Financial Ration Analysis of Millat Tractor Limited
Financial Ration Analysis of Millat Tractor Limited
Transmitter Letter.
A Project in response to the given subject.
Overview and ration analysis of Millat Tractor Limited
In this regard i visited Lahore Stock Exchange and Millat Tractors Limited, Collected some
material from internet and analyzed it to present to you our findings about the current
standings of MLT with respect to its financial position and history of its shares, after each
check point we have also suggested our opinions on points which need attention. Here its
necessary to mention that we consider MLT as an entity by itself.
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Acknowledgment Letter.
I would Like to say thanks to following personnels and sources without the help of
which/whom I would not have been able to complete my project.
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Table Of Contents.
1. TRANSMITTER LETTER................................................................................1
2. ACKNOWLEDGMENT LETTER....................................................................2
4. MILLAT PROFILE...............................................................................................6
5. MISSION STATMENT.........................................................................................6
6. VISSION STATMENT..........................................................................................6
7. ORGNIZATIONAL STRUCTURE.....................................................................7
Management........................................................................................................ 8
9. PORTFOLIO.......................................................................................................10
Partners.............................................................................................................. 10
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After successful takeover, MTL also acquired the management control of Bolan Castings
Limited (a Public Limited Company specializing in intricate automotive castings) in
partnership with employees of the company, in 1993. The company has been the regular
recipient of the Corporate Excellence Award of Management Association of Pakistan and the
Top Companies Award of Karachi Stock Exchange, since early eighties. MTL's Annual
Report has been acknowledged as the Best Annual Report by the Institute of Chartered
Secretaries and Admin Association of Pakistan for several years.
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Diesel Engines
Forklift Trucks, under license from Anhui Heli Forklift Trucks China and
The company is also dedicated to customize its Diesel Generating Sets and Prime Movers as
per requirements of its Customers.
The company has spread its products throughout the length and breadth of the country. Today
the number of MF tractors made by MTL exceeds 250,000 while the total number of tractors
in the country is approximately 500,000, giving it a market share of above 50%. In other
words every second tractor in Pakistan is MF. This achievement has been made possible only
through the Companys commitment to Quality, After Sale Service, Competitive Prices.
Millat Group Vision.
Millat is a global group of companies, recognized for a range of quality Products with
innovative design capabilities.
Mission Statement.
Millat 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.
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Structure of Organization.
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Management
Board Of
Directors
Sikandar
Mustafa
Khan
Chairman
Sikandar
Mustafa
Khan
Chairman
Laeeq
Uddin
Ansari
CEO
Laeeq
Uddin
Ansari
Chief
Executive
Latif Khalid
Hashmi
Sohail
Bashir Rana
Mian
Muhammad
Saleem
Rana
Muhammad
Saddique
Manzoor
Ahmad
S.M.
Tanveer
M.C.B
Nominee
Muhammad
Saleem
Company
Secretary
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Laeeq Uddin
Ansari
CEO
Group Advisory
Committee
Sikandar M.
Khan
Chairman
Latif Khalid
Hashmi
Sr. Executive
Director
Sohail
Bashir
Rana
Sr. Executive
Director
Mian M.
Saleem
Executive
Director
Nasim Sandhu
Dy. Gen. Manager Admn. & Purchase
Qasim Saeed
Dy. Gen. Manager IPD
Ashfaq Farooqi
Dy. Gen. Manager Quality Control
Athar Zubair
Dy. Gen. Manager Technical
Muhammad Akram
Dy. Gen. Manager Marketing
Mansoor Abbasi
Dy. Gen. Manager Manufacturing
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Organization Hierarchy
At MTL, there is centralized decision making process. Documentation procedure is formal
e.g. in case of providing after sale service (warranty / replacement) for defective parts the
procedure is as follows:
Customer goes to dealer and tells the problem.
Dealers replace the parts from his inventory and afterwards fills the claims form
and takes the collective defective parts to the Millat Tractors Limited.
MTL inspects the part and then either replaces part to the dealer or credits the
balance to dealers accounts.
For the extra ordinary problem or defect the claim procedure is different and as follows:
Customers go to dealer and tells the problem.
Dealer sends a notice to the Millat Tractors Limited and then a team from MTL
visits the tractor and then decides whether to improve the claim or not.
If the claim is accepted then the part is sent to the dealer for replenishment.
DEPARTMENT AT MTL
In order to have maximum efficiency, Millat Tractors Limited functions are very structured.
The division of work and labor is done in a very designed manner and all the work
requirements have been distributed properly among the various departments.
Every department fulfill its own requirements and done its own work. There are following
department on Millat Tractor Limited.
A hierarchy exists in each department and the functions of the department flow in that
particular cadre, whether they are flowing from top to bottom or from bottom to top. Some
departments have further sub-departments as well, like marketing is the biggest department of
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Production Plant
There is only one production plant located in Lahore. Its working capacity 70-120 tractors per
day.
Product Line
Image
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7. Prime Movers
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Strength
Millat tractors limited is strong organization as for as its competitor is concerned. Basically
the activities the firm does well or the resources it has or it controls are referred to as its
strength.
Following are the strengths of MTL.
1. Good Will / Well Established Image
MTL has an excellent goodwill in the market and in stock exchange.
2. Market Share
A market share of 58%-60% proves to be a demanding strength of the Millat Tractors
Limited.
3. Repair Facility
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MF tractors can be repair from any workshop located in any area of Pakistan. There is no
specification, regarding repair maintenance of tractors such as if the customer has purchased
tractor from Lahore, he can repair it from D.G. Khan or Mailsi workshop as well.
Diversification
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Millat tractors limited has diversified its business by producing agricultural implements,
generating sets, fork lifters, rex barren batteries and now working on the automobiles
business as well.
11.
Experience
Another strength of MTL is that it has been established since 1964 so it has experience labor
force.
12.
MTL enjoys a higher percentage in stock exchange due to higher price earning ratio.
Weaknesses
Weakness are the activities the firm does not do well or the resources it does not fully utilized
or the resources it needs but does not have. Though Millat Tractors Limited in a successful
organization but it has following weaknesses.
1. Job Staticness
There is lack of job rotation in MTL which has created the staticness and reduce the
productivity and efficiency of the employees.
2. Indispensability
High market share another strength has mad Millat Tractors to think that they are leaders so
they do not put its efforts to those areas which are weak and need its attention.
3. Long Delivery Period
As compare to its competitors delivery time period of tractors delivery is long.
4. Diversion Of Concentration
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Due to diversified work at MTL, it might not able to fully concentrate on its primary
operations.
5. Non Specialized People At Front Desks
The marketing department has good workers but they are not good at public dealing and less
interaction with the customers.
6. Long Procedures Of Decision Making
There are long decision making procedure. Not quick decision are taken so these long
procedures are time consuming.
Opportunities
Opportunities are positive external environmental factors. They have following opportunities
for Millat Tractors Limited.
Expansion In Automobiles, Implements, Fork Lifts Trucks And Generating Sets, REX barren
batteries & Bolan casting.
Due to changing needs of country, MTL has the opportunity to make power machine along
with manufacturing tractors and diversifying its business.
1. Crop High Yields And Rates
If the crop yield is high and the farmers are going to get good price for it so this wills increase
the demand of the tractors.
2. E-Commerce
MTL can established B2B e-commerce application with its dealers, spare parts and
workshops. This will help them to make true MANAGEMENT INFORMATION SYSTEM
Threats
Threats are negative external environmental factors. The external factors, which can be prove
negative for Millat Tractors are as following:
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1. Political Instability
The major threats which is faced by MTL is the instable political environment. A policy being
carried out by one government is changed by next coming up government. Such as Awami
Tractor Scheme and Green Tractors Loaning Scheme. Every government shows
biasness and make policies by considering their favorites.
2. Strong Local Competition
MTL has face a very strong competition not only in tractors but in agriculture implements as
well. In tractors the major competitor is Al-Gahzi Tractors Limited and in agricultural
implements all the local manufacturers are its competitors .AGTL has achieved a major
portion of the market share so rapidly by reducing per unit cost of tractor by switching from
Italy (FIAT) technology to Turkish technology (TUMOSAN) and by managing its delivery
period
Pest Analysis
POLITICAL
In 1979, Zia government imply the ordinance for the automobile industry. According to this
ordinance the formers are indicated to produced all the imported items at local level. MTL
acted upon this ordinance in 1981. Uptill now all the government policies are in favour of
farmers. Banazeer Government had introduced Awami Tractor scheme and Nawaz Shareef
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Government had introduced Green Tractor Scheme. According to this schemes prices of the
tractors declined. MTL also gave the sacrifice by reducing the profit margins and on the other
hand government reduced the taxes but this reduction was not so much supportive.
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offering a wide range of products meeting all pocket needs. This also places us in a
comfortable position to meet future WTO conditionalties. We are confident that our current
products quality will place us in a good position to compete globally.
Encouraged by this acceptability we plan to continue with the concept of offering products
suited to the market needs to further enhance our existing tractor range.
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Current Ratio.
A liquidity ratio that measures a company's ability to pay short-term obligations.
The Current Ratio formula is:
Yea
r
Current
Assets
200
8
6,179,581
200
9
5,679,157
201
0
10,737,359
Current
Liabilities
Current Ratio
4,146,004
1.49 times
3,328,902
1.70 times
7,587,912
1.41 times
2009.0
2010.0
Current Ratio
1.5
Current Ratio
0.5
2008.0
Interpretation:
2008. Millat Tractors had Rs. 1.49 of current assets for every Re. 1 of current liabilities.
2009. Millat Tractor had Rs. 1.7 of current assets for every Re. 1 of current liabilities.
2010. Millat Tractors had Rs. 1.41 of current assets for every Re. 1 of current liabilities.
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So we Can say that there is an excessive Assets in 2009 as compare to 2008 of 0.21
but in 2010 they reduce their current ration from 0.21 to 0.29.
Yea
r
Current
Assets inventories
200
8
6,179,5811749952
200
9
5,679,1572189055
201
0
10,737,3592634441
4,146,004
1.06
3,328,902
1.04
7,587,912
1.06
Current
Liabilities
Interpretation:
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2008. Millat Tractors had Rs. 1.06 Quick Asset for every Re. 1 of current liabilities.
2009. Millat Tractor had Rs. 1.04 Quick Assets for every Re. 1 of current liabilities.
2010. Millat Tractors had Rs. 1.06 Quick Assets for every Re. 1 of current liabilities.
So we Can say that there is no such chang in quick ration in tree years..
Yea
r
Cash Flow
From
Oprations
200
8
1,087,892
200
9
(51,938)
201
0
4,265,110
Current
Liabilities
OCF Ratio
4,146,004
0.26
3,328,902
-0.015
7,587,912
0.56
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Interpretation:
2008. Millat Tractors had Rs. 0.26 OCF Ratio.
2009. Millat Tractor had Rs. -0.015 OCF Ratio.
2010. Millat Tractors had Rs. 0.56 OCF Ratio.
So we Can say that operating cash flow ratio fall in 2009.
2. Activity Ratio.
Accounting ratios that measure a firm's ability to convert different accounts within their
balance sheets into cash or sales.
Receivable Turnover.
Payable Turnover.
Working Capital Turnover.
Fixed Assets Turnover.
Total Assets Turnover.
Receivable Turnover.
An accounting measure used to quantify a firm's effectiveness in extending credit
as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how
efficiently a firm uses its assets.
Formula:
Average
Account
Receivable
Account Receivable
Turnover
1,387,929
8.12
16,091,730
1,363,833
11.7
22,461,249
2,771,592
8.10
Yea
r
Net Credit
Sale
200
8
11,272,385
200
9
201
0
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Interpretation:
2008. Millat Tractors had Rs. 8.12 time account receivables.
2009. Millat Tractor had Rs. 11.7 times account receivables.
2010. Millat Tractors had Rs. 8.1 times account receivables.
So we Can say that there is a gradual increase in account receivables in 2009 as
compare to 2008 and 2010 respectively.
Payable Turnover.
A short-term liquidity measure used to quantify the rate at which a company pays off
its suppliers. Accounts payable turnover ratio is calculated by taking the total
purchases made from suppliers and dividing it by the average accounts payable
amount during the same period.
Formula:
Yea
r
Net Credit
purchases
200
8
9,768,510
200
9
13,609,170
Average
Account
Payable
Account Payable
Turnover
3,936,330
2.48
3,140,201
4.33
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201
0
18,528,176
7,513,070
2.46
Interpretation:
2008. Millat Tractors had Rs. 2.48 time account Payables.
2009. Millat Tractor had Rs. 4.33time account Payables.
2010. Millat Tractors had Rs. 2.46 times account Payables.
So we Can say that there is a gradual increase in account Payables
compare to 2008 and 2010 respectively.
in 2009 as
Current Assets
6,179,581
5,679,157
10,737,359
Sales
Current Liabilities
4,146,004
3,328,902
7,587,912
Working Capital
Working Capital
2,033,577
2,350,255
3,149,447
Working Capital
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Turnover
200
8
11,272,385
2,033,577
5.54
200
9
16,091,730
2,350,255
6.84
201
0
22,461,249
3,149,447
7.13
Interpretation:
2008. Millat Tractors had Rs. 5.54 time working Capital.
2009. Millat Tractor had Rs. 6.84 time Working Capital.
2010. Millat Tractors had Rs. 7.13 time Working Capital.
So we Can say that there is a gradual increase in account Payables from 2008 to
2010 respectively.
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A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a
company's ability to generate net sales from fixed-asset investments - specifically property,
plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows
that the company has been more effective in using the investment in fixed assets to generate
revenues.
The fixed-asset turnover ratio is calculated as:
Yea
r
Net Sales
Working Capital
Turnover
200
8
11,272,385
1,174,507
9.5
200
9
16,091,730
1,231,991
13.0
201
0
22,461,249
1,435,960
15.6
Total Fixed
Assets
Interpretation:
2008. Millat Tractors had Rs. 9.5 Fixed-Asset Turnover.
2009. Millat Tractor had Rs. 13.0 Times Fixed-Asset Turnover.
2010. Millat Tractors had Rs. 15.6 Times Fixed Asset Turnover.
So we can say that there is a gradual increase in Ratio from 2008 to 2010
respectively.
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Yea
r
Net Sales
Working Capital
Turnover
200
8
11,272,385
7,446,129
1.51
200
9
16,091,730
6,990,827
2.30
201
0
22,461,249
12,173,319
1.84
Total Assets
0.5
2008.0
2009.0
2010.0
Interpretation:
2008. Millat Tractors had Rs. 1.51 Total Asset Turnover.
2009. Millat Tractor had Rs. 2.3 Total Asset Turnover.
2010. Millat Tractors had Rs. 1.84 Total Asset Turnover.
So we can say that there is a gradual increase in Ratio from 2008 to 2009 by
1.51 to 2.3 after that it decreases from 2.3 to 1.84 in 2010 respectively.
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3. Leverage Ratios.
Any ratio used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations.
There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Debt to Equity Ratio.
Debt Ratio.
Interest Coverage Ratio.
Long Term Debt to Equity Ratio.
Yea
r
Total
Liabilities
Equity
Debt to Equity
Ratio
200
8
4,298,077
3,130,841
1.37
200
9
3,431,881
3,527,908
0.97
201
0
7,606,725
4,519,911
1.68
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Interpretation:
2008. Millat Tractors had Rs. 1.37 Times Debt To Equity.
2009. Millat Tractor had Rs. 0.97 Times Debt To Equity.
2010. Millat Tractors had Rs. 1.68 Times Debt To Equity.
So we can say that there is a gradual Decrease in Debt To Equity Ratio from 2008 to
2009 by 1.37 to 0.97 after that it Increases from 0.97 to 1.68 in 2010 respectively.
Debt Ratio.
A ratio that indicates what proportion of debt a company has relative to its assets. The
measure gives an idea to the leverage of the company along with the potential risks the
company faces in terms of its debt-load.
Formula:
Yea
r
Total
liability
200
8
4,298,077
200
9
3,431,881
201
0
7,606,725
Total Assets
Debt Ratio
7,446,129
0.57
6,990,827
0.49
12,173,319
0.62
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Debt Ratio
Interpretation:
2008. Millat Tractors had Rs. 0.57 Times Debt Ratio.
2009. Millat Tractor had Rs. 0.49 Times Debt Ratio.
2010. Millat Tractors had Rs. 0.62 Times Debt Ratio.
So we can say that there is a gradual Decrease in Debt Ratio from 2008 to 2009
by 0.57 to 0.49 after that it Increases from 0.49 to 0.62 in 2010 respectively.
Yea
r
EBIT
200
8
1,142,928
200
9
1,866,153
Interest
Expense
332,186
3.44
572,103
3.26
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201
0
3,634,001
1,163,419
3.12
Interpretation:
2008. Millat Tractors had Rs. 3.44 Times Interest Coverage Ratio.
2009. Millat Tractor had Rs. 3.62 Times Interest Coverage Ratio.
2010. Millat Tractors had Rs. 3.12 Times Interest Coverage Ratio.
So we can say that there is a gradual Decrease in Times Interest Coverage Ratio from
2009 to 2010 by 3.62 to 3.12 respectively.
Yea
r
Long term
debt
200
8
200
9
3,130,841
3,527,908
Shareholders
Equity
Page | 38
201
0
4,519,911
Interpretation:
2008. Millat Tractors had no long term debts.
2009. Millat Tractors had no long term debts.
2010. Millat Tractors had no long term debts.
So we can say that there is no long term debt available in Millat tractor.
4. Profitability Ratios.
A class of financial metrics that are used to assess a business's ability to generate earnings
as compared to its expenses and other relevant costs incurred during a specific period of
time. For most of these ratios, having a higher value relative to a competitor's ratio or the
same ratio from a previous period is indicative that the company is doing well.
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11,272,385
1.85
16,091,730
0.15
22,461,249
0.17
Yea
r
RevenueCGS
200
8
1,503,875
200
9
2,502,796
201
0
3,933,073
Revenue
Interpretation:
2008. Millat Tractors had Rs. 1.85 Time Gross Profit Margin Ratio.
2009. Millat Tractor had Rs. 0.15 Time Gross Profit Margin Ratio.
2010. Millat Tractors had Rs. 0.17 Time Gross Profit Margin Ratio.
So we can say that there is a gradual Decrease in G ross Profit Margin Ratio. from 2008
to 2010 respectively.
NIBIT
200
8
1,142,928
/
/
Sale
11,272,385
0.101
Page | 40
200
9
1,866,153
16,091,730
0.11
201
0
3,634,001
22,461,249
0.161
Interpretation:
2008. Millat Tractors had Rs. 0.101 Time Return on sale Ratio.
2009. Millat Tractor had Rs. 0.11 Time Return on sale Ratio.
2010. Millat Tractors had Rs. 0.161 Time Return on sale Ratio.
So we can say that there is a gradual increase in Return on sale Ratio. From 2008 to
2010 respectively.
Yea
r
Total
Liabilities
200
8
4,298,077
200
9
3,431,881
Shareholder
Equity
3,130,841
1.37
3,527,908
0.97
Page | 41
201
0
7,606,725
4,519,911
1.68
Interpretation:
2008. Millat Tractors had Rs. 1.37 Time Return on Total Equity Ratio.
2009. Millat Tractor had Rs. 0.97 Time Return on Total Equity Ratio.
2010. Millat Tractors had Rs. 1.68 Time Return on Total Equity Ratio.
So we can say that there is a gradual decrease in Return on sale Ratio. From 2008 to
2009 then an increase from 2009 to 2010 respectively.
5. Shareholders Ratios.
A ratio used to help determine how much shareholders would receive in the event of a
company-wide liquidation. The ratio, expressed as a percentage, is calculated by dividing
total shareholders' equity by total assets of the firm, and it represents the amount of assets
on which shareholders have a residual claim.
Dividend Payout Ratio.
Preferred Dividend Coverage Ratio.
Dividend Payout Ratio.
The percentage of earnings paid to shareholders in dividends.
Calculated as:
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Yea
r
Yearly
dividend
per share
200
8
32.50
200
9
201
0
65.00
Dividend Payout
Ratio
34.51
0.94
43.72
0.11
83.83
0.77
Earnings Per
Share
Interpretation:
2008. Millat Tractors had Rs. 0.94 Time Dividend Payout Ratio.
2009. Millat Tractor had Rs. 0.11 Time Dividend payout Ratio.
2010. Millat Tractors had Rs. 0.77 Time Dividend Payout Ratio.
So we can say that there is a gradual decrease in Dividend payout Ratio. From 2008 to
2009 then an increase from 2009 to 2010 respectively.
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A coverage ratio that measures a company's ability to pay off its required preferred
dividend payments. A healthy company will have a high coverage ratio, indicating
that it has little difficulty in paying off its preferred dividend requirements.
Formula:
Preferred Dividend
Coverage Ratio
459,179
1.76
834,093
1.55
1,440801
1.71
Yea
r
Net income
200
8
810,742
200
9
1,294,050
201
0
2,470,582
Dividend
Payment
Interpretation:
2008. Millat Tractors had Rs. 1.76 Time Preferred Dividend Coverage Ratio.
2009. Millat Tractor had Rs. 1.55 Time Preferred Dividend Coverage Ratio.
2010. Millat Tractors had Rs. 1.71 Time Preferred Dividend Coverage Ratio.
So we can say that there is a gradual decrease in Preferred Dividend Coverage Ratio
From 2008 to 2009 then an increase from 2009 to 2010 respectively.
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Trend Analysis.
An aspect of technical analysis that tries to predict the future movement of a stock based on
past data. Trend analysis is based on the idea that what has happened in the past gives traders
an idea of what will happen in the future.
There are three main types of trends:
1. Short
2. Intermediate
3. Long-Term
Trend Analysis of Millat Tractor limited.
Here I had applied different functions for trend analysis of Millat tractor.
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Activity Ratio.
Liquidity ratios.
Leverage ratios.
Profitability Ratios.
Interpretation:
Activity ratio falls from 2008 to 2009 as shown in above graph and then it increases from
2009 t0 2010.
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Interpretation:
Liquidity Ratio shows +ve relation in above graph. It means companys liquidity ratio is in
good position.
Interpretation:
Trend analysis of leverage ratio shows in above graph is that leverage ratio fals in 2009 and
then it increases in 2010.and it shows +ve relation.
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Interpretation:
Trend analysis of Profitability ratio shows in above graph is that Profitability ratio falls in
2009 and then it increases in 2010.and it shows +ve relation.
Trend Analysis of Shareholders Ratios.
Page | 48
Interpretation:
Trend analysis of Shareholders ratio shows in above graph is that share holders ratio
increases in 2009 and then it fals in 2010.and it shows +ve relation.
Millat Tractors Stock Chart.
Millat tractors Limited is a Pakistan-based company engaged in the assembly and
manufacture of agriculture tractor, implements and multi-application product.
Millat industrial products limited is the companys 64.09% - owned subsidiary, which is
engaged in manufacturing vehicles, industrial and domestic batteries, cells and components,
During the fiscal year ended June 30,2010, the company delivered 40,410 tractors. In fiscal
2010, it produced 40,178 tractors.
Chairman
(Sikander
Mustafa Khan)
Officers
Director ,
CEO
(Laeeq Uddin
Ansari)
GM, Chief
finacial
Officer
(Javed Munir)
Secretary
(Mian
Muhammad
Saleem)
Page | 49
Key Data.
Ticker
2010 Sales
Major Industry
Country
Currency
Fiscal year ends
Employees
Exchanges
Share type
Market Capitalization
Total Share
Outstanding
Closely Held Shares
MILT
22,461,249,000
Machinery & Equipment
Pakistani
Pakistani Rupees
June
468
KHR
Ordinary
18,919,408
36,605,408
N/A
Stock Chart
Blew the graph shows the variation in price of share and dividend paid in earning
per share
Page | 50
52 weeks -26.9%
Dividends
32.50
67.50
Ratio Analysis
Price / Earnings Ratio 7.12
Dividend Yield
13.06%
Price / Sale Ratio
0.84
Payout Ratio
92.94%
Price / Book Ratio
4.18
% Held by insiders N/A
Future Outlook.
Pakistan' agricultural sector will remain stagnant unless we optimize our farm power level
through extensive use of agriculture, machinery and tractors. The
Company feels that the tractor market would remain at the same level in 2002-2003 as in the
current year. MTL will strive to maintain its market share and play a positive role aimed at
boosting the agricultural sector.
The Company expects that the tractor industry will grow further due to restructuring of
ADBP recently being taking place, formation of politic Government in October, 2002 and
Afghan potential i.e. participation of Pakistan in the rehabilitation of Afghanistan.
Habib Bank Ltd. and The Bank of Punjab are already extending tractor loans and improving
their share in the tractor industry which shall reduce dependence on ADBP
Suggestions.
We gave following suggestions for Millat Tractor Ltd. By acting upon these MTlL will not
only profitable itself but also play an important role in the development of the economy.
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2. They should change their thinking that they will always remain leader of tractor
industry but they should understand that every business has to face the decline stage
as well in order to remain at maturity, it is necessary they should capture those
markets in which they still did not penetrate & The competitor analysis thoroughly.
3. Another area which demand attention is that of job rotation. Employees are not so
much productive, motivated and efficient because of their routine job.
4. They also are allowed the operational level employee in decision making process
especially when the decision are taken about the labour force because most of the time
they better know about what is beneficial and suits to them.
5. The delivery time period at MTL is 21-days arrangement should be made to decrease
the delivery time so that service level can be improved.
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References.
5.
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