Contents
02 Corporate Information
03 Directors' Review
COMPANY'S UNCONSOLIDATED FINANCIAL STATEMENTS
04 Unconsolidated Condensed Interim Statement of Financial Position
06 Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income
07 Unconsolidated Condensed Interim Statement of Changes in Equity
08 Unconsolidated Condensed Interim Statement of Cash Flows
09 Notes to the Unconsolidated Condensed Interim Financial Statements
GROUP'S CONSOLIDATED
FINANCIAL STATEMENTS
20 Consolidated Condensed Interim Statement of Financial Position
- Consolidated Condensed Interim Statement of Profit or Loss and other Comprehensive Income
- Consolidated Condensed Interim Statement of Changes in Equity
- Consolidated Condensed Interim Statement of Cash Flows
- Notes to the Consolidated Condensed Interim Financial Statements
Leading the Way
Quarter ended September 30, 2024
01
Corporate
Information
BOARD OF DIRECTORS
Chairman
Mr. Sikandar Mustafa Khan
Chief Executive
Mr. Raheel Asghar
Directors
Mr. Sohail Bashir Rana
Mr. Laeeq Uddin Ansari
Mr. Qaiser Saleem
Mr. Saad Iqbal
Mr. Nasar Us Samad Qureshi
Mr. Muhammad Javed Rashid
Mrs. Ambreen Waheed
Company Secretary
Mr. Muhammad Faisal Azeem
Chief Financial Officer
Mr. Sohail A. Nisar
Auditors
A.F. Ferguson & Co.
Chartered Accountants
Legal Advisors
Riaa Barker Gillete
Akhtar Ali & Associates
Ch. Law Associates Inn
Company Share Registrar
Karachi
CDC Share Registrar Services Limited. CDC House, 99 - B, Block 'B', S.M.C.H.S., Main Shahra-e-Faisal,Karachi-74400.
Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275)
Fax: (92-21) 34326053
Email: info@cdcsrsl.com
Website: www.cdcsrsl.com
Lahore
Mezzanine Floor, South Tower, LSE Plaza,
Khayaban-E-Aiwan-E-Iqbal,
Lahore.
Tel: (92-42)-36362061-66
02
Islamabad
Room # 410,
4th Floor, ISE Towers, 55-B, Jinnah Avenue, Blue Area,
Islamabad.
Tel. (92-51)2895456-9
Bankers
Bank Alfalah Limited
Habib Bank Limited
MCB Bank Limited
Allied Bank Limited
Meezan Bank Limited
Bank of Punjab Limited
REGISTERED OFFICE AND PLANT
9 - km Sheikhupura Road, Distt. Sheikhupura, Tel: 042-37911021-25
UAN: 111-200-786
Fax: 042-37924166, 37925835
Website: www.millat.com.pk
E-mail: info@millat.com.pk
REGIONAL OFFICES
Karachi
3-A, Faiyaz Centre, Sindhi Muslim
Co-operative Housing Society, Karachi.
Tel: 021-34553752
UAN: 111-200-786
Fax: 021-34556321
Islamabad
H. No. 22, St. No. 41, Sector F-6/1, Islamabad.
Tel: 051-2271470
UAN: 111-200-786
Fax: 051-2270693
Multan Cantt.
Garden Town, (Daulatabad), Shershah Road,
Multan Cantt.
Tel: 061-6537371
Fax: 061-6539271
Sukkur
House No B/106, Akuwat Nagar Society,
Near Gol Masjid, Airport Road, Sukkur.
Tel: 071-5815041
Fax: 071-5815042
Directors'
Review
On behalf of the Board of Directors of MTL, I am pleased to present the interim financial information of the Company for the quarter ended September 30, 2024 along with consolidated interim financial information of the Millat Group of Companies.
Pakistan's economy is indicating positive developments during the first quarter of the fiscal year 2025. Inflation has dropped to single digit, industrial output has increased, and large exporting sectors have witnessed growth, reflecting an optimistic outlook for exports. Agriculture sector is adapting modernization and innovation in farming practices and increase in yield is expected. The current account deficit has contracted, while the financial sector remained resilient. Policy rate is gradually decreasing while Pakistan Stock Market continues to trend upwards. This trajectory is expected to continue in the coming months.
Despite the overall improvements, your Company encountered a challenging environment due to change in sales taxation regime of the tractor industry, as enacted through Finance Act 2024. The inconsistencies in the sales taxation legislation and rules led to multiple ambiguities for the Company, seriously deterring the sales of the company. Consequently, your Company only managed to achieve sales of 2,566 tractors during the quarter ended September 30, 2024, as compared to 7,187 tractors sold during the corresponding period last year. This represents a 64.3% slump in sales volume. Sales in value terms reduced from Rs. 20.76 billion to Rs. 7.83 billion, i.e., a decrease of 62.13%. The earnings per share for the period were Rs. 2.97 as compared to Rs. 11.95 for the same period last year.
Withheld sales tax refunds of the tractor industry is another area which has resulted in severe liquidity issues. For your Company, sales tax refunds have ballooned up to Rs. 7.86 billion, which has induced additional financial costs to fund the borrowing needed to sustain operations. Further, unfortunately government taxation policies created severe disruptions in sale of our products and the industry. We request the government to review the policies in order to have a business-friendly environment.
Despite these circumstances, your Company has managed to perform reasonably well. Export sales of your Company have reached 671 units against 277 units in the corresponding period last year, which reflects a massive 142.2% increase. We are looking for more avenues for export and our principals have assured us their support on the same. We are optimistic that economic situation of Pakistan which has started its march towards recovery and growth will result in better performance of the Company.
It is for information of the members that, the Scheme for merger of Millat Tractors Limited with Millat Equipment Limited (MEL).is pending before the Lahore High Court, Lahore (LHC) for approval.
I extend my gratitude towards Board of Directors, shareholders, vendors, dealers and employees of MTL and acknowledge their hard work.
For and on behalf of the Board
Sikandar Mustafa Khan
Chairman
October 25, 2024
Lahore
Leading the Way
Quarter ended September 30, 2024
03
Unconsolidated Condensed Interim Statement of Financial Position
As at September 30, 2024 (Unaudited)
(Un-audited) | (Audited) | |||
September 30, | June 30, | |||
Note | 2024 | 2024 | ||
(Rupees in thousand) | ||||
EQUITY AND LIABILITIES | ||||
Share capital and reserves | ||||
Authorized share capital | ||||
400,000,000 (June 30, 2024: 400,000,000) | ||||
ordinary shares of Rs. 10 each | 4,000,000 | 4,000,000 | ||
Issued, subscribed and paid up capital | 1,917,983 | 1,917,983 | ||
Reserves | 8,381,768 | 7,844,063 | ||
10,299,751 | 9,762,046 | |||
Non-current liabilities |
Long term finances- secured | 9 |
Deferred grant
Lease liabilities
Long-term deposits
Deferred tax liabilities - net
Current liabilities
563,141
7,930
871
16,433
1,198,015
1,786,390
660,632
8,578
2,334
15,433
1,198,014
1,884,991
Trade and other payables | 10 |
Contract liabilities | |
Taxation- net | |
Short term borrowings | 11 |
Current portion of non-current liabilities | |
Unclaimed dividend | |
Unpaid dividend | |
Accumulating compensated absences | |
CONTINGENCIES AND COMMITMENTS | 12 |
9,349,651
262,664
876,909
11,730,726
371,920
324,886
39,317
176,277
23,132,350
8,890,463
954,874
1,086,918
6,871,015
365,536
327,150
40,734
176,277
18,712,967
35,218,491 30,360,004
The annexed notes 1 to 26 form an integral part of the condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer |
04
(Un-audited) | (Audited) | |
September 30, | June 30, | |
Note | 2024 | 2024 |
(Rupees in thousand) | ||
ASSETS
Non-current assets
Property, plant and equipment | 13 |
Right-of-use assets | |
Investment property | |
Intangible assets | |
Long term investments | 14 |
Employees' defined benefit plan | |
Long term loans and advances |
Current assets | |
Stores, spare parts and loose tools | |
Stock-in-trade | |
Trade debts | |
Loans and advances | |
Trade deposits and short term prepayments | |
Other receivables | |
Balances with statutory authorities | |
Cash and bank balances | 15 |
991,835
5,408
255,708
22,815
6,251,051
288,081
7,756
7,822,654
240,645
16,708,591
749,001
154,608
132,838
242,615
7,862,316
1,305,223
27,395,837
977,803
6,730
255,708
23,580
6,282,557
288,081
7,554
7,842,013
234,855
13,827,561
375,537
40,271
114,143
273,606
6,283,650
1,368,368
22,517,991
35,218,491 30,360,004
Chairman
Leading the Way
Quarter ended September 30, 2024
05
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income
For the quarter ended September 30, 2024 (unaudited)
Quarter ended
September 30,
Note20242023 Restated
(Rupees in thousand)
Revenue from contracts with customers | 16 |
Cost of sales | |
Gross profit | |
Distribution and marketing expenses | |
Administrative expenses | |
Other operating expenses | |
Other income | 17 |
Operating profit |
Finance cost
Profit before income taxes and levies
Levy - final taxes
Profit before income tax
Taxation
Profit after tax for the period
Other comprehensive (loss) / income:
Items not to be reclassified to profit or loss in subsequent periods: Unrealized (loss) / gain on revaluation of investments
at fair value through other comprehensive income ('OCI')
Total comprehensive income for the period
Earnings per share - basic and diluted (Rupees)
Appropriations have been reflected in the statement of changes in equity.
7,825,425
(5,643,335)
2,182,090
(354,972)
(311,671)
(71,322)
(737,965)
58,366
1,502,491
(544,822)
957,669
(577)
957,092
(387,881)
569,211
(31,506)
537,705
2.97
20,760,828
(15,961,628)
4,799,200
(499,421)
(231,751)
(310,726)
(1,041,898)
149,877
3,907,179
(195,382)
3,711,797
(8,423)
3,703,374
(1,411,699)
2,291,675
110,324
2,401,999
Restated
11.95
The annexed notes 1 to 26 form an integral part of the condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Chairman |
06
Unconsolidated Condensed Interim Statement of Changes in Equity
For the quarter ended September 30, 2024 (unaudited)
Capital | Revenue reserves | |||||
Share | reserve | |||||
capital | Fair value | General | Unappropriated | |||
reserves | reserves | profit | ||||
Total
(Rupees in thousand) | |||||
Balance as on July 1, 2023 | 1,917,983 | 1,902,905 | 2,278,935 | 1,617,829 | 7,717,652 |
Net profit for the period | - | - | - | 2,291,675 | 2,291,675 |
Other comprehensive income | |||||
for the period | - | 110,324 | - | - | 110,324 |
Balance as on September 30, 2023 | 1,917,983 | 2,013,229 | 2,278,935 | 3,909,504 | 10,119,651 |
Balance as on July 1, 2024 | 1,917,983 | 1,754,348 | 2,278,935 | 3,810,780 | 9,762,046 |
Net profit for the period | - | - | - | 569,211 | 569,211 |
Other comprehensive loss for the period | - | (31,506) | - | - | (31,506) |
Balance as on September 30, 2024 | 1,917,983 | 1,722,842 | 2,278,935 | 4,379,991 | 10,299,751 |
The annexed notes 1 to 26 form an integral part of the condensed interim financial statements.
Chief Financial Officer | Chief Executive Officer | Chairman |
Leading the Way
Quarter ended September 30, 2024
07
Unconsolidated Condensed Interim Statement of Cash Flows
For the quarter ended September 30, 2024 (unaudited)
Quarter ended | ||
September 30, | ||
Note | 2024 | 2023 |
Restated
(Rupees in thousand)
Cash flows from operating activities
Profit before taxation
Adjustment for:
Depreciation on property, plant and equipment
Depreciation on right-of-use assets
Amortization of intangible assets
Revaluation gain on short-term investments
Amortization of defered grant
Unwinding of long-term loan
Finance cost
Profit on bank deposits
Cash flow from operating activities before working capital changes
Effect on cash flow due to working capital changes (Increase) / decrease in current assets:
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Balances with statutory authorities
Other receivables
Increase / (decrease) in current liabilities:
Trade and other payables
Contract liabilities
Cash (used in) / generated from operations
Income taxes paid - net
Increase in long term loans to employees
Increase in long term security deposits
Markup paid
Net cash (used in) / generated from operating activities | |
Cash flows from investing activities | |
Purchase of property, plant and equipment | |
Short term investments made - net | |
Proceeds from disposal of property, plant and equipment | |
Profit on bank deposits received | |
Net cash used in investing activities | |
Cash flows from financing activities | |
Dividend paid | |
Principal payment against lease liabilities | |
Long term financing repaid | |
Net cash used in financing activities | |
Net (decrease) / increase in cash and cash equivalents | |
Cash and cash equivalents at the beginning of the period | |
Cash and cash equivalents at the end of the period | 18 |
957,669
28,186
1,322
765
-
(724)
400
545,146
(21,320)
553,775
1,511,444
(5,790)
(2,881,030)
(373,464)
(114,337)
(18,695)
(1,578,666)
30,991
(4,940,991)
435,754
(692,210)
(5,197,447)
(598,467)
(202)
1,000
(521,712)
(1,119,381)
(4,805,384)
(45,437)
-
3,219
21,320
(20,898)
(3,681)
(1,935)
(90,958)
(96,574)
(4,922,856)
(5,502,647)
(10,425,503)
3,711,797
25,711
1,350
956
(13,257)
(792)
792
195,382
(78,839)
131,303
3,843,100
7,255
490,838
(87,851)
(74,930)
184,377
39,286
53,188
612,163
3,074,826
6,354,099
10,041,088
(1,267,450)
(526)
600
(195,382)
(1,462,758)
12,421,430
(71,593)
(2,509,661)
9,874
78,839
(2,492,541)
(25,237)
(571)
(179,849)
(205,657)
9,723,232
(6,346,536)
3,376,696
The annexed notes 1 to 26 form an integral part of the condensed interim financial statements.
08
Chief Financial Officer | Chief Executive Officer | Chairman |
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