CORP ORATE INFORMATION Board of Directors Sikandar Mus tafa Khan Sohail Bas hir Rana Chief Executive Latif Khalid Has hmi Laeeq Uddin Ans ari Mian Muhammad Saleem Muhammad Nawaz Tis hna Mazhar Uddin Ans ari Rana Muhammad Siddique S.M. Tanvir M.C.B. Nominee Company Secretary Mian Muhammad Saleem Chief Financial Officer Javed Munir Auditors M/s. A. F. Fergus on & Co. Chartered Accountants Legal Advis ors Walker Martineau Saleem Advocates & Legal Consultants Altaf and Altaf Advocates Bankers ABN Amro Bank Bank Alfalah Ltd. Habib Bank Ltd. MCB Bank Ltd. Standard Chartered Bank Meezan Bank Ltd. United Bank Ltd. Regis tered Office and Plant Sheikhupura Road, Dis tt. Sheikhupura Tel: 042-7911021-25, 111-200-786 Fax: 042-7924166, 7925835 Web Site: www.millat.com.pk E-mail: info@ millat.com.pk Regional Offices Karachi 3-A, Faiyaz Centre, Sindhi Muslim Co-operative Housing Society Tel: 021-4553752, 111-200-786 Fax: 021-4556321 Multan Cantt Garden Town, (Daulatabad), Shershah Road Tel: 061-6537371 Fax: 061-6539271 Is lamabad H. No. 22, St. No. 41, Sector F-6/1 Tel: 051-2271470, 111-200-786 Fax: 051-2270693 Sukkur A-3, Professor Housing Society, Shikarpur Road Tel: 071-5633042 Fax: 071-5633187
DIRECTORS REVIEW I feel pleasure to present to you on behalf of the Board of Directors the unaudited financial statements of Millat Tractors Limited for the 3rd quarter and nine months ended March 31, 2008. The inflationary trend in the country has been on the rising side during this quarter. As a result there was frequent and significant increase in steel prices and other input costs like utilities, wages etc., resulting in vendor price increases for supply of components. Moreover, Pak rupee has also been devalued over other foreign currencies. All these factors have contributed towards low profitability for the current quarter. Supplies from our vendors have also remained erratic due to non availability of raw material. Because of this we could not achieve desired level of production/sales. However, we all are striving hard to improve our supply chain as well as in house manufacturing and assembly operations. Company achieved a sales volume of 6,707 tractors in the 3rd quarter as against 7,791 tractors for the corresponding quarter of last year showing a decrease of 13.9%. During the nine months 18,748 tractors were sold as compared to 19,035 tractors during corresponding period of last year recording a decrease of 287 units i.e. 1.5%. Pretax profit for January-March 2008 quarter amounted to Rs. 194.9 million against 227.4 million of the corresponding quarter of last year, depicting a decrease of 14.3%. 2
Profit before tax for the nine months worked out to Rs. 608.9 million as compared to Rs. 605.8 million of the corresponding period of last year. Steps have been taken to prevent erosion of profit in the coming months. The Board is confident that your Company will perform better in the last quarter of the current financial year. We would like to thank our customers and shareholders for their trust and confidence in the Company. We also would like to convey our appreciation to entire MTL team for their dedication and commitment towards growth of the Company. For and on behalf of the Board Lahore: April 25, 2008 Sikandar Mustafa Khan 3
CONDENS ED INTERIM BALANCE S HEET (UN-AUDITED) Note Una udite d Audite d Mar 31, 2008 J une 30, 2007 EQUITY AND LIABILITIES Share capital and re s e rve s Authorized capital 20,000,000 (2007: 20,000,000) 200,000 200,000 ordinary shares of Rs. 10 each Issued, subscribed and paid up capital 187,420 187,420 General reserves 2,211,000 1,986,000 Unappropriated profit 227,199 450,638 Unrealized gain on revaluation of investments 98,178 72,522 Tota l e quity 2,723,797 2,696,580 Non-curre nt lia bilitie s Security deposits 9,485 9,285 Deferred revenue 245,334 260,677 Deferred tax liability 6,766 5,587 Accumulating compensated absences 28,639 26,029 Curre nt liabilitie s 290,223 301,578 Trade and other payables 4,233,056 3,241,181 Mark-up accrued on secured loans 803 4,579 Short term borrowings - 20,406 4,233,859 3,266,166 Tota l lia bilitie s 4,524,083 3,567,744 Continge ncie s and commitme nts 6 TOTAL EQUITY AND LIABILITIES 7,247,880 6,264,324 The annexed notes form an integral part of these condensed interim financial statements. 4
AS AT MARCH 31, 2008 Note Una udite d Audite d Mar 31, 2008 J une 30, 2007 AS SETS Non-curre nt as s e ts Property, plant and equipment 7 307,191 230,474 Capital work in progress 8 171,191 128,969 Intangible assets - in progress 16,527 16,527 Investment property 255,708 255,708 Long term investments 9 310,021 284,364 Long term loans - considered good 4,060 4,142 1,064,698 920,184 Curre nt as s e ts Stores and spares 83,275 44,081 Stock-in-trade 1,621,960 1,840,082 Trade debts 233,546 275,953 Loans and advances 60,199 63,163 Trade deposits and prepayments 12,660 5,308 Interest accrued 505 659 Other receivables 75,445 148,595 Taxation - net 193,949 80,811 Sales tax recoverable 811,376 370,044 Short term Investments 10 3,058,767 2,496,300 Cash and bank balances 31,500 19,144 6,183,182 5,344,140 TOTAL AS SETS 7,247,880 6,264,324 Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 5
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Quarte r Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Sales - net 2,686,773 3,133,651 7,412,444 7,666,435 Cost of sales 2,444,136 2,844,644 6,580,307 6,891,422 Gross profit 242,637 289,007 832,137 775,013 Operating expenses: - Distribution cost 95,239 69,115 263,862 249,352 - Administrative expenses 46,949 46,003 145,997 134,348 142,188 115,118 409,859 383,700 Operating profit 100,449 173,889 422,278 391,313 Other operating income 107,046 71,132 241,325 268,027 207,495 245,021 663,603 659,340 Finance cost 2,317 6,076 17,759 10,370 Other charges 10,238 11,535 36,925 43,205 12,555 17,611 54,684 53,575 Profit before taxation 194,940 227,410 608,918 605,765 Taxation 46,000 54,166 148,179 138,840 Profit after taxation 148,940 173,244 460,739 466,925 Earnings per share - basic and diluted (Rs.) 7.95 9.24 24.58 24.91 The annexed notes form an integral part of these condensed interim financial statements. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 6
CONDENSED INTERIM CASH FLOW STATEMENT (UN AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Mar. 31, 2008 Mar. 31, 2007 CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 608,918 605,765 Add/(less) adjustment for non-cash charges and other items: Depreciation 28,732 21,084 Reversal of provision - (469) Provision for accumulating compensated absences 2,610 - Unrealised gain on measurement of financial assets at fair values through profit or loss (79,201) (206,337) Gain on disposal of fixed assets (601) (1,971) Financial charges 17,759 10,370 Dividend income (7,677) (15,987) Return on deposits (994) (30,111) 569,546 382,344 Effect on cash flow due to working capital changes (Increase)/decrease in: Stores and spares (39,194) (8,582) Stock in trade 218,122 95,477 Trade debts 42,407 (53,374) Loans and advances 2,964 (1,740) Trade deposits, prepayments and balances with statutory authorities (448,684) 86,696 Other receivables 73,150 (1,830) Short term investments (483,240) 106,281 Increase/(decrease) in: Trade and other payables 754,452 (1,491,063) Short term borrowings (20,406) - 99,572 (1,268,135) Cash generated from operations 669,118 (885,791) Add/(less): Financial charges paid (21,535) (5,093) Taxes paid (263,787) (323,669) Net (decrease)/increase in deferred revenue (15,343) 34,455 Net (increase)/decrease in long term loans to employees 82 284 Increase/(decrease) in long term security deposits 200 200 Net cash (used in)/inflow from operating activities 368,734 (1,179,614) 7
Mar. 31, 2008 Mar. 31, 2007 CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure (155,152) (94,508) Sale proceeds of fixed assets 8,082 6,840 Expenditure on intangible assets - (7,509) Dividend received 7,677 15,987 Return on deposits received 4,770 106,276 Net cash used in investing activities (134,623) 27,086 CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (221,755) (169,695) Net cash used in financing activities (221,755) (169,695) Net cash decrease in cash and cash equivalents 12,356 (1,322,223) Cash and cash equivalents at the beginning of the period 19,144 1,163,139 Cash and cash equivalents a t the end of the period (Note 12) 31,500 (159,084) The annexed notes form an integral part of these condensed interim financial statements. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 8
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Revenue reserves Unrealized Share General Unapprop- gain (loss) on capital reserves riated revaluation Total profit of investments Balance as at J uly 01, 2006 156,183 1,600,000 574,581 62,579 2,393,343 Transfer to general reserve - 386,000 (386,000) - - Issuance of bonus shares 31,237 - (31,237) - - Final dividend for the year ended June 30, 2006 - - (156,183) - (156,183) Profit for the three quarters ended March 31, 2007 - - 466,925-466,925 Unrealized loss on revaluation of investments - - - (5,323) (5,323) Ba la nce a s a t Ma rch 31, 2007 187,420 1,986,000 468,086 57,256 2,698,762 Profit for the three months ended June 30, 2007 - - 169,972-169,972 Unrealized gain on revaluation of investments - - - 15,266 15,266 Interim dividend - - (187,420) - (187,420) Ba la nce a s a t J une 30, 2007 187,420 1,986,000 450,638 72,522 2,696,580 Profit for the nine months ended March 31, 2008 - - 460,739-460,739 Transfer to general reserve - 225,000 (225,000) - - Final dividend for the year ended June 30, 2007 - - (224,904) - (224,904) Interim dividend for the half year ended Dec. 31, 2007 - - (234,274) - (234,274) Unrealised gain on revaluation of investments - - - 25,656 25,656 Ba la nce a s a t Ma rch 31, 2008 187,420 2,211,000 227,199 98,178 2,723,797 The annexed notes form an integral part of these condensed interim financial statements. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 9
SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 1. The Company is incorporated in Pakistan having registered office at Sheikhupura Road, District Sheikhupura and is listed on Karachi, Lahore and Islamabad Stock Exchanges. It is engaged in assembly and manufacture of agricultural tractors, implements and equipments. 2. These condensed interim financial statements are un-audited and are being submitted to shareholders, as required by section 245 of the Companies Ordinance, 1984. 3. The accounting policies adopted for the preparation of these condensed interim financial statements are the same as those applied in the preparation of preceding annual published financial statements of the Company for the year ended June 30, 2007. 4. These condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 Interim Financial Reporting. 5. Judgments and estimates made by the management in the preparation of the condensed interim financial statements are the same as those applied in preparation of preceding annual published financial statements of the Company for the year ended June 30, 2007. 6. Continge ncie s and Commitme nts There has been no significant change in the contingencies since the date of preceding published annual financial statements. Commitments in respect of outstanding letters of credit were Rs. 648,362 thousand (June 30, 2007 : Rs. 438,620 thousand). March 31, J une 30, 2008 2007 7. Prope rty, plant and e quipme nt Opening book value 230,474 221,812 Add: Additions during the period - Note 7.1 112,930 43,805 343,404 265,617 Less: Disposals during the period (at book value) (7,481) (5,449) Depreciation charged during the period (28,732) (29,694) (36,213) (35,143) Closing book value 307,191 230,474 10
March 31, J une 30, 2008 2007 7.1 Following is the detail of additions during the pe riod - Land 45,533 - - Building on freehold land 4,014 456 - Plant and machinery 8,021 9,913 - Tools and equipments 14,104 3,701 - Furniture, fixture and office equipment 8,831 4,289 - Vehicles 31,856 24,673 - Computers 571 773 112,930 43,805 8. Capital work-in-progre s s Plant & Machinery 105,644 81,288 Advance for purchase of vehicles 3,380 - Advance for purchase of office space 59,931 47,531 Others 2,236 150 9. Long te rm inve s tme nts - Share s Inve s tme nt at cos t 171,191 128,969 Re late d partie s - Subsidiary company - unquoted 38,250 38,250 - Associated company - quoted 65,364 65,364 - Associated companies - unquoted 96,084 96,084 Othe rs - Available for s ale - quote d 199,698 199,698 Cost 12,145 12,145 Surplus on revaluation of investment 98,178 72,521 110,323 84,666 310,021 284,364 10. Short te rm inve s tme nts Financial assets at fair value through profit and loss - Mutual Fund units - cost 2,758,975 2,275,709 Surplus on revaluation of investments 299,792 220,591 3,058,767 2,496,300 11. Taxation and othe r charge s Provision in respect of workers profit participation fund, workers welfare fund and taxation are made on an estimated basis. 11
Nine months e nded March 31, 2008 2007 12. Cas h and cas h e quivale nts Cash and bank balances 3,068 266,517 Short term borrowings 28,432 (425,601) 31,500 (159,084) 13. Trans actions with as s ociate d companie s /re late d partie s Purchases from related parties 1,063,205 889,668 Dividend Income 7,677 12,780 Payable to related parties 39,540 61,367 Receivable from related parties - 100 Sales to related parties - 4,506 Payments to funds: - Pension 6,843 7,232 - Gratuity 7,178 6,257 - Benevolent Fund 177 181 14. Eve nts afte r balance s he e t date The Board of Directors have declared an interim dividend of Rs. Nil thousand (June 30, 2007: Rs 12.00 per share), while appropriation to general reserve made after the balance sheet date amounted to Rs. Nil thousand (2007: Rs. 225,000 thousand). 15. Date of authoris ation for is s ue These financial statements were authorized for issue on April 25, 2008 by the Board of Directors of the Comapny. 16. Corre s ponding figure s Corresponding figures have been re-arranged, wherever necessary, for the purpose of comparison. However no significant re-arrangements have been made. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 12
MILLAT TRACTORS GROUP CONS OLIDATED FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED INTERIM BALANCE SHEET EQUITY AND LIABILITIES Un-a udite d Audite d March 31, 2008 J une 30, 2007 Note Share capital and re s e rve s Authorized capital 20,000,000 (June 30, 2007: 20,000,000) ordinary 200,000 200,000 shares of Rs. 10 each Issued, subscribed and paid up capital 187,420 187,420 General reserves 2,211,000 1,986,000 Unappropriated profit 318,542 558,007 Unrealized gain on revaluation of investments 84,841 59,185 Equity attributable to equity shareholders of the parent 2,801,803 2,790,612 Minority Interest 11,863 11,579 Tota l Equity 2,813,666 2,802,191 Non-curre nt lia bilitie s Security deposits 9,485 9,285 Deferred revenue 245,334 260,677 Deferred tax liability 6,766 5,587 Accumulating compensated absences 28,639 26,029 290,224 301,578 Curre nt liabilitie s Trade and other payables 4,239,138 3,252,060 Mark-up accrued on short term borrowings 2,212 5,598 Short term borrowings 56,464 59,943 4,297,814 3,317,601 Tota l Lia bilitie s 4,588,038 3,619,179 Continge ncie s and commitme nts 6 TOTAL EQUITY AND LIABILITIES 7,401,704 6,421,370 14 The annexed notes form an integral part of these consolidated condensed interim financial statements.
AS AT MARCH 31, 2008 (UNAUDITED) AS SETS Un-a udite d Audite d March 31, 2008 J une 30, 2007 Note Non-curre nt as s e ts Property, plant and equipment 7 338,113 261,514 Capital work in progress 8 171,191 128,969 Intangible assets - in progress 16,527 16,527 Investment property 255,708 255,708 Long term investments: Investment in associates 262,046 279,302 Investment available for sale 110,323 84,666 Long term loans - considered good 4,060 4,142 Deferred cost 1,290 2,063 1,159,258 1,032,891 Curre nt as s e ts Stores and spares 85,987 46,119 Stock-in-trade 1,650,788 1,856,552 Trade debts 252,341 294,951 Loans and advances 64,167 55,528 Trade deposits and prepayments 12,660 5,667 Other receivables 75,950 46,256 Taxation - net 193,949 82,852 Sales tax recoverable 811,376 370,971 Short term Investments 9 3,058,767 2,496,300 Cash and bank balances 36,461 133,283 6,242,446 5,388,479 TOTAL AS SETS 7,401,704 6,421,370 Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 15
CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Quarte r Ended Nine Months Ended March 31, March 31, 2008 2007 2008 2007 Sales - net 2,712,354 3,133,651 7,500,554 7,666,435 Cost of sales 2,463,155 2,842,359 6,647,544 6,885,376 Gross profit 249,199 291,292 853,010 781,059 Administrative, general and selling expenses 148,432 118,777 425,058 393,111 Operating profit 100,767 172,515 427,952 387,948 Other operating income 107,047 71,132 241,328 255,271 207,814 243,647 669,280 643,219 Other operating expenses 10,238 6,922 36,925 12,427 Finance cost 3,843 11,535 22,391 43,205 14,081 18,457 59,316 55,632 Share of profit and loss of associated companies (4,616) 14,698 (17,943) 26,541 Profit before taxation 189,117 239,888 592,021 614,128 Taxation Group 45,653 54,305 148,620 139,153 Associated Companies 1,018 16,300 (1,596) 18,051 46,671 70,605 147,024 157,204 Profit after taxation 142,446 169,283 444,997 456,924 Attributable to: Equity holders of the parent 142,817 170,271 444,713 459,379 Minority interest (371) (988) 284 (2,455) 142,446 169,283 444,997 456,924 Earnings per share - basic and diluted (Rupees) 7.60 9.03 23.74 24.38 The annexed notes form an integral part of these consolidated condensed interim financial statements. 16 Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive
CONSOLIDATED CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Mar. 31, 2008 Mar. 31, 2007 CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 592,021 614,128 Add/(less) adjustment for non-cash charges and other items: Depreciation 31,241 23,582 Reversal of provision - (469) Provision for accumulating compensated absences 2,610 - Amortization of pre-operating expenses 773 774 Unrealised gain on measurement of financial assets at fair values through profit or loss (79,201) (206,337) Gain on disposal of fixed assets (601) (1,971) Financial charges 22,391 12,427 Dividend income (7,677) (3,207) Net share of loss of associates 17,943 (26,541) Return on deposits (994) (30,111) 578,506 382,275 Effect on cash flow due to working capital changes (Increase)/decrease in: Stores and spares (39,868) (8,661) Stock in trade 205,764 86,239 Trade debts 42,610 (65,354) Loans and advances (8,639) (3,886) Trade deposits, prepayments and balances with statutory authorities (447,398) 86,842 Other receivables (29,694) (1,789) Short term investments (483,240) 106,281 Increase/(decrease ) in : Trade and other payables 749,655 (1,490,054) (10,810) (1,290,382) Cash generated from operations 567,696 (908,107) 17
Mar. 31, 2008 Mar. 31, 2007 Add/(less): Financial charges paid (25,777) (6,818) Taxes paid (261,432) (324,416) Net (decrease)/increase in deferred revenue (15,343) 34,455 Net (increase)/decrease in long term loans to employees 82 284 Increase/(decrease) in long term security deposits 200 200 Net cash (used in) /inflow from operating activities 265,426 (1,204,402) CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure (157,543) (95,572) Sale proceeds of fixed assets 8,082 6,840 Expenditure on intangible assets - (7,509) Dividend received 7,677 15,987 Return on deposits received 4,770 106,276 Net cash used in investing activities (137,014) 26,022 CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (221,755) (169,695) Net cash used in financing activities (221,755) (169,695) Net cash decrease in cash and cash equivalents (93,343) (1,348,075) Cash and cash equivalents at the beginning of the period 73,340 1,157,875 Cash and cash equivalents at the end of the period ( Note 11 ) (20,003) (190,200) The annexed notes form an integral part of these consolidated condensed interim financial statements. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 18
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 Revenue reserves Unrealized Share General Unapprop- gain/(loss) Minority capital reserves riated on revaluation Interest Total profit of investments Ba la nce a s a t J uly 01, 2006 156,183 1,600,000 659,627 54,445 17,184 2,487,439 Transfer to general reserve - 386,000 (386,000) - - - Issuance of bonus share 31,237 - (31,237) - - - Final dividend for the year ended June 30, 2006 - - (156,183) - - (156,183) Share of results for three quarters ended march 31, 2007 - - 459,379 - (2,455) 456,924 Unrealized loss on revaluation of investments - - - (5,875) - (5,875) Balance as at March 31, 2007 187,420 1,986,000 545,586 48,570 14,729 2,782,305 Profit for the three months ended June 30, 2007 - - 199,841 - (3,150) 196,691 Unrealized gain on revaluation of investments - - - 10,615-10,615 Interim dividend - - (187,420) - - (187,420) Ba la nce a s a t J une 30, 2007 187,420 1,986,000 558,007 59,185 11,579 2,802,191 Transfer for general reserve - 225,000 (225,000) - - - Final dividend for the year ended June 30, 2007 - - (224,904) - - (224,904) Interim dividend for the half year ended Dec. 2007 - - (234,274) - - (234,274) Share of results for nine months ended March 31, 2008 - - 444,713-284 444,997 Unrealised gain on revaluation of investments - - - 25,656-25,656 Balance as at March 31, 2008 187,420 2,211,000 318,542 84,841 11,863 2,813,666 The annexed notes form an integral part of these consolidated condensed interim financial statements. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 19
SELECTED NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2008 1. Millat Tractors Limited incorporated in Pakistan and is listed on Karachi, Lahore and Islamabad Stock Exchanges. It is engaged in assembly and manufacture of agricultural tractors, implements and equipments. Millat Industrial Products Limited is a wholly owned subsidiary of Millat Tractors Limited and aims to engage in business of manufacturing of vehicles, industrial and domestic batteries, cells and components thereof. 2. These consolidated condensed interim financial statements are un-audited and are being submitted to shareholders, as required by section 245 of the Companies Ordinance, 1984. 3. The accounting policies adopted for the preparation of these consolidated condensed interim financial statements are the same as those applied in the preparation of the preceding annual published financial statements of the Group for the year ended June 30, 2007. 4. These consolidated condensed interim financial statements have been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 Interim Financial Reporting. 5. Judgments and estimates made by the management in the preparation of the consolidated condensed interim financial statements are the same as those applied in preparation of preceding annual published financial statements of the Group for the year ended June 30, 2007. 6. Continge ncie s and Commitme nts There has been no significant change in the contingencies since the date of preceding published annual financial statements. Commitments in respect of outstanding letters of credit are Rs. 649,292 thousand (June 30, 2007 : Rs. 439,550 thousand). March 31, J une 30, 2008 2007 7. Prope rty, plant and e quipme nt Opening book value 261,514 254,080 Add: Additions during the period - Note 7.1 115,321 46,094 376,835 300,174 Less: Disposals during the period (at book value) (7,481) (5,449) Depreciation charged during the period (31,241) (33,211) (38,722) (38,660) Closing book value 338,113 261,514 20
March 31, J une 30, 2008 2007 7.1 Following is the detail of additions during the pe riod - Land 45,533 - - Building on freehold land 4,235 513 - Plant and machinery 8,091 2,609 - Tools and equipments 16,122 3,755 - Furniture, fixture and office equipment 8,883 450 - Vehicles 31,856 15,146 - Computers 601 2,868 115,321 25,341 8. Capital work-in-progre s s Plant & Machinery 105,644 81,438 Advance for purchase of vehicles 3,380 - Advance for purchase of office space 59,931 47,531 Others 2,236-171,191 128,969 9. Short te rm inve s tme nts Financial assets at fair value through profit and loss - Mutual Fund units - cost 2,758,975 2,275,709 Surplus on revaluation of investments 299,792 220,591 3,058,767 2,496,300 10. Taxation and othe r charge s Provision in respect of workers profit participation fund, workers welfare fund and taxation are made on an estimated basis. 21
Nine months e nded March 31, 2008 2007 11. Cas h and cas h e quivale nts Cash and bank balances 36,461 268,365 Short term borrowings (56,464) (458,565) (20,003) (190,200) 12. Trans actions with as s ociate d companie s /re late d partie s Purchases from related parties 1,063,205 847,502 Dividend Income 7,677 12,780 Payable to related parties 39,540 55,941 Receivable from related parties 2,533 100 Sales to the related parties 22,189 4,506 Payment to funds: - Pension 6,843 7,232 - Gratuity 7,178 6,257 - Benevolent Fund 177 181 13. Eve nts afte r balance s he e t date The Board of Directors have declared an interim dividend of Rs. Nil thousand (June 30, 2007: Rs 12.00 per share), while appropriation to general reserve made after the balance sheet date amounted to Rs. Nil thousand (2007: Rs. 225,000 thousand). 14. Date of authoris ation for is s ue These financial statements were authorized for issue on April 25, 2008 by the Board of Directors of the Comapny. 15. Corre s ponding figure s Corresponding figures have been re-arranged, wherever necessary, for the purpose of comparison. However no significant re-arrangements have been made. Sikandar Mustafa Khan Sohail Bashir Rana Chief Executive 22