Table of Contents
Company Information | 2 |
Chairman's Review (English) | 4 |
Chairman's Review (Urdu) | 7 |
Independent Auditor's Review Report to the Members | 8 |
Condensed Interim Statement of Financial Position | 9 |
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income | 10 |
Condensed Interim Statement of Changes in Equity | 11 |
Condensed Interim Statement of Cash Flows | 12 |
Notes to the Condensed Interim Financial Statements | 13 |
Company Information
Board of Directors
Aamir H. Shirazi
Chairperson
Nurul Hoda
Director
Abid Naqvi
Director
Mashmooma Zehra Majeed
Director
Masanori Kito
Director
Shunsuke Miyazaki
Director
Kazushi Yamanaka
Director
Saquib H. Shirazi
Chief Executive Officer
Maheen Fatima
Company Secretary
Audit Committee
Mashmooma Zehra Majeed
Chairperson
Nurul Hoda
Member
Abid Naqvi
Member
Muhammad Asim
Head of Internal Audit
Maheen Fatima
Secretary
Human Resource &
Remuneration Committee
Nurul Hoda
Chairperson
Abid Naqvi
Member
Saquib H. Shirazi
Member
Saadullah Ejaz
Secretary
Management
Saquib H. Shirazi
Chief Executive Officer
Afaq Ahmed
Vice President Marketing
Shunsuke Miyazaki
Vice President Technical
Kazushi Yamanaka
General Manager Technical
Danyal Ahmed Rasheed
Chief Financial Officer
Saadullah Ejaz
General Manager Human Resources &
Administration
Faisal Mahmud
General Manager New Model Center
Muhammad Ammar
General Manager Engineering & Projects
Hassan Mushtaq Cheema
General Manager Production, Planning & Control
Zia Ul Hassan Khan
General Manager Plants
Muhammad Zafar Iqbal
General Manager After Sales
Mujahid-ul-Mulk Butt
General Manager Sales
Rashid Ahmed
General Manager Commercial & Planning
Tahir Nazir
General Manager Supply Chain
Muhammad Rashad Rashid
General Manager Quality Assurance
Mohammad Tahir Khan
General Manager Information Technology
02 Half Yearly Report September 2023
Company Information
Auditors
Shinewing Hameed Chaudhri & Co. Chartered Accountants
Legal Advisors
Mohsin Tayebaly & Co.
Tax Advisors
EY Ford Rhodes,
Chartered Accountants
Shares Registrar
Hameed Majeed Associates (Pvt.) Limited
H. M. House, 7-Bank Square,
Shahrah-e-Quaid-e-Azam, Lahore
Tel: (92-42)37235081-82
Fax: (92-42) 37358817
Bankers
Allied Bank Limited
Askari Bank Limited
Bank Al-Habib Limited
Bank Alfalah Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Khushali Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
Standard Chartered Bank (Pakistan) Limited United Bank Limited
Registered Office
1-McLeod Road, Lahore-54000
Tel: (92-42)37225015-17,37233515-17
Fax: (92-42) 37233518, 37351119
E-mail: ahl@atlas.com.pk
Website: www.atlashonda.com.pk
Factories
F-36, Estate Avenue, S.I.T.E., Karachi-75730
UAN: (92-21)111-111-245
Tel: (92-21)32575561-65
Fax: (92-21) 32563758
26-27 KM, Lahore-Sheikhupura Road,
Sheikhupura-39321
Tel: (92-56)3406501-8
Fax: (92-56) 3406009
Branch Offices & Customer Care Centres
Azmat Wasti Road, Multan Tel: (92-61)4570413-14(92-61)111-112-411 Fax: (92-61) 4541690
Islamabad Corporate Center,
Plot No. 784/785, Golra Road, Islamabad
Tel: (92-51)5495921-7,
Fax: (92-51) 5475928
Makhdoom Altaf Road, West Sadiq Canal
Bank, Near City School, Rahimyar Khan
Tel: (068) 5883415-19,
Fax: (068) 5883414
2nd Floor, Dawood Centre, Autobhan Road, Hyderabad.
Tel: (022) 3411361-9
Fax: (022) 34113670
1st Floor, Meezan Executive Tower, 4 - Liaquat Road, Faisalabad
Tel: (92-41)2541011-7, 2541014
1st Floor, 28-Mozang Road, Lahore Tel: (92-42)36361191-5,36360740-7
Show Room
West View Building, Preedy Street, Saddar, Karachi
Tel : (92-21) 32720833, 32727607
Customer Contact Centre
UAN: (92-42)111-245-222
Toll Free: 0800-245-22
Email: contact.centre@atlashonda.com.pk (Within working hours from Monday to Friday)
Atlas Honda Limited 03
Chairman's Review
I am pleased to present the unaudited condensed interim financial information of the Company for the half year ended September 30, 2023.
MACROECONOMIC OVERVIEW
The economy has been facing challenges over time, but there are positive indicators in the current fiscal year. This progress can be attributed to the restoration of macroeconomic stability, the implementation of structural reforms, and favorable developments in external factors. This resulted in an upward revision of GDP growth to 2.5%, surpassing the initial target of 1.9%. To achieve this, various fundamental measures have been taken, including the implementation of an economic revival plan and prudent actions such as the establishment of the Special Investment Facilitation Council (SIFC) and disbursements from the International Monetary Fund (IMF) under the Staff Level Agreement (SBA). These measures are expected to create a multiplier effect in the economy, driving higher and more inclusive economic growth in FY24.
On the external front, the current account has recorded a deficit of USD 0.9 billion for 3M FY24, which is a 58% reduction compared to the same period last year. The balance of trade recorded a deficit of USD 5.3 billion for 3M FY24, down by 42%. This progress is largely attributed to a 26% reduction in the import bill resulting from various government measures. Home remittances provided much-needed support and held up well at USD 6.3 billion. However, as of September 2023, the State Bank of Pakistan's foreign exchange reserves recorded at USD 7.6 billion, down by 4%, reflecting 2 months import cover. On a positive note, the ongoing regulatory measures aimed at managing the flow of dollars, led to the appreciation of the local currency, which closed at 287.9 in September 2023, compared to a record low of 307 in August 2023. Furthermore, the inflation rate has risen to 31.4% year-on-year due to high fuel and energy price adjustments. To curb excessive demand, the Central bank adopted a prudent fiscal stance, maintaining the policy rate at 22%, with a projection of a downward trajectory in inflation during the second half of the fiscal year. On the fiscal front, revenue collection for the quarter exceeded the target, with a total of PKR 2 trillion collected against a quarterly target of PKR 1.9 trillion. These recent improvements have boosted confidence in the capital markets, leading to the PSX 100 index surpassing 50,000 points for the first time in six years.
In the first quarter of the FY24, the agricultural sector exhibited strong performance, particularly in the cultivation of Cotton crop, which outperformed last year's yield by 80%. This notable improvement can be attributed primarily to the availability of higher-quality seeds and fertilizers. Further to support the sector, financial institutions allocated a credit of PKR 1.8 billion, up by 25% increase compared to the corresponding period. This financial support, combined with favorable pricing policies, will result in consistent growth in farm incomes. Consequently, demand for consumer durables is expected to remain upbeat in rural areas.
The Large-scale manufacturing (LSM) sector saw a year-on-year growth of 2.52%, signaling | |||
a shift from the trend of contraction that lasted for 11 consecutive months. Recent high- | |||
frequency indicators show signs of improvement. There is a | |||
moderate pick up in sales of key inputs, like POL, fertilizer and | Sales Growth | ||
cement. The relaxation of import restrictions has enhanced access | (Rs. in million) | ||
to essential inputs, fostering growth in these sectors. Nonetheless, | |||
+10% | |||
industries still struggle due to limited financing options and the | 5.8% | ||
sustained impact of inflationary pressures, which continue to | 6.0% | ||
hinder industrial activities. |
OPERATING RESULTS | 67,265 | 74,185 | |
During the half year ended September 30, 2023, the Company | |||
achieved net sales of Rs. 74.2 billion, an increase of 10.3% as | |||
compared to the corresponding period of the last year. However, | |||
Sep | Sep | ||
gross profit, as a percentage of | sales, declined from 6.1% to | ||
2022 | 2023 | ||
5.8%. The decline in gross margin was due to lower sales volume, | Sales | Gross Profit (%) | |
increase in material prices, rising | energy cost and devaluation | ||
04 Half Yearly Report September 2023
of Pak rupee with a less than commensurate increase in selling prices. The key challenge will be to improve this over the course of the year. Sales and marketing expenses rose to Rs. 1.48 billion, an increase of 16.1% which is attributable to an increase in fuel prices and promotional activities. Administrative expenses increased by 17.8% mainly because of continued inflation and new initiatives for CSR activities. Other income, net of other operating expenses and financial charges, contributed an encouraging Rs. 3.8 billion to the bottom line. This is on account of efficient treasury operations and prudent management of enhanced liquidity. The above factors supported the Company in achieving six months profit before tax of Rs. 6.2 billion, reflecting a recovery in supply and demand. However, due to provision for super tax for the current and prior year, the profit after tax for the six months period ended registered at Rs. 3.6 billion. This translated into Earnings per Share (EPS) of Rs. 28.68 against Rs. 18.37 for the corresponding period of last year.
Profit Growth | |
+56% | 28.68 |
18.37 | |
2,280 | 3,559 |
Sep | Sep |
2022 | 2023 |
Profit after tax (Rs. in million) | |
Earning per share (Rs.) |
FUTURE OUTLOOK
Over the years, the economy has displayed remarkable resilience, and managed to withstand unexpected fluctuations and uncertainties. Looking ahead, it is crucial to maintain the ongoing reform efforts and concentrate on strategies that ensure stability and foster sustainable growth. Adherence to IMF's SBA remains vital for the Country's economic prospects. Any slippages in the agreed IMF agreement can quickly result in economic volatility. To sustain positive momentum, the Country needs to adopt structural changes, curtail the circular debt, maintain a tight monetary stance, and focus on increasing exports. Inflationary pressures will continue to be a challenge for the Country and will begin to ease in the second half of FY 24. Moreover, continuation of the IMF program and influx of external funding remain crucial for the economy as external repayments stand close to USD 25 billion for the year. Privatization, enhancing institutional capabilities and implementing supply-side initiatives can address Country's economic challenges and will offer lasting advantages. Nevertheless, achieving this will necessitate a consensus among all national stakeholders when formulating long-term policies for sustainable development. As the economy returns to its full potential and recovery becomes more robust, the two-wheeler sector is expected to regain its growth momentum.
While the macroeconomic situation undergoes a re-alignment, the Company remains confident in continuing its journey of sustained long-term growth. The Company is well poised and has demonstrated its ability to avail new opportunities and handle adversity with an aim to keep building a long-term business proposition that increases stakeholder value. In this regard, the "Atlas Way" and "Atlas Systems" continue to remain the corner stone of our business philosophy.
(Entrepreneurial ability and management always grows and grows better)
ACKNOWLEDGEMENT
The Atlas Group takes great pride in its partnership with Honda Motor Company Limited and would like to acknowledge their continued support and cooperation in maintaining high standards of excellence. I would like to thank our valued customers for the confidence they continue to place in us, the management team for their sincere efforts, the Board of Directors for their guidance, Mr. Saquib H. Shirazi - C.E.O. for his inspiring leadership and all stakeholders - Bankers, Dealers, Vendors, Associates and Shareholders for helping to build Atlas Honda Limited into a unique company.
Dated: October 23, 2023 | Aamir H. Shirazi |
Karachi |
Atlas Honda Limited 05
Profit Growth | |
+56% | 28.68 |
18.37 | |
2,280 | 3,559 |
Sep | Sep |
2022 | 2023 |
Profit after tax (Rs. in million) | |
Earning per share (Rs.) |
(Entrepreneurial ability and management always grows and grows better)
06 Half Yearly Report September 2023
Sales Growth
(Rs. in million)
+10%
5.8%
6.0%
67,265 | 74,185 |
Sep | Sep |
2022 | 2023 |
Sales | Gross Profit (%) |
Atlas Honda Limited 07
Independent Auditor's Review Report To The Members Of Atlas Honda Limited
Report on review of Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Atlas Honda Limited as at September 30, 2023 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the financial statements for the half year then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.
The figures of the condensed interim statement of profit or loss and other comprehensive income for the quarters ended September 30, 2023 and 2022 have not been reviewed, as we are required to review only the cumulative figures for the half year ended September 30, 2023.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the review resulting in this independent auditor's review report is Osman Hameed Chaudhri.
SHINEWING HAMEED CHAUDHRI & CO.
CHARTERED ACCOUNTANTS
KARACHI;
UDIN: RR202310104GNo4TOneP
08 Half Yearly Report September 2023
Condensed Interim Statement of Financial Position as at September 30, 2023
Assets | Note |
Non current assets |
(Unaudited) | (Audited) |
September 30, | March 31, |
2023 | 2023 |
------- (Rupees in '000) -------
Property, plant and equipment | 5 |
Intangible assets | 6 |
Long term investments | |
Long term loans and advances | |
Long term deposits | |
Current assets | |
Stores, spares and loose tools | 7 |
Stock-in-trade | |
Trade debts | |
Loans and advances | 8 |
Trade deposits and prepayments | |
Sales tax receivable - net | |
Accrued mark-up / interest | |
Other receivables | 9 |
Short term investments | |
Bank balances | |
Equity and Liabilities | |
Equity | |
Authorized capital | |
150,000,000 (March 31, 2023: 150,000,000) | |
ordinary shares of Rs.10 each | |
Issued, subscribed and paid-up capital | |
124,087,935 (March 31, 2023: 124,087,935) | |
ordinary shares of Rs.10 each | |
Reserves | |
Liabilities | |
Non current liabilities | |
Lease liabilities | |
Staff retirement benefits | |
Deferred taxation | |
Current liabilities | 10 |
Trade and other payables | |
Taxation - net | |
Unclaimed dividend | |
Dividend payable | |
Current portion of lease liabilities | |
Contingencies and commitments | 11 |
12,520,559
18,562
346,793
90,224
41,672
13,017,810
1,054,607
11,538,461
1,788,448
81,566
1,085,507
128,929
213,370
4,429
9,346,373
36,034,105
61,275,795
74,293,605
1,500,000
1,240,879
23,485,194
24,726,073
133,824
604,087
813,954
1,551,865
46,201,601
1,018,227
146,926
564,600
84,313
48,015,667
49,567,532
74,293,605
12,158,765
35,311
340,816
75,469
41,662
12,652,023
1,083,666
8,005,452
797,382
94,502
2,242,128
-
343,803
1,874
10,114,241
34,702,516
57,385,564
70,037,587
1,500,000
1,240,879
21,539,063
22,779,942
148,102
559,591
633,022
1,340,715
44,545,823
50,005
222,975
1,044,510
53,617
45,916,930
47,257,645
70,037,587
The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.
Aamir H. Shirazi | Saquib H. Shirazi | Daniyal Ahmed Rasheed |
Chairman | Chief Executive Officer | Chief Financial Officer |
Atlas Honda Limited 09
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Atlas Honda Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 08:16:42 UTC.