MILLAT TRACTORS LTD (MTL) Registered Office and Plant: PO Box #12023, Shahdara, District Sheikhupura-39350, Pakistan.

8.8

Kilometers,

Sheikhupura

Road,

Tel: (92-42) 111-200-786 379-11021 to 379-11025 Fax: 379-24166 / 379-25835 Email address: info@millat.com.pk and corporate@millatgroup.net Website: www.millat.com.pk CO REG NO L-0015550 OF 1964 DIRECTORS: Sikandar Mustafa Khan Chairman Born in 1948, married. University graduate. Laeeq Uddin Ansari Chief Executive SHARES HELD 2,943,465 2,474,760 1,812,500 808,937 70,289 1,901,360 % 8.04% 6.75% 4.95% 2.21% 0.19% 5.20%

Latif Khalid Hashmi Mian Muhammad Saleem He is also company secretary Rana Muhammad Siddique Khan Sohail Bashir Rana Manzoor Ahmed Nominee of National Investment Trust (NIT) S M Tanvir Nominee of MCB Bank Ltd SHAREHOLDERS: Cyma Khan Ayesha Sohail National Bank of Pakistan National Investment Trust Ltd Industrial Development Bank of Pakistan Financial institutions Insurance companies Modarabas and Mutual funds General public Joint stock companies Trusts Executives Non-resident company Others CHIEF FINANCIAL OFFICER: Javed Munir AUDITORS: A.F Ferguson and Company, Chartered Accountants, Lahore

48,478 0.13% 201,037 0.55% 418,591 1.14% 13,071 0.04% 137 0.00% 1,668,581 4.56% 2,857,879 7.81% 135,156 0.37% 15,049,640 41.11% 307,242 0.85% 1,396,568 3.82% 534,176 1.46% 3,153,515 8.61% 810,026 2.21%

LEGAL ADVISORS: Walker Martineau Saleem, Advocates and Legal Consultants, Lahore Altaf and Altaf, Advocates, Lahore PAYMENTS: BANKERS: Barclays Bank Plc, Lahore Bank Alfalah Ltd, Lahore Faysal Bank Ltd Habib Bank Ltd, Lahore MCB Bank Ltd, Lahore Meezan Bank Ltd, Lahore Standard Chartered Bank Pakistan Ltd, Lahore Regular

United Bank Ltd, Lahore PRINCIPALS: Massey Ferguson Corporation, U.S.A Massey Ferguson Tractors Ltd, U.K AGCO Ltd, U.K - for engine manufacturing Perkins Engines, U.K - for engine manufacturing CAMCO International, China - for forklift trucks Anhui Forklift Truck Group, China - for forklift trucks LOCAL CURRENCY: Pak Rupees (Pkr) BALANCE SHEET: Details given SALES 2010-11: Pkr 24.863 billion PROFIT BEOFRE TAXATION: Pkr 3.914 billion CAPITAL INVESTMENT: Pkr 4.652 billion VALUE OF STOCK HELD: Pkr 2.5 billion HISTORY: Public limited listed company. Incorporated on June 11, 1964 in the name of Rana Tractors and Equipments Ltd under the Companies Act, 1913 (Now Companies Ordinance, 1984) with paid up capital of Pkr 1 million. Commenced operation on June 15, 1964 as assemblers and distributors of Tractors on behalf of Pakistan Tractors Corporation. Listed on Karachi Stock Exchange on February 2, 1965. Nationalized by the government of Pakistan on January 2, 1972 when the company had a paid up of Pkr 2.250 million and carrying on accumulated loss of Pkr 1.16 million. The project was placed under management control of Pakistan Automobile Corporation - PACO (Stateowned Corporation). The company changed its name to Millat Tractors Ltd on March 20, 1973. Controlling interest of the subject was divested by Pakistan Automobile Corporation (PACO), Ministry of Production, government of Pakistan, to the employees of the company, who took over the management on July 16, 1992 and formed employee management group. The company shares are quoted on all the three stock exchanges of Pakistan. Authorised capital Pkr 500 million divided into 50 million shares of Pkr 10/- each. The authorised capital of Pkr 100 million was increased to Pkr 200 million in 2005, to Pkr 300 million in 2009 and to Pkr 500 million in 2011. Paid up capital Pkr 366.055 million. The paid up capital of Pkr 42.137 million in 1986 was increased to Pkr 55.621 million in 1990-91 by 10% bonus stock dividend and 10% right shares of 1988-89; to Pkr 66.745 million in 1991-92 by 20% bonus stock dividend of 1990-91; to Pkr 80.094 million in 1992-93 by 20% bonus stock dividend of 1991-92; to Pkr 120.141 million in 2004-05 by 50% bonus stock dividend of 2003-04; to Pkr 156.183 million in 200506 by 30% bonus stock dividend of 2004-05; to Pkr 187.420 million on December 31, 2006 by 20% bonus stock dividend of 2005-06; to Pkr 234.275 million in 2008-09 by 25% bonus stock dividend of 2007-08 to Pkr 292.844 million on September 30, 2009 by 25% bonus stock dividend of 2008-09 and to Pkr 366.055 million in 2010-11 by 25% Bonus stock dividend of 2011. SUBSIDIARY: Millat Industrial Products Ltd (MIPL) - 64.09% equity held by MTL. Unlisted public limited company. Incorporated on January 23, 2002. MIPL is engaged in the business of manufacturing of vehicles, industrial and domestic batteries, cells and components. AFFILIATES:

Millat Equipment Ltd (MEL) 45% equity held by MTL. Unlisted public limited company. Incorporated on January 24, 1993. MEL is engaged in the business of manufacturing high-tech components. Bolan Castings Ltd (BCL) - 46.26% equity held by MTL. Public limited listed company. Incorporated on July 15, 1982. Manufacturing and selling automotive parts/components. Arabian Sea Country Club Ltd 6.45% equity held by MTL. Incorporated on September 8, 1994. Promoters of games of golf, swimming, water sports, other outdoor and indoor activities and leisure activities. Agrimall Pvt Ltd 20% equity held by MTL. BUSINESS: ISO 9001:2000 certified. Assembly cum progressive manufacturing, selling and exporting Massey Ferguson (MF) tractors models MF240 (50 hp), MF260 Turbo (60 hp), MF375S (75 hp), MF350 (50 hp), MF385 (85 hp), MF385 4WD (85 hp), MF460 4WD(105 hp) and MF465 4WD(120 hp), tractor engines, prime movers, rotavators, starter motors, alternators and other agricultural and industrial tractors, implements and equipments including combine harvestors and spares under license from Massey Ferguson Corporation, U.S.A; Massey Ferguson Tractors Ltd, U.K; Perkins Engines, U.K and AGCO Ltd, U.K. MTL also import, assembly and sale of 3-ton forklift trucks in collaboration with CAMCO International, China and Anhui Forklift Truck Group, China. Factory was originally, set up at 8.8 Kilometers, Sheikhupura Road, Shahdara, District Sheikhupura at a cost of Pkr 100 million over an area of 50 acres (155,431 square meters). Started production in 1966 with annual capacity of 6,000 tractors. Expanded to 10,000 tractors in 1983; to 15,000 tractors in 1992 and to 30,000 tractors in 2009. The company also operate mobile workshop to quick on the spot service after sale and have service, repair/maintenance workshop at factory. Member Chamber of Commerce and Industry, Lahore. National Tax Number: 0801437. General Sales Tax Number: 13-10-8707-002-82. Import from: Export to: Agency held: Employees: PREMISES: Office and factory premises owned over an area of 50 acres (155,431 square meters). Premises good. Condition good. REGIONAL OFFICES: 1) KARACHI:- 3-A, Faiyaz Center, Sindhi Muslim Co-operative Housing Society, Karachi-75400, Pakistan. Tel: (92-21) 111-200-786 345-53752 Fax: 345-56321 2) MULTAN:- Garden Town, (Daulatabad) Shershah Road, Multan-60000, Pakistan. Tel: (92-61) 653-7371 Fax: 653-9271 3) ISLAMABAD:- House #22, Street #41, Sector F-6/1, Islamabad-44000, Pakistan. U.S.A., U.K, Europe and China Africa Please see principals Around 448 employees

Tel: (92-51) 111-200-786 227-1470 Fax: 227-0693 4) SUKKUR:- A-3, Professor Housing Society, Shikarpur Road, Sukkur, Pakistan. Tel: (92-71) 563-3042 Fax: 563-3187 FINANCIAL INFORMATION: Comparative figures of company's annual accounts for the last three years' ended on June 30, 2011 is given hereunder: AMOUNT IN MILLION OF PAK RUPEES 30.06.2011 Paid up capital Reserve and surplus Unappropriated profit Unrealized gain on revaluation of investments Shareholders equity Accumulating compensated absences Deferred taxation Security deposits Deferred revenue Current portion of deferred revenue Trade creditors Other current liabilities TOTAL CAPITAL AND LIABILITIES Operating fixed assets Capital work in progress Intangible assets Long term investments Investment property Long term loans - considered good Inventories Trade debts Cash and bank balances Other current assets TOTAL PROPERTIES AND ASSETS Sales Gross profit Operating profit Other income Finance costs Other charges Profit before taxation Taxation Profit after taxation Unappropriated profit B/F Transfer to general reserve Cash dividend 366.055 2766.678 1490.726 28.777 -------4652.236 44.965 25.606 10.485 1521.484 2330.208 -------8584.984 ======== 435.516 155.137 17.614 291.907 255.708 2.860 2580.293 176.430 393.502 4276.017 -------8584.984 ======== 24863.264 4431.963 3584.625 679.561 (9.562) (340.340) 3914.284 (1243.548) 2670.736 1406.730 (300.000) (2213.529) 30.06.2010 292.844 2467.776 1406.730 25.057 -------4192.407 36.664 7.628 10.285 33.069 1097.613 6388.228 --------11765.894 ========= 411.759 155.476 29.357 288.187 273.203 3.188 2475.904 454.465 1109.055 6565.300 --------11765.894 ========= 22199.909 3834.175 3143.484 450.555 (9.498) (247.920) 3336.621 (1052.123) 2284.498 892.018 (247.000) (1464.217) 30.06.2009 234.275 2220.776 892.018 23.774 -------3370.843 31.618 8.883 9.485 33.069 202.079 723.843 2402.980 -------6782.800 ======== 405.618 104.335 30.208 286.904 273.203 3.375 2077.022 127.209 995.373 2479.553 -------6782.800 ======== 15910.619 2409.120 1755.736 198.950 (39.824) (162.530) 1752.332 (537.212) 1215.120 576.917 (155.000) (698.164)

Bonus stock dividend Unappropriated profit C/o to B/sheet Liquidity ratio Solvency ratio INCREASE/ (DECREASE) IN % Sales Gross profit Operating profit Profit before taxation Profit after taxation MARGINS: Gross profit Operating profit Profit before taxation Profit after taxation Book value per 10-Rupee share Earning per 10-Rupee share Return of equity Return of assets Assets turnover ratio PRODUCTION AND CAPACITY: Production capacity Number of tractors produced Production efficiency Cash dividend Stock dividend Number of tractors sold SHORT TERM BORROWINGS:

(73.211) 1490.726 1.90:1 0/100

(58.569) 1406.730 1.40:1 0/100

(46.855) 892.018 1.71:1 0/100

12.00% 11.59% 14.03% 17.31% 16.91%

39.53% 59.15% 79.04% 90.41% 88.00%

42.39% 63.58% 94.84% 56.44% 49.93%

17.82% 14.42% 15.74% 10.74% 127.09 72.96 57.40% 31.11% 2.90

17.27% 14.16% 15.03% 10.29% 143.16 78.01 54.49% 19.42% 1.89

15.14% 11.03% 11.01% 7.64% 143.88 51.87 36.05% 17.91% 2.34

30,000 42,188 140.62% 34.94% 42,188

30,000 40,178 133.93% 44.66% 25% 40,140

30,000 30,244 100.81% 25% 30,677

Short term borrowings from various banks are secured by pari passu hypothecation charge over stocks and book debts of the company, lien over import documents and counter guarantees of the company. The aggregate limits of credit from banks are Pkr 2.000 billion (2009-10: Pkr 1.835 billion and 2008-09: 1.435 billion). Additionally, the company has the facilities for opening letters of credit and guarantees aggregating to Pkr 2.914 billion (2009-10: Pkr 3.299 billion and 2008-09: Pkr 2.025 billion) out of which Pkr 1.697 million (2009-10: Pkr 1.746 million and 2008-09: Pkr 837.800 million) remained unutilized at the end of the year. ACCOUNTING POLICIES: These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan and the requirements of Companies Ordinance, 1984. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984. Wherever, the requirements of the Companies Ordinance, 1984 or directives issued by the

Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements of Companies Ordinance, 1984 or the requirements of Companies Ordinance, 1984 or the requirements of the said directives take precedence. COMMENTS: MTL is the largest tractors makers in Pakistan with a market share of 57%. The company recorded sales at of Pkr 22.199 billion for the year 2009-10 as compared to Pkr 15.910 billion for the year 2008-09, thus an increase of 39.53% in sales value over last year. This is record highest sales figure in the history of the company. Revenue for the company is mainly quantity driven rather than price-driven, since the Government of Pakistan has frozen the prices of locally produced tractors. In addition to this, changing economic scenario such as credit financing, interest rates, crop yield, support prices along with unpredictable climatic conditions always pose a risk to the demand of tractors consequently influencing the companys sales volume. Higher volume of sales enabled the company to improve its gross profit margin to 17.27% as compared to 15.22% of the last year. The profit before was Pkr 3.336 billion against Pkr 1.752 billion of the last year, reflecting an increase of 15.03%. Profit after taxation at Pkr 477.533 million works out to earning per share at Pkr 78.01/share which shows tremendous improvement over previous years earning per share of Pkr 51.87/share. This was achieved due to improvement in other income and huge reduction in finance cost. The financial backbone of the company remained robust as evidenced by comfortable liquidity ratio at 1.40 and excellent solvency ratio at 0/100. highly

MTLs contribution to the National Exchequer in terms of Corporate Income Tax and other levies has increased to Pkr 1,076 million as compared to Pkr 569 million of the preceding year. CONSOLIDATED FINANCIAL STATEMENTS: Consolidated financial statements for the last three years ended on June 30, 2011 is given hereunder: AMOUNT IN MILLION OF PAK RUPEES 30.06.2011 30.06.2010 30.06.2009 Paid up capital General reserve Unappropriated profit Unrealized gain on revaluation of investments Minority interest Shareholder's equity Accumulating compensated absences Deferred taxation Security deposits Deferred revenue Current portion of deferred revenue Trade creditors Other current liabilities TOTAL CAPITAL AND LIABILITIES Operating fixed assets 366.055 2766.678 1977.424 15.440 68.361 -------5193.958 44.965 29.264 10.485 1501.580 2351.650 -------9131.902 ======== 484.578 292.844 2467.776 1747.571 11.720 46.683 -------4566.594 36.664 8.528 10.285 33.069 1116.050 6402.129 --------12173.319 ========= 446.997 234.275 2220.776 1062.420 10.437 31.038 -------3558.946 31.618 9.396 9.485 33.069 202.079 727.168 2419.066 -------6990.827 ======== 439.208

Capital work in progress Intangible assets Long term investments Investment property Long term loans Inventory Trade debts Cash and bank balances Other current assets TOTAL PROPERTIES AND ASSETS Sales Gross profit Operating profit Other income Finance cost Other charges Share of profit and loss of associate Profit before taxation Taxation Profit after taxation Minority interest Unappropriated profit B/F Transfer to general reserves Cash dividend Bonus stock dividend Unappropriated profit C/o B/sheet REMARKS:

155.201 17.614 636.364 255.708 2.860 2663.197 208.138 405.216 4303.026 -------9131.902 ======== 25194.473 4568.245 3681.542 586.909 (11.287) (346.802) 310.189 4220.551 (1382.280) 2838.271 (21.678) 1747.571 (300.000) (2213.529) (73.211) 1977.424

157.748 29.357 525.467 273.203 3.188 2520.520 483.605 1143.880 6589.354 --------12173.319 ========= 22461.249 3933.073 3211.937 422.259 (10.007) (252.584) 262.396 3634.001 (1163.419) 2470.582 (15.645) 1062.420 (247.000) (1464.217) (58.569) 1747.571

104.335 30.208 381.662 273.203 3.375 2110.211 148.677 1010.689 2489.259 -------6990.827 ======== 16091.730 2482.560 1805.650 181.481 (44.759) (164.992) 88.773 1866.153 (572.103) 1294.050 (13.827) 682.216 (155.000) (698.164) (46.855) 1062.420

Directors reported respectable and well experienced. Subject is specialized in the import, assembly, manufacturing and marketing of Massey Ferguson agriculture tractors, implements and equipments. MTL has been graded amongst the Best 200 under a Billion S Companies of Asia by Forbes Global in October 2010. Subject worth worked out at Pkr 4.192 billion. Considered good for normal business engagement. D/December 18, 2010 D/71