CORPORATE INFORMATION

Board of Directors Bankers

Mr. Sikandar Mustafa Khan Bank Alfalah Ltd.
Chairman
Habib Bank Ltd.
MCB Bank Ltd.
Mr. Sohail Bashir Rana
Chief Executive Meezan Bank Ltd.
RBS (formerly ABN Amro Bank)
Mr. Latif Khalid Hashmi Standard Chartered Bank
Mr. Laeeq Uddin Ansari United Bank Ltd.
Mian Muhammad Saleem
Rana Muhammad Siddique
Mr. Manzoor Ahmed
Registered Office and Plant
Sheikhupura Road, Distt. Sheikhupura
Mr. Mazhar Uddin Ansari
Tel: 042-7911021-25, 111-200-786
Mr. S.M. Tanvir
M.C.B. Nominee Fax: 042-7924166, 7925835
Web Site: www.millat.com.pk
Company Secretary E-mail: info@millat.com.pk
Mian Muhammad Saleem

Regional Offices
Chief Financial Officer Karachi
Mr. Javed Munir 3-A, Faiyaz Centre, Sindhi Muslim
Co-operative Housing Society
Tel: 021-4553752, 111-200-786
Auditors Fax: 021-4556321

M/s. A. F. Ferguson & Co.

Chartered Accountants Multan Cantt
Garden Town, (Daulatabad), Shershah Road
Tel: 061-6537371 Fax: 061-6539271
Legal Advisors
Islamabad
Walker Martineau Saleem
Advocates & Legal Consultants H. No. 22, St. No. 41, Sector F-6/1
Tel: 051-2271470, 111-200-786
Altaf and Altaf Fax: 051-2270693
Advocates
Sukkur
A-3, Professor Housing Society,
Company Registrars Shikarpur Road
M/s. Hameed Majeed Associates Tel: 071-5633042
(Pvt) Ltd. Fax: 071-5633187
1st Floor, H.M. House,
7-Bank Square, Lahore

1
 DIRECTORS’ REVIEW

I feel pleasure to present to you on behalf of Board of Directors the un-audited quarterly
accounts of Millat Tractors Limited for the first quarter ended September 30, 2008.

The Company achieved a sales volume of 5,840 tractors in the first quarter as against
5,719 tractors for the corresponding quarter of the last year, showing an increase of 2.11%.
Sales revenue increased to Rs. 2,874 million as against Rs. 2,299 million during corresponding
period of last year, showing an increase of 25%.

Pre-tax profit for the quarter amounts to Rs.192.26 million as compared to Rs.190.2 million
of the corresponding period of previous year.

The raw material and other input costs have shown an increasing trend throughout the
quarter. The depreciation of the rupee is off setting potential benefits of global raw material
adjustments. Moreover, the global economy is facing recession making the local economic
conditions non-conducive for the overall business activity. However, by the grace of
Almighty, we still have managed to achieve better results as compared to the corresponding
period of last year.

We are striving hard to enhance the production of tractors to meet the growing demand
in the Country without compromising our quality standards. At the same time agri-economic
conditions are changing very rapidly and we endeavor to meet these changes through
customer focused products supported with elevated after sales services and back up
support. Farmer support schemes like the “Green Tractor” scheme of the Punjab Government
will further help the tractor industry.

We take this opportunity to thank our valued customers who have shown great confidence
in our products and make a resolve to provide them the value of their money. We also
acknowledge the co-operation extended to us by our valued principals, dealers, vendors
and convey our gratitude to the employees of the Company for their loyalty, devotion and
hard work.

For and on behalf of the Board

Lahore: Sikandar Mustafa Khan

October 30, 2008 Chairman

2
 CONDENSED INTERIM BALANCE SHEET

Un-audited Audited
Sept. 30, 2008 June 30, 2008

Note (Rupees in thousand)

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital
20,000,000 (2008: 20,000,000) ordinary shares
of Rs. 10/- each 200,000 200,000

Issued, subscribed and paid up capital 187,420 187,420

General reserve 2,211,000 2,211,000
Unappropriated profit 727,874 576,917
Unrealized gain on revaluation of investments 58,090 63,542

3,184,384 3,038,879

NON-CURRENT LIABILITIES

Security deposits 9,485 9,485

Deferred revenue 24,439 32,729
Deferred tax liability 12,355 12,355
Accumulating compensated absences 28,344 28,344

74,623 82,913
CURRENT LIABILITIES

Current portion of deferred revenue 202,080 218,127

Trade and other payables 3,547,778 3,925,019
Mark-up accrued on short term borrowings 6,778 2,858
Short term borrowings 249,221 -

4,005,857 4,146,004

CONTINGENCIES AND COMMITMENTS 6

7,264,864 7,267,796

The annexed notes 1 to 16 form an integral part of the condensed interim financial information.

4
 AS AT SEPTEMBER 30, 2008 (UN AUDITED)

Un-audited Audited
Sept. 30, 2008 June 30, 2008

Note (Rupees in thousand)

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 7 405,916 298,219

Capital work in progress 8 92,845 179,955
Intangible assets - in progress 19,855 17,028
Investment property 273,203 273,203
Long term investments 9 309,974 315,425
Long term loans - considered good 5,569 4,385

1,107,362 1,088,215

CURRENT ASSETS

Stores and spares 83,982 78,292

Stock in trade 1,965,640 1,636,153
Trade debts 61,776 102,660
Loans and advances 286,051 98,082
Trade deposits and prepayments 18,237 7,782
Other receivables 993,201 1,167,286
Taxation - net 92,247 8,198
Short - term Investments 10 2,604,813 2,831,770
Cash and bank balances 51,555 249,358

6,157,502 6,179,581

7,264,864 7,267,796

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

5
 CONDENSED INTERIM
PROFIT AND LOSS ACCOUNT (UN-AUDITED)
for the 1st quarter ended September 30, 2008
Sept. 30, 2008 Sept. 30, 2007
(Rupees in thousand)

Sales - net 2,872,605 2,298,784

Cost of sales 2,599,475 2,025,172

Gross profit 273,130 273,612

Distribution and marketing expenses 94,129 78,084

Administrative expenses 51,415 48,337

145,544 126,421

Operating profit 127,586 147,191

Other operating income 82,283 65,745

209,869 212,936

Other operating expenses 10,119 17,904

Finance cost 7,493 4,844

17,612 22,748

Profit before taxation 192,257 190,188

Taxation 41,300 45,824

Profit after taxation 150,957 144,364

Earnings per share - basic

and diluted (Rs.) 8.05 7.70

Appropriations have been reflected in the condensed interim statement of changes in equity.

The annexed notes 1 to 16 form an integral part of the condensed interim financial information.

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

6
 CONDENSED INTERIM
CASH FLOW STATEMENT (UN-AUDITED)
for the 1st quarter ended September 30, 2008
Sept. 30, 2008 Sept. 30, 2007
(Rupees in thousand)
Note
CASH FLOWS FROM OPERATING ACTIVITIES

Cash used in operations 12 (258,337) (58,837)

Interest and markup paid (3,573) (5,997)
Net (increase) / decrease in long term
loans to employees (1,184) 430
Income tax paid (125,350) (97,004)
Net decrease in deferred revenue (24,337) (21,605)

Net cash used in operating activities (412,781) (183,013)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant & equipment (33,442) (16,280)

Purchase of intangible assets (2,827) -
Proceeds from sale of property, plant and equipment 711 1,575
Profit on bank deposits 1,315 777

Net cash used in investing activities (34,243) (13,928)

CASH FLOWS FROM FINANCING ACTIVITIES - -

Net decrease in cash and cash equivalents (447,024) (196,941)

Cash and cash equivalents at the

beginning of the period 249,358 (1,262)

Cash and cash equivalents at the

end of the period 12.2 (197,666) (198,203)

The annexed notes 1 to 16 form an integral part of the condensed interim financial information.

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

7
 CONDENSED INTERIM
STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
for the 1st quarter ended September 30, 2008
(Rupees in thousand)

Revenue reserves
Share General Unapprop- Fair Value
capital reserves riated Reserve Total
profit

BALANCE AS ON JULY 01, 2007 187,420 1,986,000 450,638 72,522 2,696,580

Profit for the 1st quarter ended

September 30, 2007 - - 144,364 - 144,364

Unrealized loss on
revaluation of investments - - - (706) (706)

BALANCE AS ON SEPTEMBER 30, 2007 187,420 1,986,000 595,002 71,816 2,840,238

Final dividend for the year

ended June 30, 2007 - - (224,904) - (224,904)

Transfer to General reserve - 225,000 (225,000) - -

Interim dividend - - (234,275) - (234,275)

Profit for the three quarters

October 2007 - June 2008 - - 666,094 - 666,094

Unrealized loss on
revaluation of investments - - - (8,274) (8,274)

BALANCE AS ON JUNE 30, 2008 187,420 2,211,000 576,917 63,542 3,038,879

Profit for the 1st quarter

ended September 30, 2008 - - 150,957 - 150,957

Unrealized loss on
revaluation of investments - - - (5,452) (5,452)

BALANCE AS ON SEPTEMBER 30, 2008 187,420 2,211,000 727,874 58,090 3,184,384

The annexed notes 1 to 16 form an integral part of the condensed interim financial information.

Sikandar Mustafa Khan Sohail Bashir Rana

8 Chairman Chief Executive
 SELECTED NOTES TO THE
FINANCIAL INFORMATION (UN-AUDITED)
for the 1st quarter ended September 30, 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. This condensed interim financial information is un-audited and is being submitted to

shareholders, as required by section 245 of the Companies ordinance, 1984.

3. The accounting policies adopted for the preparation of this condensed interim financial
information are the same as those applied in the preparation of preceding annual published
financial statements of the Company for the year ended June 30, 2008.

4. This condensed interim financial information has 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 information are the same as those applied in preparation of preceding
annual published financial statements of the Company for the year ended June 30, 2008.

6. CONTINGENCIES AND COMMITMENTS

There has been no significant change in the contingencies since the date of preceding
published annual financial statements.

Un-audited Audited
Sept. 30, 2008 June 30, 2008

(Rupees in thousand)

7. PROPERTY, PLANT AND EQUIPMENT

Opening book value 298,219 230,474
Add: Additions during the period - note 7.1 120,552 127,776

418,771 358,250

Less: Disposals during the period (at book value) (711) (8,413)
Transferred to investment property - (17,495)
Depreciation charged during the period (12,144) (34,123)

(12,855) (60,031)

405,916 298,219

9
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

7.1 Following is the detail of additions

during the period

Land - 45,533
Building on freehold land - 3,224
Plant and machinery 113,017 10,463
Tools and equipments 1,237 16,099
Furniture, fixture and equipments 1,054 9,695
Vehicles 5,184 37,021
Computers 60 5,741

120,552 127,776

8. CAPITAL WORK-IN-PROGRESS
Plant & Machinery 13,273 111,145
Advance for purchase of vehicles 6,006 -
Advance for purchase of office space 72,071 64,064
Advance for purchase of office furniture 1,345 102
Others 150 4,644

92,845 179,955

9. LONG TERM INVESTMENTS

Investment at cost
Related parties
- Subsidiary Company-unquoted 57,375 57,375
- Associated Company-quoted 65,364 65,364
- Associated Companies-unquoted 117,000 117,000

239,739 239,739

Others - available for sale - quoted

Cost 12,145 12,145
Surplus on revaluation of investment 58,090 63,541

70,235 75,686

309,974 315,425

10
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

10. SHORT TERM INVESTMENTS

Financial assets at fair value through profit
and loss - Mutual Fund units - cost 2,391,010 2,507,379
Surplus on revaluation of investments 213,803 324,391

2,604,813 2,831,770

11. TAXATION AND OTHER CHARGES

Provision in respect of workers’ profit participation fund, workers’ welfare fund and taxation
are made on an estimated basis.

12. CASH USED IN OPERATIONS

Profit before taxation 192,257 190,188
Adjustment for:
- Depreciation on property, plant and equipment 12,144 8,090
- Bad debts written off 2,221 -
- Profit on bank deposits (1,315) (61,344)
- Finance cost 7,493 4,844
Working capital changes - note 12.1 (471,137) (200,615)

(258,337) (58,837)

12.1 Working capital changes

(Increase)/decrease in current assets

- Stores and spares (5,690) (8,329)
- Stock in trade (329,487) (12,223)
- Trade debts 38,663 126,160
- Loans and advances (187,969) 6,950
- Trade deposits and prepayments (10,455) 10,985
- Other receivables 174,085 32,188
- Short term investments 226,957 -
Increase/(decrease) in current liabilities
- Trade and other payables (377,241) (356,346)

(471,137) (200,615)

11
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

12.2 Cash and cash equivalents

Cash and bank balances 51,555 6,444
Short term running finance (249,221) (204,647)

(197,666) (198,203)

1st quarter ended

September 30
2008 2007
(Rupees in thousand)

13. TRANSACTIONS WITH RELATED PARTIES

Relation with undertaking Nature & Transaction

Associated Undertaking Purchase of Components 501,070 412,314
Other Related Parties Purchase of Components 16,236 59,695
Retirement benefits plans Contribution to staff
retirement benefits plans 7,901 4,663

14. EVENTS AFTER BALANCE SHEET DATE

Dividend declared by the Company after the balance sheet date amounts to Rs. 374,840
thousand (Rs. 20 per share) {2007: Rs. 224,904 thousand (Rs. 12 per share)}, while
appropriation to general reserve and for issuance of bonus shares made after the balance
sheet date amount to Rs. 155,000 thousand and Rs. 46,855 thousand respectively
(2007: Rs. 225,000 thousand and Rs. Nil thousand respectively).

15. DATE OF AUTHORIZATION OF ISSUE

This condensed interim financial information was authorised for issue on October 30, 2008
by the Board of Directors of the Company.

16. CORRESPONDING FIGURES

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

Chairman Chief Executive

12
 CONSOLIDATED CONDENSED INTERIM BALANCE SHEET

Un-audited Audited
Sept. 30, 2008 June 30, 2008
Note
(Rupees in thousand)
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital
20,000,000 (June 30, 2008: 20,000,000) ordinary shares
of Rs. 10/- each 200,000 200,000

Issued, subscribed and paid up capital 187,420 187,420

General reserve 2,211,000 2,211,000
Unappropriated profit 840,218 682,216
Unrealized gain on revaluation of investments 44,753 50,205

Equity attributable to equity holders of the parent 3,283,391 3,130,841

Minority Interest 17,937 17,211

TOTAL EQUITY 3,301,328 3,148,052

NON-CURRENT LIABILITIES

Security deposits 9,485 9,485

Deferred revenue 24,439 32,729
Deferred tax liability 12,355 12,355
Accumulating compensated absences 28,344 28,344

74,623 82,913

CURRENT LIABILITIES

Current Portion of deferred revenue 202,080 218,127

Trade and other payables 3,560,529 3,936,330
Mark-up accrued on short term borrowings 8,510 4,504
Short term borrowings 287,859 56,203

4,058,978 4,215,164

CONTINGENCIES AND COMMITMENTS 6 - -

7,434,929 7,446,129

The annexed notes 1 to 16 form an integral part of the consolidated condensed interim financial
information.

14
 AS AT SEPTEMBER 30, 2008 (UN AUDITED)

Un-audited Audited
Sept. 30, 2008 June 30, 2008
Note
(Rupees in thousand)
ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 7 436,699 329,151

Capital work in progress 8 92,845 179,955
Intangible assets - in progress 19,855 17,028
Investment property 273,203 273,203
Long term investments 9 370,053 369,753
Long term loans-considered good 5,569 4,385
Deferred cost 774 1,032

1,198,998 1,174,507

CURRENT ASSETS

Stores and spares 85,170 79,334

Stock in trade 2,002,070 1,670,618
Trade debts 78,721 118,809
Loans and advances 294,193 100,185
Trade deposits and prepayments 18,237 9,543
Other receivables 993,201 1,168,935
Taxation - net 92,247 8,198
Short - term Investments 10 2,604,813 2,831,770
Cash and bank balances 67,279 284,230

6,235,931 6,271,622

7,434,929 7,446,129

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

15
 CONSOLIDATED CONDENSED INTERIM
PROFIT AND LOSS ACCOUNT (UN-AUDITED)
for the 1st quarter ended September 30, 2008

Sept. 30, 2008 Sept. 30, 2007

(Rupees in thousand)

Sales - net 2,907,872 2,298,784

Cost of sales 2,625,614 2,020,137
Gross profit 282,258 278,647

Distribution and marketing expenses 95,947 80,495

Administrative expenses 54,934 50,373

150,881 130,868

Operating profit 131,377 147,779

Other operating income 82,291 65,746

213,668 213,525

Other operating expenses 9,271 17,904

Finance cost 10,119 6,346

19,390 24,250
Share of profit and loss of
associated companies 9,392 7,130

Profit before taxation 203,670 196,405

Taxation
Group 41,300 45,974
Associated 3,642 763

44,942 46,737

Profit after taxation 158,728 149,668

Attributable to:
Equity holders of the parent 158,002 150,102
Minority interests (726) (434)

158,728 149,668

Earnings per share - basic and diluted (Rs.) 8.47 7.99

Appropriations have been reflected in the consolidated condensed interim statement of changes
in equity.

The annexed notes 1 to 16 form an integral part of the consolidated condensed interim financial
information.

Sikandar Mustafa Khan Sohail Bashir Rana

16 Chairman Chief Executive
 CONSOLIDATED CONDENSED INTERIM
CASH FLOW STATEMENT (UN-AUDITED)
for the 1st quarter ended September 30, 2008
Sept. 30, 2008 Sept. 30, 2007
(Rupees in thousand)
Note
CASH FLOWS FROM OPERATING ACTIVITIES

Cash used in operations 12 (256,725) (176,349)

Interest and markup paid (6,113) (7,383)
Net (increase) / decrease in long term
loans to employees (1,184) 430
Income tax paid (125,351) (97,312)
Net decrease in deferred revenue (24,337) (21,605)

Net cash used in operating activities (413,710) (302,219)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant & equipment (34,096) (16,428)

Purchase of intangible assets (2,827) -
Proceeds from sale of property, plant and equipment 711 1,575
Profit on bank deposits 1,315 777

Net cash used in investing activities (34,897) (14,076)

CASH FLOWS FROM FINANCING ACTIVITIES - -

Net decrease in cash and cash equivalents (448,607) (316,295)

Cash and cash equivalents at the

beginning of the period 228,027 73,340

Cash and cash equivalents at the

end of the period 12.2 (220,580) (242,955)

The annexed notes 1 to 16 form an integral part of the consolidated condensed interim financial
information.

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

17
 CONSOLIDATED CONDENSED INTERIM
STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
for the 1st quarter ended September 30, 2008
(Rupees in thousand)

Revenue reserves
Share General Unapprop- Fair Value Minority
capital reserves riated Reserve Interest Total
profit

BALANCE AS AT JULY 01, 2007 187,420 1,986,000 558,007 59,185 11,579 2,802,191

Profit for the 1st quarter ended

September 30, 2007 - - 150,102 - (434) 149,668

Unrealized loss on
revaluation of investments - - - (705) - (705)

BALANCE AS ON SEPTEMBER 30, 2007 187,420 1,986,000 708,109 58,480 11,145 2,951,154

Final dividend for the year

ended June 30, 2007 - - (224,904) - - (224,904)

Transfer to General reserve - 225,000 (225,000) - - -

Interim dividend - - (234,275) - 2,788 (231,487)

Profit for the three quarters

October 2007 - June 2008 - - 658,286 - 3,278 661,564

Unrealized loss on
revaluation of investments - - - (8,275) - (8,275)

BALANCE AS ON JUNE 30, 2008 187,420 2,211,000 682,216 50,205 17,211 3,148,052

Profit for the 1st quarter

ended September 30, 2008 - - 158,002 - 726 158,728

Unrealized loss on
revaluation of investments - - - (5,452) - (5,452)

BALANCE AS ON SEPTEMBER 30, 2008 187,420 2,211,000 840,218 44,753 17,937 3,301,328

The annexed notes 1 to 16 form an integral part of the consolidated condensed interim financial
information.

Sikandar Mustafa Khan Sohail Bashir Rana

Chairman Chief Executive

18
 SELECTED NOTES TO THE CONOSOLIDATED
CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)
for the 1st quarter ended September 30, 2008

1. Millat Tractors Limited (MTL) 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 (MIPL) is a
subsidiary of Millat Tractors Limited and is engaged in business of manufacturing of
vehicles, industrial and domestic batteries, cells and components thereof.

2. This consolidated condensed interim financial information is un-audited and is being

submitted to shareholders, as required by section 245 of the Companies Ordinance, 1984.

3. The accounting policies adopted for the preparation of this consolidated condensed interim
financial information are the same as those applied in the preparation of preceding annual
published financial statements of the group for the year ended June 30, 2008.

4. This consolidated condensed interim financial information has 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 information are the same as those applied in preparation of
preceding annual published financial statements of the group for the year ended
June 30, 2008.

6. CONTINGENCIES AND COMMITMENTS

There has been no significant change in the contingencies since the date of preceding
published annual financial statements.

Un-audited Audited
Sept. 30, 2008 June 30, 2008

(Rupees in thousand)

7. PROPERTY, PLANT AND EQUIPMENT

Opening book value 329,151 261,514
Add: Additions during the period - note 7.1 121,206 131,079

450,357 392,593

Less: Disposals during the period (at book value) (711) (8,413)
Transferred to investment property - (17,495)
Depreciation charged during the period (12,947) (37,534)

(13,658) (63,442)

436,699 329,151

19
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

7.1 Following is the detail of additions

during the period

Land - 45,533
Building on freehold land 17 3,963
Plant and machinery 113,089 10,532
Tools and equipments 1,689 18,376
Furniture, fixture and office equipment 1,136 9,859
Vehicles 5,184 37,021
Computers 91 5,795

121,206 131,079

8. CAPITAL WORK-IN-PROGRESS
Plant & Machinery 13,273 111,145
Advance for purchase of vehicles 6,006 -
Advance for purchase of office space 72,071 64,064
Advance for purchase of office furniture 1,345 102
Others 150 4,644

92,845 179,955

9. LONG TERM INVESTMENTS

Investment at cost
Related parties
- Associated Company-quoted 145,528 146,540
- Associated Companies-unquoted 154,291 147,527

299,819 294,067

Others - available for sale - quoted

Cost 25,481 25,481
Surplus on revaluation of investment 44,753 50,205

70,234 75,686

370,053 369,753

20
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

10. SHORT TERM INVESTMENTS

Financial assets at fair value through profit
and loss - Mutual Fund units - cost 2,391,010 2,507,379
Surplus on revaluation of investments 213,803 324,391

2,604,813 2,831,770

11. TAXATION AND OTHER CHARGES

Provision in respect of workers’ profit participation fund, workers’ welfare fund and taxation
are made on an estimated basis.

12. CASH USED IN OPERATIONS

Profit before taxation 203,670 196,405
Adjustment for:
- Depreciation on property, plant and equipment 12,947 8,843
- Bad debts written off 2,221 -
- Profit on bank deposits (1,315) (61,344)
- Finance cost 10,119 6,346
- Share of profit of associates (9,392) (7,130)
- Amortization of pre - commencement
operating expenses 258 258
Working capital changes - note 12.1 (475,233) (319,727)

(256,725) (176,349)

12.1 Working capital changes

(Increase)/decrease in current assets

- Stores and spares (5,836) (8,355)
- Stock in trade (331,452) (15,464)
- Trade debts 37,867 123,452
- Loans and advances (194,008) 9,640
- Trade deposits and prepayments (8,694) (1,604)
- Other receivables 175,734 (70,810)
- Short term investments 226,957 -
Increase/(decrease) in current liabilities
- Trade and other payables (375,801) (356,586)

(475,233) (319,727)

21
 Un-audited Audited
Sept. 30, 2008 June 30, 2008
(Rupees in thousand)

12.2 Cash and cash equivalents

Cash and bank balances 67,279 11,135
Short term running finance (287,859) (254,090)

(220,580) (242,955)

1st quarter ended

September 30
2008 2007
(Rupees in thousand)

13. TRANSACTIONS WITH RELATED PARTIES

Relation with undertaking Nature & Transaction

Associated Undertaking Purchase of Components 501,070 412,314
Other Related Parties Purchase of Components 16,236 59,695
Retirement benefits plans Contribution to staff
retirement benefit plans 7,901 4,663

14. EVENTS AFTER BALANCE SHEET DATE

Dividend declared by MTL after the balance sheet date amounts to Rs. 374,840 thousand
(Rs. 20 per share) {2007: Rs. 224,904 thousand (Rs. 12 per share)}, while appropriation
to general reserve and for issuance of bonus shares made after the balance sheet date
amount to Rs. 155,000 thousand and Rs. 46,855 thousand respectively (2007: Rs. 225,000
thousand and Rs. Nil thousand respectively).

15. DATE OF AUTHORIZATION OF ISSUE

This consolidated condensed interim financial information was authorised for issue on
October 30, 2008 by the Board of Directors of the Company.

16. CORRESPONDING FIGURES

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

Chairman Chief Executive

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