Millat Tractors Clarifies News Reports About Shutting Down Operations

Millat Tractors Limited (PSX: MTL) on Monday refuted recent media reports about its closure and clarified that it remains operational. “This is to inform all the stakeholders regarding the news published in the Daily Dawn on Friday, August 09, 2024, regarding the Vendor’s Stop Supply of tractor Parts to Assemblers. It is informed that till now MTL has not stopped operations. MTL shall inform the stock exchange if it happens,” it said in a stock filing. In order to clarify further, MTL explained that the GST on the tractor is 10 percent and the GST on all input raw materials is 18 percent resulting in a continuous stream of refunds and FBR has not issued any mechanism for payment of refund claims yet. MTL has already sought clarification from FBR in this regard. As of now, MTL is continuing with its operations. However, sales and bookings are limited and only being made to agri-loan customers. As a result, the CBU inventory is piling up and working capital is squeezing. If this issue persists and FBR delays the clarification, MTL may have to consider the shutdown, it added. MTL is principally engaged in assembling and manufacturing of agricultural tractors, implements and multiapplication products. The Company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad. MTL’s scrip at the bourse closed at Rs. 608, down 1.35 percent or Rs. 8.32 with a turnover of 56,926 shares on Monday.