| Millat Tractors Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| Notice
of Meeting |
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| Directors'
Report to the Shareholders |
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| Chairman's
Review |
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| Decade
at a Glance |
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| Pattern
of Shareholding |
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| Auditors'
Report to the Members |
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| Balance Sheet |
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| Profit
and Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Account |
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| GROUP'S
CONSOLIDATED FINANCIAL STATEMENTS |
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| Auditors'
Report to the Members |
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| Balance Sheet |
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| Profit
and Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| MILLAT
EQUIPMENT (PVT) LIMITED |
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| Directors'
Report |
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| Auditors'
Report to the Members |
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| Balance Sheet |
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| Receipt
and Payment Account |
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| Notes
to the Accounts |
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| Board
of Directors |
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| Sikandar
Mustafa Khan |
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| Chairman
& Chief Executive |
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| Latif
Khalid Hashmi |
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| Laeeq
Uddin Asnari |
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| S.R. Bokhari |
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| Istaqbal Mehdi |
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| Sohail
Bashir Rana |
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| Mian M. Saleem |
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| Rana
M. Siddique |
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| Dr.
Amjad Waheed |
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| S.M. Tanvir |
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| M.C.B. Nominee |
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| Mian
Muhammad Saleem |
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| Company
Secretary |
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| MANAGEMENT |
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| Sikandar
Mustafa Khan |
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| Chairman
& Chief Executive |
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| Latif
Khalid Hashmi |
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| Dy.
Managing Director (Tech. & Admn.) |
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| Sohail
Bashir Rana |
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| Dy.
Managing Director (Fin. & Mktg.) |
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| Laeeq
Uddin Ansari |
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| Director
Marketing |
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| Mian
Mohammad Saleem |
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| Gen.
Manager Finance |
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| Shaukat
Ali Sheikh |
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| Gen.
Manager Production Control |
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| Bashir
A. Chaudhry |
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| Gen.
Manager Marketing |
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| Mubashar Iqbal |
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| Gen.
Manager Accounts |
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| Javed Munir |
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| Gen.
Manager Admn./Purchases |
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| Dr.
Syed Amer Ali |
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| Gen.
Manager Projects & Dev. |
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| Pir Asad Iqbal |
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| Dy.
Gen. Manager Parts |
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| M.
Aslam Khokhar |
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| Dy.
Gen. Manager Service |
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| Shahid S. Toor |
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| Dy.
Gen. Manager Quality Control |
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| Ahsan Imran |
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| Dy.
Gen. Manager Multi App. |
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| Zaair
Farid Shah |
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| Dy.
Gen. Manager Marketing |
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| ORGANIZATION
STRUCTURE |
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| Sikandar
Mustafa Khan |
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| Chairman
& Chief Executive |
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| Mian M. Saleem |
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| Company
Secretary |
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| Latif
Khalid Hashmir |
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| Dy.
Managing Director (Tech. & Admn.) |
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| Sohail
Bashir Rana |
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| Dy.
Managing Director (Fin. & Mktg.) |
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| Shaukat Ali Sh. |
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| Gen.
Manager P.C. |
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| Jehangir
Qureshi |
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| Sr.
Manager Engine/MPA |
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| Mansoor
A. Abbasi |
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| Sr.
Manager Tractor Assy. |
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| Shaffat Ahmad |
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| Sr.
Manager Manufacturing |
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| M. Akbar Sh. |
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| Manager
Manufacturing |
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| Mian M. Anwar |
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| Manager
Procurement |
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| Zahid H. Butt |
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| Manager
Tractor Assy. |
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| Dr.
Syed Amer Ali |
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| Gen.
Manager Projects & Dev. |
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| M.
Ashfaq Farooqi |
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| Sr.
Manager Projects & Dev. |
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| M.
Athar Zubair |
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| Manager
Projects & Dev. |
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| Altaf Hussain |
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| Manager
Projects & Dev. |
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| M. Naeem Tahir |
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| Manager
Projects & Dev. |
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| Khursheed
Majeed |
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| Manager
Projects & Dev. |
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| Rehan
A. Qureshi |
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| Sr.
Manager Maintenance |
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| Mian M. Saleem |
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| Gen.
Manager Finance |
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| Mubashar Iqbal |
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| Gen.
Manager Accounts |
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| Tariq Masood |
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| Sr.
Manager Data Processing |
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| Farogh Iqbal |
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| Sr.
Manager Data Processing |
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| Masood A. Ch. |
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| Manager
Accounts |
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| M. Pervez Butt |
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| Manager
Budget & MIS |
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| Rustam Ali |
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| Manager
Corp. Affairs |
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| Javed
Akbar Gill |
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| Manager
Data Processing |
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| Akhtar Hussain |
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| Manager
Finance |
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| S.M.
Abdul Qadir |
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| Manager
Finance |
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| Laeeq
Uddin Ansari |
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| Director
Marketing |
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| Bashir
A. Chaudhry |
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| Gen.
Manager Marketing |
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| Pir. Asad Iqbal |
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| Dy.
Gen. Manager Parts |
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| M.
Aslam Khokhar |
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| Dy.
Gen. Manager Service |
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| Zaair
Farid Shah |
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| Dy.
Gen. Manager Marketing |
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| Ahsan Imran |
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| Dy.
Gen. Manager Multi App. |
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| Idrees Zubair |
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| Sr.
Manager Sales |
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| Muhammad
Akram |
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| Sr.
Manager Reg. Off. Islamabad |
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| Shahid S. Toor |
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| Dy.
Gen. Manager Q.C |
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| Ch. M. Anwar |
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| Manager
Q.C. BOF |
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| Abdul Razzak |
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| Manager
Lab./Gauge Control |
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| M. Ameer Khan |
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| Manager
Q.C. Manufacturing |
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| M.
Anwar Malik |
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| Manager
Q.C. Assy. |
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| Abdul
Qayyum Butt |
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| Manager H.R.D. |
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| Mian
Habib Ahmad |
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| Dy.
Manager S.A.&C.P. |
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| NOTICE
OF MEETING |
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| Notice
is hereby given that 37th Annual General Meeting of Millat |
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| Tractors
Limited will be held at the Company's Registered Office, 9 |
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| K.M.
Sheikhupura Road, Shahdara, Lahore, on Saturday, December 23, |
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| 2000
at 11.00 A.M. to transact the following business: |
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| 1.
ORDINARY BUSINESS |
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| i)
To confirm minutes of the 36th Annual General Meeting. |
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| ii)
To receive, consider and adopt the audited accounts of the |
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| Company
for the year ended June 30, 2000 together with the |
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| Directors'
and Auditors' Reports thereon. |
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| iii)
To approve payment of cash dividend as recommended by |
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| the
Directors at the rate of Rs. 14.00 per share (140%). |
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| iv)
To appoint auditors and fix their remuneration for the year |
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| ending
June 30, 2001. The present auditors M/s. A.F. |
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| Ferguson
& Company, Chartered Accountants, retire |
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| and
are eligible for re-appointment. |
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| v)
To elect eight Directors for a period of three years. The |
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| retiring
Directors are: |
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| M/s.
Sikandar M. Khan, Latif Khalid Hashmi, Sohail |
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| Bashir
Rana, Laeeq Uddin Ansari, Mian Muhammad |
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| Saleem,
S.R. Bokhari, Rana Mohammad Siddique, Dr. |
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| Amjad
Waheed and Istaqbal Mehdi. |
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| As
decided by the Board of Directors, in their meeting held |
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| on
November 10, 2000, the number of directors to be |
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| elected
would be eight. |
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| vi)
To pass with or without modification the following |
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| resolutions
regarding fixation of remunerations of the |
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| Chairman/Chief
Executive and the whole time working |
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| Directors: |
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| "RESOLVED
that payment as remuneration to Mr. Sikandar |
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| Mustafa
Khan, Chairman/Chief Executive, not exceeding |
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| Rs.
3.5 million per annum, exclusive of perquisites and |
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| retirement
benefits to which he is entitled under terms of his |
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| appointment
with the Company be and is hereby approved." |
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| "RESOLVED
that payment as remuneration to M/s. Latif |
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| Khalid
Hashmi and Sohail Bashir Rana, Directors, not |
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| exceeding
Rs. 5.5 million per annum, in aggregate, exclusive |
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| of
perquisites and retirement benefits to which they are |
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| entitled
under terms of their employment with the Company |
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| be
and are hereby approved." |
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| "RESOLVED
that payment as remuneration to M/s. Laeeq |
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| Uddin
Ansari, Mian Mohammad Saleem and Rana |
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| Mohammad
Siddique, Directors, not exceeding |
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| Rs.
4.0 million per annum, in aggregate, exclusive of |
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| perquisites
and retirement benefits to which they are |
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| entitled
under terms of their employment with the |
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| Company
be and are hereby approved." |
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| Each
Director is interested in the resolution to the extent of |
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| remuneration
given above. |
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| 2.
SPECIAL BUSINESS |
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| i)
To approve investment of Rs. 42 million in equity of |
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| Millat
Equipment (Pvt) Limited by passing the |
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| following
resolutions: |
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| "RESOLVED
that investment of Rs. 42 million in the equity |
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| of
Millat Equipment (Pvt) Ltd. (MEL) including investment |
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| of
Rs. 33.074 million already made be and is hereby |
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| approved." |
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| "RESOLVED
further that the Company is hereby authorized |
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| to
invest the balance amount in MEL in the mode and |
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| manner
as the Chairman/Chief Executive of the Company |
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| may
deem fit and proper." |
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| 3.
ANY OTHER BUSINESS |
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| To
transact any other business with the permission of the Chair. |
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| Notes |
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| 1.
The share transfer books of the Company will remain closed |
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| from
Dec. 11, 2000 to Dec. 23, 2000 (both days inclusive) and |
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| no
transfer will be accepted during this period. The |
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| members
whose names appear in the register of members as |
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| at
the close of business on December 10, 2000 will qualify |
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| for
the payment of cash dividend. |
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| 2.
A member entitled to attend and vote at this meeting may |
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| appoint
another member as his/her proxy to attend the |
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| meeting
and vote for him / her. Proxies in order to be effective |
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| must
be received by the Company not less than 48 |
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| hours
before the meeting. |
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| 3.
Any proposal for the election of Directors, as aforesaid, must |
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| reach
the Company Secretary at Millat Tractors Limited |
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| 9
k.m Sheikhupura Road, Shahdara, Lahore at least |
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| fourteen
days before the meeting. |
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| 4.
Shareholders are requested to notify the change of address, |
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| if
any, immediately. |
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| CDC
Account Holders will further have to follow the under |
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| mentioned
guidelines as laid down in Circular 1 dated January 26, |
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| 2000
issued by the Securities and Exchange Commission of Pakistan: |
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| A.
For Attending the Meeting: |
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| i)
In case of individuals, the account holder or sub-account |
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| holder
and/or the person whose securities are in group account |
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| and
their registration details are uploaded as per the |
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| Regulations,
shall authenticate his identity by showing his |
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| original
National Identity Card (NIC) or original passport at |
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| the
time of attending the meeting. |
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| ii)
In case of corporate entity, the Board of Directors resolution/ |
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| power
of attorney with specimen signature of the |
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| nominee
shall be produced (unless it has been provided |
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| earlier)
at the time of the meeting. |
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| B.
For Appointing Proxies: |
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| i)
In case of individuals, the account holder or sub-account |
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| holder
and/or the person whose securities are in group account |
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| and
their registration details are uploaded as per the |
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| Regulations,
shall submit the proxy form as per the above |
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| requirement. |
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| ii)
The proxy form shall be witnessed by two persons |
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| whose
names, addresses and NIC numbers shall be |
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| mentioned
on the form. |
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| iii)
Attested copies of NIC or the passport of the beneficial |
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| owners
and the proxy shall be furnished with the proxy form. |
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| iv)
In case of corporate entity, the Board of Directors |
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| resolution/power
of attorney with specimen signature shall |
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| be
submitted (unless it has been provided earlier) alongwith |
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| proxy
form to the Company. |
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| STATEMENT
U/S 160 OF THE COMPANIES ORDINANCE, 1984 |
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| 1.
The Board of Directors in its meeting held on Feb. 24, 1999 |
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| had
approved to invest Rs. 50 million in its wholly owned |
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| subsidiary
Company i.e., Millat Equipment (Pvt) Limited |
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| (MEL)
of which investment of Rs. 8 million was approved in |
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| the
last Annual General Meeting. During the year, a |
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| Technical
Assistance Agreement signed between |
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| Samsung
Commercial Vehicles Company Limited, Korea and |
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| Millat
Tractors Limited for the progressive manufactureofl.25 |
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| Tons
Light Commercial Vehicle, was assigned to MEL. |
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| For
the time being, the project shall be undertaken within the |
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| premises
of Millat Tractors Limited under the umbrella of |
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| MEL.
The necessary civil works are in progress. The trial |
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| production
is expected to commence in the last quarter of |
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| current
financial year. |
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| After
attaining the desired volume, the project shall be |
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| transferred
to Raiwind Road site. |
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By order of the Board |
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| Lahore: |
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|
Mian Muhammad Saleem |
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| Nov. 29, 2000 |
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|
Company Secretary |
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| Directors'
Report to the Shareholders |
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| Your
directors feel pleasure in submitting their 37th Annual Report |
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| together
with the audited accounts of the Company for the year ended June |
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| 30, 2000. |
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| APPROPRIATIONS |
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| Your
directors recommended the payment of cash dividend at the rate |
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| of
Rs. 14.00 per share (140%) out of the profit available for appropriations. |
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| Accordingly,
the following appropriations have been made: |
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| ACCOUNTS |
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(Rupees |
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|
in thousands) |
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| Profit
before taxation |
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415,091 |
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| Less: Taxation |
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152,688 |
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------------------ |
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| Profit
after taxation |
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262,403 |
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| Add:
Un-appropriated |
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| Profit
b/f as previously reported |
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396 |
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| Effect
of change in accounting policy |
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(13,233) |
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------------------ |
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| Unappropriated
profit brought forward as restated |
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(12,837) |
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| Profit
available for appropriations |
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249,566 |
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| Less:
Appropriations |
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| Transfer to |
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| General
Reserves |
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137,000 |
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| Proposed
Dividend @ 140% (1999:120%) |
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|
112,131 |
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249,131 |
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------------------ |
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| Unappropriated
profit carried forward |
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|
435 |
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------------------ |
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| EARNING
PER SHARE |
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| Earning
per share for the year ended June 30, 2000 was registered at |
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| Rs.
32.76 as compared to Rs. 28.53 in the preceding year. |
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|
|
| DIRECTORS |
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| Since
the last report, there has been change in the Board of Directors. |
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| Mr.
Manzoor A. Sheikh nominee of NIT on the Board tendered his |
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| resignation
w.e.f. Jan. 05, 2000 and in his place Mr. Istaqbal Mehdi N1T |
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| nominee
was co-opted as Director under Article 96 (2) of the |
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| Memorandum
and Articles of Association of the Company to fill |
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| the
casual vacancy. |
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| In
terms of section 178 (1) of the Companies Ordinance, 1984, the |
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| Board
of Directors in their meeting held on November 10, 2000 have |
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| fixed
the number of Directors to be elected in the 37th Annual |
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| General
Meeting at eight. |
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| The
present Directors who shall stand retired are the following: |
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| Messrs
Sikandar Mustafa Khan, Latif Khalid Hashmi, Sohail |
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| Bashir
Rana, Laeeq Uddin Ansari, Mian Muhammad |
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| Saleem,
S.R. Bokhari, Rana Mohammad Siddique, Dr. Amjad |
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| Waheed
and Istaqbal Mehdi. |
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| AUDITORS |
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| The
present auditors M/s. A.F. Ferguson & Company, Chartered |
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| Accountants,
retire and being eligible offer themselves for re-appointment. |
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| LIGHT
COMMERCIAL VEHICLE PROJECT |
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| A
Technical Assistance Agreement was signed on May |
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| 19,
2000 between Samsung Commercial Vehicles Company |
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| Limited,
Korea and Millat Tractors Limited (MTL) for the |
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| progressive
manufacture of 1.25 Tons Light Commercial Vehicle. |
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| Subsequently
the agreement was assigned to MTL's wholly owned |
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| subsidiary
Company i.e., Millat Equipment (Pvt) Limited (MEL). |
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| The
purpose of the agreement was to increase the product range of the |
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|
| Company.
MTL Board of Directors in its meeting held on Feb. 24, 1999 |
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| had
approved to invest Rs. 50 million in MEL. For the time being the |
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| project
shall be undertaken within the premises of MTL under the |
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| umbrella
of MEL. The necessary civil works am in progress. The trial |
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|
| production
is expected in the last quarter of the current financial year. |
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| After
attaining the desired volume, the project shall be transferred to |
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| Raiwind
Road site for which a piece of land measuring 32 Kanals has |
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| already
been purchased. |
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| TECHNICAL
COLLABORATION AND SUPPLY AGREEMENT |
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| FOR
ASSEMBLY AND MANUFACTURE OF FORK LIFT TRUCKS IN PAKISTAN |
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| A
Technical Collaboration and Supply Agreement for assembly and |
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|
| manufacture
of improved version of Forklift Trucks in Pakistan was made |
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| on
April 27, 2000 between CAMCO International, China and Millat |
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|
| Tractors
Limited. This development will pave the way for not only |
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| considerable
indigenous business but is also likely to generate prospective |
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| openings
for export of the products. Products from this collaboration are |
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| expected
to be launched in the next financial year. |
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|
