
unfavourable year for the |
|
|
|
|
|
| engineering
industry in general and |
|
|
|
|
| for
the tractor industry in particular. |
|
|
|
|
| In
the wake of Awami Tractor |
|
|
|
|
|
| Scheme
under which import of CBU |
|
|
|
|
|
| tractors
was allowed free of duty |
|
|
|
|
| and
taxes, the local tractor Industry |
|
|
|
|
| was
badly affected. As such, loaning |
|
|
|
|
|
|
| for
local tractors was slashed down |
|
|
|
|
|
|
| drastically
and overall tractor |
|
|
|
|
|
|
| booking
recorded a decline of 42% |
|
|
|
|
|
|
| from
14,419 tractors in 1996 to 8,294 |
|
|
|
|
|
|
| tractors
in 1997. Total Industry sale |
|
|
|
|
|
|
| was
recorded at 10,145 units |
|
|
|
|
|
|
| compared
to previous year's sale of |
|
|
|
| 16,286
units. Your Company could |
|
|
|
|
| thus
manage to achieve a sale of |
|
|
|
|
| 5,460
units against 9,628 units sold |
|
|
|
| during
the previous year registering |
|
|
|
| a
shortfall of 43%. On the basis of |
|
|
|
| orders
booked, your Company, |
|
|
|
|
| however,
attained 60% market share |
|
|
|
| which
is slightly improved over |
|
|
|
|
| previous
year. |
|
|
|
|
|
|
|
|
|
| During
the year under review, the |
|
|
|
| Government
policies were highly |
|
|
|
|
| unfavourable
to the indigenous |
|
|
|
|
| tractor
industry. While all kinds of |
|
|
|
| concessions
in duties and taxes were |
|
|
|
| allowed
to the importers of CBU |
|
|
|
|
| tractors,
the local industry was |
|
|
|
|
| subjected
to both custom duty and |
|
|
|
| sales
tax. The preferential treatments |
|
|
|
| provided
to the importers and non |
|
|
|
| availability
of adequate funds for |
|
|
|
| the
local tractor, the production had |
|
|
|
| to
be drastically curtailed to give |
|
|
|
| rise
to unfavourable economies of |
|
|
|
| scale.
The prevailing uncertain |
|
|
|
|
| conditions
and declining profitability |
|
|
|
| thus
forced us and the vending |
|
|
|
|
| industry
to abandon their further |
|
|
|
| investment
plans which were |
|
|
|
|
| intended
for quality improvements |
|
|
|
| and
increased local content. |
|
|
|
|
| Nevertheless,
because of its high |
