Annual Report 2015 PDF

Bridging the Nation Together
Annual Report 2015

Contents
Vision and Mission 03
Strategic Goals 04
Quality Policy 05
About the Company 06
Organization Chart 07
The Glorious Ride 08
Company Information 10
Board of Directors 12
Company Overview Significant Events

Shareholders' Information
14
16
Chairman's Review 18
Directors' Report to Shareholders 22
Messages for Stakeholders

Risk and Opportunity Report 25
Notice of 51st Annual General Meeting 30
6 Years at a Glance 32
DuPont Analysis 33
Graphical Presentation 34
Analysis of Financial Statements 36
Statement of Value Addition and its Distribution 40
Quarterly Performance Analysis 41
Financial Highlights Share Price Sensitivity Analysis 42
Statement of Compliance with

Code of Corporate Governance 44
Review Report to the Members on
Statement of Compliance with the
Auditors' Report to the Members 47
Balance Sheet 48
Profit and Loss Account 49
Cash Flow Statement 50
Financial Statements Statement of Changes in Equity

Notes to the Financial Statements
51
52
Pattern of Shareholding 86
Atlas Group Companies 89
Other Information Glossary of Terms 90

Proxy Form 91
Contents
Vision and Mission 03
Strategic Goals 04
Quality Policy 05
About the Company 06
Organization Chart 07
The Glorious Ride 08
Company Information 10
Board of Directors 12
Company Overview Significant Events

Shareholders' Information
14
16
Chairman's Review 18
Directors' Report to Shareholders 22

Risk and Opportunity Report 25
Notice of 51st Annual General Meeting 30
6 Years at a Glance 32
DuPont Analysis 33
Graphical Presentation 34
Analysis of Financial Statements 36
Statement of Value Addition and its Distribution 40
Quarterly Performance Analysis 41
Financial Highlights Share Price Sensitivity Analysis 42
Statement of Compliance with

Review Report to the Members on
Statement of Compliance with the
Auditors' Report to the Members 47
Balance Sheet 48
Profit and Loss Account 49
Cash Flow Statement 50
Financial Statements Statement of Changes in Equity

51
52
Pattern of Shareholding 86
Atlas Group Companies 89
Other Information Glossary of Terms 90

Proxy Form 91
Vision
Market leader in the motorcycle industry, emerging as a
global competitive centre of production and exports.
Mission
A dynamic growth oriented company through market
leadership, excellent in quality and service and
maximizing export, ensuring attractive returns to equity
holders, rewarding associates according to their ability
and performance, fostering a network of engineers and
researchers ensuing unique contribution to the
development of the industry, customer satisfaction and
protection of the environment by producing emission
friendly green products as a good corporate citizen
fulfilling its social responsibilities in all respects.
02 Annual Report 2015 Atlas Honda Limited 03

Company Overview Company Overview
Strategic Goals Quality Policy

Customers Commitment to provide high quality motorcycles and parts.
Our Customers are the reason and the source of our
business. It is our joint aim with our dealers to ensure that Right work in first attempt and on time.
the customers enjoy the highest level of satisfaction from
use of Honda motorcycles. Maintain and continuously improve quality.
Quality Training of manpower and acquisition of latest technology.

To ensure that our products and services meet the set
Safe, clean and healthy environment.
standards of excellence.
Market leadership and prosperity for all.
Local Manufacturing
To be the industry leader in indigenization of motorcycle parts.
Technology
To develop and maintain distinct business advantages
through continuous induction of improved hard and soft
technologies.
Shareholders
To ensure health and viability of business and thus
safeguarding shareholders’ interest by maximizing profit.
Payment of regular satisfactory dividends and adding value
to the shares.
Employees
To enhance and continuously update each member’s
capabilities and education and to provide an environment
which encourages practical expression of the individual
potential in goal directed team efforts and compensate them
attractively according to their abilities and performance.
Corporate Citizen
To comply with all Government laws, rules and regulations
and to maintain a high standard of ethics in all operations
and to act as a responsible member of the society.


Customers Commitment to provide high quality motorcycles and parts.
Our Customers are the reason and the source of our
business. It is our joint aim with our dealers to ensure that Right work in first attempt and on time.
the customers enjoy the highest level of satisfaction from
use of Honda motorcycles. Maintain and continuously improve quality.
Quality Training of manpower and acquisition of latest technology.

To ensure that our products and services meet the set
Safe, clean and healthy environment.
standards of excellence.
Market leadership and prosperity for all.
Local Manufacturing
To be the industry leader in indigenization of motorcycle parts.
Technology
To develop and maintain distinct business advantages
through continuous induction of improved hard and soft
technologies.
Shareholders
To ensure health and viability of business and thus
safeguarding shareholders’ interest by maximizing profit.
Payment of regular satisfactory dividends and adding value
to the shares.
Employees
To enhance and continuously update each member’s
capabilities and education and to provide an environment
which encourages practical expression of the individual
potential in goal directed team efforts and compensate them
attractively according to their abilities and performance.
Corporate Citizen
To comply with all Government laws, rules and regulations
and to maintain a high standard of ethics in all operations
and to act as a responsible member of the society.

About the Company Organization Chart

A journey began five decades ago which “Atlas Autos Limited” with its manufacturing facilities, largest dealership
revolutionized the two – wheeler industry manufacturing facility located in Karachi. network and impeccable after sale
in Pakistan. It was the beginning of a ride service, the Company today is considered
to glory aiming to transform the people’s To expand the reach to new markets, the flag bearer of the motorcycle industry
lives by providing simplistic mobility Atlas Epak Limited was formed in 1968 in Pakistan and is steadily leaping ahead. Shareholders
solutions. It embraced the aspiration to with manufacturing facilities based in East
define the quality and set the benchmark Pakistan. However, calamity struck in The foundation of the Company’s
of performance for others to follow. That 1971 as the war in East Pakistan resulted progress over all these years is guided by
spirit drove the chronicles of the nation’s in loss of the sister concern. Despite this the belief to achieve growth through
largest motorcycle manufacturing massive financial impediment, Atlas Autos strong local roots. The dedication to
company, showcasing the “Power of remained steadfast and recovered. Later manufacturing excellence, human
Board of Directors
Dreams, Generation after Generation.” in 1979, another new motorcycle resource fostering, focus on
manufacturing plant at Sheikhupura, indigenization and development of a
Starting with an initial capital of Rs. namely “Panjdarya Limited” was network of sales and service outlets
500,000 and 2 associates by his side, established. across the country is being done with the
Mr. Yusuf H. Shirazi, the Chairman Atlas focus on continuing to be the nation’s
Honda, set up an investment company in To enhance the technological and ride. However, in our journey towards
1962 by the name of “Shirazi Investments production capabilities, a joint venture making lives better, more commutable Human Resource &
(Private) Limited”. This event laid the agreement was entered into in 1988 with and easier, we realize that there may be Audit Committee Company Secretary
Remuneration Committee
foundation of the Atlas Group. Utilizing HMC. Both Atlas Autos Limited and challenges in the future. But, with its
the funds generated by Shirazi Panjdarya Limited operated separately iconic style, performance and value, the
Investments (Private) Limited, Mr. Yusuf until the two were merged in 1991 and Company is well positioned to continue to
H. Shirazi signed a technical collaboration “Atlas Honda Limited” (the Company) fulfil its objective of bridging the nation
agreement with Honda Motor Company came into being. together.
Limited (HMC) in 1963 for the production
and sales of Honda motorcycles in Over the years, the Company has
Internal Audit
Pakistan. The company that was formed enjoyed tremendous success. With
as a result of this joint venture was called products of highest quality, state of the art Chief Executive
Officer
Operations Support
Marketing & Services Finance
Production Quality Assurance
Supply Chain Human Resource &

Administration
Research & Development Information Technology

Aerial view of Sheikhupura plant.
Engineering & Projects


A journey began five decades ago which “Atlas Autos Limited” with its manufacturing facilities, largest dealership
revolutionized the two – wheeler industry manufacturing facility located in Karachi. network and impeccable after sale
in Pakistan. It was the beginning of a ride service, the Company today is considered
to glory aiming to transform the people’s To expand the reach to new markets, the flag bearer of the motorcycle industry
lives by providing simplistic mobility Atlas Epak Limited was formed in 1968 in Pakistan and is steadily leaping ahead. Shareholders
solutions. It embraced the aspiration to with manufacturing facilities based in East
define the quality and set the benchmark Pakistan. However, calamity struck in The foundation of the Company’s
of performance for others to follow. That 1971 as the war in East Pakistan resulted progress over all these years is guided by
spirit drove the chronicles of the nation’s in loss of the sister concern. Despite this the belief to achieve growth through
largest motorcycle manufacturing massive financial impediment, Atlas Autos strong local roots. The dedication to
company, showcasing the “Power of remained steadfast and recovered. Later manufacturing excellence, human
Board of Directors
Dreams, Generation after Generation.” in 1979, another new motorcycle resource fostering, focus on
manufacturing plant at Sheikhupura, indigenization and development of a
Starting with an initial capital of Rs. namely “Panjdarya Limited” was network of sales and service outlets
500,000 and 2 associates by his side, established. across the country is being done with the
Mr. Yusuf H. Shirazi, the Chairman Atlas focus on continuing to be the nation’s
Honda, set up an investment company in To enhance the technological and ride. However, in our journey towards
1962 by the name of “Shirazi Investments production capabilities, a joint venture making lives better, more commutable Human Resource &
(Private) Limited”. This event laid the agreement was entered into in 1988 with and easier, we realize that there may be Audit Committee Company Secretary
foundation of the Atlas Group. Utilizing HMC. Both Atlas Autos Limited and challenges in the future. But, with its
the funds generated by Shirazi Panjdarya Limited operated separately iconic style, performance and value, the
Investments (Private) Limited, Mr. Yusuf until the two were merged in 1991 and Company is well positioned to continue to
H. Shirazi signed a technical collaboration “Atlas Honda Limited” (the Company) fulfil its objective of bridging the nation
agreement with Honda Motor Company came into being. together.
Limited (HMC) in 1963 for the production
and sales of Honda motorcycles in Over the years, the Company has
Internal Audit
Pakistan. The company that was formed enjoyed tremendous success. With
as a result of this joint venture was called products of highest quality, state of the art Chief Executive
Officer
Operations Support
Marketing & Services Finance
Production Quality Assurance
Supply Chain Human Resource &

Administration
Research & Development Information Technology

Aerial view of Sheikhupura plant.
Engineering & Projects

Messages for Stakeholders Messages for Stakeholders
Chairman Review Chairman Review
1961 - 1970 1971 - 1980 1981 - 1990 1991 - 2000 2001 - 2010 2011 - 2014
Atlas Autos Limited is A new model, S 110 Deluxe Panjadarya Limited The name of new merged Dealer convention of The Company surpasses
incorporated as public is introduced. commences commercial Company is changed to motorcycle industry was 90% localization record and
limited company. production. Atlas Honda Limited. held for the first time in crosses the 500,000 units
The Company launches two Pakistan. barrier in 2011.
First Technical of its longest running and The 2 stroke MB 100 is CG 125 engine parts
collaboration agreement is most popular production launched with a memorable manufacturing plant is The new marketing strategy The new model “Pridor” is
signed between Atlas Autos models, the fuel efficient advertising campaign. installed at Sheikhupura of “5S” Dealership is launched.
Limited and Honda Motor CD 70 and high plant and new model of CG introduced under which
Company Limited. The performance CG 125. New CD 70 with 125 is launched. customers can avail the The Company becomes the
The
historical ceremony takes econo-power engine is facilities of sales, service, first motorcycle company in
place in Tokyo, where Mr. The Company sends its key launched. New CD 70 model is spare parts, second hand Pakistan with all its models
Yusuf H. Shirazi and Mr. engineers and dealers to introduced with latest motorcycle exchange and are complied with latest
Glorious
Soichiro Honda, founder of Japan for training courses. The Company achieved ignition technology. special (credit) sales – all emission standards.
Honda Motor Company localization level of 50%. under one roof.
Limited, graces the Panjadarya Limited, an The Company managed to The new CD Dream model
Ride
occasion. associated Company, is A Quality Circle Movement, formalize eight technical The Company achieves is launched in 70 cc
incorporated with its plant called “Ala Mayar Circle” is assistance agreements localization level of 85%. category having stylish
Atlas Autos becomes the facility at Sheikupura. started, aiming at between Japanese design.
1963-2014
first two wheeler Company Second Technical improvement in quality Companies and vendors. The Company crosses the
in Pakistan to get listed on Assistance agreement is control and manufacturing Thus, the Company barrier of 100,000 units The Company launched
Stock Exchange. signed with Honda Motor techniques. continues to play a key role in 2003. CBR 150 and CBR 500,
Company Limited. in transfer of technology having special features
The journey of Pakistan’s largest Commercial production The Company organizes and vendor development in The new model CD 100 is along with its stylish look
motorcycle company is one to marvel. commences with Relay out, modernization the first ever vendor Pakistan. launched. and power geared by two
sanctioned annual capacity and balancing of conference. cylinders.
It is a journey of steadfast devotion of 6,000 units. manufacturing facility is The Company makes its The Company extends the
and dedication aimed to bridge the carried out. Engine parts manufacturing first exports to Bangladesh, capacity at Sheikhupura The Company celebrates
The Company launches a plant is installed. Nepal, Sri Lanka, Middle plant by establishing, state 50 years of the nation’s
distances between millions. Behold a series of new models. Series of technical East and Central Asia. of the art, 500k ride.
story of how two-wheel transportation Honda C 50, C 90, and S 90 seminars on motorcycle The Company celebrates synchronized Assembly
gained immense popularity technology are held in its 25th year of The Company received ISO Plant. Mrs. Yusuf H. Shirazi
emerged into an entity that joined the among the customers. Pakistan in collaboration incorporation. 9002 certification for both inaugurated the Company’s
nation together, under the great with the Association of Karachi and Sheikhupura The new model CG 125 50 years Gallery.
An in-house engineering Technical Scholarships of Honda Motor Company plants. Deluxe is launched.
banner of Atlas Honda Limited. workshop is set up and Japan. acquires 10% equity in The Company’s corporate
Company’s dream of Atlas Autos. The Company is ranked Company hosts the 15th reporting practices were
developing a completely A motorcycle Technical among the top ten NHC Asia-Oceania Bloc recognized through various
localized product takes its Training Centre is Merger of Panjdarya employers. Convention. awards by ICAP & ICMAP,
first place. established in Lahore. Limited with Atlas Autos SAFA, KSE, ACCA & WWF.
takes place. SAP, the leading ERP
system, is implemented.

Company Information Company Information
Company Information
Board of Directors Suhail Ahmed Razi Ur Rehman Legal Advisors MCB Bank Limited 26-27 KM, Lahore-Sheikhupura
Vice President Marketing General Manager Human Meezan Bank Limited Road, Sheikhupura-39321
Yusuf H. Shirazi Mohsin Tayebaly & Co.
Resources, Administration & National Bank of Pakistan Tel: (92-56) 3406501-8
Chairman Agha Faisal - Barrister at Law
Yasutaka Uda Corporate Affairs NIB Bank Limited Fax: (92-56) 3406009
Vice President Technical Soneri Bank Limited
Abid Naqvi
Khawaja Shujauddin Tax Advisor Standard Chartered Bank Branch Offices &
Director
Kashif Yasin General Manager Planning & Ernst & Young Ford Rhodes Sidat (Pakistan) Limited Customer Care Centres
Chief Financial Officer Commercial Hyder, Chartered Accountants The Bank of Tokyo-Mitsubishi
Hiromitsu Takasaki Azmat Wasti Road, Multan
UFJ Limited Tel: (92-61) 4540054, 4571989,
Director
Muhammad Khalid Aziz Shakil Mirza Shares Registrar United Bank Limited 4540028 Fax: (92-61) 4541690
General Manager Plants General Manager Supply Chain Hameed Majeed Associates (Pvt.)
Jawaid Iqbal Ahmed
Director Limited H. M. House, 7-Bank Registered Office 60-Bank Road, Saddar, Rawalpindi
Muhammad Qadeer Khan Afaq Ahmed Square, Shahrah-e-Quaid-e-Azam, 1-McLeod Road, Lahore-54000 Tel: (92-51) 5120494-6, 5120502
General Manager Quality General Manager Research & Lahore. Tel: (92-42) 37225015-17, Fax: (92-51) 5120497
Kazuhisa Hirota
Assurance Development Tel: (92-42) 37235081-82 37233515-17
Director
Fax: (92-42) 37358817 Fax: (92-42) 37233518, 37351119 House # 7, Atta Road, near Govt.
Hiromitsu Takasaki Muhammad Noman Khan E-mail: [email protected] Girls College, Rahimyar Khan.
Sanaullah Qureshi
General Manager Technical General Manager Engineering &
Director
Projects
Bankers Website: www.atlashonda.com.pk Tel: (92-68) 5888809, 5883419,
Allied Bank Limited 5883417
Mushtaq Alam
Yasutaka Uda Bank Al-Habib Limited Factories
Director
General Manager Information Auditors 391, Block D, Latifabad Unit #6,
Technology Bank Alfalah Limited F-36, Estate Avenue, S.I.T.E.,
Hameed Chaudhri & Co. Barclays Bank PLC Pakistan Karachi-75730 Hyderabad
Saquib H. Shirazi Chartered Accountants Deutsche Bank AG Tel: (92-21) 32575561-65 Tel: (99-22) 3864983-4
Javed Afghani Fax: (92-22) 3864983
Chief Executive Officer Faysal Bank Limited Fax: (92-21) 32563758
General Manager Marketing
Habib Bank Limited
Umair Mukhtar 1st Floor, Meezan Executive Tower,
Company Secretary 4- Liaquat Road, Faisalabad
Tel: (92-41) 2541011-7, 2541014
Audit Committee
Sanaullah Qureshi Show Room
Chairman West View Building, Preedy Street,
Saddar, Karachi
Abid Naqvi Tel: (92-21) 32720833, 32727607
Member
Warranty & Training
Jawaid Iqbal Ahmed Centres
Member 28 Mozang Road, Lahore
Tel: (92-42) 36375360, 36303366
Syed Tanvir Hyder
Head of Internal Audit Azmat Wasti Road, Multan
Tel: (92-61) 4540028
Umair Mukhtar
Secretary
Human Resource &

Sanaullah Qureshi
Chairman
Jawaid Iqbal Ahmed

Member
Saquib H. Shirazi
Member
Razi Ur Rehman
Secretary
Management Committee
Saquib H. Shirazi
Customer Care Services are also
Chief Executive Officer
available at these locations.
Inside view of Sheikhupura plant

Board of Directors Board of Directors
Board of Directors
Abid Naqvi
Director
Yusuf H. Shirazi Mr. Abid Naqvi is the COO of ACL Capital (Pvt.) Limited, a business development company
affiliated with Associated Constructors Ltd. He is also on the Board of Associated Constructors
Chairman
Limited, Alfalah GHP Investment Management Limited and Cherat Packaging Limited. He has
worked in the fields of Commercial and Development Banking and Stock Brokerage for a period
Mr. Shirazi is a Law graduate (LLB) with BA (Hons.) and JD (Diploma in Journalism) of over thirty years. He has also worked as CEO of Taurus Securities Limited, a renowned name
from Punjab University and AMP Harvard. He served in the financial services of in the stock brokerage industry. He is a graduate from the University College London, UK in the
the Central Superior Services of Pakistan for eight years where he authored 50 field of Economics and Finance.
reports as to how the businesses are carried and tax assessed. He was an
instructor in the Finance Services Academy on Law and Accounts. He is the
author of seven books including “Aid or Trade” adjudged by the Writers Guild as
the best book of the year and continues to be a columnist, particularly on matters
– socio – politico – economic. Yasutaka Uda
Director
Mr. Shirazi is the Chairman of Atlas Group, which, among others, has joint
ventures with Honda, GS Yuasa and MAN to name a few. Mr. Shirazi has been
the President of Karachi Chamber of Commerce and Industry for two terms. He Mr. Yasutaka Uda has vast experience in the automobile industry, having worked with Honda
has been the founder member of Karachi Stock Exchange, Lahore Stock ventures, across the globe. In 2007, he assumed senior management role in the Honda Motor
Exchange and International Chamber of Commerce and Industry. He has been Company Limited, Japan and later on joined Honda South America Limited as the Director. Before
on the Board of Harvard Business School Alumni Association and is the Founder taking over his current responsibilities, he was stationed as the Director in the Honda Motorcycle
President of Harvard Club of Pakistan and Harvard Business School Club of & Scooter India (Private) Limited. He has diversified knowledge of Honda Products and has
Pakistan. He has been a visiting faculty member at National Defense University, experience of working in different cultures. He is Vice President – Technical and a member of the
Navy War College and National School of Public Policy. He has been on the Board of Atlas Honda Limited from March 2015.
Board of Governors of LUMS, GIK and FC College (Chartered University) and
Pakistan Institute of Management. Previously, he also served, among others,
on the Board of Fauji Foundation Institute of Management and Computer Sciences
(FFIMCS) and Institute of Space Technology – Space & Upper Atmosphere
Research Commission (SUPARCO). Kazuhisa Hirota
Director
Mr. Shirazi has been awarded Sitara-e-Eisaar and Sitara-e-Imtiaz the top Civilian
Awards. Sitara-e-Imtiaz conferred by the Government of Pakistan recognizes Mr. Kazuhisa Hirota is General Manager of Finance Division of Honda Motor Company Limited
individuals who have made an "especially meritorious contribution to the security Japan. He is also responsible for the region as General Manager of Regional Operation. He
or national interests of Pakistan, world peace, cultural or other significant public joined Honda in 1987. He has also served at Business Planning Division. He has also served in
endeavors”. Sitara-e-Eisaar Award is in recognition of CSR activities in Pakistan. China at Honda Automobile (China) Company Limited and was in-charge of regional operations
A Distinguished Formanite Award for outstanding achievements as an of Honda Motor (China) Investment Company Limited.
entrepreneur was awarded by Forman Christian College – University Lahore.
The Government of Japan also acknowledged Mr. Shirazi’s contributions to

promote economic relationship between the two countries by conferring the
Japanese National Award.
Hiromitsu Takasaki
Sanaullah Qureshi Director
Director
Mr. Hiromitsu Takasaki has served at Planning Division of Honda Motor Company (HM), Japan
before being appointed to Pakistan. Earlier he was stationed in U.S.A. He has started his career
Mr. Sanaullah Qureshi qualified as a Chartered Accountant from Scotland and joined ICI Pakistan
from four wheelers in 1989. He is member of the Board of Atlas Honda Limited since January
Limited in 1962. He worked in different capacities as General Manager and Director in-charge of
2014.
Finance, Human Resources and various other businesses of ICI. He retired as the Deputy Chairman
of ICI in 1993. Mr. Qureshi joined as CEO of Forbes Forbes Campbell & Co. Limited, an old
established Group dealing in shipping, trading and manufacturing. He retired from Forbes in 1995
and has since worked in advisory capacity with Captain-PQ Chemicals Industries Limited. He is
the former President of Management Association of Pakistan and the Chairman of Gillette Pakistan
Limited. He previously held directorship in Linde Pakistan Limited (formerly known as BOC Pakistan
Limited), Faysal Bank Limited, SSGCL, Atlas Bank Limited and MYK Associates (Private) Limited.
He has been on the Board of Atlas Honda Limited since February 2001.
Saquib H. Shirazi
Chief Executive Officer
Jawaid Iqbal Ahmed
Director Mr. Saquib H. Shirazi has been the Chief Executive Officer of Atlas Honda Limited for the last
fourteen years. He graduated from the Wharton School of Finance, before completing his Masters
Mr. Ahmed is an AMP from Harvard Business School, Boston USA, and IPBM from IMD from the Harvard Business School. He has worked with the Bank of Tokyo – Mitsubishi UFJ Limited
Lussanne, Switzerland. He is also MBA from IBA Karachi University. He has been working in in Japan and is the former CEO of Atlas Investment Bank Limited. At present, he is serving as a
Atlas Group in various capacities. He has over 49 years of experience in the field of industrial member on the Board of Pakistan Petroleum Limited, Pakistan Cables Limited and Cherat Cement
and financial markets of Pakistan. He spearheaded joint venture partnerships of Atlas Group Limited. Previously, he has been on the Boards of National Refinery Limited, Sui Southern Gas
with Honda Japan, JSB Japan, Bank of Tokyo, Asian Development Bank and ING. Company Limited, PERAC and the Privatization Commission of Pakistan. He has also been on
the Board of Harvard Business School’s Global Alumni and served as President for the year from
2006 to 2008. He has been on the Board of Atlas Honda Limited since November 2000.
Non-Executive Executive Independent Member Board Audit Committee Member Human Resource & Remuneration Committee

Significant Events Significant Events
Significant
events during
2014-15
The Board of Directors (BOD)
The Company and Askari Bank meeting was held to review and The new model CG Dream was
Limited entered into an agreement approve audited financial launched in 125 cc category,
for providing consumer financing statements for the year ended having modern look and
facilities to end consumers. March 31, 2014. powerful engine.
Q1
Atlas Honda Limited 24th Ala Mayar Vendors Annual General Meeting of shareholders of
(the Company) acquired shares Convention, 2014 was organized the Company was held on June 26th, 2014
of Atlas Hitec (Private) Limited, by the Company. where distribution of the cash dividend of
an associated Company, Rs. 10 per share was approved.
amounting to Rs.190 million.
Atlas Hitec is a joint venture
between Denso Corporation and
Atlas Group, engaged in the
manufacturing of electrical
The Company won 1st position for the
components of motorcycle.
“Best Corporate Report” Award in the
“Engineering Sector” awarded by the
Joint Committee of ICAP and ICMAP.
Q2
BOD meeting for the 1st quarter was Senior Top Executive of the The Certificate Distribution Ceremony of IBA
held for the approval of unaudited Company attended the Advance Diploma Program, a program aimed at development
first quarter financial results. Management Program at the of middle management associates, was held.
Insead Business School.
‘Technical block’, the renovated offices of the Quality Assurance Workshop on Financial Wisdom
and Research & Development department, was inaugurated at for Non-Finance Managers was The Company signed MOUs with leading banks for the
the Karachi plant by the Chairman, Mr. Yusuf H. Shirazi. arranged. availability of Atlas Honda motorcycles on credit.
Q3
BOD meeting for the 2nd quarter The Company won the Merit
was held for the approval of half certificate for the “Best Presented
yearly financial results reviewed Annual Report” Award in
by the auditors. “Manufacturing sector” awarded by
The South Asian Federation of
Accountants (SAFA).
The Company
participated in the
The Company announced to increase the Pakistan Auto Show 2015
BOD meeting for the 3rd quarter was to exhibit its products and The Company won the “Karachi
engine warranty period and first free service to
held for the approval of unaudited third strengthen relationships Stock Exchange Top 25
three years and three cards respectively.
quarter financial results. with customers. Companies” Award.
Q4
BOD deliberated and approved The Company announced to
the Annual Budget 2015-16 in benefit the customers by
the BOD meeting held in reducing the prices of its
February, 2015. products in 70 cc category

Company Overview
Shareholders’ Information
REGISTERED OFFICE DIVIDEND ANNOUNCEMENT

1-McLeod Road, Lahore The Board of Directors of the Company has proposed a
Tel: (92-42) 37225015-17 final cash dividend of Rs. 12 per share (120 %) for the year
(92-42) 37233515-17 ended March 31, 2015 subject to approval by the
Fax: (92-42) 37233518 shareholders of the Company at the Annual General Meeting.
(92-42) 37351119
Dividend paid for the year ended March 31, 2014 was cash
EXCHANGE LISTING dividend Rs. 10 per share (100%).
Atlas Honda Limited (the Company) is listed on Karachi

Stock Exchange Limited (KSE) and Lahore Stock Exchange DATES OF BOOK CLOSURE
Limited (LSE).
The register of the members and shares transfer books of
the Company will remain closed from June 02, 2015 to June
STOCK SYMBOL 16, 2015 (both days inclusive).
The stock code for dealing in equity shares of the Company
at KSE and LSE is ATLH. DATE OF DIVIDEND PAYMENT
The payment of dividend, upon declaration by the
LISTING FEES shareholders at the forthcoming Annual General Meeting,
The annual listing fees for the financial year 2014-15 have will be made on or after June 16, 2015.
been paid to the KSE and LSE and Central Depository
Company of Pakistan Limited within the prescribed time Last year the Company dispatched the cash dividend on
limit. June 26, 2014 after approval from the shareholders at the
50th Annual General Meeting.
STATUTORY COMPLIANCE
PAYMENT OF DIVIDEND
During the year, the Company has complied with all
applicable provisions, filed all returns / forms and furnished Cash dividends are paid through dividend warrants
all relevant particulars / information as required under the addressed to the shareholders whose names appear in the
Companies Ordinance, 1984 and allied rules, the listing register of members at the date of book closure. Shareholders
requirements and any other relevant laws, rules and are requested to deposit those warrants into their bank
regulations prescribed by the Securities and Exchange accounts.
Commission of Pakistan (SECP).
All the Joint Shareholder(s) are requested to provide the
information of their respective shareholding to the share
ANNUAL GENERAL MEETING
registrar of the Company before the start of book closure
Date: June 16, 2015 to enable the Company to withhold tax at the prescribed
Time: 1 1:00 A.M. rates for Filers / Non-Filers as per Finance Act 2014.
Venue: Registered Office at 1-McLeod Road, Lahore.
In the light of recent clarification from Federal Board of
FINANCIAL CALENDAR Revenue, all the shareholders who intends to seek exemption
from withholding tax under clause 47B of Part - IV of the
April 2015 Audited annual results for the year Second Schedule of the Income Tax Ordinance, 2001, are
ended March 31, 2015 requested to provide to the share registrar of the Company
May 2015 Mailing of annual reports
the valid Exemption Certificate under section 159(1) of the
June 2015 Annual General Meeting
Income Tax Ordinance, 2001 duly issued by the concerned
July 2015 Unaudited first quarter financial results
Commissioner Inland Revenue in order to claim the said
November 2015 Unaudited half year financial results
exemption.
January 2016 Unaudited third quarter financial results
16 Annual Report 2015

Company Overview
SHARE TRANSFER SYSTEM The instrument appointing a proxy (duly signed by the
shareholder appointing that proxy) should be deposited at
Share transfers received at the Company's Share Registrar
the company/share registrar not less than forty eight hours
are registered within 30 days from the date of receipt, before the meeting.
provided the documents are complete in all respects.
WEBSITE OF THE COMPANY

ANNUAL GENERAL MEETING
The Company is operating website www.atlashonda.com.pk
Pursuant to section 158 of the Companies Ordinance, 1984, containing updated information regarding the Company.
the Company holds a General Meeting of shareholders at The website contains the financial results of the Company
least once a year. Every shareholder has a right to attend together with the Company's profile, the Atlas group
the General Meeting. The notice of such meeting is sent to philosophy and products of the Company.
all shareholders at least 21 days before the meeting and
also advertised in at least one English and Urdu newspaper
having circulation in the province in which the KSE and CHANGE OF ADDRESS / E-MAIL ADDRESS
LSE are situated. All registered shareholders should send information of
changes of addresses and e-mail address, if any to:
PROXIES
M/s. Hameed Majeed Associates (Pvt.) Limited. H.M. House,
Pursuant to Section 161 of the Companies Ordinance, 1984
7-Bank Square, Shahrah-e-Quaid-e-Azam, Lahore.
and according to the Memorandum and Articles of
Phone : +92 (42) 37235081-82
Association of the Company, every shareholder of the
Fax : +92 (42) 37358817
Company who is entitled to attend and vote at a General
Meeting of the Company can appoint another member as
his/her proxy to attend and vote instead of him/her. Every MARKET PRICE DATA
notice calling a General Meeting of the Company contains
a statement that a shareholder entitled to attend and vote The following table shows the month wise share price of
is entitled to appoint a proxy, who ought to be a member the Company that prevailed during the financial years 2014-
of the Company. 15 and 2013-14 in the KSE and LSE:
KSE LSE
Months High Low High Low High Low High Low
2014-15 2013-14 2014-15 2013-14
April 328.00 294.00 199.68 171.00 322.77 298.23 199.68 176.00
May 305.05 248.48 267.85 209.66 305.05 251.00 265.1 1 209.66
June 276.00 214.01 285.00 180.11 272.02 221.22 281.15 181.14
July 260.10 229.00 213.98 181.00 252.52 229.00 208.88 183.50
August 252.00 209.00 224.95 193.00 252.00 216.87 220.07 193.00
September 328.00 242.22 208.00 191.50 320.82 245.35 206.56 192.81
October 320.00 285.41 206.88 199.00 309.96 288.65 205.50 200.00
November 355.57 285.61 241.43 201.00 338.64 288.63 241.43 201.25
December 343.76 300.00 275.00 239.13 336.87 302.72 272.00 240.07
January 341.25 321.00 296.00 258.02 336.00 325.00 286.87 258.54
February 405.30 330.01 299.00 258.00 394.09 330.36 285.09 258.01
March 380.50 311.37 299.00 276.00 379.00 327.75 295.00 277.05
Atlas Honda Limited 17

Chairman’s Review
Chairman’s Review
"To ensure its long-term competitiveness, the Company is taking steps towards development
of new products, quality improvement and enhancement of customer experience - that will help
improve sustainable profitability of its business in the long-term. The Company has steadily
progressed in all these areas and is inculcating a culture which is absolutely committed to the
highest level of quality standards and to enriching customer delight.”
I am pleased to present the 51st Annual Report of the Company for the year ended March 31, 2015.
Economy
The macroeconomic indicators are showing positive signs of stable growth. Inflation was recorded at a decade low level of 5.12%.
In line with the low inflation, the central bank reduced discount rate by 200 bps to 8%. This shift to expansionary monetary policy
is also due to the satisfactory position on the external front. Strong growth in remittances and receipts from multilateral sources
helped foreign exchange reserves to surpass USD 16 billion. It provided stability to Pak Rupee, which further strengthened against
the US dollar. However, it contributed to a slowdown in exports, which reduced by 3.3% mainly on account of weak global demand.
On the other hand, decline in international commodity prices, including oil, reduced the import bill. Resultantly, the current account
deficit improved to 0.7% of GDP, as compared to 1.5% during the same period of preceding year. The equity markets have similarly
shown a bullish sentiment throughout the period under review.
On the fiscal front, deficit was contained to 1.2% during the first half of the financial year 2015, against 2.2% in the same period
of preceding year. This is due to improved tax collection, restricted energy subsidies and controlled development expenditure.
Progress on the external front, supported by an improved balance of payment position, prompted Moody's Investors Service to
raise Pakistan's credit rating outlook to 'Positive' from 'Stable'.
Agriculture
The agricultural harvest largely improved in 2014-15. Bumper yields of major Kharif crops were recorded despite heavy rains
and floods in Punjab and Upper Sindh. However, the unfavorable trend in the global commodity prices translated into the suppressed
end prices for the local farmers. These factors led to constrained agricultural liquidity. However, the increase in support prices
of wheat, higher agri credit disbursements and favorable weather conditions for Rabi crops are expected to contribute positively
towards the overall agriculture GDP.
Large Scale Manufacturing (LSM)
The LSM index recorded nominal growth of 2.0% during the year. Major contribution came from Iron, Electronics, Chemicals and
Leather sectors. Continued power outages, lower commodity prices and weak external demand of textile products contained
manufacturing output. However, lower input costs of materials, easier credit conditions and borrowing costs will improve industrial
performance.
The Two Wheeler Industry
The two wheeler industry continued to face economic challenges. Low disposable income discouraged households in rural areas
from spending on consumer durable products, like motorcycles. In urban markets, political instability and poor law and order
situation outweighed the prospects of increase in demand arising from urbanization. Further, availability of credit to end consumer
remained limited. These factors translated into stagnant growth of the two wheelers' market. However, low vehicle penetration
ratios and changing customer preference towards higher engine segments suggest promising market growth.
The Company
The FY 2014-15 remained a year of extensive efficiency measures and improved profitability for the Company, underpinned by
intensified focus towards quality, productivity and cost.

Chairman’s Review
Marketing Focus
Given the subdued demand in domestic markets in the year under review, your Company sold 620,329
units. However, it remained determined to bring momentum in the industry by offering products that
meet customer expectations.
The two wheeler industry in Pakistan predominantly comprises of the 70cc category. The major demand
for this segment comes from the rural areas. The slowdown in agriculture sector translated in low
Sales Volume volumes for this segment. Promotional schemes, increase in credit and other customer based activities
(in units)
were carried out to improve market sentiments.
640,148
Your Company, being the market leader, recognizes that it has the additional responsibility to maintain
630,063
the customers' reach to mobility. Accordingly, the Company intensified its efforts to leverage its internal
strengths and capitalized on the stability of Pak Rupee and decline in commodity prices. This provided
620,329
an opportunity to pass on the benefit to the customers. Accordingly, effective March 22, 2015, the price
of the market defining model CD 70 was reduced by 10 percent to Rs.63,500 and CD Dream to
Rs.67,500. This initiative was well received by the customers as the initial response has far exceeded
the Company's expectations. As a result, the Company is revising its targets for next year in an aggressive
manner.
2013 2014 2015
Sales Volume
Pridor, the Company's offering in 100cc category, is making positive progress. To generate excitement
in the market, the Company enhanced the number and scale of its field events. It reached out to
customers through relevant communication and focused promotions, which include econo-runs, free
checkup camps and test rides.
With CG 125, the Company continued to lead the premium segment. Refreshed version of the model
Sales & Gross Margin was launched which posted strong growth of 21%. To further strengthen its leadership in the 125cc
(Rs. in million) segment, the Company launched the new “CG Dream” in May 2014 with the active marketing campaign
of “Meri Dream, Meri Power”. The model found favour with young urban customers as it met the
45,772
customers' requirement for a modern and attractive product.

44,479
42,325
The Spare Parts business registered an impressive growth of 28.8%. The Company was able to enhance
sales of “Atlas Honda Genuine Parts” through innovative marketing ideas, promoting sales through
service workshops and a larger and improved product portfolio. The Company also undertook national
campaigns to educate customer about the detrimental effects of using fake parts. These efforts, along
4,674
with a wider distribution network and improved customer accessibility, helped to increase revenue to
4,225
3,681
over Rs.4.0 billion. However, the influx of illegally sourced spare parts continues to pose a major threat
to this business in the organized sector.
2013 2014 2015
Sales Gross Margin Performance Scorecard
The Company remains committed to deliver on its long term objectives of sustainable growth and value
creation. This is being achieved through continued focus on operational excellence, product portfolio
Profit After Tax
diversification, cost reduction and a strong capital structure.
(Rs. in million)
The Company registered total sales of Rs.45.8 billion, a growth of 2.9%. Gross margin for the year
2,351
2,002
ended March 31, 2015 increased from Rs.4.2 billion to Rs.4.7 billion and as a percentage of sales
1,610
improved from 9.5% to 10.2%. Continued improvement in sales mix, favorable exchange rates, energy
management measures and other operational improvement measures contributed to an increase in
gross margins. Other income, net of financial charges, also contributed significantly to the bottom line.
It crossed Rs.0.5 billion which is an encouraging 29.8% higher than the corresponding year. This was
achieved through better treasury management and improved liquidity. As a result, the Company registered
the ever highest net profit before tax of Rs.3.2 billion. Net profit after tax increased to Rs.2.4 billion from
2.0 billion, an increase of 17.5% over last year. This translates into Earnings per Share (EPS) of Rs.22.73
2013 2014 2015 as against Rs.19.36 of last year.
Profit After Tax

Chairman’s Review
Atlas Honda Limited has been a debt free Company for the past four years and incurs no borrowing
cost. Free cash flow from operations during the year stood at Rs.4.0 billion. The cash has been deployed
Earnings Per Share
-Restated in capital assets, short term investments and payment of dividend. Additions to capital assets mainly
(Rs. Per Share) represent expansion of production facilities and balancing, modernization and replacement of existing
manufacturing facilities.
22.73
19.36
During the year, the Company contributed an amount of Rs.9 billion to the Government and its agencies
15.56
on account of various taxes and levies. The Atlas Group, of which the Company is a constituent member,
contributed Rs.30 billion in all towards the national exchequer. This makes Atlas Group one of the
highest tax payers in the Country with 1% of Government total revenue.
Dividend Policy
Over the years, the Company has followed a consistent policy of paying high dividends, keeping in view
2013 2014 2015
the cash generating capacities, expected capital needs of business and strategic considerations. For
Earnings Per Share 2014-15, the Board of Directors is pleased to propose cash dividend of Rs.12 per share. This amounts
to Rs.1,241 million, which is the highest in the Company's history. Thus, the Company has improved
a pay-out ratio of 52.8%.
Cash Dividend Manufacturing Excellence

(Rs. in million)
Higher levels of operational excellence were achieved as a result of standardization of core business
1,241
1,034
processes and stronger integration of capabilities. The focus remained on creating additional capacities
and refining the flexibility in the Company's value chain. In 2014 - 15, the capacity of Engine and Casting
620
plants were upgraded and improved productivity was achieved in the Assembly plant. It enables the
Company to swiftly respond to market demand. Further, the Company's plants were made leaner by
outsourcing non-critical processes and operations. The Company also recognizes that development
of resources across its supply chain is critical in maintaining its long term competitiveness. Accordingly,
it is constantly expanding collaboration with its suppliers for utilizing their expertise and benefitting from
increased economies of scale.
2013 2014 2015
As a part of sustainable development initiatives, significant reduction in energy consumption has been
Cash Dividend
achieved through load reduction, effective operation controls and technological up gradations. Importantly,
a system for recovering and utilizing waste heat from generators has been installed and is planned to
commence its operation from April 2015.
Business Process Re-engineering
The Company recognizes that optimizing its operations is imperative for long-term growth. A number
of Kaizen activities were made during the year to achieve this objective:
Tooling modification and material resourcing The B2B system was further strengthened through
was achieved in Engine plant. inclusion of additional details.
Refurbishment of GDC dies and localization Electrical load transfer of various shops from generators
of HPDC and GDC dies was completed. to other economical sources was conducted.
Die casting consumables were resourced Cost reduction in F2 Resin paint was achieved in
and localized. ED Paint area.
Awards
It gives me great pleasure to inform that the following awards were received by the Company during
the year:
1st position for Best Corporate Report Award in “Engineering Sector” by the Joint Committee of ICAP
and ICMAP,
KSE Top 25 Companies Award by the Karachi Stock Exchange; and
Merit certificate for Best Presented Annual Report Award in “Manufacturing sector” by the South Asian
Federation of Accountants (SAFA).

Chairman’s Review
Future Outlook
The economy is gradually moving towards a sustainable growth phase owing to improved foreign exchange reserves, rising
workers' remittances and controlled fiscal deficit. Going forward, the country's growth potential depends on the need to capitalize
on this recent stability. While risk to revenue collection exists amid falling oil prices, it also presents an opportunity for the
government to reduce energy subsidies and containing the budgetary deficit. However, successful fiscal consolidation requires
continued commitment to long-term reforms, elimination of subsidies and additional taxation measures to improve the tax to GDP
ratio. The advent of LNG imports seems to be a step forward to resolve the prevailing energy constraints. Such measures, coupled
with steady commodity prices and lower interest rates would also benefit the industrial index. Declining international commodity
prices will continue to put pressure on the selling prices of agricultural commodities leaving an adverse effect on liquidity. Supportive
government counter-measures are, therefore, imperative. It will help to increase the demand for two wheelers due to its role as
the main source of motorized transportation in rural areas.
The Company has once again exhibited strong performance and competitiveness. It is passing through a dynamic period where
skills, technologies and scales are being developed and getting built for this decade and the next. The Company's decisive and
systematic strategies, structures and culture are all aimed to grow shareholder value sustainably. Underpinned by the guiding
principles of “The Atlas Way”, the Company will continue to consistently outperform its previous best efforts to provide qualitative
long-term growth.
(One achieves what one is determined to achieve)
Acknowledgment
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 its sincere efforts, the Board of Directors for their guidance
and 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.
Yusuf H. Shirazi
Date: April 30, 2015 Chairman

Directors’ Report to Shareholders
The Directors of the Company are pleased to present their report together with the fifty first Annual Report of the Company along
with Audited Financial Statements for the year ended March 31, 2015.
Operating Results
The operating results of the Company are summarized as follows:
Year ended Year ended

March 31, March 31,
2015 2014
------ (Rupees in ’000) -----
Profit before taxation

Taxation 3,243,638 2,689,418
Current 942,357 775,761

Prior Years 13,765 (43,322)
Deferred (63,375) (44,581)
892,747 687,858
Profit after taxation 2,350,891 2,001,560
Dividends and Appropriations
The directors have recommended a final cash dividend of Rs.12 (2014: Rs.10) per share. Accordingly, the appropriation of profit will be
as under:
Year ended Year ended

March 31, March 31,
2015 2014
------ (Rupees in ’000) -----
Profit Available for appropriation 2,832,361 2,137,129

Appropriation:
Transfer to General Reserve 830,000 630,000
Cash Dividend 120% (2014: 100%) 1,240,879 1,034,066
2,070,879 1,664,066
Un-appropriated profit carried forward 761,482 473,063
Earnings per Share
The Basic and Diluted earnings per share after tax is Rs.22.73 (2014:Rs.19.36).
Chairman's Review
The Chairman's review included in the Annual Report deals inter alia with the nature of business, performance of the Company,
explanation of significant deviations from last year, future prospects and uncertainties.

Board of Directors
The Board comprises of one independent director, three executive and four non-executive directors. The directors of the Company were
elected in Extra Ordinary General meeting of the Company held on March 20, 2014. During the year Mr. Tariq Amin and Mr. Hisao
Kobayashi resigned as Directors and Mr. Jawaid Iqbal Ahmed and Mr. Yasutaka Uda were appointed in their places respectively. The
Board places on record its appreciation for the valuable contributions made by the outgoing Directors and welcomes the new Directors.
Meetings of the Board and its Committees in 2014-15
During the year, five meetings of Board of Director (BOD), four meetings of Board Audit Committee (BAC) and one meeting of Human
Resource & Remuneration (HR&R) committee were held. The attendance of the directors and the number of their directorships in
listed companies, including Atlas Honda Limited (AHL) is as follows:
Committee Members Attendance

Director Board HR & Board HR &
Sr. # Director ship Status Board
Audit Remuneration Meetings Audit Remuneration
Committee Committee Committee Committee
1. Mr. Yusuf H. Shirazi 4 Re-elected on March 20, 2014 - - 5/5 - -
2. Mr. Saquib H. Shirazi 4 -do- - 5/5 - 2/2
3. Mr. Sanaullah Qureshi 1 -do- 3/5 3/4 1/2
4. Mr. Hiromitsu Takasaki 1 -do- - - 0/5 - -
5. Mr. Kazuhisa Hirota 2 Elected on March 20, 2014 - - 0/5 - -
6. Mr. Abid Naqvi 2 -do- - 4/5 4/4 -
7. Mr. Tariq Amin 2 Resigned on Feb 27, 2015 5/5 4/4 2/2
8. Mr. Jawaid Iqbal Ahmed 2 Co-opted on March 4, 2015 - - -
9. Mr. Hisao Kobayashi 1 Resigned on March 31, 2015 - - 3/5 - -
10. Mr. Yasutaka Uda 1 Co-opted on March 31, 2015 - - - - -
Auditors
The retiring auditors M/s Hameed Chaudhri & Co. Chartered Accountants, being eligible, offered themselves for re-appointment. The
Audit Committee has recommended their re-appointment as auditors of the Company for the year 2015 -16.
Material changes
There have been no material changes since March 31, 2015 to date of the report and the Company has not entered into any
commitment during this period, which would have an adverse impact on the financial position of the Company.
Pattern of Shareholding
The pattern of shareholding of the company is annexed to this report.
Communication
The Company focuses on the importance of the communication with the shareholders. The annual, half yearly and quarterly reports
are distributed to them within the time specified in the Companies Ordinance, 1984. The activities of the Company are updated on
its web site at www.atlashonda.com.pk, on timely basis.
Safeguarding of Records
The Company puts great emphasis for storage and safe custody of its financial records. The Company is using SAP for recording
its financial information. Access to electronic documentation has been secured through implementation of a comprehensive password
protected authorization matrix in SAP-ERP system.
Business Continuity Plan
As part of Business Continuity Plan, remote disaster recovery sites have been adequately set up for maintaining backup server and
data in case our primary server encounters any issues.

Human Resource Management
Human resource planning and management is one of the most important considerations with the senior management. The Company
has established a Human Resource and Remuneration Committee which is involved in the selection, evaluation, compensation and
succession planning of key management personnel. It is also involved in recommending improvements in the human resource policies
and procedures and their periodic review. The details of human resource policies are presented in the 'Sustainability Report' which
forms an integral part of this Annual Report.
Corporate Social Responsibility
The Company considers social, environmental, and ethical matters in the context of the overall business environment. The Company
is committed to work in the best interest of all the stakeholders, in particular the community in which we live and forms our customer
base. The report on Corporate Social Responsibilities, including its approach to health and safety, human resources, social,
environmental and other related issues are presented in the 'Sustainability Report', which forms a part of this Annual Report.
Statement of Value Addition and its Distribution and Risk Management
The 'Statement of Value Addition and its Distribution' and 'Risk and Opportunity Report' are annexed to this Annual Report.
Corporate and Financial reporting framework
The Directors confirm the compliance with Corporate and Financial Reporting Framework of the SECP and Code of Corporate
Governance for the following matters:
The financial statements, prepared by the management of the Company, fairly present its state of affairs, the results of its
operations, cash flows and changes in equity.
The Company has maintained proper books of account.
Appropriate accounting policies have been consistently applied in preparation of the financial statements and accounting estimates
are based on reasonable and prudent judgments.
International Financial Reporting Standards, as applicable in Pakistan, have been duly followed in preparation of the financial
statements.
There has been no material departure from the best practices of Corporate Governance, as detailed in the Listing Regulations.
The system of internal control is sound in design and has been effectively implemented and monitored. The process of monitoring
internal controls will continue as an ongoing process with the objective to further strengthen the controls and bring improvements
in the system.
There is no doubt about the Company's ability to continue as a going concern.
A summary of key operating and financial data of the Company is annexed to this Annual Report.
Information about taxes and levies is given in notes to the accounts.
The Company operates a contributory provident fund scheme for all employees and Defined benefit gratuity fund scheme for
its management/non-management employees. The value of investments based as at March 31, 2015 are as follows:
Provident Fund Rs.833.024 million

Gratuity Fund
Management Staff Rs.214.977 million
Non-Management Staff Rs.69.030 million
On behalf of the Board of Directors
Saquib H. Shirazi
Karachi: April 30, 2015 Chief Executive Officer

Risk and Opportunity Report

Risk Analysis and Internal Control Framework
This report will cover Company's strategy formulation methods, opportunity analysis, risk assessment processes and counter measures
thereon. The Company has designed a risk management approach and internal control framework based on its business philosophy
and corporate objectives, which is explained step by step below:
A) Strategy formulation
Operations Reporting Compliance
Management has developed a set of objectives that represent stakeholders'
expectations and are the lead indicators for determining the success level of Company Objectives
the Company. In order to ensure the achievement of the set objectives,
Company
management adopts certain strategies. These strategies are approved by the
Board of Directors and are subject to change, depending upon any changes Opportunity analysis Strategy formulation
in the external business environment or internal organizational factors.
Division
Risk Analysis
&
B) Risk assessment Internal Control
framework
Businesses face numerous uncertainties that can pose potential threats to
Business Unit
the objectives of the Company and if not addressed, may culminate in loss. Governance Risk assessment
Such uncertainties can arise both from external events as well as internal
factors within the organization. The Company analyses four types of risks,
based on the information collected from various internal and external sources, Counter measures
which are as follows:
These risks are related to the business environment including the industry and are beyond Company's
Strategic Risks control.
Commercial Risks These risks emanate from commercial substance of the organization and involve decisions which may
affect Company's position in the market.
Operational Risks These risks are related to Company's internal operations, administrative procedures and daily affairs.
Financial Risks These risks are related with financial matters including profitability, financing, liquidity and credit.
Materiality Approach for Risk Assessment

Materiality is defined by the management as a degree of measure significant to the interests of the Company and its stakeholders.
Determination of when such degree is achieved is a matter of management's best judgement. A risk is considered material if, in
management's view, its occurrence is reasonably be expected to prevent the Company from achieving its key objectives and
expectations. All identified risks are measured for their materiality impact and are marked for their relative sensitivity as shown
in Risk and Counter Strategy Matrix (RCSM). The more material the risk, the greater focus is concentrated on development and
monitoring of its counter strategies.
C) Developing counter measures

Upon identification of risk factors, counter measures are devised to mitigate their impacts. The severity of the risk will determine
the criticality of the counter measure and will accordingly set its priority for action. Risks and their related counter strategies are
monitored on continuous basis and evaluated for any changes in related impacts.
The relationship between Company's objectives, risks and counter strategies is given in the annexed RCSM.
D) Governance
The Board of Directors is responsible for approving Company's risk management policy. The Board of Directors also provides
guidelines on strategic matters and organizational objectives. The business units are responsible for managing risks at operational
level. However, the Company-level risk management is the responsibility of the Risk Management Function (RMF) which comprises
of the Treasury department. RMF reports its results / findings / observations to the Risk Management Committee. The Committee
regularly reviews the business risk profile, risk management policy, risk assessment procedures, related counter strategies and
also advice on future actions. The Committee then reports the outcomes of their reviews to the CEO. The Board of Audit Committee
also reviews and assesses the adequacy of risk management for its effectiveness in risk mitigation.
E) Opportunity analysis
The Company has adequate processes and procedures in place for identifying potential gaps in the external environment which,
if Company has adequate resource, may be exploited as opportunities to improve performance. Based on its analysis, the Company
has identified the following opportunities in current economic landscape:
Healthy agriculture cash flows will increase liquidity in rural areas

Rising foreign remittances
Increasing Population and emerging youth segment
Weak transportation infrastructure

Risk and Counter Strategy Matrix

Corporate Objective Risk Risk Profile
Industry Competition: Strategic Risk:

To maintain Company's market leadership in two wheeler There is increasing competition among market participants in
automotive industry. the entry level motorcycles segment. Further, new entrants are
foreseen in the premium segment.
Commercial Risk:
Continued inflation and declining prices of agricultural products
may affect the purchasing power of customers.
Legislative and Legal Environment: Strategic Risk:

To operate in a stable market being compliant with all relevant Adverse Law and Order situations.
laws of the Country.
Commercial Risk:
Changes and reforms in existing laws & regulations and legal
uncertainties.
Low entry barriers for new entrants.
Technology: Strategic Risk:

To produce the best and highest quality product that meets Technological shift may render production process obsolete and
international standards of fuel efficiency, comfort and reliability. cost inefficient.
Operations: Operational Risk:

To ensure continuity of operations without any disruptions in The Company relies on third parties for sourcing of utilities.
supply and minimize idle time.
Vendors' operational and financial constraints may affect supply

of raw materials and parts used in the manufacturing.
Disruption due to data loss from operational failures or natural

disasters.
Low Medium High

Counter Strategies to Risk Actual Result
The Company have a robust business plan in place to deliver its strategy Given subdued demand in the market, net sales grew by 3% during
and ambition to maintain quality products in major segments of motorcycles. financial year 2014-15.
The Company places due emphasis on monitoring markets and competitors
to be able to understand and pre-empt external dynamics and remain The Company has launched new model in 125CC category during the
competitive. year.
The Company has six models covering 70CC, 100CC and 125CC segment. The Company introduced 3 years warranty for all engine parts and 3
It is committed to exacting quality standards by ensuring improved models free services for the first time in Pakistan.
as per customer preference. Also, it has most lucrative 2nd hand market
ensuring optimum resale value for customers.
The Company operates the largest dealer network in Pakistan and most The Company has made arrangements with various Banks to promote
efficient after sales services network. These alongwith financial solutions consumer and dealer financing services at highly competitive prices.
helps boosting customer purchasing power.
In order to avoid the risk of operating disruptions and to fulfill the market The Company well managed to run both plants with no deviation from
demands, the Company operates two production facilities (one at existing laws and regulations.
Sheikhupura and other at Karachi).
A team of qualified professionals continuously monitors legal developments No such non-compliances or complaints lodged during the year by the
in relevant spheres, implements, follows up and ensures compliances Government and other institutional concerns on the Company as a whole.
with the laws, regulations and directives contained in applicable legislation. Also, Company's corporate governance practices were recognized through
following awards:
1) Best Corporate Report Award by the Joint Committee of ICAP and
ICMAP.
For the protection of local manufacturers and growth of the two wheeler 2) Top 25 Companies Award by Karachi Stock Exchange.
Automotive industry in Pakistan, the Company actively participates at 3) Best presented Annual Report Award by the South Asian Federation
various Government forums to recommend appropriate measures. of Accountants.
The Company has Research & Development Department which regularly The Company has incurred Capital expenditure of Rs. 1.1 billion during
monitors any changes in technology and international standards. the year for the improvement and maintenance of the production facilities.
Details can be referred in the notes to the financial statements.
The Company incurs adequate capital expenditure on balancing,
modernization and up gradation of production facilities.
Company's operations are based on usage of alternative sources of The Company has achieved uninterrupted production during the year
utilities. with undisrupted supplies from Vendors.
The Company has legal contracts in place with all vendors and continuous
assessment of all vendors are made for quality, cost and on time deliveries.
More than one supplier are inducted for key components which shares
its production and delivery plan on B2B network, and enables the Company
to ensure smooth supply of components and raw material for its production
processes.
A business continuity plan is in place for ensuring uninterrupted operations.

Corporate Objective Risk Risk Profile
Human Capital: Operational Risk:

To recruit and retain the best people and provide adequate Loss of the qualified and competent staff.
training to ensure high quality skilled force.
Health and Safety: Operational Risk:

To ensure health and safety of employees in workplaces. Accidents can take place which can cause serious injuries to
employees.
Unforeseen calamities and natural disasters may result in human

loss.
Environment: Operational Risk:

To ensure environment friendly products and processes. Hazardous emissions and discharges into air and water beyond
the prescribed limits.
Waste from operations may be disposed of in an inappropriate

manner.
Finance: Financial Risk:

To maintain strong financial position and produce financial Increase in commodity prices will increase input costs.
performance which is reflective of the Company's scale of
business and Shareholders' expectations.
Payment defaults of counter parties may leave the Company
with inadequate resources for discharging its own liabilities.
Devaluation of Pak Rupee against foreign currencies may

adversely affect the Company's financial performance.
Low Medium High

Counter Strategies to Risk Actual Result
The Company’s Human Resources function has developed policies and For details of benefits provided to employees during the year, refer
procedures to ensure that it remains competitive in the labor market, both respective notes to the financial statements.
in terms of attracting and retaining key personnel.
No. of persons trained : 1,662
Trainings are organized in order to polish the professional skills of Average hours of training per year per employee : 11 hours
employees and get them ready for the outstanding carrier path.
Atlas Honda Limited has a documented Health and Safety policy according No majors accidents occurred during the year at any of the Company's
to which it is mandatory for every employee to go through the Company's facilities, a testament to the effective Company's safety policies.
safety awareness program.
Prompt preventive and corrective measures are taken in case of any

accident to avoid recurrences.
Regular trainings in accident prevention, accident response, emergency

preparedness and the use of protective clothing and equipment are
conducted with the aim of ensuring a safe workplace.
All employees are provided with medical and health insurances.
Extraction and evacuation drills are conducted regularly and staff is Numerous safety and extraction drills were conducted during the year.
frequently trained for crisis management.
As per the Company's defined policy for the protection of environment For achievements in environmental protection, see the section of
from emissions and hazardous discharges, ongoing monitoring and "Environment" in the Company's sustainability report.
maintenance activities coupled with investment in new technology, efficiency
enhancing measures, continuous measurements, follow ups and reporting
are carried out to ensure Atlas Honda Limited achieves its emission and
discharges goals.
Solid hazardous waste is disposed-off through Environmental Protection

Agency's legitimate contractors.
Recycling is also done, to the maximum extent, where possible.
Agreements are in place with suppliers to counter short term fluctuations For complete disclosure, kindly refer the disclosure on "Financial Risk
in material prices. Management" in notes to the financial statements.
Atlas Honda restricts credit to only reputable Government and Defense

Institutions which maintain a good history of timely payments.
Sufficient credit lines and financial arrangements are available from various
banks to the Company in case of any fund shortages.
Foreign currency exposures are monitored by the Treasury Committee.

Derivatives such as forward covers and currency options are used for
hedging against currency devaluation, if required.

Notice of 51st Annual General Meeting
Notice is hereby given that the Fifty First Annual General Meeting of the members of Atlas Honda Limited will be held on Tuesday
June 16, 2015, at 11:00 A.M., at the registered office 1-McLeod Road, Lahore, to transact the following business matters after recitation
of the Holy Quran:
ORDINARY BUSINESS
1. T o confirm minutes of the Annual General Meeting held on June 26, 2014.
2. To receive, consider and adopt the Annual Audited Financial Statements of the Company for the year ended March 31, 2015,
together with the Directors' and Auditors' reports thereon.
3. To appoint auditors and fix their remuneration for the year ending March 31, 2016. The retiring auditors M/s Hameed Chaudhri
& Co., Chartered Accountants, being eligible, have offered themselves for reappointment.
4. To consider and approve the final cash dividend of Rs.12 per share i.e. 120% for the year ended March 31, 2015 as recommended
by the Board of Directors.
OTHER BUSINESS
5. T o transact any other business as may be placed before the meeting with permission of the Chair.
By Order of the Board
Karachi: May 26, 2015 Umair Mukhtar

Company Secretary
NOTES:
1. The share transfer books of the Company will remain closed from June 02, 2015 to June 16, 2015 (both days inclusive). The
transfers received at Company's share registrar namely M/S Hameed Majeed Associates (Private) Limited, H.M House, 7-Bank
Square, Shahrah-e-Quaid-e-Azam, Lahore, Pakistan by the close of business on June 01, 2015 will be considered in time for
the purpose of payment of final dividend to the transferees.
2. A member entitled to attend and vote at this Annual General Meeting shall be entitled to appoint another member, as a proxy
to attend and vote on his / her behalf. The proxies in order to be effective must be received at the Registered Office or Share
Registrar of the Company not less than 48 hours before the time of the meeting.
3. Any individual Beneficial Owner of Central Depository Company of Pakistan Limited (CDC) entitled to attend and vote at this
Annual General Meeting must bring the Computerized National Identity Card (CNIC) or Passport along with his / her CDC
account number to prove his / her identity and in case of Proxy, must enclose an attested copy of the CNIC or Passport. The
representatives of corporate members should bring the usual documents required for such purpose.
4. The members are requested to notify the Company immediately of t he change in their addresses, if any.
5. Members are requested to provide by mail or fax, photocopy of their CNIC, email address and in case of foreigner, copy of
passport, unless it has already been provided to enable the Company to comply with the relevant laws.

6. For the convenience of the members a Proxy Application Form is attached with this report.
7. As per the directives by SECP vide its notice number 8(4) SM/CDC 2008 dated April 05, 2013, all shareholders and the Company
are encouraged to put in place an effective arrangement for electronic payment of cash dividend. For this purpose, the members
are requested to provide duly filled Dividend Mandate forms including Name, Bank Account Number, Bank and respective branch
address at the registered address of the Company. The dividend mandate form is available at the Company's website.
8. The Securities and Exchange Commission of Pakistan (SECP) vide SRO 779(I) dated August 18, 2011 and 831(I) dated July
05, 2012, mandates that the dividend warrants should bear CNIC number of the registered member or their authorized person,
except in case of minor(s) and corporate members. In this regard, all the individual members, holding physical shares who have
not yet provided their CNIC number are requested to immediately submit a copy of their CNIC to Company's share registrar.
The members while sending their CNIC must also quote their respective folio number.
9. Pursuant to the provisions of Finance Act, 2014, different rates are prescribed for deduction of withholding tax on the amount
of dividend paid by the companies, as under:
'Filer' of Income Tax Return 10%

'Non - filer' of Income Tax Return 15%
The 'Filer' is defined as a taxpayer whose name appears in the Active Tax-payers List (ATL) issued by the Federal Board of
Revenue (FBR) from time to time. To enable the Company to withhold tax @ 10% for filers, all the shareholders whose names
are not entered into the ATL are advised to make sure that their names are entered into the latest available ATL on FBR website,
otherwise tax on their cash dividend will be deducted @ 15% for non-filers.
10. In compliance with the SECP directives vide SRO 787(1)/ 2014 dated September 8, 2014, soft copies of the Annual Report
2015 are being emailed to the members having opted to receive such communication in electronic format. Other members, who
wish to receive the Annual Report in electronic form, may file an application as per the format provided on the Company's
website. The members who have provided the consent to receive Annual Report through email can subsequently request a
hard copy which shall be provided free of cost within seven days. However, the Company shall continue to send hard copy to
all other members as per current practice. The members are also requested to intimate any change in their email addresses
on a timely manner, to ensure effective communication.

Financial Highlights
6 Years at a Glance
6 Years at a Glance
Particulars 2015 2014 2013 2012 2011 2010
Profitability Ratios
Gross profit margin % 10.2 9.5 8.7 7.3 7.5 7.8
Profit before tax margin % 7.1 6.0 5.2 4.3 4.3 4.2
Net profit margin % 5.1 4.5 3.8 3.2 3.1 2.8
Return on capital employed % 37.9 37.2 36.9 32.3 32.2 26.7
Return on equity - before tax % 35.1 34.0 33.7 29.9 30.5 27.7
Return on equity - after tax % 25.4 25.3 24.5 22.2 21.7 18.3
Return on assets % 14.9 13.9 13.4 11.0 10.4 8.4
Earnings before interest,
tax, depreciation and
amortization (EBITDA) Rs. in million 3,898.4 3,329.2 2,831.9 2,122.6 1,977.3 1,627.2
EBITDA margin % 8.5 7.5 6.7 5.6 6.1 6.4
Equity Ratios
Cash dividend per share (declared) Rs. 12.0 10.0 7.5 6.5 6.5 5.0
Stock dividend per share (bonus shares
declared for the year) Rs. - - 2.5 1.5 1.5 1.5
Bonus shares declared for the year No. in ‘000 - - 20,681 10,790 9,383 8,159
Earnings per share Rs. 22.73 19.36 19.44 16.74 16.03 13.10
Price earning ratio Times 14.6 15.1 9.9 8.5 8.8 10.9
Market price per share as at year end Rs. 335.0 292.6 191.5 142.2 141.8 142.5
Market price per share for the year
- maximum value Rs. 405.3 299.0 192.0 160.0 172.5 154.2
- minimum value Rs. 209.0 171.0 114.0 108.0 92.0 56.9
Break up value per share Rs. 89.3 76.5 79.3 75.3 73.9 71.6
Dividend yield % 3.6 3.4 5.2 5.6 5.6 4.6
Dividend cover Times 1.9 1.9 1.9 2.1 2.0 2.0
Dividend pay out % 52.8 51.7 51.5 47.8 49.9 49.6
Plough back ratio % 47.2 48.3 48.5 52.2 50.1 50.4
Weighted average cost of debt % - - - - 14.0 13.1
Cost of equity % 6.8 6.6 10.1 11.8 1 1.3 9.2
Efficiency Ratios
Assets turnover Times 2.9 3.1 3.5 3.5 3.4 3.0
Fixed assets turnover Times 9.2 9.8 9.6 9.6 10.0 7.9
Inventory turnover Times 19.7 16.5 15.1 14.0 12.9 11.9
Debtors turnover Times 65.0 85.5 82.2 63.5 81.0 57.3
Creditors turnover Times 7.1 7.2 8.5 7.3 7.1 7.6
Capital employed turnover Times 5.0 6.2 6.5 7.0 7.0 5.8
Operating Cycle
Period of inventory holding Days 18 22 24 26 28 31
Period of collection from debtors Days 6 4 4 6 5 5
Period of payments to creditors Days (51) (51) (44) (50) (51) (48)
Operating cycle Days (27) (25) (16) (18) (18) (12)
Liquidity / Leverage Ratios
Current ratio Times 1.8 1.7 1.6 1.5 1.5 1.5
Quick ratio Times 1.5 1.3 1.1 0.9 0.9 0.9
Debt to equity / financial leverage ratio Times - - - - 0.02 0.2
Total liabilities to equity Times 0.71 0.82 0.83 1.0 1.1 1.2
Interest cover Times 3,862.5 5,651.0 2,577.3 427.9 18.4 12.0
Operating leverage ratio % 709.0 427.9 317.2 52.8 98.6 139.9
Cash to current liabilities Times 0.6 0.5 0.6 0.4 0.5 0.5
Cash flow from operations to sales % 6.1 7.9 5.2 4.5 6.6 6.9

DuPont Analysis
DuPont Analysis

Graphical Presentation
Our performance
over the year
The remarkable performance of the Company in the last few years is due to effective management of controllable factors. The
performance is measured against key financial indicators. This has allowed the Company to outperform its previous best efforts and
maintain its track record of growing sustainably.
Sales and Gross Profit Profitability

(Rs. Million) (Rs. Million) (Rs. Million) 25.4 (%)
50,000 45,772 7,500 2,500 25.3 25.0
44,479 24.5 2,351
42,325 21.7 22.2
2,002
38,012
40,000 6,000 2,000 20.0
18.3
32,521
4,674 1,608
4,225 14.9
30,000 25,555 3,679 4,500 1,500 15.0
13.9
1,204 13.4
2,776 1,003 11.0

2,440 8.4 10.4
20,000 3,000 1,000 10.0
1,999 712
10,000 1,500 500 5.0
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Sales (left scale) Profit After Tax (left scale)
Gross Profit (right scale) Return on Equity (right scale)
Return on Assets (right scale)
Higher Net Sales +3% up

The Company remains committed to deliver its long term objectives of sustainable growth
Profit After Tax +17% up
With diligent approach to cost management, optimum sales mix and impressive treasury
and value creation. Accordingly, net sales registered growth of 3% over the comparative year. income, the Company has registered ever highest profit after tax of Rs. 2.4 billion from
Despite volume down, the positive performance in top line was achieved through continued Rs. 2.0 billion, an increase of 17% over last year. This translates into CAGR of 27%.
rationalization of sales mix. It helps the Company in achieving CAGR of 12% over the six
year period.
Higher return on investments

Steady growth together with optimum equity has enables the Company to maintain the high
Increasing Gross Income +11% up
Gross income of the Company increased by 11% over the comparative year. Continued
return on its capital. For 2014-15, Return on Equity recorded at 25.4% and Return on assets
rose to 14.9%. This was achieved through steady income growth.
improvement in sales mix, favorable exchange rates, energy management measures and
other operational improvement measures contributed the increase in gross margins. Resultantly,
CAGR has improved to 19% over the years.
Dividend Liquidity Position

(Rs. Million) (Rs.) (Rs. Million) (Rs. Million)
3,409
1,500 25.0 3,500 5,000
22.7
2,844 4,120
1,241
19.4 19.4 2,740
1,200 20.0 2,800 4,000
3,691
16.7 1,034
16.0
2,149
2,091
900
827 15.0 2,100 3,000
13.1 1,642
576
600 501 10.0 1,400 2,000
1,461 1,635
1,338
354 1,089
300 5.0 700 1,000
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Total Dividend - includes stock dividend (left scale) Cash and Cash Equivalents (left scale)
Earnings Per Share (right scale) Investments (right scale)
Paying high dividends +20% up

Strong Liquidity +15% up
Over the years, the Company has followed a consistent policy of paying high dividends, The Company remains focused on generating cash flows from operations and deploy it into
keeping in view the cash generating capacities, expected capital needs of business and capital assets, investments and dividends. The Company's total cash and cash equivalent
strategic considerations. For 2014-15, the Board of Directors is pleased to propose cash of stood at impressive Rs. 3.4 billion. Whereas total investment in mutual funds consolidated
Rs. 12 per share. This amounts to Rs. 1,241 million, which is the highest in the Company's at Rs. 4.1 billion. It helps the Company to earn an impressive treasury income which increased
history. Thus, the Company has improved a pay-out ratio of 53%. by 29% to Rs. 544 million.
Increasing EPS +17% up

Over the years, the Company is focused on maintaining steady growth in EPS. This, year,
Company has again delivered the record EPS of Rs. 22.73.

Assets Performance Leverage Ratio

(Days) (%) (%)
35 60.0 54.3 60.0
52.0 50.8
27
28 48.0 45.7 48.0
25 44.9 41.5
21 36.0 36.0
18 18
16
14 24.0 22.4 24.0

12
07 12.0 12.0
1.9
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Cash Flow Operating Cycle Liabilities to Assets (left scale)
Long Term Debt to Equity (right scale)
Working Capital Performance +8% up

Debt Free Status
To drive strong cash flow generation, Atlas Honda Limited is optimizing its balance sheet, The Company actively follows the policy of zero borrowings to reduce interest bearing liabilities
specifically by reducing the level of working capital and steady cash flow management. to improve its balance sheet. The Company has maintained for consecutive four years its
Accordingly, the Company has always sought to efficiently use the various components of 'Debt Free Status' despite growing working capital requirement and continued investments
working capital cycle. Cash flow operating cycle has followed the same trend of previous in capacity expansion. During the current year, the Company has financed all its projects
years and the Company continue to work on favorable operating cycle. Resultantly, the through equity.
Company has managed to control the receivables and reduced the inventory turnover.
Thereby, the operating cycle has declined by 8% over the previous year.
Shareholders Equity Fixed Assets and Capital Expenditures

(Rs. Million) (Rs.) (Rs. Million) (Rs. Million)
89.3 4,983
10,000 100.0 5,000 2,500
9,239
4,553
79.3 7,913 4,422
75.3
8,000 73.9 80.0 4,000 2,000
71.6 76.5
6,529 3,225
3,942
3,259
6,000 60.0 3,000 1,500
5,420
4,622 1,232
1,161 1,179
984
4,000 40.0 2,000 1,000
3,892
557
2,000 20.0 1,000 500

292
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Shareholders Equity (left scale) Fixed Assets (left scale)

Breakup Value Per Share (right scale) Capital Expenditures (right scale)
Improved Financial Soundness +17% up

The Company has set the goals for improving financial soundness by consolidating its
Increased Investments +20% up
From 2010 to 2015, the Company has made gross investments of Rs.5.4 billion. Additions
shareholders' equity. The goal was eclipsed by achieving the record shareholders' equity to capital assets mainly represents expansion of production facilities and balancing,
which stood Rs. 9.2 billion with CAGR of 19%. modernization and replacement of existing manufacturing facilities.
Breakup Value Per Share +17% up

Fixed Asset Base +9% up
The breakup value per share stood at Rs.89.3. It provides strong and sound financial base Keeping in view the further prospects, the Company is investing in its production facilities,
that will support, the implementation of growth strategy. step by step. Currently, fixed assets stood at Rs.4.9 billion with equity to fixed asset ratio of
1.93 times.

Analysis of the Financial Statements

Balance Sheet
Particulars 2015 2014 2013 2012 2011 2010
---------------------------------Rupees in '000 ---------------------------------
Assets
Non Current Assets

Property, plant & equipment 4,982,552 4,552,816 4,421,744 3,941,610 3,259,193 3,224,897
Intangible asset 12,774 4,781 5,555 6,419 7,137 8,053
Long term investments 216,283 - - - - -
Long term loans and advances 27,198 26,396 25,583 20,420 22,403 18,810
Long term deposits 12,986 9,632 8,399 15,728 10,765 11,336
Total non current assets 5,251,793 4,593,625 4,461,281 3,984,177 3,299,498 3,263,096
Current Assets
Stores, spares and loose tools 421,339 400,424 390,250 348,639 325,891 322,592
Stock in trade 1,660,529 2,042,602 2,171,536 2,161,328 2,003,029 1,664,297
Trade debts 704,597 520,321 514,742 598,265 401,435 445,689
Loans and advances 41,235 35,305 33,253 33,152 33,525 40,485
Trade deposits and prepayments 59,568 50,679 47,722 44,832 36,936 39,079
Short term investments 4,119,696 3,691,241 1,635,183 1,460,580 1,338,474 1,088,996
Accrued mark-up/ interest 10,857 11,130 11,603 4,348 8,517 4,513
Other receivables 3,674 4,666 6,302 15,338 15,075 11,566
Taxation - net 99,185 - 2,578 160,604 68,050 -
Bank balances 3,409,200 2,843,738 2,739,988 2,149,154 2,090,800 1,641,963
Total current assets 10,529,880 9,600,106 7,553,157 6,976,240 6,321,732 5,259,180
Non Current Assets Classified as

Held for Sales - 171,459 - - - -
Total assets 15,781,673 14,365,190 12,014,438 10,960,417 9,621,230 8,522,276
Equity & Liabilities
Equity
Share capital 1,034,066 1,034,066 827,253 719,350 625,522 543,932
Reserves 8,204,479 6,879,247 5,701,924 4,700,584 3,996,892 3,347,892
Total equity 9,238,545 7,913,313 6,529,177 5,419,934 4,622,414 3,891,824
Non Current Liabilities

Long term borrowings - - - - - 512,500
Deferred liabilities 773,394 829,600 866,975 730,315 649,354 600,015
Total non current liabilities 773,394 829,600 866,975 730,315 649,354 1,112,515
Current Liabilities
Trade and other payables 5,769,734 5,577,694 4,587,303 4,810,168 4,255,584 3,109,999
Accrued mark-up / interest - - - - 6,378 37,384
Current portion of long term borrowings - - - - 87,500 362,500
Taxation - net - 44,583 - - - 8,054
Total current liabilities 5,769,734 5,622,277 4,587,303 4,810,168 4,349,462 3,517,937
Total equity and liabilities 15,781,673 14,365,190 12,014,438 10,960,417 9,621,230 8,522,276


Balance Sheet
Vertical Analysis Horizontal Analysis
Particulars 2015 2014 2013 2012 2011 2010 2015 2014 2013 2012 2011 2010
vs vs vs vs vs vs
2014 2013 2012 2011 2010 2009
% % % % % % % % % % % %
Assets
Non Current Assets
Property, plant & equipment 31.6 31.7 36.8 36.0 33.9 37.8 9.4 3.0 12.2 20.9 1.1 -5.5
Intangible asset 0.1 0.0 0.0 0.1 0.1 0.1 167.2 -13.9 -13.5 -10.1 -11.4 -51.5
Long term investments 1.4 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0
Long term loans and advances 0.2 0.2 0.2 0.2 0.2 0.2 3.0 3.2 25.3 -8.9 19.1 31.0
Long term deposits 0.1 0.1 0.1 0.1 0.1 0.1 34.8 14.7 -46.6 46.1 -5.0 26.5
Total non current assets 33.3 32.0 37.1 36.4 34.3 38.2 14.3 3.0 12.0 20.8 1.1 -5.5
Current Assets
Stores, spares and loose tools 2.7 2.8 3.2 3.2 3.4 3.8 5.2 2.6 11.9 7.0 1.0 -24.7
Stock in trade 10.5 14.2 18.1 19.7 20.8 19.5 -18.7 -5.9 0.5 7.9 20.4 -7.1
Trade debts 4.5 3.6 4.3 5.5 4.2 5.2 35.4 1.1 -14.0 49.0 -9.9 39.2
Loans and advances 0.3 0.2 0.3 0.3 0.3 0.5 16.8 6.2 0.3 -1.1 -17.2 7.5
Trade deposits and prepayments 0.4 0.4 0.4 0.4 0.4 0.5 17.5 6.2 6.4 21.4 -5.5 -39.5
Short term investments 26.1 25.7 13.6 13.3 13.9 12.8 11.6 125.7 12.0 9.1 22.9 138.9
Accrued mark-up/ interest 0.1 0.1 0.1 0.0 0.1 0.1 -2.5 -4.1 166.9 -48.9 88.7 767.9
Other receivables 0.0 0.0 0.1 0.1 0.2 0.1 -21.3 -26.0 -58.9 1.7 30.3 -88.6
Taxation - net 0.6 0.0 0.0 1.5 0.7 0.0 100.0 -100.0 -98.4 136.0 100.0 -100.0
Bank balances 21.6 19.8 22.8 19.6 21.7 19.3 19.9 3.8 27.5 2.8 27.3 158.0
Total current assets 66.7 66.8 62.9 63.6 65.7 61.8 9.7 27.1 8.3 10.4 20.2 33.9
Non Current Assets Classified as

Held for Sales 0.0 1.2 0.0 0.0 0.0 0.0 -100.0 100.0 0.0 0.0 0.0 0.0
Total assets 100.0 100.0 100.0 100.0 100.0 100.0 9.9 19.6 9.6 13.9 12.9 15.5
Equity & Liabilities
Equity
Share capital 6.6 7.2 6.9 6.6 6.5 6.4 0.0 25.0 15.0 15.0 15.0 15.0
Reserves 52.0 47.9 47.7 42.9 41.6 39.3 19.3 20.0 22.0 17.6 19.4 17.5
Total equity 58.5 55.1 54.6 49.5 48.1 45.7 16.7 20.6 21.0 17.3 18.8 17.2

Long term borrowings 0.0 0.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 0.0 -100.0 36.7
Deferred liabilities 4.9 5.8 7.2 6.6 6.7 7.0 -6.8 -4.3 18.7 12.5 8.2 4.2
Total non current liabilities 4.9 5.8 7.2 6.6 6.7 13.0 -6.8 -4.3 18.7 12.5 -41.6 17.0
Current Liabilities
Trade and other payables 36.6 38.8 38.2 43.9 44.2 36.5 3.4 21.6 -4.6 13.0 36.8 17.5
Accrued mark-up / interest 0.0 0.0 0.0 0.0 0.1 0.4 0.0 0.0 0.0 -100.0 -82.9 -48.3
Current portion of long term borrowings 0.0 0.0 0.0 0.0 0.9 4.3 0.0 0.0 0.0 -100.0 -75.9 -7.0
Taxation - net 0.0 0.3 0.0 0.0 0.0 0.1 -100.0 100.0 0.0 0.0 -100.0 100.0
Total current liabilities 36.6 39.1 38.2 43.9 45.2 41.3 2.6 22.6 -4.6 10.6 23.6 13.2
Total equity and liabilities 100.0 100.0 100.0 100.0 100.0 100.0 9.9 19.6 9.6 13.9 12.9 15.5


Profit and Loss Account and Cash Flow Statement
Particulars 2015 2014 2013 2012 2011 2010
---------------------------------------------- (Rupees in ’000) ----------------------------------------------
Profit and Loss Account
Sales 45,772,177 44,478,713 42,325,242 38,011,857 32,521,399 25,554,772
Cost of sales (41,098,571) (40,253,929) (38,646,049) (35,235,893) (30,080,978) (23,555,842)
Gross Profit 4,673,606 4,224,784 3,679,193 2,775,964 2,440,421 1,998,930
Sales and marketing expenses (1,314,231) (1,293,938) (1,206,648) (965,883) (815,463) (690,794)
Administrative expenses (432,622) (430,054) (387,477) (335,654) (310,742) (264,739)
Other income 543,924 420,651 322,668 274,453 299,337 239,047
Other operating expenses (245,132) (223,989) (190,453) (117,162) (109,597) (92,600)
Share of profit of an
Associated Company - net of tax 26,283 - - - - -
Profit from operations 3,251,828 2,697,454 2,217,283 1,631,718 1,503,956 1,189,844
Finance cost (8,190) (8,036) (9,726) (11,717) (93,475) (112,613)
Profit before taxation 3,243,638 2,689,418 2,207,557 1,620,001 1,410,481 1,077,231
Taxation (892,747) (687,858) (599,753) (415,892) (407,925) (364,773)
Profit after taxation 2,350,891 2,001,560 1,607,804 1,204,109 1,002,556 712,458
Cash Flow Statement
Cash flows from

operating activities 2,808,104 3,531,566 2,208,740 1,720,597 2,147,882 1,768,263
Cash flow from

investing activities (1,216,243) (2,813,658) (1,154,675) (1,171,217) (642,540) (730,915)
Cash flow from

financing activities (1,026,399) (614,158) (463,231) (491,026) (1,056,505) (31,811)
Net increase / (decrease)

in cash & cash equivalent 565,462 103,750 590,834 58,354 448,837 1,005,537


Profit and Loss Account and Cash Flow Statement
Vertical Analysis Horizontal Analysis
Particulars 2015 2014 2013 2012 2011 2010 2015 2014 2013 2012 2011 2010
vs vs vs vs vs vs
2014 2013 2012 2011 2010 2009
% % % % % % % % % % % %
Sales 100.0 100.0 100.0 100.0 100.0 100.0 2.9 5.1 11.3 16.9 27.3 85.9
Cost of sales -89.8 -90.5 -91.3 -92.7 -92.5 -92.2 2.1 4.2 9.7 17.1 27.7 84.3
Gross Profit 10.2 9.5 8.7 7.3 7.5 7.8 10.6 14.8 32.5 13.7 22.1 107.0
Sales and marketing expenses -2.9 -2.9 -2.9 -2.5 -2.5 -2.7 1.6 7.3 24.9 18.4 18.0 154.6
Administrative expenses -0.9 -1.0 -0.9 -0.9 -1.0 -1.0 0.6 11.0 15.4 8.0 17.4 59.8
Other income 1.1 0.9 0.8 0.7 0.9 0.9 29.3 30.4 17.6 8.3 25.2 166.4
Other operating expenses -0.5 -0.5 -0.4 -0.3 -0.3 -0.4 9.4 17.6 62.6 6.9 18.4 568.6
Share of profit of an
Associated Company
- net of tax 0.1 0.0 0.0 0.0 0.0 0.0 100.0 - - - - -
Profit from operations 7.1 6.0 5.2 4.3 4.6 4.7 20.6 21.7 35.9 8.5 26.4 96.8
Finance cost 0.0 0.0 0.0 0.0 -0.3 -0.4 1.9 -17.4 -17.0 87.5 -17.0 -55.3
Profit before taxation 7.1 6.0 5.2 4.3 4.3 4.2 20.6 21.8 36.3 14.9 30.9 205.4
Taxation -2.0 -1.5 -1.4 -1.1 -1.3 -1.4 29.8 14.7 44.2 2.0 11.8 184.4
Profit after taxation 5.1 4.5 3.8 3.2 3.1 2.8 17.5 24.5 33.5 20.1 40.7 217.3
Cash Flow Statement
Cash flows from

operating activities 496.6 3403.9 373.8 2948.6 478.5 175.9 -20.5 59.9 28.4 -19.9 21.5 781.5
Cash flow from

investing activities -215.1 -2711.9 -195.4 -2007.1 -143.1 -72.7 -56.8 143.7 -1.4 182.3 -12.1 -220.4
Cash flow from

financing activities -181.5 -592.0 -78.4 -841.5 -235.4 -3.2 67.1 32.6 -5.7 53.5 3221.2 -95.3
Net increase / (decrease)

in cash & cash equivalent 100.0 100.0 100.0 100.0 100.0 100.0 445.0 -82.4 912.5 -87.0 -55.4 660.1

Statement of Value Addition and its Distribution
Statement of Value Addition and its Distribution
Year ended March 31
% 2015 % 2014
Rs. in ‘000 Rs. in ‘000
Value Created
Net sales including sales tax 98.98% 52,885,942 99.19% 51,681,320

Other operating income 1.02% 543,924 0.81% 420,651
100.00% 53,429,866 100.00% 52,101,971

Bought in materials and services -73.12% (39,065,528) -73.74% (38,422,594)
Total 26.88% 14,364,338 26.26% 13,679,377
Value Distribution
To Government
Income tax, sales tax, custom & excise duties, 62.57% 8,987,429 64.62% 8,838,957
workers funds, EOBI & social security contribution and local taxes
To Employees
Remuneration & benefits 16.25% 2,334,806 15.95% 2,181,213
To Society
Donations 0.30% 42,394 0.16% 22,076
To Providers of capital
Financial charges to providers of finance 0.00% 601 0.00% 300
Dividends for shareholders 8.64% 1,240,879 7.56% 1,034,066
Retained for re-investment and future growth 12.24% 1,758,809 11.72% 1,602,764
Total Value Distributed 100.00% 14,364,338 100.00% 13,679,377
Retained for re-investment and future growth

12.24%
2014: 11.72%
Government
Providers of Capital
62.57%
8.64% 2014: 64.62%
2014: 7.56%
Society
0.30%
2014: 0.16%
Employees
16.25%
2014: 15.95%

Quarterly Performance Analysis
Quarterly Performance Analysis

R s. 1 0,64
0m
illio
13 million (24 n
1,2 %) (
Rs )
.1
23
Rs
.1
%
1, 7
Sales
30 m
i llion ( 26%)
Sales follow the consistent pattern of past years with major
Quarter
4th
3rd
2nd
1st
R s. 12,1
contribution coming from the second half of the year. The adverse
effects of sit-in protest and heavy rains and floods affected the sales
89
momentum in first half of the year. However, improvement in economic
m il
conditions and agri product gains supported sales in the later half. Rs. 45,772 million
l io
Total:
n(
Further, launch CG 125 with improved looks and graphics in third
27
%
quarter also help in building the sales momentum.
)
R s . 1 ,0 6
2m
illio
2 m i l lion (24 n
, 15 %) (2
1
Rs
.
Rs
3%
.1
)
, 19
Gross Profit
3m
il lion (26%)
Gross profit moved in line with sales trend. Despite marginal

Quarter
4th
3rd
2nd
1st
R s . 1 ,2
improvement in sales over the last year, the Company has been
able to achieve improvement in gross profit by 11% over the last
67
year. This was the result of continued rationalization of sales mix,

mil
Total: Rs. 4,674 million favorable exchange rates, global decline in input prices and consistent
lion
cost efficiency measure.

(2
% 7
Rs. 715 m
illi o
n(
llion (24 %) 22
77 6 mi %
Rs
.
Rs
.8
55
Profit Before Taxation
milli
on (26 %)
PBT remain consistent with the Gross Profit. Effective controls over
Quarter
4th
3rd
2nd
1st
Rs . 8
operating expenses and higher treasury income supported the
Company to arrive at the margin of 7%.
98 mill io
Total: Rs. 3,244 million 28
%
n(
)
Rs. 529
mill
ion
lion (24%)
57 3 m il (2
3
Rs
s.
%
R
.6
)
22
milli
Profit After Taxation

on (26 %)
Quarter
4th
3rd
2nd
1st
Net profit after tax increased to Rs.2.4 billion from Rs.2.0 billion, an
R s. 627
increase of 17.5%, over the last year. It is the ever highest profit
with margin crossing 5%. This translates into Earnings Per Share
mil
Rs. 2,351 million

lion
Total: of Rs.22.73 for the year.

27 (
%
)

Share Price Sensitivity Analysis
Share Price Sensitivity Analysis

Company's Share price is interlinked with the Company's financial performance and has positive correlation with the factors influencing
the Company's performance.
In the prevailing business scenario, management considers the following factors to which the performance and share price of the
Company may be sensitive.
Agriculture Energy Crises
Agriculture employs more than 50% population. The agriculture Due to the on-going energy crisis, supply of gas and electricity
based rural areas also form the major chunk of motorcycle is often disrupted to industrial undertakings. Accordingly, the
demand in the country. Therefore, the Company’s performance entire manufacturing industry is facing severe operational and
is strongly linked with the performance of Agriculture sector. financial difficulties. This forced Companies to resort to expensive
The years which see good crop acreage, adequate rainfall and alternatives like diesel generators to run operations which
healthy support prices also witness increase in motorcycle directly affects the Company’s financial performance.
sales. Conversely, the years of water mismanagement, fertilizer
crises, floods and low prices also witness lower growth in two-
wheeler market.
Law and Order Exchange Fluctuations
Unstable Law and order situation often results in disruption of Due to imports of raw materials, plant and machinery, motorcycle
business activities. Transportation strikes, sit in protests, parts and other related items, Company is sensitive to fluctuation
hindrance in supply chain and restrictions on public’s use of in foreign currency. Strengthened Pak Rupee against US Dollar
motorcycles that negatively impacts on Company’s sales. and Japanese Yen brought positive impacts on the import cost.
Plant Operations Material Price Volatility
Stable plant operations lead to higher production and better As a manufacturing concern, Company’s financial performance
production efficiencies. Disruptions at production facilities is sensitive to fluctuation in various imported and locally sourced
negatively affect the financial performance of the Company material prices used in the production of motorcycles. These
and therefore, may affect the share price. include CKD kits, steel sheets, aluminium, paints etc.
Accordingly, volatility in material prices affects the financial
performance which in turn affects the share price of the
Company.
Capital and Money Markets Interest Rates
Major portion of Company’s liquid investments are in open- As per the Company's treasury policy, the Company maintains
ended mutual funds. These funds heavily invest in capital, sufficient funds in saving accounts and term deposit receipts.
money market instruments and equity instruments. The With no debt on the balance sheet, rise in interest rates improves
fluctuating trends in these markets determine the Net Asset Company’s treasury income and decline in interest rates
Value (NAV) of these funds and as a result, also affect accordingly reduces it. Such interest rate impacts may be
Company’s financial performance. reflected in share price.
Low - Moderate - High -
Market Performance Summary

ATLH (KSE)+12.33% KSE100 Index +9.68%
40%
20%
Percentage Change
0%
-20%
-40%
Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15

Financial Statements
Statement of Compliance with Code of Corporate Governance
Review Report to the Members on Code of Corporate Governance
Auditors' Report to the Members
Balance Sheet
Cash Flow Statement
Statement of Changes in Equity

Statement of Compliance with the Code of Corporate Governance
Statement of Compliance with the Code of

Corporate Governance
This statement is being presented to comply with the Code of Corporate Governance (the Code) contained in Regulation No. 5.19
of the Rule Book of Karachi Stock Exchange Limited and Regulation No. 35 of Chapter XI of the Listing Regulations of the Lahore
Stock Exchange for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance
with best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:
1. The Company encourages the representation of independent non-executive directors and directors representing minority interests
on its Board of Directors. At present, the Board includes one independent director, three executive and four non executive
directors.
Independent Director 1. Abid Naqvi
Executive Directors 1. Saquib H. Shirazi

2. Yasutaka Uda
3. Hiromitsu Takasaki
Non Executive Directors 1. Yusuf H. Shirazi

2. Kazuhisa Hirota
3. Sanaullah Qureshi
4. Jawaid Iqbal Ahmed
The independent director meets the criteria of independence under clause i(b) of the CCG.
2. The directors have confirmed that none of them is serving as a director in more than seven listed companies, including Atlas
Honda Limited.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan
to a banking company, DFI or NBFI, being a member of stock exchange, has been declared as a defaulter by that stock exchange.
4. The casual vacancies occurring on the Board on February 27, 2015 and March 31, 2015 was duly filled on March 07, 2015 and
March 31, 2015 respectively by the directors within the prescribed time.
5. The Company has prepared a 'Code of Conduct' and has ensured that appropriate steps have been taken to disseminate it
throughout the Company along with its supporting policies and procedures.
6. The Board has developed vision and mission statements, overall corporate strategy and significant policies of the Company. A
complete record of particulars of significant policies along with the date on which they were approved or amended has been
maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and
determination of remuneration and terms and conditions of employment of the CEO and other executive directors, have been
taken by the Board.
8. The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter. Written notices
of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings to all
the directors. The minutes of the meetings were appropriately recorded and circulated.
9. One of the directors of the Company has certification from Pakistan Institute of Corporate Governance. Moreover, four directors
are exempted from the requirement of directors' training program as per the proviso to clause xi of the Code and for rest of three
directors who are foreign nationals and representing Honda Motor Company Limited, Japan, relaxation has been applied to
SECP under clause xiii of the Code, on the basis of circumstances of merit justifying the claim of relaxation.

Statement of Compliance with the Code of Corporate Governance
10. The Board has approved the appointment of Company Secretary and Head of Internal Audit, including their remuneration and
terms and conditions of employment.
11. The Directors' report for the year ended March 31, 2015 has been prepared in compliance with the requirements of the Code
and fully describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CFO and CEO before approval of the Board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern
of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
15. The Board has already formed an Audit Committee. It comprises of three members of whom two are non-executive directors
and one is an independent director.
16. The meetings of the Audit Committee were held at least once every quarter prior to the approval of interim and final results of
the Company, as required by the Code. The terms of reference of the Committee have been prepared and advised to the
Committee for compliance.
17. The Board has already formed Human Resource and Remuneration Committee. It comprises of three members of whom two
are non-executive and one is executive director.
18. The Board has set up an effective internal audit function manned by suitably qualified and experienced personnel who are
conversant with the policies and procedures of the Company.
19. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control
review program of the ICAP, that they or any of the partners of the firm, their spouses and minor children do not hold shares of
the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines
on Code of Ethics as adopted by the ICAP.
20. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance
with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.
21. The 'closed period', prior to the announcement of interim/final results, and business decisions, which may materially affect the
market price of Company's securities, was determined and intimated to directors, employees and stock exchanges.
22. Material/price sensitive information has been disseminated among all market participants at once through stock exchanges.
23. All related party transactions during the year were on arm's length basis and these have been placed before the Audit Committee
and Board of Directors. These transactions are duly reviewed and approved by the Audit Committee and Board of Directors
along with pricing method.
24. We confirm that all other material principles enshrined in the Code have also been complied with.
On behalf of the Board of Directors
Saquib H. Shirazi
Karachi: April 30, 2015 Chief Executive Officer

Review Report to the Members on Statement of Compliance

with the Code of Corporate Governance
Review Report to the Members on Statement of Compliance

with the Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance
(the Code) prepared by the Board of Directors of Atlas Honda Limited (the Company) for the year ended March 31, 2015 to comply
with the Code contained in regulation No.5.19 of the Rule Book of Karachi Stock Exchange Limited and regulation No.35 of Chapter
XI of the Listing Regulations of the Lahore Stock Exchange where the Company is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to review, to
the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Company's
compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of
the Code. A review is limited primarily to inquiries of the Company's personnel and review of various documents prepared by the
Company to comply with the Code.
As a part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems
sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors'
statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the
Company's corporate governance procedures and risks.
The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place
before the Board of Directors for their review and approval of its related party transactions distinguishing between transactions carried
out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length
price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance
of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of
the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken
at arm's length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not
appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the Code as applicable
to the Company for the year ended March 31, 2015.
HAMEED CHAUDHRI & CO.

Karachi: April 30, 2015 CHARTERED ACCOUNTANTS
Engagement Partner: Muhammad Ali
KARACHI: LAHORE:
Karachi Chambers, Hasrat Mohani Road. HM House, 7-Bank Square.
Tel : +92 21 32411474, 32412754, 32424826 Tel : +92 42 37235084-87
Fax : +92 21 32424835 Fax : +92 42 37235083
E-mail : [email protected] E-mail : [email protected]
URL : www.hccpk.com

Auditors’ Report to the Members
Auditors' Report to the Members

We have audited the annexed balance sheet of Atlas Honda Limited as at March 31, 2015 and the related profit and loss account,
cash flow statement and statement of changes in equity together with the notes forming part thereof, for the year then ended and
we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary
for the purposes of our audit.
It is the responsibility of the Company's management to establish and maintain a system of internal control, and prepare and present
the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance,
1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan
and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An
audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the
overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after
due verification, we report that:
(a) in our opinion, proper books of accounts have been kept by the Company as required by the Companies Ordinance, 1984;
(b) in our opinion:
(i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the
Companies Ordinance, 1984, and are in agreement with the books of account and are further in accordance with accounting
policies consistently applied;
(ii) the expenditure incurred during the year was for the purpose of the Company's business; and
(iii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the
objects of the Company;
(c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet, profit and
loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with
approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance,
1984, in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at March
31, 2015 and of the profit, its cash flows and changes in equity for the year then ended; and
(d) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Company and deposited in Central Zakat Fund established under section 7 of that Ordinance.
HAMEED CHAUDHRI & CO.

Karachi: April 30, 2015 CHARTERED ACCOUNTANTS
Engagement Partner: Muhammad Ali
KARACHI: LAHORE:
Karachi Chambers, Hasrat Mohani Road. HM House, 7-Bank Square.
Tel : +92 21 32411474, 32412754, 32424826 Tel : +92 42 37235084-87
Fax : +92 21 32424835 Fax : +92 42 37235083
E-mail : [email protected] E-mail : [email protected]
URL : www.hccpk.com

Balance Sheet
Balance Sheet
As at March 31, 2015
Note 2015 2014
------ (Rupees in ’000) -----
Assets
Non current assets
Property, plant and equipment 5 4,982,552 4,552,816
Intangible assets 6 12,774 4,781
Long term investments 7 216,283 -
Long term loans and advances 8 27,198 26,396
Long term deposits 12,986 9,632
5,251,793 4,593,625
Current assets
Stores, spares and loose tools 9 421,339 400,424
Stock-in-trade 10 1,660,529 2,042,602
Trade debts 11 704,597 520,321
Loans and advances 12 41,235 35,305
Trade deposits and prepayments 13 59,568 50,679
Short term investments 14 4,119,696 3,691,241
Accrued mark-up / interest 10,857 11,130
Other receivables 15 3,674 4,666
Taxation - net 99,185 -
Bank balances 16 3,409,200 2,843,738
10,529,880 9,600,106
Non Current Assets Classified as Held for Sale 17 - 171,459

15,781,673 14,365,190
Equity and Liabilities
Equity
Share capital 18 1,034,066 1,034,066
Reserves 19 8,204,479 6,879,247
9,238,545 7,913,313
Liabilities
Compensated absences 20 195,145 192,042

Deferred taxation 21 578,249 637,558
773,394 829,600
Current Liabilities
Trade and other payables 22 5,769,734 5,577,694
Taxation - net - 44,583
5,769,734 5,622,277
6,543,128 6,451,877
Contingencies and commitments 24
15,781,673 14,365,190
The annexed notes 1 to 43 form an integral part of these financial statements.
Yusuf H. Shirazi Saquib H. Shirazi

Chairman Chief Executive Officer


For the Year Ended March 31, 2015
Note 2015 2014
------ (Rupees in ’000) -----
Sales 25 45,772,177 44,478,713
Cost of sales 26 (41,098,571) (40,253,929)
Gross profit 4,673,606 4,224,784
Sales and marketing expenses 27 (1,314,231) (1,293,938)
Administrative expenses 28 (432,622) (430,054)
Other income 29 543,924 420,651
Other operating expenses 30 (245,132) (223,989)
Share of profit of an Associated Company - net of tax 26,283 -
Profit from operations 3,251,828 2,697,454
Finance cost 31 (8,190) (8,036)
Profit before taxation 3,243,638 2,689,418
Taxation 32 (892,747) (687,858)
Profit after taxation 2,350,891 2,001,560
Other comprehensive income:
Items that will not be reclassified to profit or loss:
- Gain on remeasurement of staff retirement benefit obligation 12,473 4,529
- Impact of deferred tax (4,066) (1,513)
8,407 3,016
Total comprehensive income 2,359,298 2,004,576
---------- (Rupees) ---------
Earnings per share - basic and diluted 33 22.73 19.36


Cash Flow Statement
Cash Flow Statement

Note 2015 2014
------ (Rupees in ’000) -----
Cash Flows from Operating Activities
Cash generated from operations 34 3,963,512 4,233,810

Mark-up / interest paid (601) (300)
Income tax paid (1,099,890) (685,278)
Contribution made to gratuity funds (23,452) (26,371)
Compensated absences paid (13,891) (8,161)
Mark-up / interest received 181,520 182,373
Workers' profit participation fund paid (144,583) (118,931)
Workers' welfare fund paid (50,355) (43,530)
Long term loans and advances (802) (813)
Long term deposits (3,354) (1,233)
Net cash generated from operating activities 2,808,104 3,531,566
Cash Flows from Investing Activities
Purchase of property, plant and equipment (1,165,608) (981,446)

Proceeds from sale of property, plant and equipment 72,233 20,556
Purchase of intangible assets (13,143) (3,239)
Investments acquired (4,323,889) (2,604,133)
Proceeds from sale of investments 4,214,164 754,604
Net cash used in investing activities (1,216,243) (2,813,658)
Cash Used in Financing Activities
Dividend paid (1,026,399) (614,158)
Net increase in cash and cash equivalents 565,462 103,750
Cash and cash equivalents at beginning of the year 2,843,738 2,739,988
Cash and cash equivalents at end of the year 16 3,409,200 2,843,738



Capital Reserves Revenue Reserves
Gain on Unappro-
Share Share Sale of General priated
Capital Premium Land Reserve Profit Total
--------------------------------- (Rupees in ’000) -----------------------------------
Balance as at April 1, 2013 827,253 39,953 165 4,072,000 1,589,806 6,529,177
Transfer to general reserve - - - 630,000 (630,000) -
Total transactions with owners,

recognised directly in equity
Bonus shares issued during the

year in ratio of 1 share for
every 4 shares held 206,813 - - - (206,813) -
Final dividend for the year

ended March 31, 2013 at
the rate of Rs.7.50 per share - - - - (620,440) (620,440)
206,813 - - - (827,253) (620,440)

Total comprehensive income for
the year ended March 31, 2014
Profit for the year - - - - 2,001,560 2,001,560
Other comprehensive income - - - - 3,016 3,016
- - - - 2,004,576 2,004,576
Balance as at March 31, 2014 1,034,066 39,953 165 4,702,000 2,137,129 7,913,313
Transfer to general reserve - - - 630,000 (630,000) -
Total transactions with owners,

recognised directly in equity
Final dividend for the year

ended March 31, 2014 at
the rate of Rs.10 per share - - - - (1,034,066) (1,034,066)
Total comprehensive income for

the year ended March 31, 2015
Profit for the year - - - - 2,350,891 2,350,891
Other comprehensive income - - - - 8,407 8,407
- - - - 2,359,298 2,359,298
Balance as at March 31, 2015 1,034,066 39,953 165 5,332,000 2,832,361 9,238,545



1. Legal Sta tus and Operations
Atlas Honda Limited (the Company) was incorporated as a public limited company on October 16, 1962 under the Companies
Act, 1913, now Companies Ordinance, 1984. Its shares are quoted on Karachi and Lahore Stock Exchanges of Pakistan.
The registered office is located at 1 - McLeod Road, Lahore. The Company is principally engaged in progressive manufacturing
and marketing of motorcycles and spare parts. The manufacturing and assembling facilities of the Company are located at
Karachi and Sheikhupura, with branches, customer care centres, warranty & training centres and other offices located at
Karachi, Hyderabad, Multan, Lahore, Faisalabad, Rahimyar Khan and Rawalpindi.
2. Basis of Preparation
2.1 Statement of compliance
These financial statements have been prepared in accordance with the approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the Institute of
Chartered Accountants of Pakistan as are notified under the Companies Ordinance, 1984, provisions of and directives issued
under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance,
1984 shall prevail.
2.2 Basis of measurement
These financial statements have been prepared under the historical cost convention except for certain financial instruments,
which are carried at their fair values and staff retirement benefit - gratuity which is carried at present value of defined benefit
obligation net of fair value of plan assets.
2.3 Functional and presentation currency
These financial statements are presented in Pakistan Rupees, which is the functional currency of the Company and figures
are rounded off to the nearest thousand of Rupees.
2.4 Critical accounting estimates and judgements
The preparation of financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires
management to make judgements, estimates and assumptions that affects the application of policies and the reported amount
of assets, liabilities, income and expenses.
Estimates and judgements are based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances and are continually evaluated. The Company makes estimates and
assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual
results. However, such differences are estimated to be insignificant and hence will not affect the true and fair presentation of
the financial statements. The assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimates are revised and in any future periods affected. Judgements made by management in
application of the approved accounting standards that have significant effect on the financial statements and estimates with
a significant risk of material adjustments in the next year are discussed in respective policy note. The areas where various
assumptions and estimates are significant to the Company's financial statements or where judgements were exercised in
application of accounting policies are as follows:
(i) Estimate of useful life of property, plant and equipment and intangible assets [notes 4.1 and 4.2];
(ii) Provision for slow moving inventories [notes 4.9 and 4.10];
(iii) Estimates of payables and receivables in respect of staff retirement benefit schemes [notes 4.15 and 22.7]; and
(iv) Provision for taxation [note 4.21].
3. New and Amended St andards and Interpretations
3.1 Standards, amendments to approved accounting standards and interpretations effective in current year
New and amended standards and interpretations mandatory for the first time for the financial year beginning April 1, 2014:

(a) IAS 32 (Amendments), 'Financial instruments: presentation'. These amendments update the application guidance in IAS 32,
'Financial instruments: presentations', to clarify some of the requirements for offsetting financial assets and financial liabilities
on the balance sheet date. The application of these amendments has no material impact on the Company's financial statements.
(b) IAS 36 (Amendment), 'Impairment of assets'. This amendment addresses the disclosure of information about the recoverable
amount of impaired assets if that amount is based on fair value less costs of disposal. The application of these amendments
has no material impact on the Company's financial statements.
The other new standards, amendments to approved accounting standards and interpretations that are mandatory for the
financial year beginning on April 1, 2014 are considered not to be relevant or to have any significant effect on the Company's
financial reporting and operations.
3.2 Standards, amendments to approved accounting standards and interpretations that are not yet effective and have
not been early adopted by the Company
The following new standards and amendments to approved accounting standards are not effective for the financial year
beginning on April 1, 2014 and have not been early adopted by the Company:
(a) IFRS 13 ‘Fair Value Measurement’ (effective for annual periods beginning on or after January 1, 2015). The standard aims
to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value
measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value
accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards
within IFRSs. The Company is yet to assess the full impact of the standard, however, initial indication is that it is unlikely that
standard will have any significant impact on the Company's financial statements.
(b) Annual improvements 2012 applicable for annual periods beginning on or after July 1, 2014. These amendments include
changes from the 2010-12 cycle of the annual improvements project, that affect seven standards: IFRS 2, ‘Share-based
payment’, IFRS 3, ‘Business Combinations’, IFRS 8, ‘Operating segments’, IFRS 13, ‘Fair value measurement’, IAS 16,
‘Property, plant and equipment’, IAS 24 'Related Party Disclosures' and IAS 38, ‘Intangible assets’. The Company does not
expect to have a material impact on its financial statements due to application of these amendments.
(c) Annual improvements 2013 applicable for annual periods beginning on or after July 1, 2014. These amendments include
changes from the 2011-2013 cycle of annual improvements project that affect four standards: IFRS 1, 'First time adoption of
International Financial Reporting Standards', IFRS 3, 'Business combinations', IFRS 13, 'Fair value measurement' and IAS
40, 'Investment property'. The Company does not expect to have a material impact on its financial statements due to application
of these amendments.
(d) Annual improvements 2014 applicable for annual periods beginning on or after January 1, 2016. These amendments include
changes from the 2012-2014 cycle of annual improvements project that affect four standards: IFRS 5, 'Non current assets
held for sale and discontinued operations', IFRS 7 ’Financial instruments: disclosures’, IAS 19 'Employee benefits', and IAS
34, 'Interim financial reporting'. The Company does not expect to have a material impact on its financial statements due to
application of these amendments.
(e) IAS 19 (Amendment), 'Employee benefits', effective for annual periods beginning on or after July 1, 2014. The amendment
applies to contributions from employees or third parties to defined benefit plans and clarifies the treatment of such contributions.
The amendment distinguishes between contributions that are linked to service only in the period in which they arise and those
linked to service in more than one period. The objective of the amendment is to simplify the accounting for contributions that
are independent of the number of years of employee service, for example employee contributions that are calculated according
to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise
the benefit of those contributions over employee's working lives. The Company does not expect to have a material impact
on its financial statements.
There are number of other standards, amendments and interpretations to the approved accounting standards that are not
yet effective and are also not relevant to the Company and therefore, have not been presented here.
4. Significant Accounting Policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These polices
have been consistently applied to all the years presented, unless otherwise stated.

4.1 Property, plant and equipment
Owned assets
The Company has adopted cost model for its property, plant and equipment. Property, plant and equipment except for freehold
land and capital work-in-progress are stated at cost less accumulated depreciation and impairment loss, if any. Freehold land
is stated at cost less impairment loss, if any. Cost includes expenditure that is directly attributable to acquisition of the asset,
including any borrowing cost (note 4.24). The cost of a self constructed asset includes cost of materials, labour and other
overheads that are directly attributable to bringing the asset to a working condition for its intended use, costs of dismantling
/ removing the asset and restoring the site on which it is located. Items of property, plant and equipment individually costing
Rs.25,000 or less are charged to the profit and loss account as and when purchased.
Capital work-in-progress is stated at cost accumulated upto the balance sheet date less accumulated impairment loss, if any.
Capital work-in-progress is recognised as an operating fixed asset when it is made available for its intended use.
Where major components of an item of property, plant and equipment have different useful lives, they are accounted for in
the books of account as separate items of property, plant and equipment.
Subsequent costs including major renewals and improvements are included in the carrying amount of the asset or are
recognised as a separate asset, as appropriate, only when it is probable that the future economic benefits associated with
the asset will flow to the Company and the cost of the asset can be measured reliably. The carrying amount of the replaced
part is derecognised at the time of replacement. Normal repair and maintenance and day-to-day servicing are charged to the
profit and loss account as and when incurred.
Depreciation is charged to the profit and loss account using reducing balance method except for dies and jigs, office equipment,
computers and accessories, furniture and fixtures and service equipment, without considering extra shifts. Depreciation on
dies and jigs, office equipment, computers and accessories, furniture and fixtures and service equipment is charged to the
profit and loss account using straight line method. Depreciation on additions is charged from the month in which the asset is
available for use while no depreciation is charged for the month in which the asset is disposed-off.
The depreciation methods, useful lives and residual values of items of property, plant and equipment are reviewed periodically
and altered if circumstances or expectations have changed significantly. Any change or adjustment in depreciation method,
useful lives and residual values is accounted for as a change in accounting estimate under IAS 8, ‘Accounting policies, changes
in accounting estimates and errors’ and is applied prospectively in the financial statements by adjusting the depreciation
charge for the period in which the amendment or change has been made and for future periods.
Disposal of an item of property, plant and equipment is recognised when significant risk and rewards, incidental to the ownership
of that asset, have been transferred to the buyer. Gains and losses on disposals are determined by comparing the carrying
amount of that asset with the realised sales proceeds and are recognised within 'Other income / other operating expenses'
in the profit and loss account.
Leased assets
Lease that substantially transfers all the risks and rewards incidental to the ownership of an asset to the Company is classified
as finance lease. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and
present value of minimum lease payments. Subsequent to the initial recognition, the asset is accounted for in accordance
with the accounting policy applicable for owned assets.
4.2 Intangible assets
These are stated at cost less accumulated amortisation and impairment losses, if any and represent cost of software licenses,
SAP implementation & support cost and license fee of certain components that are being manufactured by the Company
under technology transfer arrangements.
Costs associated with maintaining these assets are charged to the profit and loss account as and when incurred, however,
costs that are directly attributable to the identifiable asset and have probable economic benefits exceeding one year, are
recognised as intangible asset. Direct costs include purchase cost of the asset, salaries and other service benefits of staff
deployed towards development of the asset and other related overheads. Expenditure incurred in respect of design, construction
and testing of an intangible asset are also added to the carrying amount of that asset.
Expenditure which enhances or extends the performance of the asset beyond its original specifications is recognised as a
capital improvement and added to the original cost of the asset.
All intangible assets are estimated to have definite useful lives and are amortised from the month the software / license is
acquired, made available for use or extended support cost is incurred, using the straight line method over a period of 2 to 5
years.

4.3 Impairment of non financial assets
Non-financial assets are reviewed at each balance sheet date to identify circumstances indicating occurrence of impairment
loss or reversal of pervious impairment losses, if any. An impairment loss is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost to
sell and value in use. Reversal of impairment loss is restricted to the original cost of the asset.
4.4 Investments in equity instruments of an Associate
Investment in an Associate is accounted for using the equity method of accounting. Under the equity method, the investment
is initially recognised at cost, and the carrying amount is increased or decreased to recognise the Company's share of profit
or loss of the Investee after the date of acquisition.
The Company’s share of post acquisition profit or loss is recognised in the profit and loss account, and its share of post
acquisition movements in other comprehensive income is recognised in other comprehensive income with the corresponding
adjustment to the carrying amount of the investment. When the Company's share of losses in an Associate equals or exceeds
its interest in the Associate, including any other unsecured receivables, the Company does not recognise further losses, unless
it has incurred legal or constructive obligations or made payments on behalf of the Associate.
The Company determines at each reporting date whether there is any objective evidence that the investment in the Associate
is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable
amount of the Associate and its carrying value and recognises the amount adjacent to share of profit / loss of an Associate
in the profit and loss account.
4.5 Financial assets
4.5.1 Classification
The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables,
held to maturity and available-for-sale. The classification depends on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this
category if acquired principally for the purpose of selling in short term. Derivatives are also categorised as held for trading
unless they are designated as hedges. Assets in this category are classified as current assets.
(b) Loans and receivables
Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period,
in which case, these are classified as non-current assets.
(c) Held to maturity financial assets
Held to maturity financial assets are non derivative financial assets with fixed or determinable payments and fixed maturity
with a positive intention and ability to hold to maturity.
(d) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative that are either designated in this category or not classified in any of the
other categories. They are included in non-current assets unless the investment matures or management intends to dispose-
off it within 12 months of the end of the reporting date.
4.5.2 Recognition and measurement
Regular purchases and sales of financial assets are recognised on the trade-date – the date on which the Company commits
to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets
not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised
at fair value, and transaction costs are expensed in the profit and loss account. Financial assets are derecognised when the
rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred
substantially all risks and rewards of the ownership. Available-for-sale financial assets and financial assets at fair value through
profit or loss are subsequently carried at fair value. Loans and receivables and held to maturity investments are subsequently
carried at amortised cost using the effective interest method.
Gains or losses arising from changes in fair value of the 'financial assets at fair value through profit or loss' category are
presented in the profit and loss account within 'Other income / other operating expenses' in the period in which they arise.
Dividend income from financial assets at fair value through profit or loss is recognised in the profit and loss account as part
of 'Other income' when the Company's right to receive payments is established.

Changes in the fair value of monetary and non-monetary securities classified as available-for-sale are recognised in 'Other
comprehensive income'.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in
equity are included in the profit and loss account as 'Gains / losses from investment securities'.
Interest on available-for-sale securities and held to maturity investments is calculated using the effective interest method is
recognised in the profit and loss account as part of 'Other income'. Dividend income from available-for-sale equity instruments
are recognised in the profit and loss account as part of 'Other income' when the Company's right to receive payments is
established.
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or a
group of financial assets is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss -
measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial
asset previously recognised in profit or loss - is removed from equity and recognised in profit or loss account. Impairment
losses recognised in profit and loss account on equity instruments are not reversed through the profit and loss account.
Impairment testing of other receivables is described in note 4.11.
4.6 Financial liabilities
Financial liabilities are recognised at the time when the Company becomes a party to the contractual provisions of the
instrument. All financial liabilities are recognised initially at fair value less directly attributable transactions costs, if any, and
subsequently measured at amortised cost using effective interest method.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. Where an existing
financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a derecognition of original liability and recognition
of a new liability and the difference in respective carrying amounts is recognised in the profit and loss account.
4.7 Off setting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the
liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counter party.
4.8 Derivative financial instruments and hedging activities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured
at their fair values. The method of recognising the resulting gain or loss depends on whether the derivative is designated as
a hedging instrument, if so, the nature of the item being hedged. The Company designates certain derivatives as either fair
value hedge or cash flow hedge.
(a) Fair value hedge
Fair value hedge represents a hedge of the fair value of a recognised asset or liability or a firm commitment. Changes in the
fair value of a derivative that is designated and qualify as fair value hedge is recorded in the profit and loss account, together
with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The carrying value
of the hedged item is adjusted accordingly.
(b) Cash flow hedge
Cash flow hedge represents a hedge of a highly probable forecast transaction. The effective portion of changes in the fair
value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The
gain or loss relating to the ineffective portion is recognised immediately in the profit and loss account. Amounts accumulated
in equity are reclassified to the profit and loss account in the periods when the hedged item affects profit and loss account.
4.9 Stores, spares and loose tools
Stores, spares and loose tools are stated at lower of cost and net realisable value. The cost of inventory is based on weighted
average cost. Items-in-transit are stated at cost accumulated upto the balance sheet date. The Company reviews the carrying
amounts of stores, spares and loose tools on an on-going basis and provision is made for obsolescence if there is any change
in usage pattern and physical form. Impairment is also made for slow moving items.

4.10 Stock-in-trade
Stock-in-trade are stated at the lower of cost and net realisable value. Cost of raw materials and components represent invoice
values plus other charges incurred thereon. Cost of inventory is based on weighted average cost. Cost in relation to work-
in-process and finished goods represent direct cost of raw materials, wages and appropriate manufacturing overheads. Goods
in transit are valued at cost accumulated upto the balance sheet date.
The Company reviews the carrying amount of stock-in-trade on an on-going basis and as appropriate, inventory is written
down to its net realisable value or provision is made for obsolescence if there is any change in usage pattern and physical
form of related inventory.
Net realisable value is the estimated selling price in the ordinary course of business less costs necessary to be incurred in
order to make the sale.
4.11 Trade debts and other receivables
Trade and other receivables are initially recognised at original invoice amount which is the fair value of consideration to be
received in future and subsequently measured at cost as reduced by appropriate provision for receivables considered to be
doubtful. A provision is established when there is objective evidence that the Company will not be able to collect all amounts
due according to the original terms of receivables. The amount of provision is charged to profit and loss. Trade and other
receivables considered irrecoverable are written-off.
Exchange gains and losses arising in respect of trade and other receivables in foreign currency are added to the carrying
amount of the receivables.
4.12 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash and cash
equivalents represent balances with banks.
4.13 Non current assets held for sale
Non current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a
sale transaction rather than continuing use and sale is considered highly probable. They are stated at the lower of carrying
amount and fair value less cost to sell.
4.14 Share capital
Ordinary shares are classified as equity and recognised at their face value.
4.15 Retirement and other service benefit obligations
4.15.1 Defined contribution plans
A defined contribution plan is a post employment benefit plan under which an entity pays fixed contribution into a separate
entity and will have no legal or constructive obligation to pay further amounts. Obligation for contribution to a defined contribution
plan is recognised as an employee service benefit expense in the profit and loss account when it is due.
The Company operates defined contribution plans for its permanent employees excluding ex-patriates, through either one
of the following ways:
• a recognised provident fund; or
• voluntary pension schemes managed by Atlas Asset Management Limited, a related party, under the Voluntary Pension
System Rules, 2005, viz, Atlas Pension Fund and Atlas Pension Islamic Fund.
All the newly appointed employees are offered voluntary pension scheme only. However, those employees who are provident
fund trust members, have the option to opt for either of two above-mentioned defined contribution plans.
Equal monthly contributions at the rate of 11% of the basic salary are made to the fund / scheme both by the Company and
the employees. The fund is a separate legal entity and its assets are being held separately under the control of its Trustees.
4.15.2 Defined benefit plans
Defined benefit plan is a post-employment benefit plan other than the defined contribution plan. Defined benefit plans define
an amount of gratuity that an employee will receive on retirement, usually dependent on one or more factors such as age
and years of service. The liability recognised in the balance sheet is the present value of the defined benefit obligation at the
end of the reporting period less the fair value of the plan assets.

The Company has established separate funded gratuity schemes for its management and non-management staff who completes
qualifying period of service. Contributions under the schemes are made on the basis of actuarial valuation using Projected
Unit Credit Method, related details of which are given in note 22.7 to the financial statements.
The amount arising as a result of remeasurements are recognised in the balance sheet immediately, with a charge or credit
to other comprehensive income in the periods in which they occur. Past-service cost are recognised immediately in profit and
loss account.
4.15.3 Compensated absences
Employees’ entitlement to annual leaves is recognised when they accrue to the employees. A provision is made for the
estimated liability for annual leaves as a result of services rendered by employees upto the balance sheet date.
4.16 Trade and other payables
Liabilities for trade and other payables are carried at their amortised cost, which approximate fair value of the consideration
to be paid in future for goods and services received, whether or not billed to the Company.
4.17 Obligation under finance lease
Total outstanding obligation under the lease arrangements less finance cost attributable to future periods is presented as
liability. Finance cost under the lease arrangements is distributed over the lease term so as to produce a constant periodic
rate of finance cost on the balance of principal liability outstanding at the end of each period.
4.18 Operating leases / Ijarah
Operating leases / Ijarah in which a significant portion of the risks and rewards of ownership are retained by the lessor / Muj’ir
(lessor) are classified as operating leases / Ijarah. Payments made during the year are charged to the profit and loss account
on a straight-line basis over the period of the lease / Ijarah.
4.19 Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events and it
is probable that outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect current best
estimate.
4.20 Warranty
The Company recognises the estimated liability to repair or replace damaged parts of products still under warranty at the
balance sheet date on the basis of historical claim information. The Company offers 3 years’ warranty on all engine spare
parts and six months warranty on all other spare parts of its motorcycles. The ratio of warranty claims filed during the year
to previous year's sales is taken into account for determining the estimated liability.
4.21 Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to
the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.
Current
The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date.
The charge for current tax also includes adjustments, where considered necessary, to provision for tax made in the previous
years arising from assessments framed during the year for such years.
Deferred
Deferred tax is recognised using the balance sheet method in respect of temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet
date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised
only to the extent that it is probable that future taxable profit will be available against which the temporary differences can
be utilised.
4.22 Foreign currency transactions and translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
transactions. The closing balance of non-monitory items is included at the exchange rate prevailing on the date of transaction
and monetary items are translated using the exchange rate prevailing on the balance sheet date. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in profit and loss account.
4.23 Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the amount of
revenue can be measured reliably. Revenue is measured at fair value of the consideration received or receivable and is
reduced for allowances such as taxes, duties, commission, sales returns and discounts. Revenue from different sources is
recognised on the following basis:
- Revenue from sales of motorcycles and spare parts is recognised when goods are dispatched and invoiced to customers.
- Interest income on deposits with banks and other financial assets is recognised on accrual basis.
- Dividend income is recognised when the right to receive payment is established.
4.24 Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred except where such costs are directly
attributable to the acquisition, construction or production of a qualifying asset in which case such costs are capitalised as part
of the cost of that asset.
4.25 Research and development costs
Research and development costs are recognised in profit and loss account as and when incurred.
4.26 Earnings per share
The Company presents earnings per share (EPS) data for its ordinary shares. EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during
the period.
4.27 Segment reporting
Segment information is presented on the same basis as that used for internal reporting purposes by the Chief Operating
Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments. On the
basis of its internal reporting structure, the Company considers itself to be a single reportable segment.
4.28 Dividend and appropriation to reserves
Dividend and appropriation to reserves are recognised in the financial statements in the period in which these are approved.
Note 2015 2014

------ (Rupees in ’000) -----
5. Proper ty, Plant and Equipment
Operating fixed assets 5.1 4,752,195 4,406,665

Capital work-in-progress 5.4 230,357 146,151
4,982,552 4,552,816

5.1 Operating fixed assets
Buildings Buildings Computers Electric

on on Plant Dies and Furniture Fixture and
Freehold Leasehold freehold leasehold and and Factory Office accesso- and and gas Service
land land land land machinery jigs equipment equipment ries fixtures equipment fittings Vehicles equipment Total
---------------------------------------------------------------------- (Rupees in ’000) ----------------------------------------------------------------------
As at April 1, 2013
Cost 5,112 34,132 388,462 209,771 5,607,983 1,434,326 220,798 24,007 126,377 36,902 1,300 343,833 226,125 374 8,659,502
Accumulated depreciation - (9,501) (201,877) (57,796) (2,494,617) (1,014,566) (108,842) (18,129) (102,138) (17,593) (1,300) (152,482) (95,229) (374) (4,274,444)
Net book value 5,112 24,631 186,585 151,975 3,113,366 419,760 111,956 5,878 24,239 19,309 - 191,351 130,896 - 4,385,058
Year ended March 31, 2014
Opening net book value 5,112 24,631 186,585 151,975 3,113,366 419,760 111,956 5,878 24,239 19,309 - 191,351 130,896 - 4,385,058
Additions - - 116,608 17,232 373,589 180,295 33,422 5,742 18,291 6,250 - 48,123 74,441 - 873,993
Disposals
Cost - - - - (70,923) (188,882) (542) (52) (4,039) (202) - - (35,561) - (300,201)
Accumulated depreciation - - - - 53,702 180,763 542 52 3,962 202 - - 17,333 - 256,556
- - - - (17,221) (8,119) - - (77) - - - (18,228) - (43,645)
Written off
Cost - - - - - - - - (854) - (1,300) - - (374) (2,528)
Accumulated depreciation - - - - - - - - 854 - 1,300 - - 374 2,528
- - - - - - - - - - - - - - -
Assets classified as held for sale
and transferred to inventories
Cost - - - - (278,014) (33,289) (812) - - - - - (2,397) - (314,512)
Accumulated depreciation - - - - 108,806 31,406 444 - - - - - 385 - 141,041
- - - - (169,208) (1,883) (368) - - - - - (2,012) - (173,471)

Depreciation charge - (513) (20,069) (15,801) (324,758) (187,318) (12,579) (2,032) (15,770) (5,404) - (21,136) (29,890) - (635,270)
Closing net book value 5,112 24,118 283,124 153,406 2,975,768 402,735 132,431 9,588 26,683 20,155 - 218,338 155,207 - 4,406,665
At March 31, 2014
Cost 5,112 34,132 505,070 227,003 5,632,635 1,392,450 252,866 29,697 139,775 42,950 - 391,956 262,608 - 8,916,254
Accumulated depreciation - (10,014) (221,946) (73,597) (2,656,867) (989,715) (120,435) (20,109) (113,092) (22,795) - (173,618) (107,401) - (4,509,589)
Net book value 5,112 24,118 283,124 153,406 2,975,768 402,735 132,431 9,588 26,683 20,155 - 218,338 155,207 - 4,406,665
Opening net book value 5,112 24,118 283,124 153,406 2,975,768 402,735 132,431 9,588 26,683 20,155 - 218,338 155,207 - 4,406,665
Additions - - 136,473 30,224 625,858 162,786 13,286 1,115 4,756 21,687 - 12,930 72,287 - 1,081,402
Disposals (note 5.3)
Cost - - - - (65,887) (165,286) - (647) (271) (450) - (1,292) (61,113) - (294,946)
Accumulated depreciation - - - - 30,803 148,039 - 647 271 258 - 1,085 26,768 - 207,871
- - - - (35,084) (17,247) - - - (192) - (207) (34,345) - (87,075)
Written off
Cost - - - - - (37,906) - - - - - - - - (37,906)
Accumulated depreciation - - - - - 37,906 - - - - - - - - 37,906
- - - - - - - - - - - - - - -
Depreciation charge (note 5.2) - (513) (30,581) (16,159) (325,574) (181,988) (14,038) (2,879) (10,922) (8,713) - (22,448) (34,982) - (648,797)
Closing net book value 5,112 23,605 389,016 167,471 3,240,968 366,286 131,679 7,824 20,517 32,937 - 208,613 158,167 - 4,752,195
At March 31, 2015
Cost 5,112 34,132 641,543 257,227 6,192,606 1,352,044 266,152 30,165 144,260 64,187 - 403,594 273,782 - 9,664,804
Accumulated depreciation - (10,527) (252,527) (89,756) (2,951,638) (985,758) (134,473) (22,341) (123,743) (31,250) - (194,981) (115,615) - (4,912,609)
Net book value 5,112 23,605 389,016 167,471 3,240,968 366,286 131,679 7,824 20,517 32,937 - 208,613 158,167 - 4,752,195
Annual rate of depreciation (%) - 1.79 10 10 10 25 10 20 25 20 20 10 20 20

5.2 Depreciation expense of Rs.607,623 thousand (2014: Rs.597,238 thousand) has been charged in 'cost of sales', Rs.41,174
thousand (2014: Rs.38,032 thousand) in 'Administrative expenses'.
5.3 The details of operating fixed assets disposed-off during the year are as follows:
Particulars of assets Cost Accumulated Net book Sale Mode of Particulars of purchasers
depreciation value proceeds disposal
-------------------- (Rupees in ’000) --------------------
Assets having net book value
exceeding Rs.50,000 each
Plant and machinery
Shot blasting machine with spares 564 (325) 239 205 Negotiation Friction Materials Components (Pvt.) Ltd. North
Karachi Industrial Area, Karachi.
Airless spray gun and tank 459 (269) 190 128 Negotiation Friction Materials Components (Pvt.) Ltd. North
Airless spray gun and tank 459 (269) 190 128 Negotiation Friction Materials Components (Pvt.) Ltd. North
Air vice bonding machine 240 (108) 132 128 Negotiation Friction Materials Components (Pvt.) Ltd. North
Casting moulding machine 20,000 (663) 19,337 20,000 Negotiation Millennium Engineering (Pvt.) Ltd. Phase 1,
Scheme 33, S.I.T.E. II, Karachi.
Casting machine steel core type 15,964 (10,944) 5,020 5,271 Negotiation Atlas Autos (Pvt.) Ltd., a related party, Federation
House, Clifton, Karachi.
Condenser welding machine 12,716 (8,273) 4,443 4,665 Negotiation Atlas Autos (Pvt.) Ltd., a related party, Federation
Gravity die casting machine 5,478 (3,213) 2,265 2,378 Negotiation Atlas Autos (Pvt.) Ltd., a related party, Federation
Projection welding machine 5,768 (3,752) 2,016 2,116 Negotiation Atlas Autos (Pvt.) Ltd., a related party, Federation
Leak testing machine 1,770 (1,151) 619 649 Negotiation Atlas Autos (Pvt.) Ltd., a related party, Federation
Electro discharge machine 2,298 (1,717) 581 1,000 Negotiation Atlas Engineering Ltd., a related party,
National Highway, Landhi, Karachi.
65,716 (30,684) 35,032 36,668
Dies and Jigs
Cylinder head casting dies 15,007 (10,630) 4,377 22 Negotiation M/s. Rehman Taj Scrap Traders, Kot Pindi Das
Road, Shahdra, Lahore.
Cylinder head casting dies 15,007 (12,193) 2,814 47 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Casting die - right crankcase 11,467 (9,078) 2,389 36 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Mould for bottom casting die 4,731 (3,450) 1,281 15 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Casting die for case bottom 1,540 (449) 1,091 5 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Casting die for case bottom 1,403 (701) 702 4 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Die 1,530 (988) 542 2 Negotiation M/s. Rehman Taj Scarp Traders, Kot Pindi Das
Casting die for right crank case 6,676 (6,259) 417 21 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Die case bottom 1,238 (928) 310 4 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Case bottom casting die 1,213 (1,061) 152 4 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
Case bottom casting die 1,058 (926) 132 3 Negotiation M/s. Bismallah Waste, Feroz Park, Sui Gas
68,139 (50,888) 17,251 179

-------------------- (Rupees in ’000) --------------------
Furniture and fixtures
Curtains 253 (139) 114 10 Negotiation Mr. Waheed Ahmed, Muslim Park, Shahdra,
Lahore.
Electric and gas fittings
Washing machine 73 (6) 67 11 Negotiation Mr. Mushtaq, Iqbal town, Lahore.
Vehicles
504 (349) 155 351 Negotiation Mr. Riaz Ahmed, Buffer Zone, North Nazimabad,
Karachi.
529 (322) 207 207 Company policy Mr. Nofil Zia Siddiqui (Employee)
504 (314) 190 190 Company policy Mr. Muhammad Raheel Mannan (Employee)
509 (314) 195 195 Company policy Mr. Muhammad Zeeshan Jamil (Employee)
652 (398) 254 254 Company policy Mr. Muhammad Furqan Khan (Employee)
1,721 (1,013) 708 708 Company policy Mr. Muhammad Mushtaq Alam (Employee)
1,445 (859) 586 586 Company policy Mr. Imtiaz Sheikh (Employee)
591 (268) 323 323 Company policy Mr. Peter Fernandez (Employee)
591 (302) 289 289 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
112 (23) 89 89 Company policy Mr. Babar Hameed (Ex-Employee)
64 (13) 51 51 Company policy Mr. Ghulam Murtaza (Employee)
93 (34) 59 59 Company policy Mr. Zohaib Munir (Employee)
1,632 (340) 1,292 1,292 Company policy Ms. Theresa Dias (Employee)
1,493 (287) 1,206 1,206 Company policy Mr. Khurshid Ahmed Minhas (Employee)
82 (8) 74 74 Company policy Mr. Rizwan Yousuf Khan (Employee)
1,256 (736) 520 520 Company policy Mr. Manzoor Qadir (Employee)
1,385 (770) 615 615 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
783 (331) 452 452 Company policy Mr. M. Asif Imran (Employee)
79 (23) 56 56 Company policy Mr. Khurram Javed (Employee)
112 (21) 91 91 Company policy Atlas Hitec (Pvt.) Ltd., a related party, Federation
114 (30) 84 84 Company policy Mr. Hanif Kamal (Ex-Employee)
2,128 (436) 1,692 1,692 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
1,019 (68) 951 951 Company policy Atlas Hitec (Pvt.) Ltd., a related party, Federation
93 (22) 71 71 Insurance claim Atlas Insurance Limited, a related party,
Federation House, Clifton, Karachi.
1,637 (191) 1,446 1,446 Company policy Mr. Asif Javed (Ex-Employee)
1,301 - 1,301 1,301 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
1,810 (767) 1,043 1,043 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
1,385 (822) 563 563 Company policy Mr. Sohail Qaisar (Employee)
1,366 (814) 552 552 Company policy Mr. Muhammad Akmal Dar (Employee)
1,366 (814) 552 552 Company policy Mr. Asif Javed (Employee)
1,385 (843) 542 542 Company policy Mr. Syed Aftab Ghous Gilani (Employee)
1,385 (843) 542 542 Company policy Mr. Muhammad Ameen Tahir (Employee)
783 (323) 460 460 Company policy Mr. Amjad Ali (Employee)
Balance carried forward 30,573 (12,810) 17,763 17,959

-------------------- (Rupees in ’000) --------------------
Balance brought forward 30,573 (12,810) 17,763 17,959
Vehicles 783 (323) 460 460 Company policy Mr. Muhammad Raza (Employee)
735 (326) 409 409 Company policy Mr. Hammad Hassan (Employee)
690 (420) 270 270 Company policy Mr. Syed Mohsin Raza (Employee)
690 (420) 270 270 Company policy Mr. Nazeer Hussain (Employee)
661 (404) 257 257 Company policy Mr. Abdul Wahid (Employee)
537 (319) 218 218 Company policy Mr. Sajjad Ali Bokhari (Employee)
532 (316) 216 216 Company policy Mr. Muhammad Kashif Hassan (Employee)
537 (327) 210 210 Company policy Mr. Akhtar Ali Virk (Employee)
518 (316) 202 202 Company policy Mr. Imran Khan (Employee)
82 (4) 78 78 Company policy Mr. Jamshed Saleem (Employee)
96 (23) 73 73 Company policy Mr. Syed Arshad Hussain (Employee)
111 (39) 72 72 Company policy Mr. Muhammad Ahsan (Employee)
69 (6) 63 51 Negotiation Mr. Muhammad Amir, Ghorayshah, Lahore.
93 (34) 59 59 Company policy Mr. Anaum Khan (Employee)
79 (26) 53 53 Company policy Mr. Junaid Khalid (Ex-Employee)
64 (12) 52 43 Negotiation Mr. Hanan Gul, Al-hamd Market, Sheikhpura.
64 (12) 52 43 Negotiation Mr. Hanan Gul, Al-hamd Market, Sheikhpura.
1,997 (100) 1,897 1,897 Insurance claim Atlas Insurance Limited, a related party,
1,055 (52) 1,003 1,003 Company policy Mr. Afrasiab Khan (Employee)
1,487 (630) 857 857 Company policy Atlas Battery Limited, a related party, D-181,
Central Avenue, S.I.T.E., Karachi.
1,353 (600) 753 753 Company policy Mr. Naeem Mohsin (Employee)
1,385 (782) 603 603 Company policy Atlas Autos (Pvt.) Ltd., a related party, Federation
1,403 (821) 582 582 Company policy Mr. Khawer Saeed (Employee)
1,385 (822) 563 563 Company policy Mr. Muhammad Zafar Iqbal (Employee)
663 (159) 504 504 Company policy Mr. Abdul Nasir (Employee)
783 (323) 460 460 Company policy Mr. Iftikhar Ahmed (Employee)
783 (323) 460 460 Company policy Mr. Muhammad Qamer Bashir (Employee)
783 (323) 460 460 Company policy Mr. Muhammad Yaseen Murtaza (Employee)
783 (331) 452 452 Company policy Mr. Asif Saeed Mughal (Employee)
759 (329) 430 430 Company policy Mr. Raja Mohsin Ghafoor (Employee)
688 (371) 317 317 Company policy Mr. Muhammad Hussain (Ex-Employee)
591 (302) 289 289 Company policy Mr. Maqsood-Ul-Hassan (Ex-Employee)
690 (420) 270 270 Company policy Mr. Javedan Arshad (Employee)
532 (316) 216 216 Company policy Mr. Muhammad Adnan Munawar (Employee)
537 (327) 210 210 Company policy Mr. Abdullah Khalid (Employee)
513 (320) 193 193 Company policy Ms. Asma Azmi (Employee)
96 (21) 75 75 Company policy Mr. Saqlain Abbas (Employee)
93 (27) 66 66 Company policy Mr. Muhammad Zaman (Ex-Employee)
110 (45) 65 65 Company policy Mr. Kashif Ashfaq (Employee)
92 (31) 61 61 Company policy Mr. Muhammad Ahmar Khan (Employee)
93 (34) 59 59 Company policy Mr. Muhammad Amin (Employee)
92 (34) 58 58 Company policy Mr. Soban Jahanz (Employee)
93 (35) 58 58 Company policy Mr. Ali Mohsin (Employee)
56,369 (24,119) 32,250 32,416
190,550 (105,836) 84,714 69,284
Various assets having net book
value upto Rs.50,000 each 104,397 (102,035) 2,362 2,949
Year ended March 31, 2015 294,947 (207,871) 87,076 72,233
Year ended March 31, 2014 300,201 (256,556) 43,645 20,556

Note 2015 2014

------ (Rupees in ’000) -----
5.4 Capital work-in-progress
Buildings on freehold land 37,653 32,341
Buildings on leasehold land - 4,329
Plant and machinery 5.4.1 167,218 100,676
Factory equipment 1,198 3,624
Computers and accessories 21,550 -
Furniture and fixtures 419 2,335
Vehicles 5.4.2 2,319 2,846
230,357 146,151
5.4.1 Includes advance of Rs.11,375 thousand (2014: Rs.3,000 thousand) made to Shirazi Trading Company (Private) Limited -
a related party.
5.4.2 Includes advance of Rs.1,641 thousand (2014: Rs.2,158 thousand) made to Honda Atlas Cars (Pakistan) Limited - a related
party.
SAP
Software implementation Licence Total
licences and fee
support cost
-----------------------------------(Rupees in ‘000)---------------------------------
6. Intangible Assets
At April 1, 2013
Cost 41,140 38,041 5,216 84,397

Accumulated amortisation (39,491) (37,178) (2,173) (78,842)
Net book value 1,649 863 3,043 5,555

Opening net book value 1,649 863 3,043 5,555
Additions 3,239 - - 3,239
Amortisation charge (2,520) (450) (1,043) (4,013)
Closing net book value 2,368 413 2,000 4,781
At March 31, 2014

Cost 44,379 38,041 5,216 87,636
Net book value 2,368 413 2,000 4,781

Opening net book value 2,368 413 2,000 4,781
Additions 13,143 - - 13,143
Amortisation charge (note 26.1) (3,694) (413) (1,043) (5,150)
Closing net book value 11,817 - 957 12,774
At March 31, 2015

Cost 57,522 38,041 5,216 100,779
Net book value 11,817 - 957 12,774
Annual rate of amortisation (%) 50 20 20

Note 2015 2014

------ (Rupees in ’000) -----
7. Long Term Investments - Available for Sale
Unquoted
Associate - equity accounted investment 7.1 216,283 -
Others - available for sale 7.2 - -
216,283 -
7.1 Equity accounted investment -

Atlas Hitec (Private) Limited
19,000,000 (2014: Nil) ordinary shares of

Rs.10 each - cost 190,000 -
Equity held: 29.23%
Add: share of post acquisition profit - net of tax 26,283 -
216,283 -
7.1.1 The Company, during the year, acquired nineteen million ordinary shares of Rs.10 each of Atlas Hitec (Private) Limited [an
Associated Company] against consideration of its fixed assets as detailed in note 17 to the financial statements.
7.1.2 The summary of financial information of Associate as of March 31, 2015 is as follows:
Rupees
('000)
- Total assets 826,500
- Total liabilities 101,900
- Total equity 724,600
- Total revenues 917,100
- Profit for the year 92,017
7.1.3 The financial information of Associate is based on unaudited financial statements for the year ended March 31, 2015.
2015 2014
------ (Rupees in ’000) -----
7.2 Others - available for sale
Arabian Sea Country Club Limited
200,000 ordinary shares of Rs.10 each - cost 2,000 2,000
Less: Impairment in the value of investment 2,000 2,000
- -
Automotive Testing & Training Centre (Private) Limited
50,000 ordinary shares of Rs.10 each - cost 500 500
Less: Impairment in the value of investment 500 500
- -
- -

Note 2015 2014

------ (Rupees in ’000) -----
8. Long Term Loans and Adv ances - Considered Good
Loans and advances to:

- executives 8.1 & 8.2 9,062 9,363
- other employees 49,826 47,653
58,888 57,016
Less: amounts due within one year and shown under current assets: 12
- executives 8,085 8,065
- other employees 23,605 22,555
31,690 30,620
27,198 26,396
8.1 These represent interest free loans and advances provided to executives and other employees as per the terms of employment.
Loans aggregating Rs.42,558 thousand (2014: Rs.40,727 thousand) are provided for purchase of motorcycles and are
repayable in forty eight equal monthly installments for management staff and forty equal monthly installments for non-
management staff. These loans are secured against respective motorcycles and employees' vested retirement benefits.
Advances are unsecured and are repayable in eighteen equal monthly installments.
8.2 Reconciliation of the carrying amount of loans and advances to executives:
2015 2014
------ (Rupees in ’000) -----
Balance as at April 1 9,363 7,938

Disbursements 12,804 12,470
22,167 20,408
Repayments (13,105) (11,045)
Balance as at March 31 9,062 9,363
8.3 The maximum amount of loans and advances to the executives outstanding at the end of any month during the year ended
March 31, 2015 was Rs.10,435 thousand (2014: Rs.9,785 thousand).
8.4 The carrying values of these loans and advances are neither past due nor impaired. The credit quality of these financial assets
can be assessed with reference to no default in recent history.
Note 2015 2014

------ (Rupees in ’000) -----
9. Stores, Sp ares and Loose Tools
Consumable stores 75,415 87,073
Maintenance spares 217,573 184,125
Loose tools 197,416 195,020
Items in transit - 1,269
490,404 467,487
Provision for slow moving items 10.2 (69,065) (67,063)
421,339 400,424

Note 2015 2014

------ (Rupees in ’000) -----
10. Stock-in- Trade
Raw materials and components
- in hand 1,102,250 1,487,667
- held with vendors 10.1 72,182 122,087
1,174,432 1,609,754
Work-in-process 25,131 4,549
Finished goods
- motorcycles 55,603 62,418
- spare parts 255,616 248,657
311,219 311,075
Items in transit 186,980 136,008
1,697,762 2,061,386
Provision for slow moving items 10.2 (37,233) (18,784)
1,660,529 2,042,602
10.1 Includes raw materials amounting Rs.8,510 thousand (2014: Rs.9,487 thousand) held with Atlas Autos (Private) Limited
(a related party) for manufacturing purposes.
2015 2014 2015 2014

-------------------- (Rupees in ’000) --------------------
Stores, spares and loose tools Stock-in-trade
10.2 Movement of provision for

slow moving inventories
Balance as at April 1 67,063 62,099 18,784 10,200
Provision for the year 2,002 4,964 18,449 8,584
Balance as at March 31 69,065 67,063 37,233 18,784
10.3 Stock-in-trade and trade debts upto a maximum amount of Rs.4,058,000 thousand (2014: Rs.4,058,000 thousand) are under
hypothecation of commercial banks as security for short term finance facilities (note 23).
Note 2015 2014

------ (Rupees in ’000) -----
11. Trade Debts - Considered Good
Export - secured 11.1 7,659 7,519
Local - unsecured 696,938 512,802
704,597 520,321
11.1 These trade debts are secured against letters of credit issued by customers in favour of the Company.
11.2 As of March 31, 2015, trade debts of Rs.123,471 thousand (2014: Rs.109,727 thousand) were past due but not impaired.
These related to a number of independent customers for whom there is no recent history of default. The ageing analysis of
these trade debts is as follows:
2015 2014
------ (Rupees in ’000) -----
Past due within 30 days 85,976 103,270

Past due beyond 30 days 37,495 6,457
123,471 109,727
11.3 The banks have lien on export bills / contracts upto a maximum of Rs.400,000 thousand (2014: Rs.400,000 thousand) against
foreign currency finance facilities (note 23).

Note 2015 2014

------ (Rupees in ’000) -----
12. Loans and Advances - Considered Good
Current portion of long term loans and advances 8 31,690 30,620
Loans to employees other than executives 12.1 511 485
Advances to suppliers, contractors and others 9,034 4,200
41,235 35,305
12.1 These represent interest free welfare and festival loans provided to employees in accordance with Company's policy and have
maturities upto ten months.
2015 2014
------ (Rupees in ’000) -----
13. Trade Deposits and Prepa yments
Trade deposits - unsecured and considered good 4,504 3,034
Prepayments 55,064 47,645
59,568 50,679
2015 2014
------ (Rupees in ’000) -----
14. Short Term Investments - at Fair Value through Profit or Loss
2015 2014
----- Number of units -----
Related parties
2,916,041 1,571,767 Atlas Income Fund 1,616,070 812,21 1
138,839 134,195 Atlas Islamic Income Fund 73,892 69,171
2,456,022 4,242,008 Atlas Money Market Fund 1,313,923 2,133,560
486,522 499,800 Atlas Gold Fund 47,533 50,920
405,510 - Atlas Islamic Stock Fund 174,028 -
1,960,784 - Atlas Sovereign Liquid Fund 200,765 -
8,363,718 6,447,770 3,426,211 3,065,862

Others
2,236,323 2,189,807 Lakson Money Market Fund 238,393 219,237
2,758,088 2,100,079 Lakson Income Fund 306,659 213,257
13,159,807 7,086,699 NIT Government Bond Fund 148,433 75,537
- 6,982,968 NIT Income Fund - 75,205
- 417,216 HBL Money Market Fund - 42,143
18,154,218 18,776,769 693,485 625,379
26,517,936 25,224,539 4,119,696 3,691,241

Note 2015 2014

------ (Rupees in ’000) -----
15. Other Receivables - Unsecured, Considered Good
Duty drawback receivable 2,775 4,045
Others 899 621
3,674 4,666
16. Bank Balances
Balances with banks in:
- current accounts 285,779 208,954
- savings deposit accounts 16.1 1,023,421 1,034,784
- term deposit receipts 16.2 2,100,000 1,600,000
3,409,200 2,843,738
16.1 Savings deposit accounts carry mark-up upto 7.80% (2014: 8.60%) per annum.
16.2 Term deposit receipts (TDR) have maturity dates ranging from 3 to 31 days (2014: 7 to 31 days) from respective date of
acquisition. These TDRs carry mark-up at the rates ranging from 7.10% to 8.25% (2014: 9.20% to 9.40%) per annum.
17. Non Current Assets Classified as Held For Sale
The Company, during the preceding year, entered into an agreement with Denso Corporation and Atlas Autos (Private) Limited
(an Associated Company) to form a company named Atlas Hitec (Private) Limited [AHTL] and according to that agreement,
AHTL will issue its ordinary shares to the Company in consideration of Company's operating fixed assets. The Company,
during the year, has received nineteen million ordinary shares of Rs.10 each of AHTL against its fixed assets having net book
value of Rs.171,459 thousand. The gain on such disposal amounting to Rs.18,541 thousand has been reflected in other
income (note 29).
18. Shar e Capital
18.1 Authorized capital
2015 2014 2015 2014

----- Number of shares ----- ------ (Rupees in ’000) -----
150,000,000 150,000,000 Ordinary shares of Rs.10 each 1,500,000 1,500,000
18.2 Issued, subscribed and paid-up capital
2015 2014
----- Number of shares -----
6,352,748 6,352,748 Ordinary shares of Rs.10 each fully paid in cash 63,528 63,528
96,794,565 96,794,565 Ordinary shares of Rs.10 each issued as fully

paid bonus shares 967,945 967,945
259,300 259,300 Ordinary shares of Rs.10 each issued as fully

paid for consideration other than cash 2,593 2,593
103,406,613 103,406,613 1,034,066 1,034,066

2015 2014
------ (Rupees in ’000) -----
18.3 Movement in issued, subscribed and paid-up capital during the year
2015 2014
----- Number of shares -----
103,406,613 82,725,291 As at April 1 1,034,066 827,253
- 20,681,322 Ordinary shares of Rs.10 each issued during the
preceding year as fully paid bonus shares - 206,813
103,406,613 103,406,613 As at March 31 1,034,066 1,034,066
2015 2014
------ Number of shares -----
18.4 Ordinary shares of the Company held by the related parties as at March 31
Atlas Insurance Limited 2,931,728 2,931,728
Honda Motor Company Limited, Japan 36,192,315 36,192,315
Shirazi Investments (Private) Limited 25,265,858 25,265,858
Shirazi Capital (Private) Limited 25,359,715 25,359,715
Shirazi (Private) Limited 3,595,120 3,595,120
93,344,736 93,344,736
2015 2014
------ (Rupees in ’000) -----
19. Reserves
Capital reserves
Share premium 39,953 39,953
Gain on sale of land 165 165
40,118 40,118
Revenue reserves
General reserve:
- at April 1 4,702,000 4,072,000
- transferred from unappropriated profit 630,000 630,000
- at March 31 5,332,000 4,702,000
Unappropriated profit 2,832,361 2,137,129
8,164,361 6,839,129
8,204,479 6,879,247
20. Compensated Absences
Provision for the year 16,994 29,955
209,036 200,203
Encashed during the year (13,891) (8,161)
21. Deferred Taxa tion - Net
The liability for deferred taxation comprises temporary dif ferences relating to:
Taxable temporary deference
Accelerated tax depreciation allowances 704,604 761,600
Deductible temporary differences
Provision for slow moving inventories 34,656 28,677
Compensated absences 63,622 64,153
Warranty obligations 11,542 10,587
Staff retirement benefit - gratuity 16,535 20,625
126,355 124,042
578,249 637,558

Note 2015 2014

------ (Rupees in ’000) -----
22. Trade and Other Pa yables
Creditors 22.1 2,185,464 2,947,253
Accrued liabilities 22.2 1,200,383 993,543
Royalty payable 22.3 567,264 641,908
Warranty obligations 35,402 31,692
Advances from customers 22.4 1,229,212 628,768
Retention money 14,343 10,404
Sales tax payable - net 149,405 4,037
Workers' profit participation fund 22.5 172,514 144,583
Workers' welfare fund 22.6 69,995 64,476
Payable to staff retirement benefit funds - gratuity 22.7 50,718 61,742
Sindh government infrastructure fee 37,899 -
Unclaimed dividend 37,639 29,972
Others 22.8 19,496 19,316
5,769,734 5,577,694
22.1 Includes Rs.25,995 thousand (2014: Rs.Nil) due to Atlas Hitec (Private) Limited - a related party.
22.2 Includes Rs.521 thousand (2014: Rs.6,681 thousand) due to Honda Motor Company Limited, Japan - a related party.
22.3 Includes Rs.563,437 thousand (2014: Rs.550,336 thousand) due to Honda Motor Company Limited, Japan - a related party.
22.4 These represent advances from customers against sale of motorcycles & parts and carry no mark-up.
Note 2015 2014
------ (Rupees in ’000) -----
22.5 Workers' profit participation fund (the Fund)
Allocation for the year 30 172,275 144,407
Interest on funds utilised in the
Company's business 31 239 176
317,097 263,514
Paid to trustees of the Fund (144,583) (118,931)
22.6 Workers' welfare fund
Charge for the year 65,465 54,886

Adjustment for prior year (9,591) (567)
30 55,874 54,319
120,350 108,006
Payment made during the year (50,355) (43,530)

22.7 Staff retirement benefit - gratuity
22.7.1 As stated in note 4.15.2, the Company has established two separate funded gratuity schemes for its management and non-
management staff. Actuarial valuation of these schemes are carried out every year and the latest actuarial valuations were
carried out as at March 31, 2015.
22.7.2 Plan assets held in trust are governed by local regulations which mainly includes Trust Act, 1882, Companies Ordinance,
1984, Income Tax Rules, 2002 and Rules under the Trust deed of the Plans. Responsibility for governance of the Plans,
including investment decisions and contributions schedules lies with the Board of Trustees. The Company appoints the trustees
and all trustees are employees of the Company.
22.7.3 The latest actuarial valuations of the Funds as at March 31, 2015 were carried out using the 'Projected Unit Credit Method'.
Details of the Funds as per the actuarial valuations are as follows:
Management Non-management Total

2015 2014 2015 2014 2015 2014
------------------------------------ (Rupees in ’000) ----------------------------------
22.7.4 Balance sheet reconciliation
Present value of defined benefit obligation

at March 31 - note 22.7.5 289,018 271,797 35,865 33,526 324,883 305,323
Fair value of plan assets at March 31 - note 22.7.6 (214,977) (202,433) (69,030) (58,667) (284,007) (261,100)
Payable to related parties in respect of transferees 9,842 17,519 - - 9,842 17,519
83,883 86,883 (33,165) (25,141) 50,718 61,742

22.7.5 Movement in the present value of
defined benefit obligation
Balance as at April 1 271,797 250,053 33,526 31,515 305,323 281,568

Benefits paid (13,749) (4,520) (1,916) (982) (15,665) (5,502)
Current service costs 14,229 12,664 1,154 1,056 15,383 13,720
Interest cost 33,576 28,516 4,214 3,770 37,790 32,286
Remeasurement on obligation (5,899) 552 (1,113) (1,833) (7,012) (1,281)
Payable to related parties in respect of transferees (10,936) (15,468) - - (10,936) (15,468)
Balance as at March 31 289,018 271,797 35,865 33,526 324,883 305,323
22.7.6 Movement in the fair value of plan assets
Balance as at April 1 202,433 158,866 58,667 54,066 261,100 212,932

Contributions 23,452 26,371 - - 23,452 26,371
Benefits paid (13,749) (4,520) (1,916) (982) (15,665) (5,502)
Interest income 21,040 17,728 7,232 6,323 28,272 24,051
Remeasurement on plan assets 414 3,988 5,047 (740) 5,461 3,248
Payable to related parties in respect of transferees (18,613) - - - (18,613) -
Balance as at March 31 214,977 202,433 69,030 58,667 284,007 261,100
22.7.7 Expense / income recognised in

profit and loss account
Current service costs 14,229 12,664 1,154 1,056 15,383 13,720

Net interest cost / (income) 12,536 10,788 (3,018) (2,553) 9,518 8,235
26,765 23,452 (1,864) (1,497) 24,901 21,955
22.7.8 Remeasurement recognised in

other comprehensive income
Loss / (gain) from change in:

- demographic assumptions - 1,021 - (4) - 1,017
- financial assumptions (676) 1,051 (66) 127 (742) 1,178
Experience (gain) / loss (5,223) (1,520) (1,047) (1,956) (6,270) (3,476)

(Gain) / loss on remeasurement of
plan assets (414) (3,988) (5,047) 740 (5,461) (3,248)
Net remeasurement (gain) / loss (6,313) (3,436) (6,160) (1,093) (12,473) (4,529)

Management Non-management Total

2015 2014 2015 2014 2015 2014
------------------------------------ (Rupees in ’000) ----------------------------------
22.7.9 Net recognised liability
Net liability / (asset) at beginning of the year 86,883 93,238 (25,141) (22,551) 61,742 70,687
Expense / income for the year 26,765 23,452 (1,864) (1,497) 24,901 21,955
Contributions made during the year (23,452) (26,371) - - (23,452) (26,371)
Remeasurement recognised in
other comprehensive income (6,313) (3,436) (6,160) (1,093) (12,473) (4,529)
Recognised liability / (asset) as at March 31 83,883 86,883 (33,165) (25,141) 50,718 61,742
22.7.10 Actual return on planned assets 18,574 21,717 6,557 4,819 25,131 26,536
22.7.11 Plan assets comprise of:
Fixed income instruments 92,203 92,085 37,705 27,960 129,908 120,045

Mutual fund securities 119,459 109,832 30,226 30,041 149,685 139,873
Others 3,315 516 1,100 666 4,415 1,182
214,977 202,433 69,031 58,667 284,008 261,100
22.7.12 The expected return on plan assets was determined by considering the expected returns available on the assets underlying
the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the
balance sheet date.
22.7.13 The Company's expected charge and income to management and non-management gratuity plans for the year ending March
31, 2016 are Rs.25,355 thousand and Rs.1,725 thousand respectively.
Management Non management

2015 2014 2015 2014
------------------- % per annum -------------------
22.7.14 Actuarial assumptions used
Discount rate at March 31 9.25 12.75 9.25 12.75

Expected rate of increase in
future salaries 10.00 11.75 10.00 11.75
Expected rate of return on
plan assets 9.25 12.75 9.25 12.75
Demographic assumptions
SLIC SLIC SLIC SLIC

- Mortality rates (for death in service)
(2001-05) (2001-05) (2001-05) (2001-05)
- Rates of employee turnover Moderate Moderate Moderate Moderate
22.7.15Sensitivity analysis for actuarial assumptions
The sensitivity of the defined benefit obligation to changes in principal assumptions is:
Impact on Defined Benefit Obligation

Change in Increase in Decrease in
assumptions assumptions assumptions
---------- (Rupees in ’000) ----------
Discount rate 1.00% 301,534 351,675
Future salary increase 1.00% 353,297 299,733
Withdrawal rates : light 323,862
Withdrawal rates : heavy 326,079
The sensitivity analysis are based on a change in an assumption while holding all other assumptions constants. In practice,
this is unlikely to occur, and change in some of the assumptions may be correlated. When calculating the sensitivity of the
defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation
calculated with the projected unit credit method at the end of reporting period) has been applied as when calculating the
gratuity liability recognised within the balance sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.
22.7.16 The weighted average duration of defined benefit obligation for management and non-management funds is 7.89 years and
6.30 years respectively.

22.7.17Expected maturity analysis of undiscounted retirement benefit plans
Less Between Between Over 5

than a year 1 - 2 years 2 - 5 years years Total
As at June 30, 2015 ----------------------------------------- Rupees in '000 -----------------------------------------
Management staff 20,439 38,624 94,030 1,867,390 2,020,483
Non-management staff 3,167 2,880 11,370 78,786 96,203
22.7.18Historical information
2015 2014 2013 2012 2011

----------------------------------------- Rupees in '000 -----------------------------------------
Present value of defined benefit obligation 324,883 305,323 281,568 264,471 224,050
Fair value of plan assets 284,007 261,100 212,932 195,437 152,551
Deficit provided in financial statements 40,876 44,223 68,636 69,034 71,499
22.8 Other liabilities include vehicle deposits under Company's vehicle policy aggregating Rs.12,662 thousand (2014: Rs.10,991
thousand).
23. Short Term Borrowings - Secured
Short term finance facilities available from various commercial banks under mark-up arrangements aggregate to Rs.2,865,000
thousand (2014: Rs.2,865,000 thousand) and are secured against pari passu hypothecation charge over the Company's
stock-in-trade and trade debts to extent of Rs.4,058,000 thousand (2014: Rs.4,058,000 thousand). The rates of mark-up of
these facilities during the year ranged from 9.25% to 11.33% (2014: 9.51% to 11.31%) per annum. These facilities are expiring
on various dates by March 31, 2016.
Foreign currency finance and export re-finance facilities aggregating Rs.400,000 thousand (2014: Rs.400,000 thousand) are
also available to the Company from various commercial banks.
The facilities for opening letters of credit as at March 31, 2015 aggregated to Rs.3,560,000 thousand (2014: Rs.3,560,000
thousand) of which the amount remained unutilised at year end was Rs.2,632,908 thousand (2014: Rs.2,710,709 thousand).
These finance facilities are also secured against pari passu joint hypothecation charge on stocks-in-trade and trade debts of
the Company.
24. Contingencies and Commitments
24.1 Contingencies
24.1.1 Various cases have been filed against the Company by some former employees for reinstatement of service and are pending
in different courts of Pakistan. The management is confident that outcome of these cases will be in favour of the Company
and hence no provision is made in these financial statements.
24.1.2 Guarantees aggregating to Rs.172,868 thousand (2014: Rs.165,735 thousand) have been issued by commercial banks to
Collector of Customs and other Government Institutions for import of raw materials and spare parts.
24.2 Commitments
24.2.1 Commitments outstanding for letters of credit relating to capital expenditure, raw materials and components as at March 31,
2015 aggregated to Rs.927,092 thousand (2014: Rs.849,291 thousand).
24.2.2 Commitments outstanding for capital expenditure other than through letters of credit as at March 31, 2015 aggregated to
Rs.42,257 thousand (2014: Rs.81,623 thousand).
24.2.3 The Company has entered into Ijarah arrangements for electric & gas fittings and vehicles with various banks. Aggregate
commitments for these Ijarah arrangements as at March 31, are as follows:

Note 2015 2014

------ (Rupees in ’000) -----
Not later than one year 24,425 20,856

Later than one year and not later than five years 20,924 30,976
45,349 51,832
25. Sales - Net
Gross sales
- local 52,537,558 51,494,856
- export 465,414 346,210
53,002,972 51,841,066
Less:
- trade discount and commission 117,030 159,746
- sales tax 7,113,765 7,202,607
7,230,795 7,362,353
45,772,177 44,478,713
26. Cost of Sales
Opening stock of finished goods 311,075 250,247
Cost of goods manufactured 26.1 38,269,352 38,056,043
Purchases during the year 2,829,363 2,258,714
41,098,715 40,314,757
Closing stock of finished goods (311,219) (311,075)
41,098,571 40,253,929
26.1 Cost of goods manufactured

Opening stock of work-in-process 4,549 6,587
Raw materials and components consumed 26.2 31,962,696 31,675,856
Direct labour 26.3 776,679 701,349
Technical directors' remuneration 2,134 1,970
Staff salaries, wages and other benefits 26.3 848,767 805,627
Stores consumed 613,386 618,199
Fuel and power 661,364 738,531
Insurance 78,530 79,034
Rent, rates and taxes 64,434 50,062
Ijarah rentals 34,148 63,325
Repair and maintenance 304,896 259,995
Royalty 2,051,918 2,190,704
Technical assistance fee 27,894 29,973
Traveling, conveyance and entertainment 50,898 48,328
Postage and telephone 6,446 7,438
Printing and stationery 11,919 8,577
Vehicle running expenses 26,079 29,052
Depreciation 5.2 607,623 597,238
Canteen 86,495 79,611
Newspapers, magazines and subscriptions 5,770 2,785
Amortisation of intangible assets 6 5,150 4,013
Provision for slow moving inventories 10.2 20,451 13,548
Staff training - 7,055
Marking fee 41,868 41,360
Other manufacturing expenses 389 375
38,294,483 38,060,592
Closing stock of work-in-process (25,131) (4,549)
38,269,352 38,056,043

Note 2015 2014

------ (Rupees in ’000) -----
26.2 Raw materials and components consumed
Opening stock 1,609,754 1,752,565
Purchases during the year 26.4 31,527,374 31,533,045
33,137,128 33,285,610
Closing stock (1,174,432) (1,609,754)
31,962,696 31,675,856
26.3 Direct labour and staff salaries, wages & other benefits include Rs.53,746 thousand (2014: Rs.57,354 thousand) in respect
of staff retirement benefits.
26.4 Purchases include government rebates netted-off aggregating Rs.7,485 thousand (2014: Rs.57,350 thousand).
Note 2015 2014

------ (Rupees in ’000) -----
27. Sales and Marketing Expenses

Directors' remuneration 29,297 25,889
Staff salaries and other benefits 27.1 255,900 242,907
Advertisement and sales promotion 427,866 431,434
Repairs and maintenance 7,949 8,312
Gas and electricity 10,477 9,637
Freight outward 354,160 361,889
First free service charges 54,274 54,803
Insurance 12,876 9,670
Newspapers, magazines and subscriptions 1,114 3,511
Others 121 548
1,314,231 1,293,938
27.1 Staff salaries and other benefits include Rs.21,578 thousand (2014: Rs.22,589 thousand) in respect of staff retirement benefits.
Note 2015 2014

------ (Rupees in ’000) -----
28. Administrative Expenses
Directors' remuneration and fee 20,842 21,745

Staff salaries and other benefits 28.1 228,093 237,143
Insurance 6,777 5,971
Repairs and maintenance 13,401 13,691
Legal and professional charges 8,010 12,357
Gas and electricity 1,907 2,141
Newspapers, magazines, fees and subscriptions 3,376 5,823
Staff training 20,783 17,881
Depreciation 5.2 41,174 38,032
Donation 28.2 42,394 22,076
Others 149 604
432,622 430,054

28.1 Staff salaries and other benefits include Rs.15,983 thousand (2014: Rs.18,446 thousand) in respect of staff retirement benefits.
28.2 Donation of Rs.42,144 thousand (2014: Rs.22,076 thousand) charged in these financial statements is paid to Atlas Foundation,
2nd Floor, Federation House, Shara-e-Firdousi, Clifton, Karachi (the Foundation). Mr. Yusuf H. Shirazi, Chairman and
Mr. Saquib H. Shirazi, Chief Executive Officer of the Company are trustees of the Foundation.
Note 2015 2014

------ (Rupees in ’000) -----
29. Other Income
Income from financial assets
Mark-up / interest on savings accounts

and term deposit receipts 29.1 181,247 181,900
Gain on sale of investments 8,751 16,724
Net change in fair value of investments at fair
value through profit or loss 59,985 43,491
Exchange gain - net 1,242 -
Income from investments in related parties
Gain on sale of investments 77,446 4,077

Net change in fair value of investments at fair
value through profit or loss 172,549 142,237
Income from assets other than financial assets
Gain on disposal of non current assets classified

as held for sale 18,541 -
Commission income 2,622 7,840
Scrap sales 19,491 20,900
Others 2,050 3,482
543,924 420,651
29.1 Mark-up / interest at the rates ranged from 7.00% to 10.10% (2014: 7.75% to 10.15%) per annum has been earned during
the year on savings accounts and term deposit receipts.
Note 2015 2014

------ (Rupees in ’000) -----
30. Other Opera ting Expenses
Workers' profit participation fund 22.5 172,275 144,407

Workers' welfare fund 22.6 55,874 54,319
Auditors' remuneration 30.1 2,140 2,040
Exchange loss - net - 134
Loss on disposal of operating fixed assets 5.3 14,843 23,089
245,132 223,989
30.1 Auditors' remuneration
Audit fee 1,000 1,000

Half yearly review 212 212
Review of Code of Corporate Governance 91 91
Audits of retirement funds and workers' profit participation fund 202 202
Certifications for payment of royalty, technical fee and dividend 438 438
Out of pocket expenses 197 97
2,140 2,040
31. Finance Cost
Mark-up / interest on short term borrowings 601 300

Interest on workers' profit participation fund 22.5 239 176
Bank charges 7,350 7,560
8,190 8,036

2015 2014
------ (Rupees in ’000) -----
32. Taxa tion
Current tax
Current tax on profits for the year 942,357 775,761
Adjustments in respect of prior years 13,765 (43,322)
956,122 732,439
Deferred tax
Origination and reversal of temporary differences (44,623) (25,026)
Impact of change in tax rate (18,752) (19,555)
(63,375) (44,581)
892,747 687,858
32.1 The tax on the Company's profit before tax differs from the theoretical amount that would arise using the Company's applicable
tax rate as follows:
2015 2014
------ (Rupees in ’000) -----
Tax at the applicable rate of 33% (2014: 34%) 1,070,401 914,402
Tax effect of:
- expenses not deductible for tax purposes 300,989 272,388
- expenses deductible for tax purposes but not taken to profit and loss account (220,376) (242,501)
- income not subject to tax / income subject to final tax regime / tax credits (199,984) (168,528)
- Associate's result reported net of tax (8,673) -
Adjustments in respect of prior years 13,765 (43,322)
Deferred taxation (63,375) (44,581)
Tax charge 892,747 687,858
33. Earnings Per Share
33.1 Basic earnings per share
Basic earnings per share is calculated by dividing the net profit for the year by weighted average number of shares in issue
during the year.
2015 2014
------ (Rupees in ’000) -----
Net profit for the year 2,350,891 2,001,560
------ (Number of shares) -----
Weighted average ordinary shares in issue 103,406,613 103,406,613
------ (Rupees) -----
Earnings per share 22.73 19.36
33.2 Diluted earnings per share
No figures for diluted earnings per share has been presented as the Company has not issued any instruments carrying options
which would have an impact on earnings per share when exercised.

Note 2015 2014

------ (Rupees in ’000) -----
34. Cash Generated from Opera tions
Add / (Less): Adjustments for non cash charges and other items
Depreciation 648,797 635,270

Amortisation of intangible assets 5,150 4,013
Provision for compensated absences 16,994 29,955
Provision for gratuity 24,901 21,955
Provision for slow moving inventories 20,451 13,548
Mark-up / interest on savings accounts and term deposit receipts (181,247) (181,900)
Gain on sale of investments (86,197) (20,801)
Net change in fair value of investments at fair value through profit or loss (232,534) (185,728)
Gain on disposal of non current assets classified as held for sale (18,541) -
Workers' profit participation fund 172,514 144,583
Workers' welfare fund 55,874 54,319
Loss on disposal of operating fixed assets 14,843 23,089
Mark-up / interest on short term borrowings 601 300
Share of profit of an Associated Company (26,283) -
Changes in working capital 34.1 304,551 1,005,789
3,963,512 4,233,810
34.1 Changes in working capital
(Increase) / decrease in current assets

- Stores, spares and loose tools (22,917) (15,138)
- Stock-in-trade 363,624 120,350
- Trade debts (184,276) (5,579)
- Loans and advances (5,930) (2,052)
- Trade deposits and prepayments (8,889) (2,957)
- Other receivables 992 1,636
142,604 96,260
Increase in current liabilities:
- Trade and other payables 161,947 909,529
304,551 1,005,789
34.2 Cash flows from operating activities

- Direct method
Receipts from customers 46,188,345 44,489,051

Mark-up / interest received 181,520 182,373
Payments to trade suppliers, service providers and employees (42,228,989) (40,257,287)
Mark-up / interest paid (601) (300)
Income tax paid (1,099,890) (685,278)
Contributions made to gratuity funds (23,452) (26,371)
Compensated absences paid (13,891) (8,161)
Workers' profit participation fund paid (144,583) (118,931)
Workers' welfare fund paid (50,355) (43,530)
2,808,104 3,531,566

35. Remuneration of Chief Executive Officer, Direct ors and Executives
The aggregate amounts charged during year in respect of remuneration and fee, including certain benefits, to the Chief
Executive Officer, Directors and Executives of the Company are as follows:
-------------------- Directors -------------------

Chief Executive Officer Others Executives
2015 2014 2015 2014 2015 2014
------------------------------ (Rupees in ’000) ------------------------------
Managerial remuneration and fee 15,150 13,634 22,976 12,400 258,789 240,746
Rent and utilities 7,246 6,446 - 4,950 123,682 115,092
Bonus 4,794 4,110 - 4,463 79,572 75,127
Retirement benefits 1,449 1,289 - 990 24,242 21,145
Medical and other reimbursable expenses 658 410 - 912 13,238 11,017
29,297 25,889 22,976 23,715 499,523 463,127
Number of persons 1 1 6 5 230 219
35.1 The Chief Executive Officer, three Directors and two ex-patriate executives are provided with free use of Company maintained
cars and telephones at residences. Two Directors and two ex-patriate executives are also provided with furnished accommodation.
36. Transactions with Rela ted Parties
Related parties comprise Associated Companies, staff retirement funds, directors and key management personnel. The
Company in the normal course of business carries out transactions with various related parties. Detail of transactions with
related parties, other than those which have been disclosed elsewhere in these financial statements, are as follows:
2015 2014
------ (Rupees in ’000) -----
Associated companies
Sales of:
- goods and services 753,568 316,944
- operating fixed assets 26,171 2,245
- non current assets classified as held for sale 190,000 -
Purchases of:
- goods and services 8,838,949 5,646,554

- operating fixed assets 87,402 37,814
- intangible assets - 3,239
Sale of units in mutual funds 3,560,034 554,605
Purchase of units in mutual funds 3,670,389 2,404,605
Investments made 190,000 -
Royalty 2,083,860 2,073,572
Export commission 3,254 3,670
Technical assistance fee 11,925 14,894
Commission income 2,622 7,840
Rent 83,608 75,786
Insurance premium paid 207,399 203,018
Insurance claims received 8,214 16,755
Reimbursement of expenses - net 2,113 2,540
Dividend paid 933,447 560,069
Donation paid 42,144 22,076
2015 2014
------ (Number of shares) -----
Bonus shares issued - 18,668,946
2015 2014
------ (Rupees in ’000) -----
Other related parties
Contributions paid to:
- gratuity funds 23,452 26,371
- provident funds / pension schemes 49,414 46,479
Salaries and other short term employment benefits to key management personnel 108,260 97,055

The related party status of outstanding balances as at March 31, 2015 is included in 'Capital work-in-progress - note 5.4' and
'Trade and other payables - note 22' respectively. These are settled in ordinary course of business.
37. Financial Risk Management
37.1 Financial risk factors
The Company has exposure to the following risks from its use of financial instruments:
- market risk (including currency risk, interest rate risk and other price risk);
- credit risk; and
- liquidity risk.
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Board is also responsible for developing and monitoring the Company's risk management policies.
The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Company’s financial performance. Risk management is carried out by a treasury department
under policies approved by the Board of Directors. The treasury department identifies, evaluates and hedges financial risks.
The Board provides written principles for overall risk management, as well as written policies covering specific areas, such
as currency risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments and investment of
excess liquidity.
(a) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign exchange risk
Foreign exchange risk is the risk that the fair values or future cash flows of a financial instrument shall fluctuate because of
changes in foreign exchange rates.
The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to the Japanese Yen and the US Dollar. Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities. The Company's exposure to foreign currency risk at the reporting date is as follows:
2015 2014
Japanese US Japanese US
Yen Dollar Yen Dollar
-------------------- (Amounts in ’000) ----------------------
Trade debts - 75 - 76
Trade and other payables (679,530) (34) (578,800) (98)
Net balance sheet exposure (679,530) 41 (578,800) (22)
The following significant exchange rates have been applied:
2015 2014 2015 2014

Average rate Balance sheet date rate
-------------------- (Rupees) ----------------------
Pakistani Rupee to Japanese Yen 0.91 1.03 0.85 0.96

Pakistani Rupee to U.S. Dollar 100.37 103.26 102.20 98.70
At March 31, 2015, if the Pakistani Rupee had strengthened / weakened by 5% against Japanese Yen and U.S. Dollar with all
other variables held constant, profit before taxation for the year would have been higher / (lower) by the amount shown below
mainly as a result of net foreign exchange gain / (loss) on translation of foreign denominated financial assets and liabilities.

2015 2014
------ (Rupees in ’000) -----
Effect on profit for the year:
Pakistan Rupee to Japanese Yen 28,880 27,782

Pakistani Rupee to U.S. Dollar (210) 109
28,670 27,891
The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and assets / liabilities of the
Company.
Interest rate risk
Interest rate risk represents the risk that the fair values or future cash flows of financial instruments will fluctuate because of
change in market interest rates.
The Company's interest rate risk arises from balances with banks in savings deposit accounts and term deposit receipts.
Deposits in bank savings accounts held at variable interest rate expose the Company to cash flow interest rate risk and term
deposit receipts issued by the banks at fixed interest rates give rise to fair value interest rate risk. Significant interest rate
risk exposures are primarily managed by a suitable mix of deposits. As at March 31, 2015, the Company's interest bearing
financial assets amounted to Rs.3,123,421 thousand (2014: Rs.2,634,784 thousand).
At March 31, 2015, if the interest rate on the Company's deposits had been higher / lower by 1% with all other variables held
constant, profit before tax for the year would have been higher / (lower) by Rs.10,234 thousand (2014: Rs.10,348 thousand)
mainly as a result of higher / (lower) interest income.
Price risk
Price risk represents the risk that the fair values or future cash flows of financial instruments will fluctuate because of changes
in market prices (other than those arising from currency risk or interest rate risk), whether those changes are caused by factors
specific to the individual financial instrument or its issuer, or factors effecting all similar financial instruments traded in the
market.
The Company is exposed to price risk because of investments in mutual fund securities amounting to Rs.4,119,696 thousand
(2014: Rs.3,691,241 thousand) as changes in Net Asset Value (NAV) of mutual funds affect the Company.
At March 31, 2015, if fair value (NAV) had been 5% higher / lower with all other variables held constant profit before tax for
the year would have higher / (lower) by Rs.205,985 thousand (2014: Rs.184,562 thousand).
The sensitivity analysis prepared is not necessarily indicative of the effects on profit / investments of the Company.
(b) Credit risk
Credit risk represents the accounting loss that would be recognised at the balance sheet date if counter parties failed completely
to perform as contracted. Credit risk arises from deposits with banks & financial institutions, loans & advances, deposits, trade
debts, investments, accrued mark-up / interest and other receivables.
The carrying amounts of financial assets represent the maximum credit exposure. The financial assets exposed to credit risk
amounted to Rs.8,322,138 thousand (2014: Rs.7,137,218 thousand) as at March 31, 2015. Out of the total financial assets
credit risk is concentrated in trade debts, investments in mutual fund securities and deposits with banks as they constitute
99% (2014: 99%) of the total financial assets.
Significant part of sales of the Company occurs against advance payments, therefore, trade debts mainly arise from export
sales and local sales that were made to Government and Defence Institutions. The Company believes that it is not exposed
to any specific credit risk in respect of those trade debts.
The credit risk on liquid funds maintained with banks and investments in mutual fund securities is limited as such banks
and funds enjoy reasonably high credit rating. Accordingly, management does not expect any counter party to fail in meeting
their obligations.

The maximum exposure to credit risk at the end of the reporting period is as follows:
2015 2014
------ (Rupees in ’000) -----
Long term loans and advances 27,198 26,396
Long term deposits 12,986 9,632
Trade debts 704,597 520,321
Loans and advances 32,201 31,105
Trade deposits 4,504 3,034
Short term investments 4,119,696 3,691,241
Accrued mark-up / interest 10,857 11,130
Other receivables 899 621
Bank balances 3,409,200 2,843,738
8,322,138 7,137,218
The maximum exposure to credit risk for trade debts at the balance sheet date by geographic region is as follows:
2015 2014
------ (Rupees in ’000) -----
Pakistan 696,938 512,802
Bangladesh 7,659 7,519
704,597 520,321
The maximum exposure to credit risk for trade debts by type of counter party as at balance sheet date is as follows:
2015 2014
------ (Rupees in ’000) -----
Government departments 50,054 97,530
Defence institutions 602,917 371,131
Others (including exports) 51,626 51,660
704,597 520,321
The credit quality of loans and receivables can be assessed with reference to their historical performance with no or negligible
defaults in recent history and no losses incurred. The credit quality of Company's bank balances and investments in mutual
funds securities can be assessed with reference to the external credit ratings as follows:
Rating Rating
Banks Short term Long term agency
Allied Bank Limited A1+ AA+ PACRA

Bank Al Habib Limited A1+ AA+ PACRA
Bank Alfalah Limited A1+ AA PACRA
Barclays Bank PLC, Pakistan A-1 A S&P
Deutsche Bank AG A-1 A S&P
Faysal Bank Limited A1+ AA PACRA
Habib Bank Limited A-1+ AAA JCR-VIS
Habib Metropolitan Bank Limited A1+ AA+ PACRA
MCB Bank Limited A1+ AAA PACRA
Meezan Bank Limited A-1+ AA JCR-VIS
National Bank of Pakistan A-1+ AAA JCR-VIS
NIB Bank Limited A1+ AA- PACRA
Soneri Bank Limited A1+ AA- PACRA
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA
The Bank of Tokyo - Mitsubishi UFJ, Limited A-1 A+ S&P
United Bank Limited A-1+ AA+ JCR-VIS
Bankislami Pakistan Limited A1 A PACRA
Mutual Funds Rating Agency
Atlas Income Fund AA-(f) PACRA
Atlas Islamic Income Fund AA-(f) PACRA
Atlas Money Market Fund AA(f) PACRA
Atlas Islamic Stock Fund 3 Star PACRA
Atlas Sovereign Liquid Fund AA(f) PACRA
Lakson Money Market Fund AA PACRA
Lakson Income Fund A+ PACRA
NIT Government Bond Fund AA+(f) PACRA

(c) Liquidity risk
Liquidity risk reflects the Company's inability in raising funds to meet commitments. The Company manages liquidity risk by
maintaining sufficient cash and balances with banks. As at March 31, 2015 there is no maturity mismatch between financial
assets and liabilities that exposes the Company to liquidity risk.
37.2 Capital management
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital. The capital structure of the Company is equity based with no financing through borrowings.
Loans and At fair value

receivables through profit and loss
2015 2014 2015 2014
---------------------- Rupees in ‘000 ----------------------
37.3 Financial instruments by category

Financial assets as per balance sheet
Long term loans and advances 27,198 26,396 - -

Long term deposits 12,986 9,632 - -
Trade debts 704,597 520,321 - -
Loans and advances 32,201 31,105 - -
Trade deposits 4,504 3,034 - -
Short term investments - - 4,119,696 3,691,241
Accrued mark-up / interest 10,857 11,130 - -
Other receivables 899 621 - -
Bank balances 3,409,200 2,843,738 - -
4,202,442 3,445,977 4,119,696 3,691,241
Financial liabilities
measured at amortised cost
2015 2014
--- Rupees in ‘000 ---
Financial liabilities as per balance sheet
Trade and other payables 4,110,709 4,735,830
37.4 Fair value estimation

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities [Level 1].
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is,
as prices) or indirectly (that is, derived from prices) [Level 2].
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) [Level 3].
The Company's financial assets measured at fair value comprise only of level 1 financial assets amounting to Rs.4,119,696
thousand (2014: Rs.3,691,241 thousand).
The carrying values of other financial assets and liabilities reflected in the financial statements approximate their fair value.
38. Entity-wide Information
38.1 The Company markets and sells motorcycles and spare parts. Breakdown of net revenues for both the products of the
Company is as follows:
2015 2014
------ (Rupees in ’000) -----
Motorcycles 41,690,121 41,310,283

Spare parts 4,082,056 3,168,430
45,772,177 44,478,713

38.2 Export sales are made to Sri Lanka, Afghanistan and Bangladesh. Result of the Company's revenue from external customers
in Pakistan is Rs.45,310,017 thousand (2014: Rs.44,136,173 thousand) and total revenue from external customers from other
countries is Rs.462,160 thousand (2014: Rs.342,540 thousand).
38.3 All the non-current assets of the Company are located in Pakistan.
38.4 The Company's customer base is diverse with no single customer accounting for more than 10% of net revenue.
39. Plant Capacity and Actual Production
The production capacity of the Company's plant cannot be determined as this depends upon relative proportion of various
types of motorcycles and motorcycle components produced.
40. Number of Employees
The number of employees as at March 31, 2015 were 1,553 (2014: 1,590). Average number of employees during the year
were 1,572 (2014: 1,538).
41. Provident Fund Related Disclosure
The Company operates defined contribution provident fund (the Fund) for its permanent employees. Equal monthly contributions
at the rate of 11% of the basic salary are made to the Fund both by the Company and the employees. The following information
is based on un-audited financial statements of the Fund for the year ended March 31, 2015:
2015 2014
------ (Rupees in ’000) -----
Size of the Fund - Total assets 859,193 847,710
Fair value of investments 833,024 825,148
Percentage of investments made 96.95% 97.34%
41.1 The cost of above investments amounted to Rs.749,833 thousand (2014: Rs.742,292 thousand).
41.2 The break-up of fair value of investments is as follow:
2015 2014 2015 2014

--- Percentage --- --- Rupees in ‘000 ---
Debt securities 8.69 11.00 74,633 93,265

Government securities 53.15 53.44 456,667 453,037
Mutual funds securities 33.17 31.83 285,014 269,806
Special accounts in schedule banks 1.94 1.07 16,710 9,040
41.3 The investments out of provident fund have been made in accordance with the provisions of section 227 of the Companies
Ordinance, 1984 and the rules formulated for this purpose.
42. Event after Reporting Period
The Board of Directors, in their meeting held on April 30, 2015, (i) approved the transfer of Rs.830,000 thousand (2014:
Rs.630,000 thousand) from unappropriated profit to general reserve and (ii) proposed a final cash dividend of Rs.12 (2014:
Rs.10) per share amounting to Rs.1,240,879 thousand (2014: Rs.1,034,066 thousand) for approval of the members at the
Annual General Meeting to be held on June 16, 2015.
The financial statements for the year ended March 31, 2015 do not include the effect of the proposed appropriations, which
will be accounted for in the financial statements for year ending March 31, 2016.
43. Date of Authorization for Issue
These financial statements were authorised for issue on April 30, 2015 by the Board of Directors of the Company.


Other Information
Number of Number of
Shareholders’ Category Shareholders Shares held Percentage
Associated Companies, Undertakings and Related Parties
Atlas Insurance Limited 1 2,931,728 2.84%

Honda Motor Company Limited 1 36,192,315 35.00%
Shirazi Investments (Pvt.) Limited 1 25,265,858 24.43%
Shirazi Capital (Pvt.) Limited 1 25,359,715 24.52%
Shirazi (Pvt.) Limited 1 3,595,120 3.48%
5 93,344,736 90.27%
NIT and ICP:
National Bank of Pakistan Trustee Department 1 25,531 0.02%

IDBP (ICP Unit) 1 762 0.00%
2 26,293 0.03%
Directors, CEO and their Spouses and Minor Children and Associates
Mr. Yusuf H. Shirazi & Associates 3 3 0.00%

Mr. Saqib H. Shirazi (CEO) 1 1 0.00%
Mr. Sanaullah Qureshi 1 400 0.00%
Mr. Kazuhisa Hirota 1 1 0.00%
Mr. Hiromitsu Takasaki 1 1 0.00%
Mr. Hisao Kobayashi (Now in the name of Mr. Yasutaka Uda) 1 1 0.00%
Mr. Abid Naqvi 1 501 0.00%
Mr. Jawaid Iqbal Ahmed 1 1 0.00%
10 909 0.00%
Executives - 0.00%
Public Sector Companies and Corporations - 0.00%
Banks, Development Finance Institutions, Non-Banking Finance Institutions,

Insurance Companies, Modaraba and Mutual Funds 7 578,217 0.56%
Individuals 1,368 9,260,671 8.96%
Others 29 195,787 0.19%
Total 1,421 103,406,613 100.00%
Shareholders Holding 10% or More Voting Interest
Honda Motor Company Limited, Japan 36,192,315 35.00

Shirazi Investments (Pvt.) Limited 25,265,858 24.43
Shirazi Capital (Pvt.) Limited 25,359,715 24.52
Details of Trading in the Shares of the Company by Directors, their Spouses and Minor children
Name Number of Shares Purchased
Mr. Abid Naqvi 2,000

Other Information
Number of Total
Shareholders Shareholdings Shares Held
127 From 1 To 100 4,605
281 From 101 To 500 53,267
185 From 501 To 1,000 82,368
601 From 1,001 To 5,000 738,669
85 From 5,001 To 10,000 628,310
40 From 10,001 To 15,000 526,610
24 From 15,001 To 20,000 424,963
8 From 20,001 To 25,000 170,137
11 From 25,001 To 30,000 295,706
6 From 30,001 To 35,000 191,833
2 From 35,001 To 40,000 76,931
5 From 40,001 To 45,000 216,602
5 From 45,001 To 50,000 229,752
1 From 55,001 To 60,000 55,126
2 From 65,001 To 70,000 134,423
2 From 70,001 To 75,000 141,662
2 From 75,001 To 80,000 155,503
2 From 80,001 To 85,000 163,893
2 From 85,001 To 90,000 173,374
2 From 90,001 To 95,000 184,551
2 From 95,001 To 100,000 195,751
2 From 110,001 To 115,000 227,696
2 From 120,001 To 125,000 244,698
2 From 125,001 To 130,000 254,154
1 From 135,001 To 140,000 137,000
1 From 150,001 To 155,000 151,715
1 From 155,001 To 160,000 156,961
1 From 160,001 To 165,000 162,011
2 From 175,001 To 180,000 356,841
1 From 215,001 To 220,000 218,625
1 From 225,001 To 230,000 227,627
2 From 245,001 To 250,000 490,956
1 From 275,001 To 280,000 277,566
1 From 330,001 To 335,000 330,750
1 From 460,001 To 465,000 461,500
1 From 490,001 To 495,000 491,833
1 From 1,000,001 To 1,005,000 1,027,908
1 From 2,930,001 To 2,935,000 2,931,728
1 From 3,595,001 To 3,600,000 3,595,120
1 From 25,265,001 To 25,270,000 25,265,858
1 From 25,355,001 To 25,360,000 25,359,715
1 From 36,190,001 To 36,195,000 36,192,315
1,421 103,406,613

Other Information
Number of Number of
Shareholders’ Category Shareholders Shares held Percentage
Directors, CEO, their spouses, minor children and associates 10 909 0.00
* Associated companies, undertakings and related parties 5 93,344,736 90.27
NIT and ICP 2 26,293 0.03
Banks, Development Finance Institutions, Non-Banking Finance

Institutions, Insurance Companies, Modarabas and Mutual Funds 7 578,217 0.56
General Public
Local 1368 9,260,671 8.96
Foreign - - -
Others
Joint Stock Companies 27 194,815 0.19
Cooperative Society 1 971 0.00
Trustee of Iftikhar Shirazi Family Trust 1 1 0.00
1421 103,406,613 100.00
* Note: Includes the following associated companies:

Atlas Insurance Limited: 2,931,728 shares,
Honda Motor Company Limited, Japan: 36,192,315 shares,
Shirazi Investments (Pvt.) Limited: 25,265,858 shares,
Shirazi Capital (Pvt.) Limited: 25,359,715 shares,
Shirazi (Pvt.) Limited: 3,595,120 shares.

Other Information
Atlas Group Companies

Other Information
Glossary of Terms
Glossary of Terms
Acronym Description Acronym Description
ACCA Association of Chartered Certified Accountants ICAP Institute of Chartered Accountants of Pakistan
AGM Annual General Meeting ICMAP Institute of Cost Management Accountants of Pakistan
AHL Atlas Honda Limited IFAC International Federation of Accountants
AHTL Atlas Hitec (Private) Limited IFAS Islamic Financial Accounting Standards
AMP Advance Management Program IFRS International Financial Reporting Standards
ATL Active Tax-payers List ISO International Standardization Organization
B2B Business to Business KSE Karachi Stock Exchange
BOD Board of Director LLB Bachelor of Law
CAGR Compounded Annual Growth Rate LNG Liquefied Natural Gas
CCG Code of Corporate Governance LTD Limited
CDC Central Depository Company of Pakistan Limited LSE Lahore Stock Exchange
CEO Chief Executive Officer LSM Large Scale Manufacturing
CFO Chief Financial Officer MOU Memorandum of Understanding
CKD Completely Knocked Down NAV Net Asset Value
CNIC Computerized National Identity Card NBFI Non-Banking Finance Institutions
COO Chief Operating Officer NHC New Honda Circle
CSR Corporate Social Responsibility PBT Profit Before Taxation
DFI Development Finance Institutions PERAC Public Employee Retirement Administration Commission
EOBI Employee Old-Age Benefits Institution RCSM Risk and Counter Strategy Matrix
EPS Earnings per Share RMF Risk Management Function
ERP Entity Resource Planner- software SAFA South Asian Federation of Accountants
FBR Federal Board of Revenue SAP Standard Application Protocol - ERP system
GAAP Generally Accepted Accounting Principles SECP Securities and Exchange Commission of Pakistan
GDC Gravity Die Casting SRO Statutory Regulatory Order
GDP Gross Domestic Product SSGC Sui Southern Gas Company Limited
HPDC High Pressure Die Casting TDR Term Deposit Receipt
IAS International Accounting Standards WWF World Wildlife Fund

The Company Secretary
Atlas Honda Limited,
1-Mcleod Road,
Lahore-54000
PROXY FORM
I/We ______________________________________________________________________________________________
of _________________________________________________________________________________________________
being member(s) of Atlas Honda Limited and holder(s) of ______________________________________________________
Ordinary Shares as per Register Folio No. __________________________________________ and / or CDC Participant
I.D. No. _________________________________________ and Sub Account No. ____________________________ hereby
appoint _____________________________________________________________________________________________
of ____________________________________________________________________________________________________
or failing him / her ___________________________________________________________________________________
of _________________________________________ as my/our Proxy to attend, act and vote for me/us and on my/our
behalf at the 51st Annual General Meeting of the Company to be held at the Registered Office of the Company at 1-Mcleod
Road, Lahore, on Tuesday, June 16, 2015 at 11:00 a.m. and at every adjournment thereof.
As witness my/our hand this ___________________________ day of _______________________________________2015

signed by the Said ___________________________________________________________________ in the presence of
(Witness)
Affix
(Signature must agree with the
Revenue
specimen signature registered Stamp
with the Company)
Signature
NOTE:
Proxies, in order to be effective, must be received at the Company’s Registered Office or Shares Registrar not less than
48 hours before the meeting and must be duly stamped, signed and witnessed.
CDC shareholders and their proxies are requested to attach an attested photocopy of their CNIC or Passport with this
proxy form before submission to the Company.
AFFIX
POSTAGE
The Company Secretary
Atlas Honda Limited
1 - McLeod Road,
Lahore – 54000
Fold Here Fold Here
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Annual Report 2015

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Bridging the Nation Together

Annual Report 2015

Company Overview Signiﬁcant Events

Messages for Stakeholders

Statement of Compliance with

Financial Statements Statement of Changes in Equity

Other Information Glossary of Terms 90

Company Overview Signiﬁcant Events

Messages for Stakeholders

Statement of Compliance with

Financial Statements Statement of Changes in Equity

Other Information Glossary of Terms 90

02 Annual Report 2015 Atlas Honda Limited 03

Strategic Goals Quality Policy

Quality Training of manpower and acquisition of latest technology.

04 Annual Report 2015 Atlas Honda Limited 05

Strategic Goals Quality Policy

Quality Training of manpower and acquisition of latest technology.

04 Annual Report 2015 Atlas Honda Limited 05

About the Company Organization Chart

Marketing & Services Finance

Production Quality Assurance

Supply Chain Human Resource &

Research & Development Information Technology

Engineering & Projects

06 Annual Report 2015 Atlas Honda Limited 07

About the Company Organization Chart

Marketing & Services Finance

Production Quality Assurance

Supply Chain Human Resource &

Research & Development Information Technology

Engineering & Projects

06 Annual Report 2015 Atlas Honda Limited 07

08 Annual Report 2015 Atlas Honda Limited 09

Human Resource &

Jawaid Iqbal Ahmed

10 Annual Report 2015 Atlas Honda Limited 11

The Government of Japan also acknowledged Mr. Shirazi’s contributions to

12 Annual Report 2015 Atlas Honda Limited 13

14 Annual Report 2015 Atlas Honda Limited 15

REGISTERED OFFICE DIVIDEND ANNOUNCEMENT

Atlas Honda Limited (the Company) is listed on Karachi

16 Annual Report 2015

WEBSITE OF THE COMPANY

Atlas Honda Limited 17

Large Scale Manufacturing (LSM)

The Two Wheeler Industry

18 Annual Report 2015

customers' requirement for a modern and attractive product.

Sales Gross Margin Performance Scorecard

Atlas Honda Limited 19

Cash Dividend Manufacturing Excellence

Business Process Re-engineering

20 Annual Report 2015

(One achieves what one is determined to achieve)

Atlas Honda Limited 21

Directors’ Report to Shareholders

The operating results of the Company are summarized as follows:

Year ended Year ended