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Contents

S/# 1 2 3 4 5 6 7 8 9 Acknowledgement Director Report Vision Mission Core Values Financial Ratios Other Data Conclusion Recommendation Page # 2 3 4 5 6 7 9 10 11

Letter of Acknowledgement
I am grateful to my Allah, my parents and my course Instructor MR.USMAN ALI SIDDIQUI who provided us guidance and support throughout the course and during the report, instructed us on every step about how to complete the report following a thoroughly professional format, while providing an extremely valuable learning experience for us and actually making us think over the subject. Hopefully this report will serve to its best. I would also like to thank ours fellow classmates for making this learning experience a thoroughly productive and enjoyable one. Thank you,

DIRECTORS' REPORT TO THE SHAREHOLDERS


The tractor of a farmer is like referees whistle or a hunters rifle. If there is one thing from which a farmer expects firm guarantees, it is definitely the reliability of his tractor, the money making machine on which he spends a good part of his life. The Directors feel pleasure in presenting their 45th annual report together with audited accounts of the Company for the year ended June 30,2008 APPROPRIATIONS Your Directors recommended a payment of cash dividend @ Rs. 20.00 per share (200%) in addition to interim dividend of Rs. 12.50 per share (125%) already paid.

Millat Group Vision


Millat to be a global group of companies, recognized for a range of quality products with innovative design capabilities .

Mission S t a t e m e n t

To be market leader in agricultural tractors and machinery, building companys image through innovation and competitiveness, grow by expanding market and investing into group companies, ensuring satisfaction to customers and stakeholders and to fulfill social obligations .

CORE VALUES

Our Customers as our first priority. Profitability for the prosperity of our stakeholders that allows us to constantly invest, improve and succeed. Corporate Social Responsibilities to Enrich the Lives of community where we operate. Recognition and Reward for the talented and high performing employees. Excellence in every thing we do.

FINANCIAL RATIOS
LIQUIDITY RATIOS
RATIO CURRENT 2009 1.7:1 1.08:1 2008 1.5:1 1.09:1

QUICK

EFFICIENCY RATIOS
RATIO RETURN ON CAPITAL INVENTORY TURNOVER FIXED ASSETS TURNOVER TOTAL ASSET TURNOVER 2009 36.30% 2008 27.24%

6.98Times

5.39Times

31.20Times

23.37Times

2.35Times

1.54Times

PROFITABILITY RATIOS
RATIO GP MARGIN 15.14 OPERATING PROFIT MARGIN PBT MARGIN 11.03 8.06 2009% 2008 % 13.18

11.01

10.03

NET INCOME

7.64

7.25

SOLVECY RATIOS
RATIO 2009 % 2008 %

RETURN ON TOTAL ASSETS RETURN ON EQUITY EARNING PER SHARE(AFTER TAX)

25.83

15.41

36.05

26.67

51.87

34.59

LEVERAGE
2009 DEGREE OF FINANCIAL LEVERAGE DEGREE OF OPERATING LEVERAGE COMBINED STAND-ALONE LEVERAGE 22.734 2008 30.05 0.10

0.09

46.69

92.87

OTHER DATA
2009 Sales Net G.P Net Profit (A.Tax) Balance Sheet Reserves Cash Liablity&Equity Assets Ratios Current Ratio Quick Acid G.P Ratio Operating Profit Ratio Profit Before Tax Profit After Tax Return On Capital Employed Inventory Turnover Total Asset Turn Over 2.35 Times Fixed Asset Turnover Return On Assets Long Term Debt Equity Ratio Pay Out Ratio (After Tax) EPS (After Tax) Price Earning Ratio Break Up Value 31.20 times 25.83% 0:100 times 91.57% 0.5187 5.38 RS 143.88 1.7:1 1.08:1 15.14% 11.03% 11.01% 7.64% 36.30% 6.98 Times 1.5:1 1.09:1 13.18% 8.06% 10.03% 7.25% 27.24% 5.39 Times 1.54Times 23.37 times 15.41% 0:100 times 81.00% 34.59 6.15 RS 162.14 9 2,220,776 995373M 6,782,800 6782800M 2,211,000 249358M 7,267,796 7267796M 15,910,619 2,409,120 1,215,120 2008 11,174,014 1,472,716 810,458

Dividend Market Price Year End High Low

45 279.24 302 120.54

32.5 266 347 250

CONCLUSION
The company is reasonable in a good position . The company has sufficient cash to its short term obligation and company has good amount of capital and also in good position then industry. Companys sales increases 17% in current year and 9% in last year it means the current financial crises did not hit the company due to agriculture country. Company import Raw material and spare parts from china current stock position is more the 289M. it means company have very good position for next 3 years to manufacture of Tractors. The company a/c receivable turnover for recovery is growing and also in good position.

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RECOMMENDATION

The company production assets are producing well, the fixed assets turnover is greater then industry and fixed assets turnover as well. Company have 3 year stock reserve to manufacture more tractor. The company has maintained good net profit margin which shows that the company is growing and operating in profit. We recommend the company has a good future growth in sales and profit.

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