HONDA CENTRE (PRIVATE) LIMITED

STATEMENT OF FINANCIAL POSITION

FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
Assets Note -----------(Rupees)-----------
Non-current assets
Property and equipment 4 958,247,868 1,069,616,744
Intangible assets 5 2,619,976 2,911,084
Long term loans and advances 6 1,045,800 973,770
Long term deposits and prepayments 7 763,100 763,100
962,676,744 1,074,264,698
Current assets
Inventories 8 332,194,500 296,822,034
Trade and other receivables 9 177,682,500 175,288,521
Prepayments and advances 10 235,000,000 235,000,000
Bank guarantee margin 11 15,254,404 15,254,404
Advance income tax 12 43,225,382 45,448,637
Cash and bank balances 13 20,490,522 28,410,838
823,847,309 796,224,434

1,786,524,053 1,870,489,132

Share capital and reserves

Share capital
Issued, subscribed and paid up capital 14 80,000,000 80,000,000
Capital reserve
Revaluation surplus on PPE & LAND 80,000,000 328,547,926

Revenue reserve
Un-appropriated profit 919,906,415 792,120,129
1,079,906,415 1,200,668,055
Non-current liabilities
Loan from directors 15 230,476,997 230,476,997
Finance lease liabilities 16 - -

Current liabilities
Trade and other payables 17 49,003,624 20,823,241
Current portion of long-term financing 18 - -
Short-term financing 19 374,942,618 374,997,221
Current tax liability 20 52,194,399 43,523,618
476,140,641 439,344,080

1,786,524,052 1,870,489,132

Contingencies and commitments 21

The annexed notes form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
STATEMENT OF PROFIT OR LOSS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
Note -----------(Rupees)-----------

Revenue 22 880,193,384 923,794,952

Cost of sales 23 (560,799,359) (656,448,910)
Gross profit 319,394,025 267,346,042

Other income 24 10,338,526 5,903,681

Administrative and general expenses 25 (71,744,354) (72,435,016)
Finance costs 26 (78,007,512) (50,733,264)
Profit before income tax 179,980,685 150,081,443
Income tax 27 (52,194,399) (43,523,618)
Profit for the year 127,786,286 106,557,824

The annexed notes form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
-----------(Rupees)-----------

Profit for the year 127,786,286 106,557,824

Other comprehensive income: 60,923,222 200,500,000

Total comprehensive income for the year 188,709,508 307,057,824

The annexed notes form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
Cash flows from operating activities Note -----------(Rupees)-----------
Profit before tax 179,980,685 150,081,443

Adjustments:
Depreciation expense 4 28,278,717 49,266,431
Amortization expense 5 291,108 323,454
Revaluation Surplus (6,784,246) (6,784,246)
Finance cost 26 74,872,826 47,883,550
276,639,091 240,770,631
Working capital changes:
Inventories (35,372,466) 614,531
Trade and other receivables (2,393,979) 24,452,733
Prepayments and advances - -
Bank Guarantee margin - 10,985,359
Trade and other payables 729,707 (4,678,587)
Cash generated from operations 239,602,353 272,144,667
Interest paid (47,422,150) (43,080,707)
Income taxes paid (41,300,363) (51,484,619)
Net cash generated from operating activities 150,879,840 177,579,341

Cash flows from investing activities

Acquisition of property and equipment (158,673,522) (151,475,763)
Increase in long-term loans and advances (72,030) (19,889)
Net cash used in investing activities (158,745,552) (151,495,652)

Cash flows from financing activities -

Proceeds from short term running finances (54,603) (2,779)
Payments against finance lease obligation - (22,517,878)
Net cash (outflow)/inflow from financing activities (54,603) (22,520,657)

Net decrease in cash and cash equivalents (7,920,315) 3,563,032

Cash and cash equivalents at the beginning of the year 28,410,838 24,847,805
Cash and cash equivalents at the end of the year 13 20,490,522 28,410,838

The annexed notes form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED JUNE 30, 2023

Revaluation
Unappropriated
Share Capital surplus on PPE & Total
Profit
LAND

Balance as at 01 July 2020 80,000,000 141,616,418 585,376,280 806,992,698

Net profit for the year - - 100,186,024 100,186,024
Incremental depreciation (Net of tax) - (6,784,246) - (6,784,246)
Balance as at 30 June 2021 80,000,000 134,832,172 685,562,304 900,394,476

Balance as at 01 July 2021 80,000,000 134,832,172 685,562,304 900,394,476

Revaluation Surplus on Land - 200,500,000 - 200,500,000
Net profit for the year - - 106,557,824 106,557,824
Incremental depreciation (Net of tax) O - (6,784,246) - (6,784,246)
Balance as at 30 June 2022 80,000,000 328,547,926 792,120,129 1,200,668,055

Balance as at 01 July 2022 80,000,000 328,547,926 792,120,129 1,200,668,055

Revaluation Surplus on Land - 60,923,222 - 60,923,222
Net profit for the year - - 127,786,286 127,786,286
Incremental depreciation (Net of tax) O - (6,784,246) - (6,784,246)
Balance as at 30 June 2023 80,000,000 382,686,902 919,906,415 1,382,593,317

The annexed notes form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

1 CORPORATE AND GENERAL INFORMATION

1.1 Legal status and operations
The company, having its registered office in Islamabad, was incorporated on September 06,
2006 under Companies Ordinance, 1984 (now Companies Act, 2017), vide incorporation
certificate No. 00000005879/20060901, as Private Limited Company. The company is an
authorized 3S dealer of Honda Atlas Pakistan Limited, vide certificate No. R01. The principal
activities of the company include: sale of Honda Cars, sale of spare parts and Services
including maintenance, denting and painting etc.
The Company's registered office is situated at 300, Peshawar Road, Rawalpindi.

2 Basis of preparation
2.1 Statement of compliance

These financial statements have been prepared in accordance with the accounting and
reporting standards as applicable in Pakistan. The accounting and reporting standards
applicable in Pakistan comprise of:

International Financial Reporting Standard for as notified under the Companies Act, 2017;
and
Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ from the
IFRS, the provisions of and directives issued under the Companies Act, 2017 have been
followed.

2.2 Basis of measurement

These financial statements have been prepared under the historical cost convention, except for
certain items as disclosed in the relevant accounting policies below:

2.3 Functional and presentation currency

These financial statements are presented in Pakistan Rupee (Rs. / Rupees) which is the
Company’s functional currency. Amounts presented in the financial statements have been
rounded off to the nearest of Rs. / Rupees, unless otherwise stated.

2.4 Impact of Covid - 19

The management of Honda Centre (Private) Limited has evaluated the financial imapact of
Covid - 19 on the financial statements and is of the view that there are no material financial
implications of the covid - 19.

3 Summary of significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented
in these financial statements.
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

3.1 Property and equipment

Initial recognition
All items of property and equipment are initially recorded at cost.
Subsequent measurement
Items of property and equipment other than land and buildings are measured at cost less
accumulated depreciation and impairment loss (if any).

Land and buildings are measured at the revalued amount less accumulated depreciation and
impairment loss (if any).

Revaluation
Any revaluation increase arising on the revaluation of land, buildings and leasehold
improvements is recognised in other comprehensive income and presented as a separate
component of equity as “Revaluation surplus on property and equipment”, except to the extent
that it reverses a revaluation decrease for the same asset previously recognised in profit or
loss, in which case the increase is credited to profit or loss to the extent of the decrease
previously charged. Any decrease in carrying amount arising on the revaluation of land,
buildings and leasehold improvements is charged to profit or loss to the extent that it exceeds
the balance, if any, held in the revaluation surplus on property and equipment relating to a
previous revaluation of that asset. The revaluation reserve is not available for distribution to
the Company’s shareholders. The surplus on revaluation buildings and leasehold
improvements to the extent of incremental depreciation charged is transferred to
unappropriated profit.

Depreciation
Depreciation is charged so as to write off the cost or revalued amount of assets (other than
land and capital work in progress) over their estimated useful lives, using the reducing balance
method at rates specified in note 4 to the financial statements.

Disposal

The gain or loss arising on disposal or retirement of an item of property and equipment is
determined as the difference between the sales proceeds and the carrying amounts of the asset
and is recognised as other income in the statement of profit or loss. In case of the sale or
retirement of a revalued items, the attributable revaluation surplus remaining in the surplus on
revaluation of such item is transferred directly to the unappropriated profit.

Judgment and estimates

The useful lives, residual values and depreciation method are reviewed on a regular basis. The
effect of any changes in estimate is accounted for on a prospective basis.
3.2 Intangible assets
Measurement
Intangible assets are measured at cost less accumulated amortization and accumulated
impairment losses. Amortization is charged so as to allocate the cost of assets over their
estimated useful lives, using the reducing balance method at the rates specified in note 5 to the
financial statements.

Judgment and estimates

The useful lives, residual values and amortization method are reviewed on a regular basis. The
effect of any changes in estimate accounted for on a prospective basis.
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

3.3 Inventories
Measurement
Inventories are stated at the lower of cost and net realizable value.
Cost is calculated using the weighted average method and comprises direct materials, direct
labour costs and direct overheads that have been incurred in bringing the inventories to their
present location and condition.

Net realizable value represents the estimated selling price in the ordinary course of the
business less all estimated costs of completion and estimated costs necessary to be incurred in
order to make the sale.
Impairment

At each reporting date, inventories are assessed for impairment. If inventory is impaired, the
carrying amount is reduced to its selling price less costs to complete and sell. The impairment
loss is recognised immediately in the cost of sales in the statement of profit or loss.

Judgments and estimates

Inventory write-down is made based on the current market conditions, historical experience
and selling goods of similar nature. It could change significantly as a result of changes in
market conditions. A review is made periodically on inventories for excess inventories,
obsolescence and decline in net realisable value and an allowance is recorded against the
inventory balances for any such decline.

3.4 Trade and other receivables

Measurement

Trade receivables and other receivables are recognised at transaction price less an allowance
for impairment.

Impairment

A provision for impairment of trade receivables 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 the receivables. The amount of the provision is recognised in the statement of profit
or loss. Bad debts are written-off in the statement of profit or loss on identification.

Judgments and estimates

The allowance for doubtful debts of the Company is based on the ageing analysis and
management’s continuous evaluation of the recoverability of the outstanding receivables. In
assessing the ultimate realisation of these receivables, management considers, among other
factors, the creditworthiness and the past collection history of each customer.
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

3.5 Impairment of financial assets other than trade receivables

The financial assets other than those that are carried at fair value are assessed at each reporting
date to determine whether there is any objective evidence of their impairment. A financial
asset is impaired if there is objective evidence of impairment as a result of one or more events
that occurred after the initial recognition of the asset, and that loss event(s) had an impact on
the estimated future cash flows of that asset that can be estimated reliably.

The impairment loss is recognized immediately in the statement of profit or loss and the
carrying amount of the related financial asset is reduced accordingly. An impairment loss is
reversed only if the reversal can be related objectively to an event occurring after the
impairment loss was recognized.

3.6 Borrowings
Measurement
Loans are measured at amortised cost using the effective interest method.

Overdrafts are repayable in full on demand and are initially measured and subsequently stated
at face value (the amount of the loan).

Interest

Interest expense is recognised on the basis of the effective interest method and is included in
finance costs.

3.7 Leases

At its inception, a lease is classified as either a finance lease or an operating lease. Finance
leases transfer substantially all the risks and rewards of ownership. All other leases are
classified as operating leases.

Finance leases

Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the
leased property and the present value of the minimum lease payments. Each lease payment is
apportioned between the liability and finance charges using the effective interest method.
Rental obligations, net of finance charges, are included in borrowings in the statement of
financial position.

Operating leases
Rentals payable under operating leases are charged to profit or loss on a straight-line basis
over the term of the relevant lease. Minimum lease payments receivable under operating
leases are recognised as revenue on a straight-line basis over the term of the lease.

3.8 Trade and other payables

Trade payables are obligations under normal short-term credit terms. These are measured at
the undiscounted amount of cash to be paid.

3.9 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

As the actual outflows can differ from estimates made for provisions due to changes in laws,
regulations, public expectations, technology, prices and conditions, and can take place many
years in the future, the carrying amounts of provisions are reviewed at each reporting date and
adjusted to take account of such changes. Any adjustments to the amount of previously
recognised provision is recognised in the statement of profit or loss unless the provision was
originally recognised as part of cost of an asset.

3.10 Contingent liabilities

A contingent liability is disclosed when the Company has a possible obligation as a result of
past events, whose existence will be confirmed only by the occurrence or non-occurrence, of
one or more uncertain future events not wholly within the control of the Company; or the
Company has a present legal or constructive obligation that arises from past events, but it is
not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation, or the amount of the obligation cannot be measured with sufficient
reliability.

3.11 Revenue recognition

Revenue is recognised to the extent the Company has delivered goods or rendered services
under an agreement, the amount of revenue can be measured reliably and it is probable that the
economic benefits associated with the transaction will flow to the Company.

Revenue is measured at the fair value of the consideration received or receivable, exclusive of
sales tax and trade discounts.

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of
ownership of the goods have been transferred to the buyer. This is usually at the point that the
customer has signed for the delivery of the goods.

Rendering of services

Revenue from rendering of services is recognised in proportion to the stage of completion of

transaction at the reporting date. The stage of completion is based on the survey of the work
performed.

3.12 Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the period

in which the dividends are approved by the company’s shareholders.
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

PROPERTY AND EQUIPMENT

Jun-23 COST ACCUMULATED DEPRECIATION

As at Additions/ As at As at Charge for As at As at
Classes (Disposals) Rate (Disposals)
1st July 2022 Revaluation 30 June 1st July the year 30 June 2023 30 June 2023
---------------Pak Rupees--------------- % ---------------Pak Rupees--------------- Pak Rupees

Freehold land 470,000,000 60,923,222 - 530,923,222 - - - - - 530,923,222

Building on freehold land 397,921,086 78,650,200 - 476,571,286 5 139,896,365 16,833,746 - 156,730,111 319,841,175
Plant and machinery 88,125,072 23,658,400 - 111,783,472 8 45,533,845 5,299,970 - 50,833,815 60,949,657
Tools 12,317,721 8,023,500 - 20,341,221 8 3,930,119 1,312,888 - 5,243,008 15,098,213
IT and computer 15,106,394 4,658,620 - 19,765,014 14 12,361,530 1,036,488 - 13,398,018 6,366,997
Furniture and fixture and appliances 31,728,518 9,729,500 - 41,458,018 10 21,685,811 1,977,221 - 23,663,032 17,794,986
Motor vehicle - Owned 54,417,953 33,953,302 - 88,371,255 20 79,279,232 1,818,405 - 81,097,637 7,273,619
1,069,616,744 219,596,744 - 1,289,213,488 302,686,902 28,278,717 - 330,965,620 958,247,868

2023
Depreciation Allocation (Rupees) Percentage
Cost of sales 14,139,359 50%
Administrative and general expenses 14,139,359 50%
28,278,717 100%

Jun-22 COST ACCUMULATED DEPRECIATION

As at Additions/ As at As at Charge for As at As at
Classes (Disposals) Rate (Disposals)
1st July 2021 Revaluation 30 June 1st July the year 30 June 2022 30 June 2022
---------------Pak Rupees--------------- % ---------------Pak Rupees--------------- Pak Rupees

Freehold land 269,500,000 200,500,000 - 470,000,000 - - - - - 470,000,000

Building on freehold land 439,953,187 97,864,264 - 537,817,451 5 118,953,150 20,943,215 - 139,896,365 397,921,086
Plant and machinery 108,522,622 25,136,295 - 133,658,917 8 37,870,795 7,663,050 - 45,533,845 88,125,072
Tools 10,866,554 5,381,287 - 16,247,840 8 2,859,013 1,071,106 - 3,930,119 12,317,721
IT and computer 24,376,472 3,091,452 - 27,467,924 14 9,902,349 2,459,180 - 12,361,530 15,106,394
Furniture and fixture and appliances 46,951,864 6,462,465 - 53,414,329 10 18,160,420 3,525,391 - 21,685,811 31,728,518
Motor vehicle - Owned 113,957,185 19,740,000 - 133,697,185 20 65,674,744 13,604,488 - 79,279,232 54,417,953
1,014,127,883 358,175,763 - 1,372,303,646 253,420,471 49,266,431 - 302,686,902 1,069,616,744

2022
Depreciation Allocation (Rupees) Percentage
Cost of sales 24,633,215 50%
Administrative and general expenses 24,633,215 50%
49,266,431 100%
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
5 INTANGIBLE ASSETS Note -----------(Rupees)-----------

Cost 7,064,246 7,064,246

Accumulated amortization (4,153,162) (3,829,708)
Carrying amount 2,911,084 3,234,538

Additions - -
Disposals – carrying amount - -
Amortization charge for the year (291,108) (323,454)
Impairment - -
Carrying amount as at June 30, 2021 2,619,976 2,911,084

Amortization rate per annum (%) 10% 10%

5.1 Cost includes License fees of Dynamics AX-2012 and development charges paid. Useful life of the asset
estimated by the management is ten (10) years and its amortization is chargeable to Statement of profit or loss
on reducing balance method.

5.2 Amortization for the year has been allocated as follows:

Jun-23 Jun-22
-----------(Rupees)-----------

Cost of sales 50% 145,554 161,727

Administrative and general expenses 50% 145,554 161,727
291,108 323,454

6 LONG TERM LOANS AND ADVANCES

Employees 6.1 1,045,800 973,770

1,045,800 973,770

6.1 Long term loans to employees

The loans are granted to the employees of the Company in accordance with the Company’s employment rules
for house building. These loans are for maximum period of 4 years and carry an effective interest rate of 0%
(2021: 0%) per annum.

Jun-23 Jun-22
7 LONG TERM DEPOSITS AND PREPAYMENTS -----------(Rupees)-----------

Deposits 763,100 763,100

Security deposit against finance lease
763,100 763,100
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
8 INVENTORIES Note -----------(Rupees)-----------

Spare parts 68,782,500 89,620,784

Paint store 79,825,600 65,875,265
Cars 183,586,400 141,325,985
332,194,500 296,822,034

9 TRADE AND OTHER RECEIVABLES

(All cosidered good)
Corporate customers 56,073,302 48,967,979
Pak. Army 121,609,198 126,320,542
177,682,500 175,288,521

10 PREPAYMENTS AND ADVANCES

Honda Atlas Cars Pakistan Limited

Against cars 160,000,000 160,000,000
Against parts 50,000,000 50,000,000
210,000,000 210,000,000

Other parties 25,000,000 25,000,000

Less: Allowance for impairment of advances to suppliers - -

235,000,000 235,000,000

11 BANK GUARANTEE MARGIN

Bank guarantee margin to JS Bank against 11.1 15,254,404 15,254,404

guarantee to DGP

Bank guarantee margin to JS Bank against 11.2 - -

guarantee to HACPL
15,254,404 15,254,404

11.1 JS Bank has given a guarantee of Rs. 76,272,022/- against 20% margin to DGP Army against a commission
of 0.40% per quarter.

11.2 JS Bank has given a guarantee of Rs. 50,000,000/- against 20% margin to HACPL against a commission of
0.40% per quarter.

Jun-23 Jun-22
12 ADVANCE INCOME TAX -----------(Rupees)-----------

WHT on parts 984,690 895,172

WHT on services 2,590,484 2,354,985
WHT on utilities 437,833 398,030
WHT on Cars 27,572,437 25,065,852
WHT on commission from HACPL 11,139,332 16,266,192
WHT on Vehicles token tax 146,400 146,400
WHT on banking transactions 354,207 322,007
43,225,382 45,448,637
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
13 CASH AND BANK BALANCES Note -----------(Rupees)-----------

Cash and bank balances

Current accounts 395,843 196,352
Saving Accounts 11,745 8,329
407,588 204,681
Cash in hand 20,082,935 28,206,157
20,490,522 28,410,838

14 SHARE CAPITAL

14.1 Authorised share capital

Authorised share capital comprises of 8,000,000 (2021: 80,000,000 80,000,000

8,000,000) Ordinary shares of Rs. 10 each.

14.2 Issued, subscribed and paid up capital

Issued, subscribed and paid up capital comprises of:

Ordinary share capital 80,000,000 80,000,000
Preference share capital - -
80,000,000 80,000,000

15 LOAN FROM DIRECTORS

Loan from Directors (Subordinated) 15.1 230,476,997 230,476,997

15.1 Loan from Directors (Subordinated)

Loan is obtained from directors without mark-up and security. It will be discharged after payment of all outstanding liabilities of
financial institutions.

Jun-23 Jun-22
16 FINANCE LEASE LIABILITY Note -----------(Rupees)-----------

Secured
Finance lease liabilities 16.1 - -

Less: Current portion of long term financing 19 - -

shown under current liabilities
- -
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
16.1 Finance lease liabilities Note -----------(Rupees)-----------

The minimum lease payments under finance leases fall due as follows:

within one year - -

later than one year but within five years - -
later than five years - -
- -

17 TRADE AND OTHER PAYABLES

Mark-up on running finance facilities JSBL 26 40,884,020 13,433,344

Interest on Lease Payable - -
Worker's welfare fund 813,187 758,377
Supplier & other payables 7,306,417 6,631,520
49,003,624 20,823,241

18 CURRENT PORTION OF LONG-TERM FINANCING

Current portion of long-term financing 17.1 - -

19 SHORT-TERM FINANCING

Short-term running finance facilities from:

JS Bank Limited 19.1 374,942,618 374,997,221

374,942,618 374,997,221

19.1
This represents utilized amount of running finance facility with a sanctioned limit of Rs. 375 million (2021: Rs. 375 million).
This facility has been availed for the working capital purposes & carries mark up at the rate of 1 month KIBOR + 1.25% per
annum of the utilized amount, payable on quarterly basis. The facility is secured against 1st hypothecation charge of PKR 500
million over all present and future Current assets of the company, with 25% margin, registered with SECP.

Jun-23 Jun-22
20 CURRENT TAX LIABILITY Note -----------(Rupees)-----------

The current tax liability at the year represents net balance of:

Provision for current income tax 52,194,399 43,523,618

Advance income tax - -
52,194,399 43,523,618

21 CONTINGENCIES AND COMMITMENTS

21.1 Contingencies
There were no contingencies as at year end.

21.2 Commitments

22.2.1 Guarantees issued by banks on behalf of the Company 11 15,254,404 15,254,404

HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-23 Jun-22
22 REVENUE Note -----------(Rupees)-----------

Commission on sales 92,827,768 135,551,600

Sale of spare parts 194,403,914 176,730,831
Sale of cars 440,817,300 489,797,000
Service income 152,144,402 121,715,521
880,193,384 923,794,952

23 COST OF SALES

Salaries, wages and benefits 20,554,194 16,583,727

Purchase of cars 380,654,980 429,650,300
Spare parts 166,804,352 151,640,320
Consumables 5,556,077 5,050,979
Car accessories 228,327 207,570
Fuel 1,629,876 1,253,751
Car mats 1,438,749 1,106,730
Carriage inward 2,964,240 2,470,200
Loose tools 1,847,547 1,579,100
Paint consumed 7,096,518 5,913,765
Depreciation 4 14,139,359 24,633,215
Amortization on intangible assets 5 145,554 161,727
Cost of goods manufactured 603,059,774 640,251,385
Opening stock of finished goods 8 141,325,985 157,523,510
Closing stock of finished goods (183,586,400) (141,325,985)
560,799,359 656,448,910

24 OTHER INCOME

Sale of scrap and used oil 10,338,526 5,903,681

10,338,526 5,903,681

25 ADMINISTRATIVE AND GENERAL EXPENSES

Salaries, wages and benefits 25.1 34,291,551 27,474,260

Depreciation 4 14,139,359 24,633,215
Amortization of intangible asset 5.2 145,554 161,727
Utilities and communication 4,342,639 3,877,357
Insurance 560,404 560,404
Property/ signboard taxes 2,070,822 1,848,948
Auditors’ remuneration 25.2 300,000 100,000
Printing and Stationery 1,890,134 1,718,304
Car delivery, fuel and vehicle maintenance 892,892 811,720
Legal and professional expenses 25.3 1,850,650 1,623,780
Social security and EOBI 524,568 476,880
Staff training, uniform and medical 332,750 302,500
Travelling and conveyance 330,960 295,500
Entertainment 1,455,200 1,299,286
Advertisement and publicity 396,073 353,637
Repair and renewals 2,172,700 1,738,160
Housekeeping 661,251 590,402
Other Taxes - -
Security 3,080,986 2,800,896
Donations 1,384,800 1,154,000
Miscellaneous expenses 921,060 614,040
71,744,354 72,435,016

25.1 This includes directors remuneration of Rs. 9,847,080 (2022: Rs. 19,694,160).
HONDA CENTRE (PRIVATE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2023

Jun-22 Jun-22
Chief Executive Directors Chief Executive Directors
........................ Rupees …......... ................ Rupees …...........…….……

Total Renumeration 3,282,360 9,847,080 2,461,770 7,385,310

Number of Directors 1 3 1 3

Jun-23 Jun-22
25.2 AUDITORS’ REMUNERATION -----------(Rupees)-----------

Audit services
Annual audit fee 300,000 100,000
25.3 LEGAL AND PROFESSIONAL
Legal and professional charges 600,000 600,000
900,000 700,000

26 FINANCE COST

Mark-up on running finance facility 74,872,826 46,005,632

Lease finance charges - 1,877,918
Bank charges 2,381,076 2,164,614
Credit card charges 753,610 685,100
78,007,512 50,733,264

27 INCOME TAX
Current tax 52,194,399 43,523,618
52,194,399 43,523,618
28 NUMBER OF EMPLOYEES

Total employees of the Company at the year end 95 98

Average employees of the Company during the year 92 97

29 RELATED PARTY TRANSACTIONS

Related parties comprise subsidiary, associated companies, companies where directors also hold directorship,
retirement benefits fund and key management personnel. Significant transactions with related parties during the
year are as under:

Name of the Relationship Jun-23 Jun-22

related party
-----------(Rupees)-----------

Directors Common Directorship 230,476,997 230,476,997

Loan is obtained from directors without mark-up and security. It will be discharged after payment of all
outstanding liabilities of financial institutions.

30 AUTHORISATION FOR ISSUE

These financial statements were approved by the Company’s board of directors and authorised for issue on
___________________.

CHIEF EXECUTIVE DIRECTOR

HONDA CENTRE (PRIVATE) LIMITED
BANKS CLOSING BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Jun-23 Jun-22
BANK AMOUNT AMOUNT
--Rupees-- --Rupees--
Standard Chartered - 1501 - -
National bank of Pakistan - 6112 - 83,898
HBL - 96955 11,745 2,328
Bank Al-Habib 15 2,219
Askari bank - 74380 389,501 84,769
Dubai Islamic - 25001 3,272 399
UBL - 36431 2,163 6,001
Meezan - 49523 892 25,067
407,588 204,681

JS Bank Ltd (374,942,618) (374,997,221)

HONDA CENTRE (PRIVATE) LIMITED
BANKS CREDITS
FOR THE YEAR ENDED JUNE 30, 2023
Jun-23
BANK AMOUNT
--Rupees--
Standard Chartered - 1501 -
National bank of Pakistan - 6112 -
HBL - 96955 79,534,298
Bank Al-Habib 52,524,961
Askari bank - 74380 2,469,122
Dubai Islamic - 25001 836,908
UBL - 36431 16,379,877
Meezan - 49523 42,358,680
JS Bank Ltd 21,598,318
215,702,163
 2021-22
Month Commission PST Total
Jul-21 2,546,000 407,360 2,953,360
Aug-21 11,691,800 1,870,688 13,562,488
Sep-21 10,296,150 1,647,384 11,943,534
Jul to Sep (Bonus Comm) 4,659,500 745,520 5,405,020
Oct-21 11,155,550 1,784,888 12,940,438
Nov-21 4,373,350 699,736 5,073,086
Dec-21 4,010,750 641,720 4,652,470
Oct to Dec ( Bonus Comm) 3,506,500 561,040 4,067,540
Jan-22 7,299,550 1,167,928 8,467,478
Feb-22 4,055,400 648,864 4,704,264
Mar-22 3,234,350 517,496 3,751,846
Jan to Mar ( Bonus Comm) 2,816,500 450,640 3,267,140
Apr-22 5,516,500 882,640 6,399,140
May-22 8,602,950 1,376,472 9,979,422
Jun-22 11,880,750 1,900,920 13,781,670
Apr to June ( Bonus Comm) 4,906,000 784,960 5,690,960
Total 100,551,600 16,088,256 116,639,856
 2022-23
Month Commission PST Total
Jul-22 10,542,500 1,686,800 12,229,300
Aug-22 2,089,800 334,368 2,424,168
Sep-22 1,335,700 213,712 1,549,412
Jul to Sep (Bonus Comm) 2,740,500 438,480 3,178,980
Oct-22 1,533,200 245,312 1,778,512
Nov-22 2,406,000 384,960 2,790,960
Dec-22 2,069,000 331,040 2,400,040
Oct to Dec ( Bonus Comm) 808,500 129,360 937,860
Jan-23 1,374,000 219,840 1,593,840
Feb-23 914,400 146,304 1,060,704
Mar-23 935,730 149,717 1,085,447
Jan to Mar ( Bonus Comm) 470,500 75,280 545,780
Apr-23 160,970 25,755 186,725
May-23 - - -
Jun-23 919,000 147,040 1,066,040
Apr to June ( Bonus Comm) - - -
Total 28,299,800 4,527,968 32,827,768