Annual Report 2014

Celebrating our 50 years with pride, Atlas Honda
seeks to build on success from within. Envisioning

tomorrow as a reflection of this success, we look
toward a future brighter than ever.
Celebrating our 50 years with pride, Atlas Honda

seeks to build on success from within. Envisioning
tomorrow as a reflection of this success, we look
toward a future brighter than ever.
Contents
Company Overview
Vision and Mission
Strategic Goals
Quality Policy
Company Information
Geographical Presence
Organization Chart
A Journey of Success
50 Years Anniversary Celebrations
Board of Directors
Major Events of the Year
Shareholders' Information
Messages for Stakeholders

Chairman's Review
Directors' Report to Shareholders
Risk and Opportunity Report
Notice of 50th Annual General Meeting
Financial Highlights
Critical Performance Measures
6 Years at a Glance
Graphical Presentation
Analysis of Financial Statements
Statement of Value Addition and its Distribution
DuPont Analysis
Quarterly Performance Analysis
Share Price Sensitivity Analysis
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
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
Other Information
Pattern of Shareholding
Atlas Group Companies
Glossary of Terms
Proxy Form
Vision
Company Overview
Market leader in the motorcycle industry,

emerging as a global competitive centre of
production and exports.
Mission
Other Information
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 2014
03
Atlas Honda Limited
Vision
Company Overview
Market leader in the motorcycle industry,

emerging as a global competitive centre of
production and exports.
Mission
Other Information
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 2014
03
Atlas Honda Limited
Strategic Goals
Company Overview
Customers
Our Customers are the reason and the source of our business. It is our
joint aim with our dealers to ensure that the customers enjoy the highest
level of satisfaction from use of Honda motorcycles.
Quality
To ensure that our products and services meet the set standards of
excellence.
Local Manufacturing
To be the industry leader in indigenization of motorcycle parts.
Technology
Shareholders
Quality Policy
Commitment to provide high quality motorcycles and parts.
Employees
Right work in first attempt and on time.
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.
Maintain and continuously improve quality.

Training of manpower and acquisition of latest technology.
Safe, clean and healthy environment.
Other Information
To enhance and continuously update each members 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.
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.
To develop and maintain distinct business advantages through continuous

induction of improved hard and soft technologies.
Market leadership and prosperity for all.
04
Annual Report 2014
05
Atlas Honda Limited
Strategic Goals
Company Overview
Customers
Our Customers are the reason and the source of our business. It is our
joint aim with our dealers to ensure that the customers enjoy the highest
level of satisfaction from use of Honda motorcycles.
Quality
To ensure that our products and services meet the set standards of
excellence.
Local Manufacturing
To be the industry leader in indigenization of motorcycle parts.
Technology
Shareholders
Quality Policy
Commitment to provide high quality motorcycles and parts.
Employees
Right work in first attempt and on time.
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.
Maintain and continuously improve quality.

Training of manpower and acquisition of latest technology.
Safe, clean and healthy environment.
Other Information
To enhance and continuously update each members 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.
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.
To develop and maintain distinct business advantages through continuous

induction of improved hard and soft technologies.
Market leadership and prosperity for all.
04
Annual Report 2014
05
Atlas Honda Limited
Company Overview
Hisao Kobayashi
Director
Hiromitsu Takasaki
Director
Abid Naqvi
Director
Sanaullah Qureshi
Director
Kazuhisa Hirota
Director
Tariq Amin
Director
Saquib H. Shirazi
Chief Executive Officer
Syed Tanvir Hyder
Company Secretary
AUDIT COMMITTEE
Sanaullah Qureshi
Chairman
Tariq Amin
Member
06
Annual Report 2014
Abid Naqvi
Member
Kashif Yasin
Chief Financial Officer
Zaheer Ul Haq
Head of Internal Audit
Muhammad Khalid Aziz

General Manager Plants
Syed Tanvir Hyder

Secretary
Muhammad Qadeer Khan

General Manager Quality Assurance
HUMAN RESOURCE &

REMUNERATION COMMITTEE
Hiromitsu Takasaki
General Manager Technical
Sanaullah Qureshi
Chairman
Mushtaq Alam
General Manager Information Technology
Tariq Amin
Member
Javed Afghani
General Manager Marketing
Saquib H. Shirazi
Member
Razi Ur Rehman
Secretary
MANAGEMENT COMMITTEE
Saquib H. Shirazi
Razi Ur Rehman
General Manager Human Resources,
Administration & Corporate Affairs
Khawaja Shujauddin
General Manager Planning & Commercial
Shakil Mirza
General Manager Supply Chain
Suhail Ahmed
Vice President Marketing
Afaq Ahmed
General Manager Research & Development
Hisao Kobayashi
Vice President Technical
Muhammad Noman Khan

General Manager Engineering & Projects
LEGAL ADVISORS
Mohsin Tayebaly & Co.

Agha Faisal - Barrister at Law
TAX ADVISOR
Ernst & Young Ford Rhodes Sidat Hyder,

Chartered Accountants
SHARES REGISTRAR
Hameed Majeed Associates (Pvt.) Limited

H. M. House, 7-Bank Square,
Shahrah-e-Quaid-e-Azam, Lahore
Tel: (92-42) 37235081-82
Fax: (92-42) 37358817
BANKERS
Allied Bank Limited

Bank Al-Habib Limited
Bank Alfalah Limited
Barclays Bank PLC Pakistan
Deutsche Bank AG
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
NIB Bank Limited
REGISTERED OFFICE
1-McLeod Road, Lahore-54000

Tel: (92-42) 37225015-17, 37233515-17
Fax: (92-42) 37233518, 37351119
E-mail: ahl@atlas.com.pk
Website: www.atlashonda.com.pk
FACTORIES
F-36, Estate Avenue, S.I.T.E.,

Karachi-75730
Tel: (92-21) 32575561-65
Fax: (92-21) 32563758
26-27 KM, Lahore-Sheikhupura Road,
Sheikhupura-39321
Tel: (92-56) 3406501-8
Fax: (92-56) 3406009
BRANCH OFFICES &

CUSTOMER CARE CENTRES
Azmat Wasti Road, Multan

Tel: (92-61) 4540054, 4571989, 4572898
Fax: (92-61) 4541690
60-Bank Road, Saddar, Rawalpindi
Tel: (92-51) 5120494-6
Fax: (92-51) 5120497
House # 7, Atta Road, Canal Bank,

Rahim Yar Khan
Tel: (92-68) 5888809
391, Block D, Latifabad Unit # 6,
Hyderabad
Tel: (92-22) 3864983-4
Fax: (92-22) 3864985

Yusuf H. Shirazi
Chairman
Hameed Chaudhri & Co.

Soneri Bank Limited

Standard Chartered Bank
(Pakistan) Limited
The Bank of Tokyo-Mitsubishi UFJ Limited
United Bank Limited
1st Floor, Meezan Executive Tower,

4 - Liaquat Road, Faisalabad
Tel: (92-41) 2541011-7
SHOW ROOM
View Building, Preedy Street,

* West
Saddar, Karachi
Tel : (92-21) 32720833, 32727607
SPARE PARTS DIVISION
BOARD OF DIRECTORS
AUDITORS
Plot # F-4/Y, S.I.T.E, Karachi-75730

Tel : (92-21) 38200077
WARRANTY & TRAINING

CENTRES
7-Pak Chambers, West Wharf Road,

Karachi
Tel: (92-21) 32310142
Mozang Road, Lahore

* 28
Tel: (92-42) 36375360, 36303366
Tel: (92-61) 4540028
* Customer Care services are also available at these locations.
07
Atlas Honda Limited
Other Information
Company Information
Company Overview
Hisao Kobayashi
Director
Hiromitsu Takasaki
Director
Abid Naqvi
Director
Sanaullah Qureshi
Director
Kazuhisa Hirota
Director
Tariq Amin
Director
Saquib H. Shirazi
Syed Tanvir Hyder
Company Secretary
AUDIT COMMITTEE
Sanaullah Qureshi
Chairman
Tariq Amin
Member
06
Annual Report 2014
Abid Naqvi
Member
Kashif Yasin
Zaheer Ul Haq
Head of Internal Audit
Muhammad Khalid Aziz

General Manager Plants
Syed Tanvir Hyder

Secretary
Muhammad Qadeer Khan

General Manager Quality Assurance
HUMAN RESOURCE &

REMUNERATION COMMITTEE
Hiromitsu Takasaki
General Manager Technical
Sanaullah Qureshi
Chairman
Mushtaq Alam
General Manager Information Technology
Tariq Amin
Member
Javed Afghani
General Manager Marketing
Saquib H. Shirazi
Member
Razi Ur Rehman
Secretary
MANAGEMENT COMMITTEE
Saquib H. Shirazi
Razi Ur Rehman
General Manager Human Resources,
Administration & Corporate Affairs
Khawaja Shujauddin
General Manager Planning & Commercial
Shakil Mirza
General Manager Supply Chain
Suhail Ahmed
Vice President Marketing
Afaq Ahmed
General Manager Research & Development
Hisao Kobayashi
Vice President Technical
Muhammad Noman Khan

General Manager Engineering & Projects
LEGAL ADVISORS
Mohsin Tayebaly & Co.

Agha Faisal - Barrister at Law
TAX ADVISOR
Ernst & Young Ford Rhodes Sidat Hyder,

SHARES REGISTRAR
Hameed Majeed Associates (Pvt.) Limited

H. M. House, 7-Bank Square,
Shahrah-e-Quaid-e-Azam, Lahore
Tel: (92-42) 37235081-82
Fax: (92-42) 37358817
BANKERS
Allied Bank Limited

Bank Al-Habib Limited
Barclays Bank PLC Pakistan
Deutsche Bank AG
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
Meezan Bank Limited
NIB Bank Limited
REGISTERED OFFICE
1-McLeod Road, Lahore-54000

Tel: (92-42) 37225015-17, 37233515-17
Fax: (92-42) 37233518, 37351119
E-mail: ahl@atlas.com.pk
Website: www.atlashonda.com.pk
FACTORIES
F-36, Estate Avenue, S.I.T.E.,

Karachi-75730
Tel: (92-21) 32575561-65
Fax: (92-21) 32563758
26-27 KM, Lahore-Sheikhupura Road,
Sheikhupura-39321
Tel: (92-56) 3406501-8
Fax: (92-56) 3406009
BRANCH OFFICES &

CUSTOMER CARE CENTRES

Tel: (92-61) 4540054, 4571989, 4572898
Fax: (92-61) 4541690
60-Bank Road, Saddar, Rawalpindi
Tel: (92-51) 5120494-6
Fax: (92-51) 5120497
House # 7, Atta Road, Canal Bank,

Rahim Yar Khan
Tel: (92-68) 5888809
391, Block D, Latifabad Unit # 6,
Hyderabad
Tel: (92-22) 3864983-4
Fax: (92-22) 3864985

Yusuf H. Shirazi
Chairman
Hameed Chaudhri & Co.

Soneri Bank Limited

Standard Chartered Bank
(Pakistan) Limited
The Bank of Tokyo-Mitsubishi UFJ Limited
United Bank Limited
1st Floor, Meezan Executive Tower,

4 - Liaquat Road, Faisalabad
Tel: (92-41) 2541011-7
SHOW ROOM
View Building, Preedy Street,

* West
Saddar, Karachi
Tel : (92-21) 32720833, 32727607
SPARE PARTS DIVISION
BOARD OF DIRECTORS
AUDITORS
Plot # F-4/Y, S.I.T.E, Karachi-75730

Tel : (92-21) 38200077
WARRANTY & TRAINING

CENTRES
7-Pak Chambers, West Wharf Road,

Karachi
Tel: (92-21) 32310142
Mozang Road, Lahore

* 28
Tel: (92-42) 36375360, 36303366
Tel: (92-61) 4540028
* Customer Care services are also available at these locations.
07
Atlas Honda Limited
Other Information
Company Information
Organization Chart
Company Overview
Head Office
Registered Office
Branch Office & Customer Care Centre
Factories
Warranty & Training Centre

Spare Parts Division
Showroom
Rawalpindi
Sheikhupura
Lahore
Faisalabad
Multan
Rahimyar Khan
Hyderabad
Other Information
Karachi
Dealerships and Distribution Network
Atlas Hondas Dealerships are spread all over Pakistan. The complete
dealership network is available at www.atlashonda.com.pk.
Engineering &
Projects
08
Annual Report 2014
09
Atlas Honda Limited
Organization Chart
Company Overview
Head Office
Registered Office
Branch Office & Customer Care Centre
Factories
Warranty & Training Centre

Spare Parts Division
Showroom
Rawalpindi
Sheikhupura
Lahore
Faisalabad
Multan
Rahimyar Khan
Hyderabad
Other Information
Karachi
Dealerships and Distribution Network
Atlas Hondas Dealerships are spread all over Pakistan. The complete
dealership network is available at www.atlashonda.com.pk.
Engineering &
Projects
08
Annual Report 2014
09
Atlas Honda Limited
A Journey of
Success
1963-2013
This is the success story of
Pakistans largest motorcycle
company. A story where
dedication, devotion and
hardwork have forever
altered the way Pakistan
rides everyday on the two
wheel wonder, that is
Honda.
1963 - 1972
1973 - 1982
1983 - 1992
1993 - 2002
2003 - 2013
Atlas Autos Limited is incorporated

as public limited company.
A new model, S 110 Deluxe is

introduced.
New CD 70 model is introduced

with latest ignition technology.
The Company crosses the barrier

of 100,000 units in 2003.
First Technical Collaboration

Agreement is signed between Atlas
Autos Limited and Honda Motor
Company Limited. The historical
ceremony takes place in Tokyo,
where Mr. Yusuf H. Shirazi and Mr.
Soichiro Honda, founder of Honda
Motor Company Limited, graces
the occasion.
The Company launches two of its

longest running and most popular
production models, the fuel efficient
CD 70 and high performance CG
125.
The first major capacity expansion

is completed in press, die making,
tool and welding shops.
The Company formalizes eight

technical assistance agreements
between Japanese companies and
vendors. Thus, the Company continues to play a key role in transfer of
technology and vendor development in Pakistan.
The new model CD 100 is launched.
Atlas Autos becomes the first two

wheeler Company in Pakistan to
get listed on Stock Exchange.
Commercial production commences
with sanctioned annual capacity of
6,000 units.
The Company launches a series of
new models. Honda C 50, C 90 and
S 90 gained immense popularity
among the customers.
The first gas operated paint shop of
Pakistan is designed and operated
by the Company.
An in-house engineering workshop
is set up and Companys dream of
developing a completely localized
product takes its first place.
The Company sends its key

engineers and dealers to Japan for
training courses.
Panjadarya Limited, an associated
Company, is incorporated with its
plant facility at Sheikupura. Second
Technical Assistance Agreement is
signed with Honda Motor Company
Limited.
Relay out, modernization and
balancing of manufacturing facility
is carried out.
Series of technical seminars on
motorcycle technology are held in
Pakistan in collaboration with the
Association of Technical Scholarships
of Japan.
A motorcycle Technical Training
Centre is established in Lahore.
Panjadarya Limited commences
commercial production.
The 2 stroke MB 100 is launched
with a memorable advertising
campaign.
New CD 70 with econo-power

engine is launched.
With the achievement of localization
level of 50%, the Company continues
its stride towards the goal of
complete indigenization of motorcycle
manufacturing in Pakistan.
A Quality Circle Movement, called
Ala Mayar Circle is started, aiming
at improvement in quality control
and manufacturing techniques.
The Company organizes the first
ever vendor conference.
Engine parts manufacturing plant is
installed.
The Company celebrates its 25th
year of incorporation.
Honda Motor Company acquires
10% equity in Atlas Autos.
Merger of Panjdarya Limited with
Atlas Autos takes place.
The name of new merged company
is changed to Atlas Honda Limited.
CG 125 engine parts manufacturing
plant is installed at Sheikhupura
plant and new model of CG 125 is
launched.
The Company makes its first export

to Bangladesh, Nepal, Sri Lanka,
Middle East and Central Asia.
ISO 9002 certification is awarded
to the Company.
The Company ranks among the
top ten employers.
Dealer convention of motorcycle
industry is held for the first time in
Pakistan.
The new marketing strategy of 5S
Dealership is introduced. Under
this revolutionary concept, the
customers can avail the facilities of
sales, service, spare parts, second
hand motorcycle exchange and
special (credit) sales all under one
roof.
The Company achieves localization
level of 85%.
First ever customer education
program is launched to have direct
interaction with more than 5,000
customers.
10
Annual Report 2014
The nationwide safety riding program

is rolled out.
The Company extends the capacity at Sheikhupura plant by establishing, state of the art, 500k
synchronized Assembly Plant.
The new model CG 125 Deluxe is
launched.
Company hosts the 15th NHC
Asia-Oceania Bloc Convention.
SAP, the leading ERP system, is
implemented.
The Company surpasses 90%
localization record.
The Company crosses the 500,000
units barrier in 2011.
The Companys corporate reporting practices are recognized
through various awards by ICAP &
ICMAP, SAFA, KSE, ACCA & WWF.
The new
launched.
model
Pridor
is
The Company becomes the first

motorcycle company in Pakistan
with all its models complied with
latest emission standards.
The Company celebrates
years of the nations ride.
11
Atlas Honda Limited
A Journey of
Success
1963-2013
This is the success story of
Pakistans largest motorcycle
company. A story where
dedication, devotion and
hardwork have forever
altered the way Pakistan
rides everyday on the two
wheel wonder, that is
Honda.
1963 - 1972
1973 - 1982
1983 - 1992
1993 - 2002
2003 - 2013
Atlas Autos Limited is incorporated

as public limited company.
A new model, S 110 Deluxe is

introduced.
New CD 70 model is introduced

with latest ignition technology.
The Company crosses the barrier

of 100,000 units in 2003.
First Technical Collaboration

Agreement is signed between Atlas
Autos Limited and Honda Motor
Company Limited. The historical
ceremony takes place in Tokyo,
where Mr. Yusuf H. Shirazi and Mr.
Soichiro Honda, founder of Honda
Motor Company Limited, graces
the occasion.
The Company launches two of its

longest running and most popular
production models, the fuel efficient
CD 70 and high performance CG
125.
The first major capacity expansion

is completed in press, die making,
tool and welding shops.
The Company formalizes eight

technical assistance agreements
between Japanese companies and
vendors. Thus, the Company continues to play a key role in transfer of
technology and vendor development in Pakistan.
The new model CD 100 is launched.
Atlas Autos becomes the first two

wheeler Company in Pakistan to
get listed on Stock Exchange.
Commercial production commences
with sanctioned annual capacity of
6,000 units.
The Company launches a series of
new models. Honda C 50, C 90 and
S 90 gained immense popularity
among the customers.
The first gas operated paint shop of
Pakistan is designed and operated
by the Company.
An in-house engineering workshop
is set up and Companys dream of
developing a completely localized
product takes its first place.
The Company sends its key

engineers and dealers to Japan for
training courses.
Panjadarya Limited, an associated
Company, is incorporated with its
plant facility at Sheikupura. Second
Technical Assistance Agreement is
signed with Honda Motor Company
Limited.
Relay out, modernization and
balancing of manufacturing facility
is carried out.
Series of technical seminars on
motorcycle technology are held in
Pakistan in collaboration with the
Association of Technical Scholarships
of Japan.
A motorcycle Technical Training
Centre is established in Lahore.
Panjadarya Limited commences
commercial production.
The 2 stroke MB 100 is launched
with a memorable advertising
campaign.
New CD 70 with econo-power

engine is launched.
With the achievement of localization
level of 50%, the Company continues
its stride towards the goal of
complete indigenization of motorcycle
manufacturing in Pakistan.
A Quality Circle Movement, called
Ala Mayar Circle is started, aiming
at improvement in quality control
and manufacturing techniques.
The Company organizes the first
ever vendor conference.
Engine parts manufacturing plant is
installed.
The Company celebrates its 25th
year of incorporation.
Honda Motor Company acquires
10% equity in Atlas Autos.
Merger of Panjdarya Limited with
Atlas Autos takes place.
The name of new merged company
is changed to Atlas Honda Limited.
CG 125 engine parts manufacturing
plant is installed at Sheikhupura
plant and new model of CG 125 is
launched.
The Company makes its first export

to Bangladesh, Nepal, Sri Lanka,
Middle East and Central Asia.
ISO 9002 certification is awarded
to the Company.
The Company ranks among the
top ten employers.
Dealer convention of motorcycle
industry is held for the first time in
Pakistan.
The new marketing strategy of 5S
Dealership is introduced. Under
this revolutionary concept, the
customers can avail the facilities of
sales, service, spare parts, second
hand motorcycle exchange and
special (credit) sales all under one
roof.
The Company achieves localization
level of 85%.
First ever customer education
program is launched to have direct
interaction with more than 5,000
customers.
10
Annual Report 2014
The nationwide safety riding program

is rolled out.
The Company extends the capacity at Sheikhupura plant by establishing, state of the art, 500k
synchronized Assembly Plant.
The new model CG 125 Deluxe is
launched.
Company hosts the 15th NHC
Asia-Oceania Bloc Convention.
SAP, the leading ERP system, is
implemented.
The Company surpasses 90%
localization record.
The Company crosses the 500,000
units barrier in 2011.
The Companys corporate reporting practices are recognized
through various awards by ICAP &
ICMAP, SAFA, KSE, ACCA & WWF.
The new
launched.
model
Pridor
is
The Company becomes the first

motorcycle company in Pakistan
with all its models complied with
latest emission standards.
The Company celebrates
years of the nations ride.
11
Atlas Honda Limited
To celebrate 50th anniversary, numerous events focusing on Atlas Hondas glorious

and splendid past took place. Impressive moments were created, remarkable
experiences were witnessed and highly enthusiastic reactions were observed.
Recalling the highlights of the anniversary year, following significant celebration
events took place:
The ceremony cherished the efforts put in to uphold the
leading position in a dynamic and competitive environment.
A short film narrated the Companys journey towards
becoming the nations ride. Long Association Awards were
presented to the Companys employees, dealers, vendors,
bankers and various others in appreciation of their
contribution in making Atlas Honda what it is today: the
symbol of quality and success.
A video titled Hands was also shown to the audience which
began by asking Lets see what curiosity can do? and
proceeded with two hands creating various Honda products
that covered the past and present offerings of HMC.
Anniversary Celebration Ceremony

Atlas Honda Limited celebrated its golden jubilee on December
9, 2013. The grand ceremony took place at the Companys
Sheikhupura Factory. Mr. Takanobu Ito, President and CEO of
Honda Motor Company Limited, Japan (HMC) was the guest
of honor of the event. Mr. Hiroshi Kobayashi, Managing Officer,
HMC & Chief Operating Officer, Regional Operations (Asia &
Oceania), Mr. Yushiyuki Matsumoto, Managing Officer, HMC,
Representative of Development Purchasing & Production (Asia
& Oceania), Mr. Shinji Aoyama, Operating Officer & Director,
HMC, COO, Motorcycle Operations, HMC, Mr. Yasushi
Waguchi, General Manager, HMC were among the other
dignitaries who graced the event. More than 1,000 other
guests including vendors, dealers, bankers and other key
stakeholders also attended the event.
Chief Guest Mr. Takanobu Ito congratulated Atlas Honda for

completing its 50 years of excellence and envisioned the
further strengthening of collaboration between the Company
and HMC. In his speech, Mr. Yusuf H. Shirazi shared his golden
memories encompassing the beginning of idea and interaction
with Japanese partners especially with Mr. Soichiro Honda. Mr.
Ito also presented a souvenir commemorating the deep
relationship shared by Mr. Yusuf H. Shirazi and Mr. Soichiro
Honda, which is being taken forward by HMC and Atlas Honda
Limited.
Celebrating 50 Years of
12
Annual Report 2014
13
Atlas Honda Limited
To celebrate 50th anniversary, numerous events focusing on Atlas Hondas glorious

and splendid past took place. Impressive moments were created, remarkable
experiences were witnessed and highly enthusiastic reactions were observed.
Recalling the highlights of the anniversary year, following significant celebration
events took place:
The ceremony cherished the efforts put in to uphold the
leading position in a dynamic and competitive environment.
A short film narrated the Companys journey towards
becoming the nations ride. Long Association Awards were
presented to the Companys employees, dealers, vendors,
bankers and various others in appreciation of their
contribution in making Atlas Honda what it is today: the
symbol of quality and success.
A video titled Hands was also shown to the audience which
began by asking Lets see what curiosity can do? and
proceeded with two hands creating various Honda products
that covered the past and present offerings of HMC.
Anniversary Celebration Ceremony

Atlas Honda Limited celebrated its golden jubilee on December
9, 2013. The grand ceremony took place at the Companys
Sheikhupura Factory. Mr. Takanobu Ito, President and CEO of
Honda Motor Company Limited, Japan (HMC) was the guest
of honor of the event. Mr. Hiroshi Kobayashi, Managing Officer,
HMC & Chief Operating Officer, Regional Operations (Asia &
Oceania), Mr. Yushiyuki Matsumoto, Managing Officer, HMC,
Representative of Development Purchasing & Production (Asia
& Oceania), Mr. Shinji Aoyama, Operating Officer & Director,
HMC, COO, Motorcycle Operations, HMC, Mr. Yasushi
Waguchi, General Manager, HMC were among the other
dignitaries who graced the event. More than 1,000 other
guests including vendors, dealers, bankers and other key
stakeholders also attended the event.
Chief Guest Mr. Takanobu Ito congratulated Atlas Honda for

completing its 50 years of excellence and envisioned the
further strengthening of collaboration between the Company
and HMC. In his speech, Mr. Yusuf H. Shirazi shared his golden
memories encompassing the beginning of idea and interaction
with Japanese partners especially with Mr. Soichiro Honda. Mr.
Ito also presented a souvenir commemorating the deep
relationship shared by Mr. Yusuf H. Shirazi and Mr. Soichiro
Honda, which is being taken forward by HMC and Atlas Honda
Limited.
Celebrating 50 Years of
12
Annual Report 2014
13
Atlas Honda Limited
50 Years History Book
Launch of CBR Series
As the Company moves forward to a new path leading to

greater success, it is important to reflect on how it came all
along. A record of such milestone events has been
commemorated in the Companys 50 Year Book titled as A
Journey of Success. Spanning over five decades, the book
gives overview of the key moments of the comprehensive
history the foundation, the major successes and greatest
challenges. While it highlights the endeavors that drove the
Companys success, particular mention were made of the
contribution of indigenization efforts, improvement in
technology and communication means. The book concludes
with the aspirations and dreams the Company holds for the
future.
Responding to the market demand for larger displacement

bikes, Atlas Honda launched Honda CBR 500R and Honda
CBR 150R on the occasion of anniversary celebration
ceremony. The guest expressed high interest in these models
and appreciated the power geared by 2-cylinders. With its full
flaring design, effective engine cooling, charming racing strips
and many advanced features, these models are ready to Start
the Thrill for the youth.
Cricket Match
Atlas Honda Gallery
An exhilarating cricket match was held to commemorate 50

years anniversary at Gymkhana, Lahore on December 20,
2013. Mr. Amir H. Shirazi, Group President Atlas Group
attended the event as Chief Guest. Mr. Saquib H. Shirazi, CEO
Atlas Honda, participated as a player in one of the teams. A 20
over match was played between two teams comprising of the
employees and dealers of the Company. Event was highly
enjoyed by the families of the participants who cheered in
support of their teams. At the end of the match, the Group
President presented the trophy to the winning team.
The Atlas Honda Gallery is a place which archives the records

relating to the Companys colorful history documents,
photographs, films, souvenirs and other valuable items. At the
Gallery, Atlas Hondas nostalgic products from the beginning of
the Company can be explored that embodies the Companys
vision and its determination for advancement. The history of
Atlas Honda is presented as a chronology along with the
images on the dedicated Timeline Walls. On display are the
momentos, souvenirs and other pieces of valuable memories
which reflect the transformation of Mr. Yusuf H. Shirazis vision
into reality.
Branding of the Factory

Atlas Honda undertook a major branding initiative at Karachi
and Shiekhupura Plant. An entire wall is dedicated to appraise
the milestone events over the five decades of the Companys
inspiring history. Also, major models which the Company has
sold since 1963, are exhibited for the onlookers interest.
14
Annual Report 2014
Concluding Ceremony
The anniversary celebrations were concluded on December
21, 2013. CEO, Mr. Saquib H. Shirazi, appreciated the
employees enthusiasm of participation and the spirit of
advancement. He added that the Company owes its success
to each and every one of its employees. Sharing his ambitions
for the future, he emphasized employees to take the same
resolve forward to achieve the long term vision of growth and
progress.
15
Atlas Honda Limited
50 Years History Book
Launch of CBR Series
As the Company moves forward to a new path leading to

greater success, it is important to reflect on how it came all
along. A record of such milestone events has been
commemorated in the Companys 50 Year Book titled as A
Journey of Success. Spanning over five decades, the book
gives overview of the key moments of the comprehensive
history the foundation, the major successes and greatest
challenges. While it highlights the endeavors that drove the
Companys success, particular mention were made of the
contribution of indigenization efforts, improvement in
technology and communication means. The book concludes
with the aspirations and dreams the Company holds for the
future.
Responding to the market demand for larger displacement

bikes, Atlas Honda launched Honda CBR 500R and Honda
CBR 150R on the occasion of anniversary celebration
ceremony. The guest expressed high interest in these models
and appreciated the power geared by 2-cylinders. With its full
flaring design, effective engine cooling, charming racing strips
and many advanced features, these models are ready to Start
the Thrill for the youth.
Cricket Match
Atlas Honda Gallery
An exhilarating cricket match was held to commemorate 50

years anniversary at Gymkhana, Lahore on December 20,
2013. Mr. Amir H. Shirazi, Group President Atlas Group
attended the event as Chief Guest. Mr. Saquib H. Shirazi, CEO
Atlas Honda, participated as a player in one of the teams. A 20
over match was played between two teams comprising of the
employees and dealers of the Company. Event was highly
enjoyed by the families of the participants who cheered in
support of their teams. At the end of the match, the Group
President presented the trophy to the winning team.
The Atlas Honda Gallery is a place which archives the records

relating to the Companys colorful history documents,
photographs, films, souvenirs and other valuable items. At the
Gallery, Atlas Hondas nostalgic products from the beginning of
the Company can be explored that embodies the Companys
vision and its determination for advancement. The history of
Atlas Honda is presented as a chronology along with the
images on the dedicated Timeline Walls. On display are the
momentos, souvenirs and other pieces of valuable memories
which reflect the transformation of Mr. Yusuf H. Shirazis vision
into reality.
Branding of the Factory

Atlas Honda undertook a major branding initiative at Karachi
and Shiekhupura Plant. An entire wall is dedicated to appraise
the milestone events over the five decades of the Companys
inspiring history. Also, major models which the Company has
sold since 1963, are exhibited for the onlookers interest.
14
Annual Report 2014
Concluding Ceremony
The anniversary celebrations were concluded on December
21, 2013. CEO, Mr. Saquib H. Shirazi, appreciated the
employees enthusiasm of participation and the spirit of
advancement. He added that the Company owes its success
to each and every one of its employees. Sharing his ambitions
for the future, he emphasized employees to take the same
resolve forward to achieve the long term vision of growth and
progress.
15
Atlas Honda Limited
Yusuf H. Shirazi
Chairman
Mr. Shirazi is a Law graduate (LLB) with BA (Hons.) and JD (Diploma in Journalism) from Punjab University and AMP Harvard. He
served in the financial services of the Central Superior Services of Pakistan for eight years where he authored 50 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.
Kazuhisa Hirota
Hiromitsu Takasaki
Mr. Kazuhisa Hirota is General Manager of Finance Division

of Honda Motor Company Limited, Japan. He is also
responsible for the region as General Manager of Regional
Operations. He joined Honda in 1987. He has served at
Business Planning Division. He has also served in China at
Honda Automobile (China) Co. Limited and was in-charge of
regional operations of Honda Motor (China) Investment Co.
Limited.
Mr. Hiromitsu Takasaki has served at Planning Division of

Honda Motor Company Limited, Japan before being
appointed to Pakistan. Earlier he was stationed in U.S.A. He
has started his career from four wheelers in 1989. He is
member of the Board of Atlas Honda Limited since January
2014.
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 has been the founder
member of Karachi Stock Exchange, Lahore Stock Exchange and International Chamber of Commerce and Industry. He has
been on the Board of Harvard Business School Alumni Association and is the Founder President of Harvard Club of Pakistan and
Harvard Business School Club of Pakistan. He has been a visiting faculty member at National Defense University, Navy War
College and National School of Public Policy. He has been on the 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).
Director
Sanaullah Qureshi
Tariq Amin
Mr. Sanaullah Qureshi qualified as a Chartered Accountant

from Scotland and joined ICI Pakistan Limited in 1962. He
worked in different capacities as General Manager and
Director-in-charge of 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 is now acting in advisory capacity
with Captain-PQ Chemicals Industries Limited. He is the
former President of Management Association of Pakistan. He
previously held directorship in Linde Pakistan Limited
(formerly known as BOC Pakistan Limited) and MYK
Associates (Private) Limited. He has been on the Board of
Atlas Honda Limited since February 2001.
Mr. Tariq Amin is the Chairman of Orkila Pakistan (Private)

Limited, a leading multinational company dealing in chemicals.
He is also on the Boards of Pakistan Gum and Chemicals
Limited and the Salim Habib Education Foundation. He has
experience both in private and public sectors. He is a law
graduate from the University of Karachi, also holds a Masters
degree in English from the University of Karachi and a Post
Graduate Diploma in Development Administration from the
University of Leeds.
Director
Director
Non-Executive
16
Executive
Annual Report 2014
Director
Independent
Member Board Audit Committee
Member Human Resource & Remuneration Committee
Saquib H. Shirazi

Mr. Saquib H. Shirazi has been the Chief Executive Officer of Atlas Honda Limited for the last thirteen years. He graduated from
the Wharton School of Finance, before completing his Masters from the Harvard Business School. He has worked with the
Bank of Tokyo - Mitsubishi UFJ Limited in Japan and is the former CEO of Atlas Investment Bank Limited. At present, he is
serving as a member on the Board of Pakistan Petroleum Limited, Pakistan Cables Limited and Cherat Cement Limited.
Previously, he has been on the Boards of National Refinery Limited, Sui Southern Gas 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.
17
Atlas Honda Limited
Mr. Hisao Kobayashi was acting as Head of Automobile

Product Planning Office, Japan before being appointed to
Pakistan. He was stationed in U.S.A. for Motorcycle
Production Planning & Logistics, then assigned at Taiwan as
Automobile Marketing and Product Planning Manager. Later
on, he was appointed as the Managing Director of Honda
ICVS Singapore. He has diversified knowledge of Honda
products and has experience of working in different cultures
and with Honda Partners. He is Vice President Technical and
a member of the Board of Atlas Honda Limited since June
2010.
Mr. Abid Naqvi is the CEO of ACL Capital (Pvt.) Limited, a

business development company affiliated with Associated
Constructors Limited. He is also on the Board of Associated
Constructors 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 of Twenty Five years. He has also
worked as CEO of Taurus Securities Limited, a renowned
name in stock brokerage industry. He is a graduate from the
University College London, UK in the field of Economics and
Finance.
Director
Hisao Kobayashi
Director
Other Information
Abid Naqvi
Company Overview
Board of Directors
Yusuf H. Shirazi
Chairman
Mr. Shirazi is a Law graduate (LLB) with BA (Hons.) and JD (Diploma in Journalism) from Punjab University and AMP Harvard. He
served in the financial services of the Central Superior Services of Pakistan for eight years where he authored 50 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.
Kazuhisa Hirota
Hiromitsu Takasaki
Mr. Kazuhisa Hirota is General Manager of Finance Division

of Honda Motor Company Limited, Japan. He is also
responsible for the region as General Manager of Regional
Operations. He joined Honda in 1987. He has served at
Business Planning Division. He has also served in China at
Honda Automobile (China) Co. Limited and was in-charge of
regional operations of Honda Motor (China) Investment Co.
Limited.
Mr. Hiromitsu Takasaki has served at Planning Division of

Honda Motor Company Limited, Japan before being
appointed to Pakistan. Earlier he was stationed in U.S.A. He
has started his career from four wheelers in 1989. He is
member of the Board of Atlas Honda Limited since January
2014.
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 has been the founder
member of Karachi Stock Exchange, Lahore Stock Exchange and International Chamber of Commerce and Industry. He has
been on the Board of Harvard Business School Alumni Association and is the Founder President of Harvard Club of Pakistan and
Harvard Business School Club of Pakistan. He has been a visiting faculty member at National Defense University, Navy War
College and National School of Public Policy. He has been on the 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).
Director
Sanaullah Qureshi
Tariq Amin
Mr. Sanaullah Qureshi qualified as a Chartered Accountant

from Scotland and joined ICI Pakistan Limited in 1962. He
worked in different capacities as General Manager and
Director-in-charge of 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 is now acting in advisory capacity
with Captain-PQ Chemicals Industries Limited. He is the
former President of Management Association of Pakistan. He
previously held directorship in Linde Pakistan Limited
(formerly known as BOC Pakistan Limited) and MYK
Associates (Private) Limited. He has been on the Board of
Atlas Honda Limited since February 2001.
Mr. Tariq Amin is the Chairman of Orkila Pakistan (Private)

Limited, a leading multinational company dealing in chemicals.
He is also on the Boards of Pakistan Gum and Chemicals
Limited and the Salim Habib Education Foundation. He has
experience both in private and public sectors. He is a law
graduate from the University of Karachi, also holds a Masters
degree in English from the University of Karachi and a Post
Graduate Diploma in Development Administration from the
University of Leeds.
Director
Director
Non-Executive
16
Executive
Annual Report 2014
Director
Independent
Member Board Audit Committee
Member Human Resource & Remuneration Committee
Saquib H. Shirazi

Mr. Saquib H. Shirazi has been the Chief Executive Officer of Atlas Honda Limited for the last thirteen years. He graduated from
the Wharton School of Finance, before completing his Masters from the Harvard Business School. He has worked with the
Bank of Tokyo - Mitsubishi UFJ Limited in Japan and is the former CEO of Atlas Investment Bank Limited. At present, he is
serving as a member on the Board of Pakistan Petroleum Limited, Pakistan Cables Limited and Cherat Cement Limited.
Previously, he has been on the Boards of National Refinery Limited, Sui Southern Gas 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.
17
Atlas Honda Limited
Mr. Hisao Kobayashi was acting as Head of Automobile

Product Planning Office, Japan before being appointed to
Pakistan. He was stationed in U.S.A. for Motorcycle
Production Planning & Logistics, then assigned at Taiwan as
Automobile Marketing and Product Planning Manager. Later
on, he was appointed as the Managing Director of Honda
ICVS Singapore. He has diversified knowledge of Honda
products and has experience of working in different cultures
and with Honda Partners. He is Vice President Technical and
a member of the Board of Atlas Honda Limited since June
2010.
Mr. Abid Naqvi is the CEO of ACL Capital (Pvt.) Limited, a

business development company affiliated with Associated
Constructors Limited. He is also on the Board of Associated
Constructors 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 of Twenty Five years. He has also
worked as CEO of Taurus Securities Limited, a renowned
name in stock brokerage industry. He is a graduate from the
University College London, UK in the field of Economics and
Finance.
Director
Hisao Kobayashi
Director
Other Information
Abid Naqvi
Company Overview
Board of Directors
Major Events
Company Overview
An Eventful Year
June
BOD meeting for financial year

ended March 31, 2013 was held
to review and approve audited
financial statements for the year
ended March 31, 2013.
Engine plant conveyor was

inaugurated at Karachi plant by
Chairman, Mr. Yusuf. H. Shirazi.
23rd Ala Mayar vendors

convention 2013 was organized
by the Company.
January
Annual Report 2014
The Company received KSE top

25 award
BOD Meeting for 3rd quarter

was held for the approval of the
unaudited third quarter financial
results.
The new CD Dream model was

launched in 70 cc category
having modern look and stylish
design.
The Company received 1st

position in environmental
reporting organized jointly by
ACCA and WWF Pakistan.
BOD meeting for 1st Quarter

was held for approval of the
unaudited first quarter financial
results.
October
Top executive of the Company
was sent to Harvard Business
School to attend the Advance
Management Program.
BOD meeting for 2nd quarter

half yearly financial results
reviewed by the auditors.
August
Mr. Hiroshi Inomata, Japanese
Ambassador to Pakistan, visited
the Company.
The Company received the Best

Corporate Report Award from
Joint Committee of ICAP and
ICMAP.
The Company launched CBR

150 and CBR 500, having
special features along with its
stylish look, effective engine
cooling and power geared by
two cylinders.
July
February
The Board of Directors
deliberated and approved the
Annual Budget 2014-15 in the
BOD Meeting held in February
2013.
March
The Company was awarded 1st
position as top employer in
automobile sector by Rozee.pk.
The Company was once again

awarded with 1st prize in plant
and flower show arranged by
Horticulture Society.
Extra Ordinary General Meeting

was held in which Shareholders
of the Company elected the
Directors for the term of three
years.
Winners of Dealers Incentive

Scheme were awarded with
a trip to Japan.
19
Atlas Honda Limited
Other Information
Associates from the Company Mrs. Yusuf H. Shirazi inaugurated

completed IBA Diploma program the Companys 50 years Gallery.
especially designed for middle
management associates.
18
Atlas Honda Limited (the

The Annual General Meeting of
Company) and Habib Bank
the shareholders of the
Limited signed an agreement for Company was held on June 19,
offering personal loan facility to
2013 where distribution of a
salaried account holders for
cash dividend of Rs. 7.5/share &
purchase of Honda motorcycles.
bonus share @ 25% for the
financial year 2012-13 was
approved.
November
December
50 years celebration ceremony was

held at Sheikhupura plant. Mr.
Takanobu Ito, President & CEO, Honda
Motor Company Limited graced the
occasion by attending the program.
June
May
April
Major Events
Company Overview
An Eventful Year
June
BOD meeting for financial year

ended March 31, 2013 was held
to review and approve audited
financial statements for the year
ended March 31, 2013.
Engine plant conveyor was

inaugurated at Karachi plant by
Chairman, Mr. Yusuf. H. Shirazi.
23rd Ala Mayar vendors

convention 2013 was organized
by the Company.
January
Annual Report 2014
The Company received KSE top

25 award
BOD Meeting for 3rd quarter

unaudited third quarter financial
results.
The new CD Dream model was

launched in 70 cc category
having modern look and stylish
design.
The Company received 1st

position in environmental
reporting organized jointly by
ACCA and WWF Pakistan.
BOD meeting for 1st Quarter

was held for approval of the
unaudited first quarter financial
results.
October
Top executive of the Company
was sent to Harvard Business
School to attend the Advance
Management Program.
BOD meeting for 2nd quarter

half yearly financial results
reviewed by the auditors.
August
Mr. Hiroshi Inomata, Japanese
Ambassador to Pakistan, visited
the Company.
The Company received the Best

Corporate Report Award from
Joint Committee of ICAP and
ICMAP.
The Company launched CBR

150 and CBR 500, having
special features along with its
stylish look, effective engine
cooling and power geared by
two cylinders.
July
February
The Board of Directors
deliberated and approved the
Annual Budget 2014-15 in the
BOD Meeting held in February
2013.
March
The Company was awarded 1st
position as top employer in
automobile sector by Rozee.pk.
The Company was once again

awarded with 1st prize in plant
and flower show arranged by
Horticulture Society.
Extra Ordinary General Meeting

was held in which Shareholders
of the Company elected the
Directors for the term of three
years.
Winners of Dealers Incentive

Scheme were awarded with
a trip to Japan.
19
Atlas Honda Limited
Other Information
Associates from the Company Mrs. Yusuf H. Shirazi inaugurated

completed IBA Diploma program the Companys 50 years Gallery.
especially designed for middle
management associates.
18
Atlas Honda Limited (the

The Annual General Meeting of
Company) and Habib Bank
the shareholders of the
Limited signed an agreement for Company was held on June 19,
offering personal loan facility to
2013 where distribution of a
salaried account holders for
cash dividend of Rs. 7.5/share &
purchase of Honda motorcycles.
bonus share @ 25% for the
financial year 2012-13 was
approved.
November
December
50 years celebration ceremony was

held at Sheikhupura plant. Mr.
Takanobu Ito, President & CEO, Honda
Motor Company Limited graced the
occasion by attending the program.
June
May
April
Shareholders Information
REGISTERED OFFICE
DIVIDEND ANNOUNCEMENT
1-McLeod Road, Lahore

Tel:
(92-42) 37225015-17
(92-42) 37233515-17
Fax:
(92-42) 37233518
(92-42) 37351119
The Board of Directors of the Company has proposed a final

cash dividend of Rs. 10 per share (100%) for the year ended
March 31, 2014, subject to approval by the shareholders of
the Company at the Annual General Meeting.
EXCHANGE LISTING
Atlas Honda Limited is listed on Karachi Stock Exchange
(Guarantee) Limited (KSE) and Lahore Stock Exchange
(Guarantee) Limited (LSE).
STOCK SYMBOL
The stock code for dealing in equity shares of Atlas Honda
Limited at KSE and LSE is ATLH.
LISTING FEES
The annual listing fees for the financial year 2013-14 have
been paid to the Karachi and Lahore Stock Exchanges and
Central Depository Company of Pakistan Limited within the
prescribed time limit.
Dividend paid for the year ended March 31, 2013 was cash
dividend Rs. 7.5 per share (75%) and Bonus shares @ 25%
(one bonus shares for every four shares held).
DATES OF BOOK CLOSURE

The register of members and shares transfer books of the
Company will remain closed from June 17, 2014 to June 26,
2014 (both days inclusive).
DATE OF DIVIDEND PAYMENT

The payment of dividend, upon declaration by the shareholders
at the forthcoming Annual General Meeting, will be made on
or after June 26, 2014.
Last year the Company dispatched the cash dividend and
bonus shares on June 19, 2013 after approval from the
shareholders at the 49th 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 all relevant
particulars / information as required under the Companies
Ordinance, 1984 and allied rules, the listing requirements and
any other relevant laws, rules and regulations prescribed by
the Securities and Exchange Commission of Pakistan (SECP).
Cash dividends are paid through dividend warrants addressed

to the shareholders whose names appear in the register of
members at the date of book closure. Shareholders are
requested to deposit those warrants into their bank accounts.
FINANCIAL CALENDAR
As per the directions to all Listed Companies by SECP vide

Letter No. 8(4) SM/CDC 2008 Dated: April 05, 2013, all
shareholders and the Company are encouraged to put in
place an effective arrangement for Payment of Cash Dividend
Electronically (E-Dividend) through mutual co-operation. For
this purpose, the members are requested to provide Dividend
Mandates including Name, Bank Account Number, Bank and
Respective branch address to the Company in order to adhere
the envisaged guidelines.
April 2014
SHARE TRANSFER SYSTEM
ANNUAL GENERAL MEETING

Date:
Time:
Venue:
June 26, 2014

12:30 P.M.
Registered Office at
1-Mcleod Road Lahore
May 2014
June 2014
July 2014
November 2014
January 2015
Audited annual results for the year

ended March 31, 2014
Mailing of Annual Reports
Annual General Meeting
Unaudited first quarter financial results.
Unaudited half year financial results
Unaudited third quarter financial results
Share transfers received by the Company's Share Registrar

are registered within 30 days from the date of receipt, provided
the documents are complete in all respects.
ANNUAL GENERAL MEETING
WEBSITE OF THE COMPANY
Pursuant to section 158 of the Companies Ordinance, 1984,

the Company holds a General Meeting of shareholders at
least once a year. Every shareholder has a right to attend the
General Meeting. The notice of such meeting is sent to 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 Karachi and Lahore
Stock Exchanges are situated.
The Company is operating website www.atlashonda.com.pk

containing updated information regarding the Company. The
website contains the financial results of the Company together
with Company's profile, the Atlas group philosophy and
products of the Company.
CHANGE OF ADDRESS / E-MAIL ADDRESS

All registered shareholders should send information on changes
of addresses and E-Mail address, if any to:
PROXIES
Pursuant to Section 161 of the Companies Ordinance, 1984
and according to the Memorandum and Articles of Association
of the Company, every shareholder of the 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 notice calling a
General Meeting of the Company contains a statement that
a shareholder entitled to attend and vote is entitled to appoint
a proxy, who ought to be a member of the Company.
SHARES REGISTRAR
M/s. Hameed Majeed Associates (Pvt.) Limited.
H.M. House, 7-Bank Square, Shahrah-e-Quaid-e-Azam,
Lahore
Phone: (92-42) 37235081-82
Fax : (92-42) 37358817
MARKET PRICE DATA

The instrument appointing a proxy (duly signed by the
shareholder appointing that proxy) should be deposited at
the Company / Share Registrar not less than forty eight hours
before the meeting.
KSE
Months
April
May
June
July
August
September
October
November
December
January
February
March
High
Low
2013-14
199.68
171.00
267.85
209.66
285.00
180.11
213.98
181.00
224.95
193.00
208.00
191.50
206.88
199.00
241.43
201.00
275.00
239.13
296.00
258.02
299.00
258.00
299.00
276.00
High
Low
2012-13
148.99
139.00
159.85
142.90
149.00
114.00
125.00
115.00
139.45
119.50
153.00
127.65
139.00
131.00
147.00
132.10
155.75
144.25
161.00
147.00
182.26
155.00
192.00
178.50
The following table shows the month wise share price of the
Company in the Karachi and Lahore Stock Exchanges:
LSE
Low
High
2013-14
199.68
176.00
265.11
209.66
281.15
181.14
208.88
183.50
220.07
193.00
206.56
192.81
205.50
200.00
241.43
201.25
272.00
240.07
286.87
258.54
285.09
258.01
295.00
277.05
High
Low
2012-13
148.99
140.38
157.79
143.32
146.13
114.63
123.63
115.54
139.45
120.62
147.96
131.51
132.72
131.00
145.81
132.10
154.08
144.76
156.91
148.28
180.30
157.79
191.50
183.92
Chairmans Review
"In the last more than 50 years, Atlas Honda has established a powerful platform for growth. It will continue
re-investing in business to capitalize on long-term growth opportunities, with an enhanced dynamic product
portfolio and expanded brand activities. Together with its strategic vision, the Company will ensure that it
delivers sustainable value to all its stakeholders in the years ahead.
I am pleased to present the 50th Annual Report of the Company for the year ended March 31, 2014.
Economy
The country has experienced an all round improvement in the economy. Major indicators have generally followed healthy trends.
Foreign exchange reserves surged to USD 10.09 billion. This was due to strong growth in remittances, inflows from IMF and receipts
from multilateral and bilateral sources. It also paved the way for recovery of Pak Rupee which appreciated sharply by 6.1% against
the US Dollar. The timely materialization of Eurobond receipts, CSF inflows and 3G license auction proceeds will bring further stability
to the exchange rate. On the external front, exports went up by 6% in comparison to imports which increased by 1% only. Resultantly,
the current account deficit narrowed down to 1.2% of GDP at USD 2.02 billion. These improvements kept the momentum going in
the capital market. Accordingly, KSE 100 index crossed the level of 29,000 points, taking annualized returns to 29.3%. The restoring
macroeconomic balance, together with declining inflation allowed SBP to maintain policy rate at 10%.
On the other hand, challenges on the fiscal side continue to weigh on the economy. The persistent lower tax to GDP ratio resulted
in accumulation of local debt. Resultantly, the Government missed the borrowings target set by IMF. However, fiscal consolidation
measures such as revision in power tariffs, tax rate rationalization and subsidy reduction are expected to keep fiscal deficit within
budgeted limits. Given the easing pressures on economy, the country is well placed to achieve GDP growth of 4%.
Agriculture
The performance of agricultural sector continued to remain mixed. Heavy rains, floods and lower area under cultivation affected
the cotton crop. This was partly compensated by production gains in sugarcane and rice crop on account of improved acreage.
Also, marginal increase in support prices as against rising input costs continued to restrain the liquidity of farmers. However, likely
productivity gains from wheat production and increase in agriculture credit disbursements will contribute positively towards the
overall agriculture GDP.
Large Scale Manufacturing (LSM)
LSM posted better growth of 6.7% during the year. Overall, food, fertilizer, oil, steel and paper performed well. Improved power supply,
investments in alternate energy sources, increased lending to private sector businesses and capacity enhancements supported the
revival. Textiles gained benefit from grant of GSP plus status by European Union, while petroleum refinery output continued its robust
growth. The improved manufacturing performance will also spur retail and trade activities.
The Two Wheeler Industry
During 2013-14, the two wheeler industry lost growth momentum it had created over the last few years. Sales grew marginally by
1%. Major demand came from urban areas. This was due to increasing urbanization and escalating fuel prices. Demand was affected
in the rural areas. However, increasing consumer appetite for two-wheelers based on large population is promising. In this anticipation,
more products and a bigger network is planned for the years ahead, which will provide support to the industry growth.
The Company
The FY 2013-14 was another successful year for the Company with sales, operating income and profits surpassing all previous
heights.
Marketing Focus
Motorcycle Segment
Despite market challenges, your Company sold 640,148 units. Gradual expansion in product portfolio, as
part of the Company's growth strategy, drove this achievement.
The two wheeler market in Pakistan predominantly comprises of the 70 cc segment. The segment witnessed
an overriding demand and, therefore, faced intense competition. The Company continued to straddle this
segment through its brand CD 70. The brand is especially noted for its fuel economy, high quality standards
and resale value. This is expressed by the strong marketing campaign of "AIK LITRE MAIN 80KM TAK,
which differentiates Honda CD 70 from the other Chinese replica brands.
640,148
630,063
600,041
Sales Volume
(in units)
To create excitement and increase momentum in the segment, Atlas Honda launched the next generation
CD Dream in November 2013. It set new benchmarks in terms of performance, style, technology and
affordability and has brought new customers to the entry level category.
With the model PRIDOR, demand in 100 cc category made positive progress. The model is steadily
gaining popularity among customers due to its stylish look and driving enjoyment. Test rides, media
advertisement and training within dealers' network were the focal points.
2012
2013
2014
Sales Volume
Sales & Gross Margin

(Rs. in million)
The Company's strong offerings in 125 cc segment reasserted its position as the market leader. Demand
in this category is prompted from increased urbanization, growth in remittances and its appeal to the young
customer class. Known for providing joy of powerful drive, CG 125 dominated this category and registered
largest market share. Hand in hand with dynamic performance of CG 125, Deluxe also posted remarkable
growth in volumes.
On celebration of 50th year anniversary, the Company added a sporty top model to its product portfolio.
It launched CBR series in 150 cc and 500 cc categories, serving a niche market for the first time in
Pakistan.
3,681
2012
2013
4,225
2,776
38,012
42,325
44,479
Spare Parts Division:

The increased customer's appetite for two wheelers also helped boost spare parts revenue. However,
sales of low quality, smuggled and counterfeit parts are a major threat to this business in the organized
sector. This has, in turn, spurred the need for progressive marketing to increase customer awareness and
usage of genuine spare parts. Additionally, new packing with security features was introduced. Accessibility
to genuine spare parts was also improved by increasing product range, B2B installation at dealers' and
improvement in delivery system. Accordingly, spare parts revenue registered robust growth, recorded at
Rs. 3.2 billion.
Performance Scorecard
Sales
2014
Gross Margin
The Company continues to place greater emphasis on the strategic objectives aimed at delivering sustainable
long term growth. It is a result of focused strategy - delivering stable sales growth, improved operational
leverage and a better bottom line.
Sales & Gross Margin:
The Company registered total sales of Rs. 44.5 billion, an increase of 5.1% over the last year. Gross
margin for the year ended March 31, 2014 increased from Rs. 3.7 billion to Rs. 4.2 billion and as a
percentage of sales improved from 8.7% to 9.5%. This positive performance was attributable to volume
growth, optimum sales mix, weakening of Japanese Yen against US Dollar and cost control measures.
Operating expenses:
Distribution and marketing expenses rose to Rs. 1.3 billion, a year on year increase of 7.3%. This higher
spending was on account of promotion and communication activities to support the core business and
new product launches. Administrative expenses grew by 11.1% over the last year owing to personnel cost
and effects of general inflation.
Other income net of financial charges
1,610
2,002
Profit After Tax

(Rs. in million)
Other income, net of financial charges, was Rs. 412.6 million which is an encouraging 31.9% higher than
the corresponding year. This was achieved through better treasury management and improved liquidity.
Profitability
1,204
The Company registered ever highest net profit before tax of Rs. 2.7 billion. Net profit after tax increased
to over Rs. 2.0 billion from 1.6 billion, an increase of 24.4% over last year. This translates into Earnings
per Share (EPS) of Rs. 19.36 as against Rs.15.56 (restated) of last year.
Debt Structure
2012
2013
2014
Profit After Tax
Atlas Honda Limited has been a debt free Company since last three years and incurs no borrowing cost.
Finance cost includes bank charges which represents transactional cost paid to banks for collections from
customers on behalf of the Company throughout Pakistan.
Cash Flows & Capital Expenditure
11.64
15.56
19.36
Earnings Per Share

-Restated
(Rs. Per Share)
Free cash flow from operations during the year stood at Rs. 4.2 billion. This has been deployed in capital
assets, short term investments and payment of dividend. Additions to capital assets mainly represent
expansion of production facilities and balancing, modernization and replacement of existing manufacturing
facilities.
Contribution to national exchequer
During the year, the Company contributed an amount of Rs. 8.8 billion to the Government and its agencies
on account of various taxes and levies. The Atlas Group, of which the Company is a constituent member,
contributed Rs. 29 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
2012
2013
2014
Earnings Per Share
468
620
1,034
Cash Dividend
(Rs. in million)
2012
2013
2014
Cash Dividend
Over the years, the Company has followed a consistent policy of paying high dividends, keeping in mind
the cash-generating capacities, expected capital needs of business and strategic considerations. For
2013-14, the Board of Directors is pleased to propose cash dividend of Rs. 10 per share. This amounts
to Rs. 1,034 million, which is the highest in the Company's history. Thus, the Company has maintained a
pay-out ratio of 51.7%.
Manufacturing Excellence
The Company is focused on optimizing product development through simplified and efficient processes.
It requires building the infrastructure and systems, with minimum use of resources, to support the Company's
growth plans. This, coupled with increased automation in manufacturing, enhances productivity, shortens
lead time and improves overall quality. In 2013, Engine Machining Hall building was expanded to support
annual production of one million units. New machines have been added to increase production capacity
of CG125. Frame and Engine assembly lines were synchronized. The Company plants were made leaner
by outsourcing non critical operations and processes. Testing facilities were upgraded. Simultaneously,
supplier capabilities were also enhanced to cater to production needs.
Despite inflation and consequent rise in input prices, the plants manage conversion cost by practicing
sound operation controls and technological up-gradations. Both plants have worked on reducing consumption
of power and fuel. Importantly, installation of waste heat recovery system for utilizing waste heat from
generators is in progress at the Sheikupura plant.
Business Process Re-engineering
To increase productivity and reduce cost pressure, a number of Kaizen activities together with machinery
modifications were made during the year.
New power link between Manufacturing and Hi-Tech Power

House was established. This results in elimination of operational
cost of one generator.
The B2B system with vendors and dealers was further

strengthened. Through this application, dealers and vendors
are connected online with the Company.
Refurbishment of GDC dies.
Local development of HPDC and GDC dies.
Resourcing and modification of tools in Engine Machining

Process.
To reduce paper use, the Company has implemented a number

of workflows.
Awards
The Company's commitment to the excellence in corporate reporting and its sustainability initiatives were recognized at various public
platforms. It gives me great pleasure to inform that the following awards were received by the Company:
Best Environmental Report Award by ACCA - WWF Pakistan.
KSE Top 25 Companies Award by Karachi Stock Exchange; and
Best Corporate Report Award by the Joint Committee of ICAP and ICMAP.
Future Outlook
Moving forward, achieving sustainability in macroeconomic fundamentals will remain a key challenge. The return of Pakistan to the
international bond market after a period of 7 years is an indication of the economic revival. However, long term stability calls for a
consistent increase in the foreign direct investment and fiscal revenues. Structural reforms are required for widening the tax base
and gradual phasing out of subsidies. However, security problems and energy challenges will remain biggest impediment to industrial
growth. Agriculture, being the largest employer, will remain fundamental to the economic growth. Encouragement in agri-credit
disbursements, adequate support prices and improved acreage could help in resurgence of this sector. The domino effect of agriculture
growth always boosts the two wheeler industry due to its role as the main source of transportation in rural areas.
The Company is going through a very exciting and dynamic period, where skills, technologies and scales are being developed and
getting built for this decade and the next. With our sights set on sustained and qualitative long term growth, the Company continues
to strive for the best use of resources and optimum operational excellence leading to significant value addition for its stakeholders.
In this regard, the Company believes that the principles of The Atlas Way will continue to provide a firm premise for the future
endeavors:
(You get what you dream)

Acknowledgment
The Atlas Group takes great pride in its partnership with Honda Motor Company Limited and would like to acknowledge their continued
support and co-operation in maintaining high standards of excellence. I would like to thank our valued customers for the confidence
they continue to place in us, the management team for their sincere efforts, the Board of Directors for their guidance and Mr. Saquib
H. Shirazi - CEO for his inspiring leadership and all stakeholders - Bankers, Dealers, Vendors, Associates and Shareholders for helping
to build Atlas Honda Limited into a unique company.
Date: April 30, 2014
Yusuf H. Shirazi
Chairman
Directors Report To Shareholders

The Directors of your Company take pleasure in presenting their report together with the Company's annual audited Financial Statements
for the year ended March 31, 2014. The Directors report, prepared under section 236 of the Companies Ordinance, 1984 and clause
(xix) of the Code of Corporate Governance will be put forward to the members at fiftieth Annual General Meeting of the Company to be
held on June 26, 2014.
Operating Results
The operating results of the Company for the year ended March 31, 2014, are summarized as follows:
Re-stated
Year ended
Year ended
March 31,
March 31,
2014
2013
------ (Rupees in 000) ----Profit before taxation
Taxation
Current
Adjustment of prior years
Deferred
Profit after taxation
2,689,418
2,210,160
775,761
(43,322)
(44,581)
501,853
(22,390)
121,180
687,858
600,643
2,001,560
1,609,517
Dividends and Appropriations

The directors have recommended a final cash dividend of Rs. 10 (2013: Rs. 7.5) per share along with a NIL% (2013: 25%) bonus issue.
Accordingly, following appropriation have been made:
Re-stated
Year ended
Year ended
March 31,
March 31,
2014
2013
------ (Rupees in 000) ----Profit available for appropriation (after comprehensive income)
Appropriation:
Transfer to General Reserve
Cash Dividend 100% (2013: 75%)
Bonus shares NIL% (2013: 25% )
Un-appropriated profit carried forward
2,137,129
1,589,806
630,000
1,034,066
-
630,000
620,440
206,813
1,664,066
1,457,253
473,063
132,553
Earnings Per Share

The basic and diluted earnings per share after tax is Rs. 19.36 (2013: Rs.15.56).
Chairman's Review
The Chairman's review included in the Annual Report deals inter alia with the nature of business, performance of the Company for the
year ended March 31, 2014, 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. Hiroaki Hirose resigned from the Board of the Company and Mr. Hiromitsu Takasaki was nominated by the Board
to fill in the casual vacancy. The Board places on record its appreciation for the valuable contributions made by Mr. Hiroaki Hirose,
Mr. Shigeki Takane and Mr. Nurul Hoda and welcomes Mr. Hiromitsu Takasaki, Mr. Kazuhisa Hirota and Mr. Abid Naqvi on the Board
of Atlas Honda Limited.
Meetings of Board and its Committees in 2013-14
During the year 2013-14, five Board meetings, four Audit Committee and one HR & Remuneration committee meetings 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
Director
ship
Status
Board
Audit
Committee
Sr. #
Director
Mr. Yusuf H. Shirazi
Re-elected on March 20, 2014
Mr. Saquib H. Shirazi
-do-
Mr. Tariq Amin
Mr. Sanaullah Qureshi
Mr. Hisao Kobayashi
-do-
Mr. Hiromitsu Takasaki
Co-opted on January 27, 2014

& re-elected on March 20, 2014
Attendance
Board
HR &
HR &
Board
Audit
Remuneration
Remuneration Meetings
Committee Committee
Committee
5/5
5/5
1/1
-do-
5/5
4/4
1/1
-do-
3/5
2/4
1/1
5/5
0/1
Mr. Kazuhisa Hirota
Elected on March 20, 2014
Mr. Abid Naqvi
-do-
Mr. Shigeki Takane
Retired on March 20, 2014
0/5
10
Mr. Nurul Hoda
-do-
5/5
4/4
11
Mr. Hiroaki Hirose
Resigned on January 27, 2014
0/4
Auditors
The present auditors M/s Hameed Chaudhri & Co. Chartered Accountants, retire and being eligible, offer themselves for re-appointment.
The Audit Committee of the Company has recommended their re-appointment as auditors of the Company for the year 2014-15.
Material changes
There have been no material changes since March 31, 2014 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.
The pattern of shareholding of the Company is annexed to this report.
Communication
The Company places great importance on the communication with the shareholders. Annual, half yearly and quarterly reports are
distributed to them within the time specified in the Companies Ordinance, 1984. The Company's activities are updated on its web site
(www.atlashonda.com.pk), on timely basis.
Safeguarding of Records
The Company places due 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 ensured through implementation of a comprehensive password
protected authorization matrix in SAP-ERP system.
Business Continuity Plan
As a 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 focus point at the highest management level. The Company
has 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 Company's human resource policies
and procedures and their periodic review. The details of the Company's human resource policies are presented in the 'Sustainability
Report' which is a 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 make conscious effort to consider and balance the interest of all stakeholders, in particular the community in which we
live and who form our customer base. The Company's report on Corporate Social Responsibilities (CSR), including its approach to health
and safety, human resources, social, environmental and other related issues are presented in the 'Sustainability Report', which is a part
of this Annual Report.
Statement of Value Addition and its Distribution and Risk Management
Company's 'Statement of Value Addition and its Distribution' and 'Risk and Opportunity Report' are annexed to this report.
Corporate and Financial reporting framework
The Directors confirm compliance with Corporate and Financial Reporting Framework of the SECP Code of Corporate Governance for
the following:
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 Financial Statements and accounting estimates
are based on reasonable and prudent judgments.
International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of 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.
Information about taxes and levies is given in notes to the Financial Statements.
The Company operates a contributory Provident Fund Scheme for all employees and Defined Benefit Gratuity fund scheme for its
management and non-management employees. The value of investments based as at March 31, 2014 are as follows:
Provident Fund
Rs. 816.10 million
Gratuity Fund
Management Staff
Non-Management Staff
Rs. 202.43 million

Rs. 58.67 million
On behalf of the Board of Directors
Karachi: April 30, 2014
Saquib H. Shirazi
Risk and Opportunity Report

Risk Analysis and Internal Control Framework
e
nc
Risk assessment
Business unit
Division
om
pl
ia
rti
po
Strategy formulation
Company
Keeping interests of all stakeholders in view, management has developed a set of

objectives that represent stakeholders' expectations and are the lead indicators for
determining the success level of the Company. In order to ensure achievement of
the set objectives, management adopts certain action plans called strategies. These
strategies are approved by the Board of Directors and are subject to change, depending
upon any changes in the external business environment or internal organizational
factors.
Re
pe
ra
tio
A) Strategy formulation
ng
ns
This report will cover Company's strategy setting methods, risk assessment processes, opportunity identification procedures and
adopted counter measures. The Company, based on its business philosophy, has designed a risk management approach and internal
control framework which is explained step by step below:
Developing counter measures

Governance
B) Risk assessment
Businesses face numerous uncertainties that can pose potential threat to the objectives of the Company and if not addressed,
may culminate in loss. Such uncertainties (risks) can arise both from external events as well as internal factors within the
organization. The Company uses various management tools to identify these risks, based on information collected from various
internal and external sources and divides types of risks in the following 4 categories:
Strategic risks
These risks are related to the business environment including the industry and are beyond Company's control.
Commercial risks
These risks emanate from commercial substance of the organization and involve decisions which may affect
the Company's position in the market.
Operational risks
These risks are related to the Company's internal operations, administrative procedures and daily affairs.
Financial risks
These risks are related with financial matters including profitability, financing, liquidity and credit.
C) Developing counter measures

Upon identification of risk factors, counter measures are devised to mitigate their impact. The severity of the risk will determine
the criticality of the countermeasure and will accordingly set its priority for action. Risks and their related counter strategies
are continually monitored and evaluated for any changes in related impacts.
The relationship between the Company's objectives, strategies, risks and counter measures is given in the annexed
Risk and Counter Strategy Matrix (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
Audit Committee also reviews and assesses the adequacy of risk management for its effectiveness in risk mitigation.
Materiality Approach
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 judgment. A risk is considered material if, in
management's view, its occurrence is reasonably expected to prevent the Company from achieving its key objectives and
expectations. All identified risks are measured for their materiality impact upon identification and are marked for their relative
sensitivity as shown in RCSM. The more material the risk, the greater focus is concentrated on development and monitoring of
its counter measure.
Opportunity Analysis
The Company has adequate processes and procedures in place for identifying potential gaps in the external environment which,
if the Company has adequate resources at its disposal, 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 from expatriates
stationed abroad will increase liquidity
Emerging youth segment

Weak transportation infrastructure
Rising fuel prices
Risk and Counter Strategy Matrix

Objectives
Strategies
Risks / threats
Market
To remain market leader in
2-wheeler industry
Availability of new and improved models as

per customer needs and choices
Commercial risks
Increasing competition in 70 CC category
Enhance customer confidence through quality

leadership
To make products readily available
Advertising and sales promotion activities
Continued Inflation reducing customer
purchasing power
Rising fertilizer and other input costs eroding
liquidity in rural areas
Socio-Political Situation
To operate in a stable market
with least volatility and low
occurrence of unforeseen
variables
To recommend appropriate measures to the

Government on different forums for the protection
and growth of the industry
Strategic risk
Adverse law and order situation
Commercial risks
Compliance of new and existing laws, rules
and regulations
Low entry barriers for new entrants
Technology
To produce the best and
highest quality product that
meets international standards
of fuel efficiency, comfort and
reliability
To operate with the latest available technology which

is relevant to the market
Strategic risk
Technology shift may render production
process obsolete and cost inefficient
The ordering, delivery and production plans are

regularly monitored by the Supply Chain and
Production Control department to ensure smooth
operations at all times
Operational risks
The on-going energy crisis
Adequate levels of safety stocks are kept to fulfill

demand in cases of unexpected emergencies
Vendors' operational / financial constraints

and their deteriorating quality standards
Operations
To ensure continuity of
operations without any
disruptions in supply and
minimize idle time
Adequate systems have been developed to allow

uninterrupted data entries alongwith maintaining data
integrity
Disruptions due to data loss from operational
failures or natural disasters
Sensitivity
Counter measures to risks
Actual results
Wide range of products (6 models in 3 different CC categories)

Operating largest motorcycle dealership network in Pakistan
Largest and most efficient after sales service network
Only company to provide 2 years' warranty on all engine parts
Most lucrative 2nd hand market ensuring optimum resale value
Total sales for the year: 640,148 units

representing 2% increase from last year
A new model, CD Dream was launched during
the year
Availability of financial products to customers
Company operates two manufacturing plants (one at Sheikhupura and other

at Karachi). One plant operates extra shifts to fulfill demand if the other plant
faces disruptions due to deteriorating law and order situation
Both plants were successfully run throughout

the year, giving cumulative production of
640,428 units, an increase of 2% from last year
A team of qualified and experienced professionals in the management team

ensures compliance with all laws, rules and regulations
There were no non-compliances reported by

any Government bodies or institutions during
the year
Active participation at different forums for rationalization of tariffs and level

playing field for all participants
Constant process of balancing, modernization and upgradation of production

facilities
New model launches and modifications in existing models to meet the latest
standards
Adequate capital expenditure has been incurred

this year on improvement of plant and
machinery. Please see note 6 to the Financial
Statements
Company operations are based on usage of alternative energy sources. Further,

Company has initiated plans for evaluating low cost options for its energy needs
Uninterrupted production throughout

the year
Legal contracts in place with all vendors

Continuous assessment of all vendors in terms of quality, operational and financial
capacities
More than one supplier for key components to mitigate the risk of having sole supplier
B2B link with vendors to bring real-time operational efficiency
Undisrupted supply of parts

during the year
A business continuity plan is in place for ensuring uninterrupted operations for

all departments
The Company operates a separate Disaster

Recovery Site to ensure continuity of operations
Sensitivity
High
Medium
Low
Risk and Counter Strategy Matrix

Objectives
Strategies
Risks / threats
Human Resource
To recruit and retain the best
people and train them
adequately to ensure high
quality skill force
Formal Human Resource policies are in place.

Implementation of these policies is ensured by the
Human Resource department
Operational risks
Attrition of manpower - qualified and
competent staff may not be available
in sufficient numbers
Adequate fringe and post retirement benefits are

available to employees
Continuous training and development of employees
through internal and external training programs
Operations may be subject to

fraudulent activities
Healthy and Safety

To ensure health and safety of
employees in workplace
Company has a documented Health & Safety policy

which is implemented at each Company location,
including all vendor premises
Operational risks
Accidents can take place which can cause
serious injuries to employees
There could be elements in the workplace which

are hazardous to human health
Unforeseen calamities and natural disasters
may result in human loss
Environment
To ensure environment friendly
products and processes
Company has a defined policy for protecting the

environment from its operations and to minimize the
effects of hazardous emission to the atmosphere
Operational risks
The waste that results from operations may be
disposed in an inappropriate way
To incorporate the latest environmental standards

and install most modern environmental friendly
features in all Company products
Hazardous gases may be emitted in the
atmosphere beyond the prescribed limits
Finance
To maintain strong financial
position and produce financial
performance which is reflective
of Company's scale of
operations, effort of employees
and expectations of all
stakeholders
To maintain profitability and return levels that are

expected by shareholders
To ensure working capital management and availability
of adequate resources for discharging liabilities
To maintain most appropriate capital structure
Financial risks
Increase in commodity prices will increase
input costs
Devaluation of Pak Rupee against foreign
currencies may adversely affect the
Company's financial performance
Payment defaults of counter parties may
leave the Company with inadequate
resources for discharging its own obligations
Sensitivity
Counter measures to risks
Actual results
Well structured procedures for recruitment, training, compensation, periodic appraisals

and succession planning have been implemented to ensure staff retention
For details of benefits provided to employees

during the year, refer respective notes of the
financial statements
Various local and foreign trainings are organized for staff at all hierarchical levels
No. of person trained: 1,406

No. of man days spent per person: 1.93
Appropriate internal controls and best governance practices are in place to prevent
and detect fraudulent activities
An effective internal audit function is also in place
An effective working environment and culture is present where safety is top priority.
It is mandatory for each employee to go through the Company's safety awareness
program and periodic trainings. Any incidents that take place are properly recorded
and full scale measures are taken to avoid their repetition
No major accidents occurred during the year at

any of the Company's facilities, a testament to
the effective Company's safety policies
Medical and health insurance policies are in place for all employees
Extraction / evacuation drills are conducted regularly and staff is frequently trained
for crisis management
Numerous safety and extraction drills were

conducted during the year.
Effluents emanated from operations are treated through wastewater treatment

plant prior to discharge into municipal sewerage systems. Solid hazardous waste
is disposed off through Environmental Protection Agencys legitimate contractors
at certified waste disposal facilities. Also, reusage and recycling of used material
is done to the extent possible, reducing the waste quantities
For achievements in environmental protection,

see the section of "Environment" in Company's
Sustainability Report
Emissions are kept under prescribed levels through load management of generators,
use of energy savers, proper drainage of used oil and optimum utilization of
organic compounds
Agreements are in place with suppliers to counter short term fluctuation in

material prices
For complete disclosure on financial risk

management, see note 38 of the financial
statements
Foreign currency exposure is monitored by the Treasury Committee. Derivatives

such as forward covers and currency options are used for hedging against
currency devaluation when considered necessary
Credit is restricted to only Government departments, Defence institutions and
certain other customers who maintain good history of timely payments. Excess
funds are invested in well reputed mutual funds and banks
Sufficient credit lines and financial arrangements are available to the Company
from various banks in case sufficient funds are not generated from operations
Sensitivity
High
Medium
Low
Notice of 50th Annual General Meeting

Notice is hereby given that the Fiftieth Annual General Meeting of the members of Atlas Honda Limited will be held on Thursday
June 26, 2014, at 12:30 P.M., at the registered office, 1-Mcleod Road, Lahore, to transact the following businesses after recitation of
the Holy Quran:
ORDINARY BUSINESS
1.
To confirm the minutes of the Extra Ordinary General Meeting held on March 20, 2014.
2.
To receive, consider and adopt the Annual Audited Financial Statements of the Company for the year ended March 31, 2014,
together with the Directors' and Auditors' reports thereon.
3.
To appoint auditors and fix their remuneration for the year ending March 31, 2015. The present auditors M/s Hameed Chaudhri &
Co., Chartered Accountants, retire and being eligible, have offered themselves for reappointment.
4.
To consider and approve the final cash dividend of Rs. 10 per share i.e. 100% for the year ended March 31, 2014 as recommended
by the Board of Directors.
SPECIAL BUSINESS
5.
To consider and approve change in Article 90 of the Articles of Association of the Company.
To consider and if thought fit, to pass with or without modification, the following resolution as Special Resolution:
RESOLVED that Article 90 of the Articles of Association of the Company be amended to include as under:
90. The qualification shares requirement of a Director shall be the holding of at least 500 ordinary shares in the Company in his
own name relaxable in case of Directors representing interest holding of requisite value. A Director may act before acquiring his
qualification shares, but shall in any case acquire the same within two months from his appointment.
In lieu of
90. The qualification of a Director shall be the holding of ordinary shares in the Company at least of the nominal value of Rs. 25,000
in his own name relaxable in case of Directors representing interest holding of requisite value. A Director may act before acquiring
his qualification shares, but shall in any case acquire the same within two months from his appointment.
A statement under section 160(1)(b) of the Companies Ordinance, 1984 pertaining to the Special Businesses referred to above is
annexed to this Notice of Meeting.
OTHER BUSINESS
6.
To transact any other business as may be placed before the meeting with the permission of the Chair.
By Order of the Board
Karachi: June 5, 2014
Syed Tanvir Hyder

Company Secretary
NOTES:
1.
The share transfer books of the Company will remain closed from June 17, 2014 to June 26, 2014 (both days inclusive).
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. Proxies in order to be effective must be received at the Registered Office or the 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. Representatives of corporate
members should bring the usual documents required for such purpose.
4.
The members are requested to notify the Company immediately of the change in their addresses, if any.
5.
Members are requested to provide by mail or fax, photocopy of their CNIC, and in case of foreigner, copy of Passport, unless it
has already been provided and e-mail address 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 directions to all listed companies by SECP vide Letter No. 8(4) SM/CDC 2008 Dated: April 05, 2013 all shareholders
and the Company are encouraged to put in place an effective arrangement for Payment of Cash Dividend Electronically (E-Dividend)
through mutual co-operation. For this purpose, the members are requested to provide Dividend Mandates including Name, Bank
Account Number, Bank and Respective branch address to the Company in order to adhere the envisaged guidelines.
STATEMENT UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE, 1984

This statement is annexed to the Notice of the Fiftieth Annual General Meeting of Atlas Honda Limited to be held on June 26, 2014 at
which certain special businesses are to be transacted. The purpose of this statement is to set forth the material facts concerning such
special businesses.
ITEM NO. 5 OF THE AGENDA
Presently, the qualification of the directors is holding of shareholding of nominal value of at least Rs. 25,000. In order to facilitate the
representation of independent directors on the Board, it is proposed to rationalize the qualification shares requirement of directors.
Sales (No. of Units)
Sales (Rs. in million)
Gross Profit (Rs. in million)
Increased by
Increased by
Increased by
Profit Before Tax

(Rs. in million)
Profit After Tax

(Rs. in million)
Earnings Per Share

(Rupees)
Increased by
Increased by
Increased by
Market Price Per Share

(Rupees) - Based on
Year and Market Value
Breakup Value Per Share

(Rupees)
Cash Generated from

Operating Activities
(Rs. in million)
Increased by
Increased by
Cash Dividend
(Rs. in million)
Proposed for current year
Dealership Network
(No. of Dealers)
Wealth Distributed
(Rs. in million)
Increased by
675
Increased by
52,102
4%
6%
22%
292.6
53%
1,034
67%
36
Annual Report 2014
24%
76.5
21%
2,002
15%
19.36
24%
2,689
5%
4,225
3,532
2%
44,479
Increased by
60%
Other Information
640,148
Company Overview
Increased by
37
Atlas Honda Limited
Sales (No. of Units)
Sales (Rs. in million)
Gross Profit (Rs. in million)
Increased by
Increased by
Increased by
Profit Before Tax

(Rs. in million)
Profit After Tax

(Rs. in million)
Earnings Per Share

(Rupees)
Increased by
Increased by
Increased by
Market Price Per Share

(Rupees) - Based on
Year and Market Value
Breakup Value Per Share

(Rupees)
Cash Generated from

Operating Activities
(Rs. in million)
Increased by
Increased by
Cash Dividend
(Rs. in million)
Proposed for current year
Dealership Network
(No. of Dealers)
Wealth Distributed
(Rs. in million)
Increased by
675
Increased by
52,102
4%
6%
22%
292.6
53%
1,034
67%
36
Annual Report 2014
24%
76.5
21%
2,002
15%
19.36
24%
2,689
5%
4,225
3,532
2%
44,479
Increased by
60%
Other Information
640,148
Company Overview
Increased by
37
Atlas Honda Limited
Assets Performance
2010
Sales & Gross Profit

4,225
2014
44,479
3,679
42,325
2,776
2012
38,012
2,440
2011
2009
(9/M)
13,748
Profitability
2014
1,204
22.2%
2010
9.0%
The Company has registered ever highest net profit after tax
of Rs. 2.0 billion from Rs. 1.6 billion, an increase of 24% over
last year. This translates into CAGR of 46% as compared to
18% of last year.
712
18.3%
225
52.0%
1.9%
2010
54.3%
22.4%
2009
(9/M)
55.0%
23.0%
Rs. in million
4,225
2014
3,681
2013
2010
Shareholders Equity
2009
(9/M)
2,440
1,999
966
Improved Financial Soundness:

The Company has set the goal for improving financial
soundness by consolidating its shareholders equity. The goal
was eclipsed by achieving the record Shareholders Equity
which stood at Rs. 7.9 billion with CAGR of 19%.
6,560
2,776
2012
2011
7,913
5,420
4,622
3,892
3,321
1,034
207
468
94
2010
82
2009
(9/M)
71
142
Rs. in million
The Company continues to follow the policy of paying high

dividends by considering the cash generating capacities,
expected capital needs of business and strategic
considerations. This year, the Company has again declared
highest ever dividend of Rs. 1,034 million.
620
108
Paying High Dividends:
407
2013
1,161
2012
1,232
2011
2010
272
Capital Expenditure
Fixed Assets
Liquidity Position
984
2014
2009
(9/M)
557
4,553
4,422
3,942
3,259
292
Increased Investments:
From 2009 to 2014, the Company has made gross
investments of Rs. 4.5 billion. Additions to capital assets
mainly represents expansion of production facilities and
balancing, modernization and replacement of existing
manufacturing facilities.
3,225
356
3,413
Shareholders Ratio
2014
2,844
1,635
2013
1,461
2012
1,338
2011
2010
2009
(9/M)
Annual Report 2014
2,091
1,089
1,642
456
636
2,149
2,740
3,691
Strong Liquidity Position:

Cashflows generated from operations are invested into capital
assets, short term investments and dividends. The Companys
total cash and cash equivalent stood at healthy Rs. 2.8 billion.
Whereas, total investments in mutual funds consolidated at
Rs. 3.7 billion. This translates into CAGR of 43% over the
course of six years.
Rs. per share
2014
19.36
2013
19.44
16.03
2011
Earning Per Share

Breakup Value
Per Share
2010
2009
(9/M)
76.5
79.3
16.74
2012
13.10
4.75
2011
38
50.8%
75.3
Steady EPS & Breakup Value Per Share:

Over the years, the Company is focused on maintaining
steady growth in EPS and Breakup Value Per Share. This
year, the Company has achieved EPS of Rs.19.36 and breakup
value of Rs. 76.5 per share.
73.9
71.6
70.2
39
Atlas Honda Limited
Other Information
2014
2012
Investments
Cash & Cash
Equivalents
Liabilities to Assets
Long Term Debt
to Equity
The Company actively follows the policy of zero borrowings

to reduce interest bearing liabilities to improve its balance
sheet. The Company has maintained for consecutive three
years its "Debt Free Status" despite of growing working
capital requirement and continued investments in capacity
expansion. During the current year the Company has financed
all its projects through equity.
45.7%
Fixed Assets & Capital Expenditure

2013
Rs. in million
2011
Debt Free Status:
44.9%
2014
2012
Higher Net Income:
1,003
21.7%
Higher Return on Investments:
Dividend
Stock Dividend
Cash Dividend
21
2013
Sustainable growth together with optimum capital base

enables the Company to maintain high long-term return on
capital. For 2013-14, Return on Equity recorded at 25.3%.
1,608
24.5%
2011
2009
(9/M)
2,002
25.3%
2012
Rs. in million
966
Shareholders Equity
2013
Profit After Tax

Return on Equity (%)
In percentage
The Company continues to strengthen its position in the

premium segment and expand its market share in core
products. As a result, the Company has improved its CAGR
to 19% over the period of six years.
The positive performance in the Gross Profit over the period
was attributable to the volume growth, better sales mix and
other operational excellence measures. Resultantly, the
Company has achieved CAGR of 27%.
25,555
966
Higher Net Sales:
Higher Gross Income:
32,521
1,999
2010
Rs. in million
1,999
12
Leverage Ratio
2013
Gross Profit
Sales
2009
(9/M)
18
Company Overview
2011
Cashflow Operating
Cycle
18
2,440
Working Capital Performance:

The Company has always sought to efficiently use the various
components of working capital cycle. It has been able to
effectively control the receivable and inventories, enabling it
to continue its operations on negative operating cycle.
16
2,776
2012
We track our performance against key financial metrics which we judge to be the best indicators of how we are doing.
Rs. in million
3,681
2013
25
Our performance
over the years
4,225
2014
In days
Assets Performance
2010
Sales & Gross Profit

4,225
2014
44,479
3,679
42,325
2,776
2012
38,012
2,440
2011
2009
(9/M)
13,748
Profitability
2014
1,204
22.2%
2010
9.0%
The Company has registered ever highest net profit after tax
of Rs. 2.0 billion from Rs. 1.6 billion, an increase of 24% over
last year. This translates into CAGR of 46% as compared to
18% of last year.
712
18.3%
225
52.0%
1.9%
2010
54.3%
22.4%
2009
(9/M)
55.0%
23.0%
Rs. in million
4,225
2014
3,681
2013
2010
Shareholders Equity
2009
(9/M)
2,440
1,999
966
Improved Financial Soundness:

The Company has set the goal for improving financial
soundness by consolidating its shareholders equity. The goal
was eclipsed by achieving the record Shareholders Equity
which stood at Rs. 7.9 billion with CAGR of 19%.
6,560
2,776
2012
2011
7,913
5,420
4,622
3,892
3,321
1,034
207
468
94
2010
82
2009
(9/M)
71
142
Rs. in million
The Company continues to follow the policy of paying high

dividends by considering the cash generating capacities,
expected capital needs of business and strategic
considerations. This year, the Company has again declared
highest ever dividend of Rs. 1,034 million.
620
108
Paying High Dividends:
407
2013
1,161
2012
1,232
2011
2010
272
Capital Expenditure
Fixed Assets
Liquidity Position
984
2014
2009
(9/M)
557
4,553
4,422
3,942
3,259
292
Increased Investments:
From 2009 to 2014, the Company has made gross
investments of Rs. 4.5 billion. Additions to capital assets
mainly represents expansion of production facilities and
balancing, modernization and replacement of existing
manufacturing facilities.
3,225
356
3,413
Shareholders Ratio
2014
2,844
1,635
2013
1,461
2012
1,338
2011
2010
2009
(9/M)
Annual Report 2014
2,091
1,089
1,642
456
636
2,149
2,740
3,691
Strong Liquidity Position:

Cashflows generated from operations are invested into capital
assets, short term investments and dividends. The Companys
total cash and cash equivalent stood at healthy Rs. 2.8 billion.
Whereas, total investments in mutual funds consolidated at
Rs. 3.7 billion. This translates into CAGR of 43% over the
course of six years.
Rs. per share
2014
19.36
2013
19.44
16.03
2011
Earning Per Share

Breakup Value
Per Share
2010
2009
(9/M)
76.5
79.3
16.74
2012
13.10
4.75
2011
38
50.8%
75.3
Steady EPS & Breakup Value Per Share:

Over the years, the Company is focused on maintaining
steady growth in EPS and Breakup Value Per Share. This
year, the Company has achieved EPS of Rs.19.36 and breakup
value of Rs. 76.5 per share.
73.9
71.6
70.2
39
Atlas Honda Limited
Other Information
2014
2012
Investments
Cash & Cash
Equivalents
Liabilities to Assets
Long Term Debt
to Equity
The Company actively follows the policy of zero borrowings

to reduce interest bearing liabilities to improve its balance
sheet. The Company has maintained for consecutive three
years its "Debt Free Status" despite of growing working
capital requirement and continued investments in capacity
expansion. During the current year the Company has financed
all its projects through equity.
45.7%
Fixed Assets & Capital Expenditure

2013
Rs. in million
2011
Debt Free Status:
44.9%
2014
2012
Higher Net Income:
1,003
21.7%
Higher Return on Investments:
Dividend
Stock Dividend
Cash Dividend
21
2013
Sustainable growth together with optimum capital base

enables the Company to maintain high long-term return on
capital. For 2013-14, Return on Equity recorded at 25.3%.
1,608
24.5%
2011
2009
(9/M)
2,002
25.3%
2012
Rs. in million
966
Shareholders Equity
2013
Profit After Tax

Return on Equity (%)
In percentage
The Company continues to strengthen its position in the

premium segment and expand its market share in core
products. As a result, the Company has improved its CAGR
to 19% over the period of six years.
The positive performance in the Gross Profit over the period
was attributable to the volume growth, better sales mix and
other operational excellence measures. Resultantly, the
Company has achieved CAGR of 27%.
25,555
966
Higher Net Sales:
Higher Gross Income:
32,521
1,999
2010
Rs. in million
1,999
12
Leverage Ratio
2013
Gross Profit
Sales
2009
(9/M)
18
Company Overview
2011
Cashflow Operating
Cycle
18
2,440
Working Capital Performance:

The Company has always sought to efficiently use the various
components of working capital cycle. It has been able to
effectively control the receivable and inventories, enabling it
to continue its operations on negative operating cycle.
16
2,776
2012
We track our performance against key financial metrics which we judge to be the best indicators of how we are doing.
Rs. in million
3,681
2013
25
Our performance
over the years
4,225
2014
In days
Analysis of the Financial Statements

Balance Sheet
Particulars
2014
2013
2012
2011
2010
2009
---------------------------------Rupees in '000 ---------------------------------
Assets
Non Current Assets
Property, plant and equipment
Intangible assets
Long term investments
Long term loans and advances
Long term deposits
4,552,816
4,781
26,396
9,632
4,421,744
5,555
25,583
8,399
3,941,610
6,419
20,420
15,728
3,259,193
7,137
22,403
10,765
3,224,897
8,053
18,810
11,336
3,412,901
16,601
14,359
8,964
Total non current assets
4,593,625
4,461,281
3,984,177
3,299,498
3,263,096
3,452,825
Current Assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Loans and advances
Trade deposits and prepayments
Short term investments
Accrued mark-up / interest
Other receivables
Taxation - net
Bank balances
400,424
2,042,602
520,321
35,305
50,679
3,691,241
11,130
4,666
2,843,738
390,250
2,171,536
514,742
33,253
47,722
1,635,183
11,603
6,302
2,578
2,739,988
348,639
2,161,328
598,265
33,152
44,832
1,460,580
4,348
15,338
160,604
2,149,154
325,891
2,003,029
401,435
33,525
36,936
1,338,474
8,517
15,075
68,050
2,090,800
322,592
1,664,297
445,689
40,485
39,079
1,088,996
4,513
11,566
1,641,963
428,188
1,792,036
320,180
37,646
64,637
455,816
520
101,071
91,308
636,426
Total current assets
9,600,106
7,553,157
6,976,240
6,321,732
5,259,180
3,927,828
Non Current Assets Classifed as

Held for Sale
Total assets
171,459
14,365,190
12,014,438
10,960,417
9,621,230
8,522,276
7,380,653
Equity
Share capital
Reserves
1,034,066
6,879,247
827,253
5,701,924
719,350
4,700,584
625,522
3,996,892
543,932
3,347,892
472,985
2,848,277
Total equity
7,913,313
6,529,177
5,419,934
4,622,414
3,891,824
3,321,262
Non Current Liabilities

Long term borrowings
Deferred liabilities
829,600
866,975
730,315
649,354
512,500
600,015
375,000
575,862
Total non current liabilities
829,600
866,975
730,315
649,354
1,112,515
950,862
Current Liabilities
Trade and other payables
Current portion of long term borrowings
Taxation - net
5,577,694
44,583
4,587,303
-
4,810,168
-
4,255,584
6,378
87,500
-
3,109,999
37,384
362,500
8,054
2,646,221
72,328
389,980
-
Total current liabilities
5,622,277
4,587,303
4,810,168
4,349,462
3,517,937
3,108,529
14,365,190
12,014,438
10,960,417
9,621,230
8,522,276
7,380,653
Equity and Liabilities
Total equity and liabilities

Balance Sheet
Vertical Analysis
Particulars
Horizontal Analysis
2014
2013
2012
2011
2010
2009
2014
vs
2013
%
2013
vs
2012
%
2012
vs
2011
%
2011
vs
2010
%
2010
vs
2009
%
2009
vs
2008
%
Non Current Assets

Intangible assets
Long term deposits
31.7
0.0
0.0
0.2
0.1
36.8
0.0
0.0
0.2
0.1
36.0
0.1
0.0
0.2
0.1
33.9
0.1
0.0
0.2
0.1
37.8
0.1
0.0
0.2
0.1
46.3
0.2
0.0
0.2
0.1
3.0
-13.9
0.0
3.2
14.7
12.2
-13.5
0.0
25.3
-46.6
20.9
-10.1
0.0
-8.9
46.1
1.1
-11.4
0.0
19.1
-5.0
-5.5
-51.5
0.0
31.0
26.5
1.1
12.1
0.0
2.3
-33.6
Total non current assets
32.0
37.1
36.4
34.3
38.2
46.8
3.0
12.0
20.8
1.1
-5.5
1.0
Current Assets
Stock-in-trade
Trade debts
Loans and advances
Other receivables
Taxation - net
Bank balances
2.8
14.2
3.6
0.2
0.4
25.7
0.1
0.0
0.0
19.8
3.2
18.1
4.3
0.3
0.4
13.6
0.1
0.1
0.0
22.8
3.2
19.7
5.5
0.3
0.4
13.3
0.0
0.1
1.5
19.6
3.4
20.8
4.2
0.3
0.4
13.9
0.1
0.2
0.7
21.7
3.8
19.5
5.2
0.5
0.5
12.8
0.1
0.1
0.0
19.3
5.8
24.4
4.3
0.5
0.9
6.2
0.0
1.3
1.2
8.6
2.6
-5.9
1.1
6.2
6.2
125.7
-4.1
-26.0
-100.0
3.8
11.9
0.5
-14.0
0.3
6.4
12.0
166.9
-58.9
-98.4
27.5
7.0
1.0
7.9 20.4
49.0
-9.9
-1.1 -17.2
21.4
-5.5
9.1 22.9
-48.9 88.7
1.7 30.3
136.0 100.0
2.8 27.3
-24.7
-7.1
39.2
7.5
-39.5
138.9
767.9
-88.6
-100.0
158.0
2.5
-3.8
-21.4
-4.3
-71.0
-66.9
-36.0
-40.5
100.0
26.2
Total current assets
66.8
62.9
63.6
65.7
61.8
53.2
27.1
8.3
10.4
20.2
33.9
-21.5
1.2
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
100.0
100.0 100.0 100.0 100.0
19.6
9.6
13.9
12.9
15.5
-12.4
Equity
Share capital
Reserves
7.2
47.9
6.9
47.7
6.6
42.9
6.5
41.6
6.4
39.3
6.4
38.6
25.0
20.0
15.0
22.0
15.0
17.6
15.0
19.4
15.0
17.5
0.0
-2.8
Total equity
55.1
54.6
49.5
48.1
45.7
45.0
20.6
21.0
17.3
18.8
17.2
-2.4

Long term borrowings
Deferred liabilities
0.0
5.8
0.0
7.2
0.0
6.6
0.0
6.7
6.0
7.0
5.1
7.8
0.0
-4.3
0.0
18.7
0.0 -100.0
12.5
8.2
36.7
4.2
-46.2
0.9
Total non current liabilities
5.8
7.2
6.6
6.7
13.0
12.9
-4.3
18.7
12.5
17.0
-25.0
Current Liabilities
Current portion of long term borrowings
Taxation - net
38.8
0.0
0.0
0.3
38.2
0.0
0.0
0.0
43.9
0.0
0.0
0.0
44.2
0.1
0.9
0.0
36.5
0.4
4.3
0.1
35.8
1.0
5.3
0.0
21.6
0.0
0.0
100.0
Total current liabilities
39.1
38.2
43.9
45.2
41.3
42.1
22.6
-4.6
10.6
23.6
13.2
-17.1
100.0
100.0
100.0 100.0 100.0 100.0
19.6
9.6
13.9
12.9
15.5
-12.4
Assets
Non Current Assets Classifed as

Held for Sale
Total assets
Total equity and liabilities
-41.6
-4.6
13.0 36.8
0.0 -100.0 -82.9
0.0 -100.0 -75.9
0.0
0.0 -100.0
17.5 -18.5
-48.3
45.2
-7.0 -10.7
100.0 -100.0

Profit and Loss Account and Cash Flow Statement
Particulars
2014
2013
2012
2011
2010
2009
(Nine Months)
------------------------------------------ (Rupees in 000) ------------------------------------------

Sales
44,478,713
42,325,242
38,011,857
32,521,399
25,554,772
13,747,820
Cost of sales
(40,253,929)
(38,646,049)
(35,235,893)
(30,080,978)
(23,555,842)
(12,782,165)
Gross Profit
4,224,784
3,679,193
2,775,964
2,440,421
1,998,930
965,655
Sales and marketing expenses
(1,293,938)
(1,206,648)
(965,883)
(815,463)
(690,794)
(271,346)
Administrative expenses
(430,054)
(387,477)
(335,654)
(310,742)
(264,739)
(165,648)
Other income
420,651
322,668
274,453
299,337
239,047
89,744
Other operating expenses
(223,989)
(190,453)
(117,162)
(109,597)
(92,600)
(13,849)
2,697,454
2,217,283
1,631,718
1,503,956
1,189,844
604,556
(8,036)
(9,726)
(11,717)
(93,475)
(112,613)
(251,777)
2,689,418
2,207,557
1,620,001
1,410,481
1,077,231
352,779
(687,858)
(599,753)
(415,892)
(407,925)
(364,773)
(128,246)
2,001,560
1,607,804
1,204,109
1,002,556
712,458
224,533
Cash flows from

operating activities
3,531,566
2,208,740
1,720,597
2,147,882
1,768,263
200,587
Cash flows from

investing activities
(2,813,658)
(1,154,675)
(1,171,217)
(642,540)
(730,915)
607,037
Cash used in
financing activities
(614,158)
(463,231)
(491,026)
(1,056,505)
(31,811)
(675,336)
Net increase / (decrease)

in cash and cash equivalents
103,750
590,834
58,354
448,837
1,005,537
132,288
Profit from operations

Finance cost
Profit before taxation

Taxation
Cash Flow Statement

Profit and Loss Account and Cash Flow Statement
Vertical Analysis
Particulars
2014
2013
2012
Horizontal Analysis
2011 2010
2009
2014
vs
2013
2013
vs
2012
2012
vs
2011
2011
vs
2010
2010
vs
2009
2009
vs
2008

Sales
100.0
100.0
100.0
100.0
100.0
100.0
5.1
11.3
16.9
27.3
85.9
-34.1
Cost of sales
-90.5
-91.3
-92.7
-92.5
-92.2
-93.0
4.2
9.7
17.1
27.7
84.3
-33.8
Gross Profit
9.5
8.7
7.3
7.5
7.8
7.0
14.8
32.5
13.7
22.1
107.0
-38.0
-2.9
-2.9
-2.5
-2.5
-2.7
-2.0
7.3
24.9
18.4
18.0
154.6
1.4
-1.0
-0.9
-0.9
-1.0
-1.0
-1.2
11.0
15.4
8.0
17.4
59.8
-27.3
0.9
0.8
0.7
0.9
0.9
0.7
30.4
17.6
8.3
25.2
166.4
-66.0
-0.5
-0.4
-0.3
-0.3
-0.4
-0.1
17.6
62.6
6.9
18.4
568.6
-79.9
6.0
5.2
4.3
4.6
4.7
4.4
21.7
35.9
8.5
26.4
96.8
-51.9
Finance cost
0.0
0.0
0.0
-0.3
-0.4
-1.8
-17.4
-17.0
87.5
-17.0
-55.3
-0.1
6.0
5.2
4.3
4.3
4.2
2.6
21.8
36.3
14.9
30.9
205.4
-64.9
-1.5
-1.4
-1.1
-1.3
-1.4
-0.9
14.7
44.2
2.0
11.8
184.4
-57.4
4.5
3.8
3.2
3.1
2.8
1.6
24.5
33.5
20.1
40.7
217.3
-68.1
373.8 2948.6
478.5
175.9
151.6
59.9
28.4
-19.9
21.5
781.5
-76.2
-195.4 -2007.1 -143.1
-72.7
458.9
143.7
-1.4
182.3
-12.1
-3.2 -510.5
32.6
-5.7
53.5
3221.2
-82.4
912.5
-87.0
-55.4
Other income
Taxation
Cash Flow Statement

Cash flows from
operating activities
3403.9
Cash flows from

investing activities
-2711.9
Cash used in
financing activities
-592.0
-78.4
100.0
100.0
Net increase / (decrease)

in cash & cash equivalents
-841.5 -235.4
100.0
100.0
100.0
100.0
-220.4 -206.1
-95.3
-1.5
660.1 -131.8
DuPont Analysis
Return on Equity
Year ended March 31
25.3%
2013
Rs. in 000
Rs. in 000
51,681,320
420,651
99.19%
0.81%
49,037,122
322,668
99.35%
0.65%
52,101,971
100.00%
49,359,790
100.00%
38,422,595
73.74%
37,028,509
75.02%
8,838,957
16.97%
8,083,328
16.38%
2,181,213
4.19%
2,000,256
4.05%
22,076
0.04%
16,200
0.03%
Financial charges to providers of finance

Dividends for shareholders
300
1,034,066
0.00%
1.98%
858
827,253
0.00%
1.68%
Retained for re-investment and future growth
1,602,764
3.08%
1,403,386
2.84%
52,101,971
100.00%
49,359,790
100.00%
73.74%
Bought in materials & services

2013: 75.02%
16.97%
Government
2013: 16.38%
Value Addition
Net sales including sales tax
Other operating income
Company Overview
2014
Ownership Ratio
Return on Assets
55.09%
13.9%
To Government
Income tax, sales tax, custom & excise duties,
workers funds, EOBI & social security contribution
and local taxes
To Employees
Remuneration & benefits
Total Assets
Owners Equity
Assets Turnover
Net Profit Margin
14,365
7,913
3.1 times
4.50%
To Providers of capital
Total Value Distributed
4.19%
Employees
2013: 4.05%
3.08%

2013: 2.84%
1.98%

2013: 1.68%
0.04%
Society
2013: 0.03%
0.00%

2013: 0.00%
Total
+
Owners Equity
Total Liabilities
Total Assets
Sales
Net Income
7,913
6,452
14,365
44,479
2,002
Donations
To Society
Non Current
Liabilities
Current Liabilities
Non Current
Assets
Current Assets
Total Cost
Sales
830
5,622
4,765
9,600
42,477
44,479
52,102 million
2013: 49,360 million
44
Annual Report 2014
45
Atlas Honda Limited
Other Information
Bought in materials and services
Value Distribution
DuPont Analysis
Return on Equity
Year ended March 31
25.3%
2013
Rs. in 000
Rs. in 000
51,681,320
420,651
99.19%
0.81%
49,037,122
322,668
99.35%
0.65%
52,101,971
100.00%
49,359,790
100.00%
38,422,595
73.74%
37,028,509
75.02%
8,838,957
16.97%
8,083,328
16.38%
2,181,213
4.19%
2,000,256
4.05%
22,076
0.04%
16,200
0.03%

300
1,034,066
0.00%
1.98%
858
827,253
0.00%
1.68%
1,602,764
3.08%
1,403,386
2.84%
52,101,971
100.00%
49,359,790
100.00%
73.74%
Bought in materials & services

2013: 75.02%
16.97%
Government
2013: 16.38%
Value Addition
Net sales including sales tax
Company Overview
2014
Ownership Ratio
Return on Assets
55.09%
13.9%
To Government
Income tax, sales tax, custom & excise duties,
workers funds, EOBI & social security contribution
and local taxes
To Employees
Remuneration & benefits
Total Assets
Owners Equity
Assets Turnover
Net Profit Margin
14,365
7,913
3.1 times
4.50%
To Providers of capital
Total Value Distributed
4.19%
Employees
2013: 4.05%
3.08%

2013: 2.84%
1.98%

2013: 1.68%
0.04%
Society
2013: 0.03%
0.00%

2013: 0.00%
Total
+
Owners Equity
Total Liabilities
Total Assets
Sales
Net Income
7,913
6,452
14,365
44,479
2,002
Donations
To Society
Non Current
Liabilities
Current Liabilities
Non Current
Assets
Current Assets
Total Cost
Sales
830
5,622
4,765
9,600
42,477
44,479
52,102 million
2013: 49,360 million
44
Annual Report 2014
45
Atlas Honda Limited
Other Information
Bought in materials and services
Value Distribution

Particulars
1st Qtr.
2nd Qtr.
3rd Qtr.
4th Qtr.
Total
10,735,499
(9,732,752)
Gross Profit
1,084,563
1,002,747
1,027,986
1,109,488
4,224,784

Finance cost
(317,419)
(106,325)
73,250
(51,870)
(3,190)
(405,554)
(306,123)
(110,336)
91,787
(51,218)
(1,028)
(376,918)
(319,670)
(108,883)
112,525
(49,504)
(2,117)
(367,649)
(350,726)
(104,510)
143,089
(71,397)
(1,701)
(385,245)
(1,293,938)
(430,054)
420,651
(223,989)
(8,036)
(1,535,366)
Profit Before Taxation
679,009
625,829
660,337
724,243
2,689,418
Taxation
(190,114)
(161,412)
(180,262)
(156,070)
(687,858)
Profit After Taxation
488,895
464,417
480,075
568,173
2,001,560
4.73
4.49
4.64
5.50
19.36
Earnings per share - Basic
11,110,263 11,872,976
(10,082,277) (10,763,488)
44,478,713
(40,253,929)
10,759,975
(9,675,412)
Sales
Cost of sales
Company Overview
------------------------------(Rs in 000)------------------------------
Quarterly Highlights
Gross Profit
The gross profit depicted mixed trends. Throughout the year,
the Company was focused on mitigating exchange devaluation,
rising material cost and power outages through new model
launches, improved sales mix, timely localization and effective
energy management. Further, appreciation of Pak Rupee
against US Dollar improved profit margins in last quarter.
4th Qtr.
100%
90%
27%
26%
27%
29%
25%
24%
25%
24%
80%
70%
60%
2nd Qtr.
1st Qtr.
50%
40%
3rd Qtr.
24%
24%
23%
23%
24%
26%
25%
24%
Sales
Gross Profit
Profit Before
Tax
Profit After
Tax
30%
20%
10%
-
Other Information
The sales of motorcycle remain largely consistent throughout

the year as shown by the sales trend. Sales were marginally
lower in first half due to less than expected results of agriculture
which was affected by floods and rising input cost. However,
timely increase in support prices and higher agricredit disbursements helped in improving demand in rural areas. Further,
introduction of new model CD Dream in third quarter also
helped in building sales momentum.
Sales
PBT are consistent with trends in gross profits. Further, effective

controls over operating expenses and healthy treasury income The Company managed to achieve record post tax profit of over
supported in achieving margins of approximately 6%.
Rs. 2 billion with PAT margin at 4.5%.
46
Annual Report 2014
47
Atlas Honda Limited

Particulars
1st Qtr.
2nd Qtr.
3rd Qtr.
4th Qtr.
Total
10,735,499
(9,732,752)
Gross Profit
1,084,563
1,002,747
1,027,986
1,109,488
4,224,784

Finance cost
(317,419)
(106,325)
73,250
(51,870)
(3,190)
(405,554)
(306,123)
(110,336)
91,787
(51,218)
(1,028)
(376,918)
(319,670)
(108,883)
112,525
(49,504)
(2,117)
(367,649)
(350,726)
(104,510)
143,089
(71,397)
(1,701)
(385,245)
(1,293,938)
(430,054)
420,651
(223,989)
(8,036)
(1,535,366)
679,009
625,829
660,337
724,243
2,689,418
Taxation
(190,114)
(161,412)
(180,262)
(156,070)
(687,858)
488,895
464,417
480,075
568,173
2,001,560
4.73
4.49
4.64
5.50
19.36
Earnings per share - Basic
11,110,263 11,872,976
(10,082,277) (10,763,488)
44,478,713
(40,253,929)
10,759,975
(9,675,412)
Sales
Cost of sales
Company Overview
------------------------------(Rs in 000)------------------------------
Quarterly Highlights
Gross Profit
The gross profit depicted mixed trends. Throughout the year,
the Company was focused on mitigating exchange devaluation,
rising material cost and power outages through new model
launches, improved sales mix, timely localization and effective
energy management. Further, appreciation of Pak Rupee
against US Dollar improved profit margins in last quarter.
4th Qtr.
100%
90%
27%
26%
27%
29%
25%
24%
25%
24%
80%
70%
60%
2nd Qtr.
1st Qtr.
50%
40%
3rd Qtr.
24%
24%
23%
23%
24%
26%
25%
24%
Sales
Gross Profit
Profit Before
Tax
Profit After
Tax
30%
20%
10%
-
Other Information
The sales of motorcycle remain largely consistent throughout

the year as shown by the sales trend. Sales were marginally
lower in first half due to less than expected results of agriculture
which was affected by floods and rising input cost. However,
timely increase in support prices and higher agricredit disbursements helped in improving demand in rural areas. Further,
introduction of new model CD Dream in third quarter also
helped in building sales momentum.
Sales
PBT are consistent with trends in gross profits. Further, effective

controls over operating expenses and healthy treasury income The Company managed to achieve record post tax profit of over
supported in achieving margins of approximately 6%.
Rs. 2 billion with PAT margin at 4.5%.
46
Annual Report 2014
47
Atlas Honda Limited
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. 35 of the
listing regulations of Karachi and Lahore Stock Exchanges 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.
2.
3.
Saquib H. Shirazi
Hiromitsu Takasaki
Hisao Kobayashi
Non Executive Directors
1.
2.
3.
4.
Yusuf H. Shirazi
Kazuhisa Hirota
Sanaullah Qureshi
Tariq Amin
The independent director meets the criteria of independence under clause i(b) of the Code.
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 or, being a member of stock exchange, has been declared as a defaulter by that stock exchange.
4.
A casual vacancy occurring on the Board was duly filled by the directors within the prescribed time.
5.
The Board of Directors of the Company completed its term on March 20 th, 2014 which has been re-constituted on the same day
through election in the Extra Ordinary General Meeting of the Company.
6.
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.
7.
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 dates on which they were approved or amended has been
maintained.
8.
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 Chief Executive Officer (CEO) and other executive directors, have
been taken by the Board.
9.
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.
10. One of the newly elected directors, Mr. Abid Naqvi has attended the directors training course conducted by the Pakistan Institute
of Corporate Governance and the remaining directors will acquire the required directors training certification within the time specified
in the Code, unless exempt thereunder.
11. The Directors' report for the year ended March 31, 2014 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 CEO and Chief Financial Officer (CFO) 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, one of whom is independent director and two
are non executive directors of the Company.
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 formed Human Resource and Remuneration Committee. It comprises of three members of whom two are non
executive and one is executive director of the Company.
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 Institute of Chartered Accountants of Pakistan (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 the directors, employees and Stock Exchanges.
22. Material/price sensitive information has been disseminated among all market participants at once through Stock Exchanges.
23. We confirm that all other material principles contained in the Code have also been complied with.
On behalf of the Board of Directors
Saquib H. Shirazi
Review Report to the Members on Statement of Compliance with

Best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared
by the Board of Directors of Atlas Honda Limited to comply with the Listing Regulation No. 35 of Karachi and Lahore Stock
Exchanges, where the Company is listed.
The responsibility for compliance with the Code of Corporate Governance 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 of Corporate Governance and report if it does
not. 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 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 Boards
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.
Further, Regulation 35(x) of the Listing Regulations require the Company to place before the Board of Directors for their consideration
and approval 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 recording proper justification for using
such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the audit committee.
We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the
Board of Directors and placement of such transactions before 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 of Corporate
Governance as applicable to the Company for the year ended March 31, 2014.
HAMEED CHAUDHRI & CO.

CHARTERED ACCOUNTANTS

Engagement Partner: Muhammad Ali
KARACHI:
Karachi Chambers, Hasrat Mohani Road.
Tel : +92 21 32411474, 32412754
Fax : +92 21 32424835
E-mail : khi@hccpk.com
LAHORE:
HM House, 7-Bank Square.
Tel : +92 42 37235084-87
Fax : +92 42 37235083
E-mail : lhr@hccpk.com
URL : www.hccpk.com
Auditors' Report to the Members

We have audited the annexed balance sheet of Atlas Honda Limited as at March 31, 2014 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 conduct 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 account 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 except for the change as stated in note 5 with which we concur;
(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, 2014 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.

CHARTERED ACCOUNTANTS

Engagement Partner: Muhammad Ali
KARACHI:
Karachi Chambers, Hasrat Mohani Road.
Tel : +92 21 32411474, 32412754
Fax : +92 21 32424835
E-mail : khi@hccpk.com
LAHORE:
HM House, 7-Bank Square.
Tel : +92 42 37235084-87
Fax : +92 42 37235083
E-mail : lhr@hccpk.com
URL : www.hccpk.com
Balance Sheet
As at March 31, 2014
Note
Re-stated
Re-stated
April 1,
2014
2013
2012
------------ (Rupees in 000) ------------
Assets
Non Current Assets
Intangible assets
Long term deposits
6
7
8
9
4,552,816
4,781
26,396
9,632
4,421,744
5,555
25,583
8,399
3,941,610
6,419
20,420
15,728
4,593,625
4,461,281
3,984,177
400,424
2,042,602
520,321
35,305
50,679
3,691,241
11,130
4,666
2,843,738
390,250
2,171,536
514,742
33,253
47,722
1,635,183
11,603
6,302
2,578
2,739,988
348,639
2,161,328
598,265
33,152
44,832
1,460,580
4,348
15,338
160,604
2,149,154
9,600,106
7,553,157
6,976,240
Current Assets
Stock-in-trade
Trade debts
Loans and advances
Other receivables
Taxation - net
Bank balances
Non Current Assets Classified as Held for Sale
10
11
12
13
14
15
16
17
18
171,459
14,365,190
12,014,438
10,960,417
1,034,066
6,879,247
827,253
5,701,924
719,350
4,667,550
7,913,313
6,529,177
5,386,900
192,042
637,558
170,248
680,626
153,878
559,270
829,600
850,874
713,148
5,577,694
44,583
4,634,387
-
4,860,369
-
5,622,277
4,634,387
4,860,369
6,451,877
5,485,261
5,573,517
14,365,190
12,014,438
10,960,417

Equity
Share capital
Reserves
19
20
Liabilities
Compensated absences
Deferred taxation
21
22
Current Liabilities
Taxation - net
Contingencies and Commitments
23
25
The annexed notes 1 to 45 form an integral part of these financial statements.
Yusuf H. Shirazi
Chairman
Saquib H. Shirazi

For the Year Ended March 31, 2014
Note
Re-stated
2014
2013
------ (Rupees in 000) -----
Sales
26
44,478,713
42,325,242
Cost of sales
27
(40,253,929)
(38,644,529)
4,224,784
3,680,713
Gross profit
28
(1,293,938)
(1,206,118)
29
(430,054)
(386,924)
Other income
30
420,651
322,668
31
(223,989)
(190,453)
2,697,454
2,219,886
(8,036)
(9,726)
2,689,418
2,210,160
(687,858)
(600,643)
2,001,560
1,609,517
- Gain on remeasurement of staff retirement benefit obligation
4,529
513
- Impact of deferred tax
(1,513)
(175)
3,016
338
2,004,576
1,609,855

Finance cost
32

Taxation
33

Other comprehensive income
Items that will not be reclassified to profit or loss:
Total comprehensive income
------ (Rupees) -----Earnings per share - basic and diluted
34
19.36
15.56
Yusuf H. Shirazi
Chairman
Saquib H. Shirazi
Cash Flow Statement

Note
2014
2013
------ (Rupees in 000) -----
Cash Flows from Operating Activities

Cash generated from operations
Mark-up / interest paid
Income tax paid
Contribution made to gratuity fund
Compensated absences paid
Mark-up / interest received
Workers' profit participation fund paid
Workers' welfare fund paid
Long term deposits
35
4,233,810
(300)
(685,278)
(26,371)
(8,161)
182,373
(118,931)
(43,530)
(813)
(1,233)
2,576,013
(857)
(321,436)
(26,191)
(18,115)
108,627
(87,135)
(24,332)
(5,163)
7,329
3,531,566
2,208,740
Purchase of property, plant and equipment

Purchase of intangible assets
Proceeds from sale of property, plant and equipment
Investments acquired
Proceeds from sale of investments
(981,446)
(3,239)
20,556
(2,604,133)
754,604
(1,159,626)
(1,474)
33,549
(375,000)
347,876
Net cash used in investing activities
(2,813,658)
(1,154,675)
Dividend paid
(614,158)
(463,231)
Net increase in cash and cash equivalents
103,750
590,834
2,739,988
2,149,154
2,843,738
2,739,988
Net cash generated from operating activities

Cash Flows from Investing Activities
Cash Used in Financing Activities
Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year
17
Yusuf H. Shirazi
Chairman
Saquib H. Shirazi
Statement of Changes in Equity

Capital Reserves
Revenue Reserves
Gain on
UnapproShare
Share
Sale of
General
priated
Capital
Premium
Land
Reserve
Profit
Total
--------------------------------- (Rupees in 000) ----------------------------------Balance as at April 1, 2012
(as previously reported)
Effect of change in accounting policy
due to application of IAS-19
(Revised) - net of tax [note 5]
Balance as at April 1, 2012 (restated)
Transfer to general reserve
719,350
719,350
-
39,953
39,953
165
165
3,442,000
1,218,466
5,419,934
(33,034)
(33,034)
3,442,000
1,185,432
5,386,900
630,000
(630,000)
(107,903)
(467,578)
(467,578)
(575,481)
(467,578)
Total transactions with owners,

recognized directly in equity
Bonus shares issued during the
year in ratio of 3 shares for
every 20 shares held
Final dividend for the year
ended March 31, 2012 at
the rate of Rs.6.50 per share
107,903
107,903
Total comprehensive income for

the year ended March 31, 2013
Profit for the year
1,609,517
1,609,517
338
338
1,609,855
1,609,855
4,072,000
1,589,806
6,529,177
630,000
(630,000)
Balance as at March 31, 2013 (restated)

Transfer to general reserve
827,253
-
39,953
165
(206,813)
(620,440)
(620,440)
(827,253)
(620,440)
Total transactions with owners,

recognized directly in equity
Bonus shares issued during the
year in ratio of 1 share for
every 4 shares held
Final dividend for the year
ended March 31, 2013 at
the rate of Rs.7.50 per share
206,813
206,813
Total comprehensive income for

the year ended March 31, 2014
Profit for the year
2,001,560
2,001,560
3,016
3,016
2,004,576
2,004,576
2,137,129
7,913,313
Balance as at March 31, 2014
1,034,066
39,953
165
4,702,000
Yusuf H. Shirazi
Chairman
Saquib H. Shirazi
Notes to the Financial Statements

1.
Legal Status 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, warranty & training centres and other offices located at Karachi, Hyderabad, Multan, Lahore,
Faisalabad, Rahim Yar 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

The financial statements are presented in Pakistan Rupees, which is the Company's functional and presentation currency. All
financial information presented in Pakistan Rupees has been rounded to the nearest thousand unless otherwise specified.
2.4
Use of estimates and judgments

The preparation of financial statements in conformity with the approved accounting standards requires the use of certain critical
accounting estimates. It also requires management to exercise judgments in the process of applying the Company's accounting
policies.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. 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 recognized in the period in which the
estimates are revised and in any future periods affected. Judgments 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 judgments 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)
Provisions against slow moving inventories [notes 4.8 and 4.9]
(iii)
Retirement benefits [notes 4.13 and 23.7]
(iv)
Provision for taxation [note 4.19]
3.
New and Amended Standards and Interpretations
3.1
Standards, amendments to approved accounting standards and interpretations that are effective and relevant
The amendments to the following standards have been adopted by the Company for the first time for the financial year beginning
on April 1, 2013:
(a)
Amendment to IAS 1, 'Financial statement presentation regarding other comprehensive income. The main change resulting from
this amendment is a requirement for entities to group items presented in other comprehensive income on the basis of whether
they are potentially reclassifiable to profit and loss subsequently (reclassification adjustments). The Company has applied the
amendments by incorporating the effects in these financial statements.
(b)
Amendment to IAS 1, 'Financial statement presentation regarding disclosure requirements for comparative information. The
amendment clarifies the disclosure requirements for comparative information when an entity provides a third balance sheet as
at the beginning of the preceding period if it applies an accounting policy retrospectively, and the retrospective application has a
material effect on the information in the balance sheet at the beginning of the preceding period. However, the entity need not
present the related notes in the opening balance sheet as at the beginning of the preceding period. Accordingly, the Company
has presented the third balance sheet as at the beginning of the preceding period in these financial statements due to retrospective
application of revised IAS 19.
(c)
IAS 19, Employee benefits was revised in June 2011. Revised standard eliminates the corridor approach and calculates finance
costs on a net funding basis. IAS 19 (Revised) amends the accounting for the Company's defined benefit plans. The Company
has applied this standard retrospectively and its impact on the Company's financial statements has been explained in
note 5.
3.2
Standards, amendments to approved accounting standards and interpretations that are effective but not relevant
The other new standards, amendments to approved accounting standards and interpretations that are mandatory for the accounting
periods beginning on April 1, 2013 are considered not to be relevant or to have any significant effect on the Company's financial
reporting and operations.
3.3
Standards, amendments to published standards and interpretations that are not yet effective and have not been early
adopted by the Company
The following new standards and amendments to published standards are not effective (although available for early adoption)
for the financial year beginning on April 1, 2013 and have not been early adopted by the Company:
(a)
IFRS 9, Financial instruments - classification and measurement' is applicable on accounting periods beginning on or after
January 1, 2015. This standard is yet to be notified by the SECP. IFRS 9 replaces the parts of IAS 39, 'Financial instruments:
recognition and measurement', that relate to classification and measurement of financial instruments. IFRS 9 requires financial
assets to be classified into two measurement categories; those measured at fair value and those measured at amortised cost.
The determination is made at initial recognition. The classification depends on the entity's business model for managing its financial
instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of
the requirements of IAS 39. The main change is that, in case the fair value option is taken for financial liabilities, the part of a fair
value change due to entity's own credit risk is recorded in other comprehensive income rather than the profit and loss account,
unless this creates an accounting mismatch. This change will mainly affect financial institutions. The Company does not expect
to have a material impact on its financial statements due to application of this standard.
(b)
IAS 19 (Amendment), 'Employee benefits', is applicable on accounting periods beginning on or after July 1, 2014. This amendment
apply to contributions from employees or third parties to defined benefit plans. 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. The Company is yet to assess the full impact of the amendment,
however the initial indications are that the amendment is unlikely to have any significant impact on the Company's financial
statements.
(c)
IAS 32 (Amendment), 'Financial instruments: presentation', is applicable on accounting periods beginning on or after January 1,
2014. This amendment updates the application guidance in IAS 32, 'Financial instruments: presentation', to clarify some of the
requirements for offsetting financial assets and financial liabilities on the balance sheet date. The Company shall apply this
amendment from April 1, 2014 and does not expect to have a material impact on its financial statements.
(d)
IAS 36 (Amendment), 'Impairment of assets', is applicable on accounting periods beginning on or after January 1, 2014. 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 Company shall apply this amendment from April 1, 2014 and this will only affect the
disclosures in the Company's financial statements in the event of impairment.
There are number of other standards, amendments and interpretations to the published 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, except as stated in note 5.
4.1

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 4.22). 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 recognized as an operating fixed asset when it is made available for its intended use.
Where major components of a single item of owned operating fixed assets have different useful lives, they are accounted for in
the books of account as separate items.
Subsequent costs including major renewals and improvements are included in the carrying amount of the asset or are recognized
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 derecognized
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 recognized 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 realized sales proceeds and are recognized 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 amortization 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 asset 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 recognized
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. Expenditures 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 recognized 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 amortized 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. An impairment loss is recognized 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
Financial assets
4.4.1
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 the short term. Derivatives are also categorized 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 balance sheet date, in which
case, they 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 in
respect of which the Company has positive intent and ability to hold till maturity.
(d)
Available for sale financial assets

Available for sale financial assets are non derivative financial assets 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 asset matures or management intends to dispose
off the assets within 12 months of the balance sheet date.
4.4.2
Recognition and measurement

Regular purchases and sales of financial assets are recognized on the trade date the date on which the Company commits to
purchase or sell the asset. Investments are initially recognized 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 recognized at fair value,
and transaction costs are expensed in the profit and loss account. Financial assets are derecognized when the right 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 amortized
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 recognized 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 recognized in 'Other
comprehensive income'.
When securities classified as available for sale are sold or impaired, the accumulated fair value adjustments recognized 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 and is
recognized in the profit and loss account as part of 'Other income'. Dividends on available for sale equity securities are recognized
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
recognized in profit or loss - is removed from equity and recognized in profit or loss account. Impairment losses recognized 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 4.10.
4.5
Financial liabilities
Financial liabilities are recognized at the time when the Company becomes a party to the contractual provisions of the instrument.
All financial liabilities are recognized initially at fair value less directly attributable transactions costs, if any, and subsequently
measured at amortized cost using effective interest method.
A financial liability is derecognized 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 recognized in the profit and loss account.
4.6
Off setting of 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 recognized amounts and there is an intention to settle either on a net basis, or realize the asset and settle the liability
simultaneously.
4.7
Derivative financial instruments and hedging activities

The Company designates derivative financial instruments 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 recognized 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 is designated and qualify as cash flow hedge is recognized in other comprehensive income. The gain or loss
relating to the ineffective portion is recognized immediately in the profit and loss account. Amounts accumulated in equity are
reclassified to the profit and loss account in the periods in which the hedged item will affect the profit and loss account.
4.8

Stores, spares and loose tools are stated at lower of cost and net realizable 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.
4.9
Stock-in-trade
These are valued at lower of cost and net realizable 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 realizable value or provision is made for obsolescence if there is any change in usage pattern and physical form of related
inventory.
Net realizable value is the estimated selling price in the ordinary course of business less costs necessary to be incurred in order
to make the sale.
4.10
Trade debts and other receivables

Trade and other receivables are initially recognized 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.
4.11
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.
4.12
Non current assets classified as held for sale

Non current assets are classified as held for sale if their carrying amount is to be recovered principally through a sale transaction
rather than through continuing use. These assets are available for sale in their present condition subject only to terms that are
usual and customary for sales of such assets and their sale is highly probable.
The Company measures its non current assets classified as held for sale at the lower of carrying amount and fair value less costs
to sell. Costs to sell signify the incremental costs directly attributable to the disposal of an asset, excluding finance costs and
income tax expense.
4.13
Retirement and other service benefit obligations
4.13.1 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 recognized 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 recognized 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.
4.13.2 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 recognized 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 23.7 to the financial statements.
The amount arising as a result of remeasurements are recognized in the balance sheet immediately, with a charge or credit to
other comprehensive income in the periods in which they occur.
4.13.3 Compensated absences

Employees entitlement to annual leaves is recognized when they accrue to the employees. A provision is made for the estimated
liability for annual leave as a result of services rendered by employees upto the balance sheet date.
4.14

Liabilities for trade and other payables are carried at their amortized 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.
4.15
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.
4.16
Operating leases / Ijarah

Operating leases / Ijarah in which a significant portion of the risks and rewards of ownership are retained by the lessor / Mujir
(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.
4.17
Provisions
Provisions are recognized 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.
4.18
Warranty
The Company recognizes 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 2 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.
4.19
Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognized in the profit and loss account, except to
the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case the tax is also
recognized in other comprehensive income or directly in equity, respectively.
Current
Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing law for taxation
of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to the profit for the
year, if enacted. 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 accounted for using the balance sheet liability method in respect of all temporary differences arising from differences
between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax basis used in the
computation of the taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to
the extent that it is probable that taxable profit shall be available against which the deductible temporary differences, unused tax
losses and tax credits can be utilized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on tax rates
that have been enacted or substantively enacted by the balance sheet date.
4.20
Foreign currency transactions and translation

The foreign currency transactions are translated into functional currency using the exchange rates prevailing on 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 recognized in profit and loss account within 'Other income / other operating
expenses'.
4.21
Revenue recognition
Revenue is recognized 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 trade discounts. Revenue from different sources is recognized
on the following basis:
- Revenue from sales of motorcycles and spare parts is recognized when goods are dispatched and invoiced to customers.
- Interest income on deposits with banks and other financial assets is recognized on accrual basis.
- Dividend income is recognized when the Company's right to receive dividend has been established.
4.22
Borrowing costs
Borrowing costs are recognized 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 capitalized as part
of the cost of that asset.
4.23
Research and development costs

Research and development costs are recognized in profit and loss account as and when incurred.
4.24
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.
4.25
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; however, certain information, as
required by the approved accounting standards, is presented in note 39 to these financial statements.
4.26
Dividend and appropriation to reserves

Dividend and appropriation to reserves are recognized in the financial statements in the period in which these are approved.
5.
Change in Accounting Policy

IAS 19 (Revised) - 'Employee benefits' effective for annual periods beginning on or after January 1, 2013 amends the accounting
for Company's defined benefit plans. The revised standard requires past service cost to be recognized immediately in the profit
or loss and replaces the interest cost on the defined benefit obligation and the expected return on plan assets with a net interest
cost based on the net defined benefit asset or liability and the discount rate, measured at the beginning of the year. Further, a
new term "remeasurements" has been introduced which is made up of actuarial gains and losses, the difference between actual
investment returns and the return implied by the net interest cost. The revised standard eliminates the corridor approach and
requires "remeasurements" to be recognized in the balance sheet immediately, with a charge or credit to other comprehensive
income in the periods in which they occur.
Following the application of IAS 19 (Revised), the Company's policy for 'Retirement and other service benefit obligations - defined
benefit plans' stands amended as follows:
The amount arising as a result of remeasurements are recognized in the balance sheet immediately, with a charge or credit to
other comprehensive income in the periods in which they occur.
The change in accounting policy has been accounted for retrospectively in accordance with the requirements of IAS 8 'Accounting
policies, changes in accounting estimates and errors' and comparative figures have been restated. The Company's financial
statements are only affected by the remeasurements relating to prior years. The effects have been summarized below:
As at
As at
March 31,
April 1,
2013
2012
------ (Rupees in 000) ----Impact on balance sheet
Increase in trade and other payables
Decrease in deferred taxation
47,084
(16,101)
50,201
(17,167)
Decrease in reserves
30,983
33,034
For the year
ended March 31,
2013
(Rupees in 000)
Impact on profit and loss account

Decrease in cost of sales
Decrease in sales and marketing expenses
Decrease in administrative expenses
(Increase) in taxation
1,520
530
553
(890)
Increase in profit after taxation
1,713
Impact on other comprehensive income

Increase in remeasurement gain of staff retirement benefit obligation
(Increase) in deferred tax charge relating to remeasurement of staff retirement benefit plans
513
(175)
Increase in other comprehensive income - net of tax
338
2,051
Impact on statement of changes in equity

Decrease in unappropriated profit
(30,983)
Increase in total comprehensive income
2,051
The effect of change in accounting policy, due to application of IAS 19 (Revised) on 'earnings per share' is immaterial in the overall
context of these financial statements. There is no cash flow impact as a result of the retrospective application of change in
accounting policy.
Note
6.
2014
2013
------ (Rupees in 000) -----
Property, Plant and Equipment

Operating fixed assets
6.1
4,406,665
4,385,058
Capital work-in-progress
6.4
146,151
36,686
4,552,816
4,421,744
6.1
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, 2012
Cost
Accumulated depreciation
5,112
-
34,132
(8,988)
379,520
(181,608)
91,885 4,946,380 1,206,072 182,911

(44,737) (2,215,689) (868,172) (98,457)
Net book value
5,112
25,144
197,912
47,148
2,730,691
5,112
25,144
197,912
47,148
2,730,691
337,900
84,454
4,436
27,720
8,942
118,967
707,681
296,430
39,823
3,202
10,769
(46,078)
35,384
(68,176)
45,260
(1,936)
1,012
(2,390)
2,390
(10,694)
(22,916)
(924)
(1,081)
673
(408)
Depreciation charge
(513)
(20,269)
(13,732)
Closing net book value
5,112
24,631
186,585
151,975
Cost
5,112
-
34,132
(9,501)
388,462 209,771 5,607,983 1,434,326 220,798

(201,877) (57,796) (2,494,617) (1,014,566) (108,842)
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
5,112
24,631
186,585
151,975
3,113,366
419,760 111,956
5,878
24,239
19,309
116,608
17,232
373,589
180,295
33,422
5,742
18,291
6,250
(70,923) (188,882)
53,702 180,763
(542)
542
(52)
52
(4,039)
3,962
(17,221)
(8,119)
(278,014)
108,806
(169,208)
337,900
84,454
20,805 117,998 27,473

(16,369) (90,278) (13,979)
4,436
27,720
13,494
1,300 281,155 225,455

(1,300) (137,931) (84,408)
389
(389)
7,520,587
(3,762,305)
143,224
141,047
3,758,282
13,494
143,224
141,047
3,758,282
10,346
67,292
42,816
1,306,268
(917)
917
(4,365)
4,059
(42,146)
19,024
(15)
15
(166,023)
108,061
(306)
(23,122)
(57,962)
(249)
249
(1,330)
922
(408)
Year ended March 31, 2013

Opening net book value
Additions
Disposals
Cost
Written off
Cost
(314,312) (191,654) (11,397)

3,113,366
(1,760)
(14,250)
(4,531)
(18,859)
(29,845)
(621,122)
5,878
24,239
19,309
191,351
130,896
4,385,058
374
(374)
8,659,502
(4,274,444)
130,896
4,385,058
191,351
130,896
4,385,058
48,123
74,441
873,993
(202)
202
(35,561)
17,333
(300,201)
256,556
(77)
(18,228)
(43,645)
(854)
854
(1,300)
1,300
(374)
374
(2,528)
2,528
(33,289)
31,406
(812)
444
(2,397)
385
(314,512)
141,041
(1,883)
(368)
(2,012)
(173,471)
419,760 111,956

24,007 126,377 36,902
(18,129) (102,138) (17,593)
1,300 343,833 226,125

(1,300) (152,482) (95,229)

Additions
Disposals (note 6.3)
Cost
Written off
Cost
Assets classified as held for sale

and transferred to inventories
Cost
Depreciation charge (note 6.2)
(513)
(20,069)
(15,801)
5,112
24,118
283,124
153,406
Cost
5,112
-
34,132
(10,014)
505,070 227,003 5,632,635 1,392,450 252,866

(221,946) (73,597) (2,656,867) (989,715) (120,435)
Net book value
5,112
24,118
283,124
153,406
2,975,768
1.79
10
10
10
(324,758) (187,318) (12,579)

2,975,768
402,735 132,431
(2,032)
(15,770)
(5,404)
(21,136)
(29,890)
(635,270)
9,588
26,683
20,155
218,338
155,207
4,406,665
29,697 139,775 42,950

(20,109) (113,092) (22,795)
391,956 262,608
(173,618) (107,401)
8,916,254
(4,509,589)
4,406,665
Annual rate of depreciation (%)
402,735 132,431
25
10
9,588
26,683
20,155
218,338
155,207
20
25
20
20
10
20
20
Note
6.2
6.3
2014
2013
------ (Rupees in 000) -----
Depreciation charge for the year has been allocated as follows:

Cost of sales
27
597,238
585,874
29
38,032
35,248
635,270
621,122
The details of operating fixed assets disposed off during the year are as follows:
Particulars of assets
Cost
Accumulated Net book

Sale
Mode of
depreciation
value
proceeds disposal
-------------------- (Rupees in 000) --------------------
Particulars of purchasers
Assets having net book value

exceeding Rs.50,000 each
Plant and machinery
Module machine
Cylindrical grinder
HFQ machine
CNC turning machine
Diesel generator
15,111
19,001
17,560
7,253
9,239
(13,602)
(14,682)
(11,791)
(5,690)
(5,867)
1,509
4,319
5,769
1,563
3,372
192
314
141
154
163
Scrap
Scrap
Scrap
Scrap
Negotiation
Noor-e-Eman Enterprises, 25 KM Multan Road, Lahore

Noor-e-Eman Enterprises, 25 KM Multan Road, Lahore
Khan Traders, Zahoor Park, Masrishah, Lahore
Khan Traders, Zahoor Park, Masrishah, Lahore
Tariq Mehmood & Brothers, Kot Pindi Das Road,
Shahdra, Lahore
Tariq Mehmood & Brothers, Kot Pindi Das Road,
Shahdra, Lahore
Roshan Traders, Near Dawood Hercules, Lahore Road,
Sheikhupura
Sheikhupura
Sheikhupura
Sheikhupura
Sheikhupura
Diesel generator
1,432
(1,299)
133
427
Negotiation
Mig wielding plant
145
(89)
56
Scrap
Mig wielding plant
155
(95)
60
Scrap
Mig wielding plant
155
(95)
60
Scrap
Tig wielding plant
296
(151)
145
Scrap
Tig wielding plant
418
(214)
204
25
Scrap
70,765
(53,575)
17,190
1,448
Die right cover
1,760
(697)
1,063
Scrap
Moulding cavity
1,990
(1,410)
580
Scrap
Moulding cavity
3,940
(2,791)
1,149
Scrap
Jack core mould
11,116
(5,790)
5,326
11
Scrap
18,806
(10,688)
8,118
19
90
(13)
77
77
Company policy
Shirazi Investments (Pvt.) Ltd., a related party,

Federation House, Shahrah-e-Firdouse, Clifton, Karachi
2,785
(2,022)
763
763
Company policy
1,010
(66)
944
944
Company policy
414
(98)
316
316
Company policy
Atlas Autos (Pvt.) Ltd., a related party, Federation House,

Shahrah-e-Firdouse, Clifton, Karachi
Atlas Hitec (Pvt.) Ltd., a related party, Federation House,
4,209
(2,186)
2,023
2,023
Dies and Jigs

Rehman Taj Scrap Traders, Kot Pindi Das Road,
25 Stop Shahdra, Lahore
Computers and accessories

Laptop
Vehicles
Balance carried forward
Balance brought forward

Vehicles
Balance carried forward
Cost

Sale
Mode of
depreciation
value
proceeds disposal
-------------------- (Rupees in 000) --------------------
4,209
(2,186)
2,023
2,023
65
(7)
58
58
Insurance claim
65
(7)
58
58
Insurance claim
80
(14)
66
66
Insurance claim
106
(38)
68
68
Insurance claim
112
(22)
90
90
Insurance claim
112
(19)
93
93
Insurance claim
111
(16)
95
95
Insurance claim
798
84
(133)
(32)
665
52
665
52
Company policy
Insurance claim
108
572
662
537
93
85
660
654
1,232
91
87
109
1,385
89
108
509
1,192
690
612
537
89
1,403
85
109
545
88
106
(30)
(222)
(399)
(289)
(8)
(29)
(392)
(384)
(743)
(13)
(24)
(30)
(707)
(25)
(33)
(303)
(244)
(359)
(170)
(289)
(25)
(676)
(29)
(30)
(225)
(30)
(46)
78
350
263
248
85
56
268
270
489
78
63
79
678
64
75
206
948
331
442
248
64
727
56
79
320
58
60
78
350
263
248
85
56
268
270
489
78
63
79
678
64
75
206
948
331
442
248
64
727
56
79
320
58
60
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
64
(10)
54
54
Insurance claim
64
(6)
58
58
Insurance claim
80
(11)
69
69
Insurance claim
80
(5)
75
75
Insurance claim
18,467
(8,260)
10,207
10,207
Atlas Insurance Ltd., a related party, Federation House,

Mr. Qadeer Khan (Employee)
Mr. M. Saad Paracha (Employee)
Mr. Aamir Habib Arain (Employee)
Mr. Afrasiab Khan (Employee)
Mr. Faheem Haider (Employee)
Mr. Farrukh Amir Malik (Ex-Employee)
Mr. Hafiz Muhammad Usman (Employee)
Mr. Khalid Kamal (Employee)
Mr. M. Younis (Employee)
Mr. Majid Shami (Employee)
Mr. Maula Baksh Jaffery (Ex-Employee)
Mr. Moazzam Ali Gondal (Employee)
Mr. Mohammad Imran Siddique (Employee)
Mr. Mohammad Saeed Anwar (Employee)
Mr. Qamar Nazir (Employee)
Mr. Rameez Baig (Employee)
Mr. Shahab Uddin (Employee)
Mr. Shahzada Jamal (Employee)
Mr. Talat Mahmood Khan (Employee)
Mr. Tariq Abbas (Ex-Employee)
Mr. Wajhat Hayat (Employee)
Mr. Wasim Ahmed Usmani (Employee)
Mr. Zahid Saleem (Employee)
Mr. Zaigham Aziz (Employee)
Mr. Zia Ul Qadir (Employee)
Miss Amina Tahir (Ex-Employee)
Mr. Awais Ahmed Cheema (Ex-Employee)
Cost

Sale
Mode of
depreciation
value
proceeds disposal
-------------------- (Rupees in 000) --------------------
Balance brought forward
18,467
(8,260)
10,207
10,207
1,494
105
509
1,366
89
404
(579)
(41)
(307)
(676)
(25)
(333)
915
64
202
690
64
71
915
64
202
690
64
341
Company policy
Company policy
Company policy
Company policy
Company policy
Negotiation
86
1,373
652
92
537
537
88
93
517
92
93
106
109
86
513
679
529
652
518
1,658
87
(29)
(714)
(393)
(23)
(289)
(289)
(22)
(21)
(299)
(15)
(8)
(36)
(30)
(31)
(297)
(353)
(285)
(393)
(312)
(970)
(28)
57
659
259
69
248
248
66
72
218
77
85
70
79
55
216
326
244
259
206
688
59
57
659
259
69
248
248
66
72
218
77
85
70
79
55
216
326
244
259
206
688
59
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Company policy
Insurance claim
1,378
529
107
(690)
(284)
(35)
688
245
72
688
245
72
Company policy
Company policy
Company policy
33,545
(16,067)
17,478
17,748
Vehicles
123,206
(80,343)
42,863
19,292
Various assets having net book

value upto Rs.50,000 each
176,995
(176,213)
782
1,264
300,201
(256,556)
43,645
20,556
166,023
(108,061)
57,962
33,549
Mr. Shaukat Alam (Ex-Employee)

Mr. Akhlaq Ahmad (Employee)
Mr. Anser Mehmood (Employee)
Mr. Azfar Zaheer (Ex-Employee)
Mr. Farooq Shahzad (Ex-Employee)
Mr. Hayat Khan, E-275, Block R, Usman Ghani Colony,
North Nazimabad, Karachi
Mr. Iftikhar Ahmad (Employee)
Mr. Irshad Ahmed (Employee)
Mr. Kashif Jilani (Employee)
Mr. M. Iqbal (Ex-Employee)
Mr. M. Nauman Akram (Employee)
Mr. M. Yawar Farooq (Employee)
Mr. Majid Badar Siddiqui (Employee)
Mr. Mamoon Ur Rasheed (Ex-Employee)
Mr. Mirza Saleem Baig (Employee)
Mr. Muhammad Arfan (Ex-Employee)
Mr. Muhammad Awais Khan (Ex-Employee)
Mr. Muhammad Ishaq (Employee)
Mr. Muhammad Nabeel Hassan (Employee)
Mr. Munawar Badshah (Employee)
Mr. Musharaf Akhtar (Employee)
Mr. Nawaid Ali Khan (Employee)
Mr. Saad Uddin Khan (Employee)
Mr. Saadi Mustafa (Employee)
Mr. Shahid Subhan (Employee)
Mr. Sultan Ahmed (Employee)
Mr. Zahid Mahmood Khan (Employee)
Mr. Zeeshan Jawaid (Employee)
Mr. Mohammad Ilyas (Employee)
Note
6.4
2014
2013
------ (Rupees in 000) -----
Capital work-in-progress
Buildings on freehold land
Buildings on leasehold land
Plant and machinery
Factory equipment
Furniture and fixtures
Electric and gas fittings
Vehicles
6.4.1
6.4.2
32,341
4,329
100,676
3,624
2,335
2,846
11,158
4,740
1,349
13,955
488
3,676
1,320
146,151
36,686
6.4.1
Includes advance of Rs.3,000 thousand (2013: Rs.Nil) made to Shirazi Trading Company (Private) Limited - a related party.
6.4.2
Includes advance of Rs.2,158 thousand (2013: Rs.Nil) made to Honda Atlas Cars (Pakistan) Limited - a related party.
SAP
implementation
Software
and
License
licenses
support cost
fee
Total
---------------------------------- (Rupees in 000) --------------------------------
7.
Intangible Assets
At April 1, 2012
Cost
Accumulated amortization
Net book value
39,666
(38,646)
1,020
38,041
(36,728)
1,313
5,216
(1,130)
4,086
82,923
(76,504)
6,419
1,020
1,474
(845)
1,649
1,313
(450)
863
4,086
(1,043)
3,043
6,419
1,474
(2,338)
5,555
41,140
(39,491)
1,649
38,041
(37,178)
863
5,216
(2,173)
3,043
84,397
(78,842)
5,555

Additions
Amortization charge (note 27.1)
1,649
3,239
(2,520)
2,368
863
(450)
413
3,043
(1,043)
2,000
5,555
3,239
(4,013)
4,781
At March 31, 2014

Cost
Net book value
Annual rate of amortization (%)
44,379
(42,011)
2,368
50
38,041
(37,628)
413
20
5,216
(3,216)
2,000
20
87,636
(82,855)
4,781

Additions
Amortization charge (note 27.1)
At March 31, 2013
Cost
Net book value
Note
8.
Long Term Investments - Available for Sale

Unquoted
Arabian Sea Country Club Limited
200,000 ordinary shares of Rs.10 each - cost
Less: Impairment in the value of investment
Automotive Testing & Training Centre (Private) Limited
50,000 ordinary shares of Rs.10 each - cost
Less: Impairment in the value of investment
9.
Long Term Loans and Advances - Considered Good

Loans and advances to:
- executives
- other employees
Less: amounts due within one year and shown under current assets:
- executives
- other employees
9.2 & 9.3
13
2014
2013
------ (Rupees in 000) -----
2,000
2,000
-
2,000
2,000
-
500
500
-
500
500
-
9,363
47,653
57,016
7,938
44,565
52,503
8,065
22,555
30,620
26,396
6,604
20,316
26,920
25,583
9.1
These represent interest free loans and advances provided to executives and other employees as per the terms of employment.
Loans aggregating Rs.40,727 thousand (2013: Rs.38,762 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.
2014
2013
------ (Rupees in 000) -----
9.2
Reconciliation of the carrying amount of loans and advances to executives

Balance as at April 1,
Disbursements
7,938
12,470
7,370
11,268
Repayments
20,408
(11,045)
18,638
(10,700)
9,363
7,938
Balance as at March 31,

9.3
The maximum amount outstanding at the end of any month during the year ended March 31, 2014 from executives aggregated
to Rs.9,785 thousand (2013: Rs.7,938 thousand).
9.4
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
10.
Stores, Spares and Loose Tools

Consumable stores
87,073
81,156
Maintenance spares
184,125
162,158
Loose tools
195,020
190,619
1,269
18,416
467,487
452,349
(67,063)
(62,099)
400,424
390,250
1,487,667
122,087
1,606,447
146,118
1,609,754
1,752,565
4,549
6,587
62,418
248,657
27,809
222,438
311,075
250,247
136,008
172,337
2,061,386
2,181,736
(18,784)
(10,200)
2,042,602
2,171,536
Items in transit
Provision for slow moving items
11.
2014
2013
------ (Rupees in 000) -----
11.2
Stock-in-Trade
Raw materials and components
- in hand
- held with vendors
11.1
Work-in-process
Finished goods
- motorcycles
- spare parts
Items in transit
Provision for slow moving stocks
11.2
11.1
Includes raw materials amounting Rs.9,487 thousand (2013: Rs.12,396 thousand) held with Atlas Autos (Private) Limited (2013:
Atlas Engineering Limited) [related parties] for manufacturing purposes.
2014
2013
2014
2013
-------------------- (Rupees in 000) -------------------Stores, spares and loose tools
Stock-in-trade
11.2
Provision for slow moving inventories

62,099
54,148
10,200
5,125
Provision for the year
4,964
7,951
8,584
5,075
67,063
62,099
18,784
10,200

11.3
Stock-in-trade and trade debts upto a maximum amount of Rs.4,058,000 thousand (2013: Rs.4,058,000 thousand) are under
hypothecation of commercial banks as security for short term finance facilities (note 24).
Note
12.
2014
2013
------ (Rupees in 000) -----
Trade Debts - Considered Good

Export - secured
12.1
7,519
20,209
512,802
494,533
520,321
514,742
Not past due
410,594
468,168
Past due within 30 days
103,270
38,992
6,457
7,582
520,321
514,742
Local - unsecured
12.1
Trade debts are secured against letters of credit issued by customers in favour of the Company.
12.2
The ageing analysis of trade debts at March 31 is as follows:
Past due beyond 30 days but not later than 60 days
12.3
Trade debts which are past due beyond thirty days have not been impaired as these relate to a number of customers for whom
there is no recent history of default.
12.4
The banks have lien on export bills / contracts upto a maximum of Rs.400,000 thousand (2013: Rs.400,000 thousand) against
foreign currency finance facilities (note 24).
Note
13.
2014
2013
------ (Rupees in 000) -----
Loans and Advances - Considered Good

Current portion of long term loans and advances
Loans to employees other than executives
9
13.1
30,620
26,920
485
386
436
Advances to:
- employees for incurring business expenses
- suppliers, contractors and others
13.1
4,200
5,511
4,200
5,947
35,305
33,253
These represent interest free welfare and festival loans provided to employees in accordance with Company's policy and have
maturities upto ten months.
2014
2013
------ (Rupees in 000) -----
14.
Trade Deposits and Prepayments

Trade deposits - unsecured and considered good
Prepayments
3,034
2,373
47,645
45,349
50,679
47,722
Note
15.
2014
2013
------ (Rupees in 000) -----
Short Term Investments - at Fair Value through Profit or Loss

2014
2013
----- Number of units ----Related parties
1,571,767
1,260,081
134,195
124,653
4,242,008
682,619
499,800
6,447,770
Atlas Income Fund
812,211
648,148
Atlas Islamic Income Fund
69,171
63,935
Atlas Money Market Fund
2,133,560
344,818
Atlas Gold Fund
50,920
2,067,353
3,065,862
1,056,901
Lakson Money Market Fund
219,237
399,366
Lakson Income Fund
213,257
Others
2,189,807
3,990,367
2,100,079
16.
7,086,699
6,517,687
NIT Government Bond Fund
75,537
69,999
6,982,968
6,327,055
NIT Income Fund
75,205
69,896
417,216
385,813
HBL Money Market Fund
42,143
39,021
18,776,769
17,220,922
625,379
578,282
25,224,539
19,288,275
3,691,241
1,635,183
4,045
5,673
621
629
4,666
6,302
208,954
553,255
Other Receivables - Unsecured, Considered Good

Duty drawback receivable
Others
17.
Bank Balances
Balances with banks in:
- current accounts
- savings deposit accounts
17.1
1,034,784
1,186,733
- term deposit receipts
17.2
1,600,000
1,000,000
2,843,738
2,739,988
17.1
Savings deposit accounts carry mark-up upto 8.60% (2013: 11.00%) per annum.
17.2
Term deposit receipts (TDRs) have maturity dates ranging from 7 to 31 days (2013: 7 to 31 days) from respective dates of
acquisition. These TDRs carry mark-up at the rates ranging from 9.20% to 9.40% (2013: 8.75% to 9.10%) per annum.
2014
2013
------ (Rupees in 000) -----
18.
Non Current Assets Classified as Held for Sale

Plant and machinery
Dies and jigs
Factory equipment
18.1
169,208
1,883
368
171,459
The Company 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]. The main objective of newly incorporated company is to manufacture
and sale electrical components of motorcycles. According to this agreement, AHTL will issue its ordinary shares to the Company
in consideration of abovementioned assets. The management, during the year, obtained the requisite approval from members
and anticipates that this transaction will take place in April 2014.
2014
2013
------ (Rupees in 000) ----19.
Share Capital
19.1
Authorized capital
2014
2013
----- Number of shares ----150,000,000
19.2
100,000,000
Ordinary shares of Rs.10 each
1,500,000
1,000,000
63,528
63,528
Ordinary shares of Rs.10 each issued as fully

paid bonus shares
967,945
761,132
Ordinary shares of Rs.10 each issued as fully

paid for consideration other than cash
2,593
2,593
1,034,066
827,253
Issued, subscribed and paid-up capital

2014
2013
----- Number of shares ----6,352,748
6,352,748
96,794,565
76,113,243
259,300
103,406,613
19.3
259,300
Ordinary shares of Rs.10 each fully paid in cash
82,725,291
Movement in issued, subscribed and paid-up capital during the year

2014
2013
----- Number of shares ----82,725,291
71,935,036
827,253
719,350
20,681,322
10,790,255
Ordinary shares of Rs.10 each issued during the

year as fully paid bonus shares
206,813
107,903
1,034,066
827,253
103,406,613
82,725,291
2014
2013
------ Number of shares ----19.4
Ordinary shares of the Company held by the related parties as at March 31,
Atlas Insurance Limited
Honda Motor Company Limited, Japan
2,931,728
2,345,383
36,192,315
28,953,852
Shirazi Investments (Private) Limited
25,265,858
20,212,687
Shirazi Capital (Private) Limited
25,359,715
20,287,772
Shirazi (Private) Limited
3,595,120
93,344,736
71,799,694
Re-stated
2014
2013
------ (Rupees in 000) ----20.
Reserves
Capital reserves
Share premium
Gain on sale of land
39,953
39,953
165
165
40,118
40,118
4,072,000
3,442,000
630,000
630,000
- at March 31,
4,702,000
4,072,000
Unappropriated profit
2,137,129
1,589,806
6,839,129
5,661,806
6,879,247
5,701,924
Revenue reserves
General reserve:
- at April 1,
- transferred from unappropriated profit
Note
21.
2014
2013
------ (Rupees in 000) -----
Compensated Absences
170,248
153,878
29,955
34,485
200,203
188,363
(8,161)
(18,115)
192,042
170,248
Encashed during the year

Re-stated
2014
2013
------ (Rupees in 000) ----22.
Deferred Taxation - Net

The liability for deferred tax comprises of temporary differences relating to:
Taxable temporary difference
Accelerated tax depreciation and amortization
761,600
797,252
28,677
24,723
Compensated absences
64,153
58,219
Staff retirement benefit - gratuity
20,625
24,172
Warranty obligations
10,587
9,512
124,042
116,626
637,558
680,626
2,947,253
2,173,387
Deductible temporary differences
23.
Trade and Other Payables

Creditors
Accrued liabilities
23.1
993,543
679,023
Royalty payable
23.2
641,908
613,886
23.3
31,692
27,812
Advances from customers
23.4
628,768
613,684
Retention money
10,404
6,311
Sales tax payable
4,037
237,575
Workers' profit participation fund
23.5
144,583
118,931
Workers' welfare fund
23.6
64,476
53,687
Payable to staff retirement benefit funds - gratuity
23.7
61,742
70,687
29,972
23,690
Unclaimed dividends
Others
23.8
19,316
15,714
5,577,694
4,634,387
23.1
Includes Rs.6,681 thousand (2013: Rs.7,089 thousand) due to Honda Motor Company Limited, Japan - a related party.
23.2
Royalty payable includes Rs.550,336 thousand (2013: Rs.512,960 thousand) due to Honda Motor Company Limited, Japan - a
related party.
2014
2013
------ (Rupees in 000) -----
23.3
27,812
20,657
14,826
15,966
42,638
36,623
Payments made / provision reversed during the year
(10,946)
(8,811)
31,692
27,812
23.4
These represent advances from customers against sale of motorcycles and parts and carry no mark-up.
Note
23.5
2014
2013
------ (Rupees in 000) -----
Workers' profit participation fund (the fund)

23.6
87,135
Allocation for the year
31
144,407
118,558
Interest on funds utilized in the Company's business
32
176
373
263,514
206,066
Paid to trustees of the fund
(118,931)
(87,135)
144,583
118,931
53,687
32,967
Charge for the year
54,886
45,052
Adjustment for prior year
(567)
31
23.7
118,931
54,319
45,052
108,006
78,019
Payment made during the year
(43,530)
(24,332)
64,476
53,687
Staff retirement benefit - gratuity
23.7.1 As stated in note 4.13.2, the Company has established two separate funded gratuity schemes for its management and non
management staff. Actuarial valuation of these schemes is carried out every year and the latest actuarial valuation was carried
out as at March 31, 2014. Details of the funds as per the latest actuarial valuation are as follows:
Management
Non-management
Total
Re-stated
Re-stated
Re-stated
2014
2013
2014
2013
2014
2013
------------------------------------ (Rupees in 000) ---------------------------------23.7.2 Balance sheet reconciliation
Present value of defined benefit obligation
Fair value of plan assets
Payable to related parties in respect of transferees
271,797
(202,433)
17,519
250,053
(158,866)
2,051
33,526
(58,667)
-
31,515
(54,066)
-
305,323
(261,100)
17,519 -
281,568
(212,932)
2,051
86,883
93,238
(25,141)
(22,551)
61,742
70,687
Current service cost
Interest cost
Benefits paid
Remeasurement on obligation
250,053
12,664
28,516
(4,520)
552
(15,468)
235,852
12,092
28,608
(26,548)
3,206
(3,157)
31,515
1,056
3,770
(982)
(1,833)
-
28,619
1,029
3,706
(775)
(1,064)
-
281,568
13,720
32,286
(5,502)
(1,281)
(15,468)
264,471
13,121
32,314
(27,323)
2,142
(3,157)
271,797
250,053
33,526
31,515
305,323
281,568
Net liability / (asset) as at March 31,

23.7.3 Movement in the present value of defined
benefit obligation
Management
Non-management
Total
Re-stated
Re-stated
Re-stated
2014
2013
2014
2013
2014
2013
------------------------------------ (Rupees in 000) ---------------------------------23.7.4 Movement in the fair value of plan assets
Interest income
Contributions
Benefits paid
Remeasurement on plan assets
158,866
17,728
26,371
(4,520)
3,988
-
150,630
18,159
26,191
(26,548)
(1,772)
(7,794)
54,066
6,323
(982)
(740)
-
44,807
5,607
(775)
4,427
-
212,932
24,051
26,371
(5,502)
3,248
-
195,437
23,766
26,191
(27,323)
2,655
(7,794)
202,433
158,866
58,667
54,066
261,100
212,932
12,664
10,788
12,092
10,449
1,056
(2,553)
1,029
(1,901)
13,720
8,235
13,121
8,548
23,452
22,541
(1,497)
(872)
21,955
21,669
Loss / (gain) from change in:

- demographic assumptions
- financial assumptions
Experience (gain) / loss
1,021
1,051
(1,520)
(1,283)
4,489
(4)
127
(1,956)
(243)
(821)
1,017
1,178
(3,476)
(1,526)
3,668
Remeasurement of defined benefit obligation

(Gain) / loss on remeasurement of plan assets
552
(3,988)
3,206
1,772
(1,833)
740
(1,064)
(4,427)
(1,281)
(3,248)
2,142
(2,655)
Net remeasurement (gain) / loss
(3,436)
4,978
(1,093)
(5,491)
(4,529)
(513)
Net liability / (asset) at beginning of the year

Expense / (income) for the year
Contributions made during the year
Remeasurement recognized in other
comprehensive income
93,238
23,452
(26,371)
91,910
22,541
(26,191)
(22,551)
(1,497)
-
(16,188)
(872)
-
70,687
21,955
(26,371)
75,722
21,669
(26,191)
(3,436)
4,978
(1,093)
(5,491)
(4,529)
(513)
Recognized liability as at March 31,
86,883
93,238
(25,141)
(22,551)
61,742
70,687
21,717
18,968
4,819
8,045
26,536
27,013
92,085
109,832
516
10,631
147,903
332
27,960
30,041
666
35,211
18,688
167
120,045
139,873
1,182
45,842
166,591
499
202,433
158,866
58,667
54,066
261,100
212,932
23.7.5 Expense recognized in profit and loss account

Current service cost
Net interest cost / (income)
23.7.6 Remeasurement recognized in other
comprehensive income
23.7.7 Net recognized liability
23.7.8 Actual return on planned assets

23.7.9 Composition of plan assets
Fixed income instruments
Mutual fund securities - units
Others
23.7.10 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.
23.7.11 Expected charge and income to management and non management gratuity plans for the year ending March 31, 2015 are Rs.26,765 thousand
and Rs.2,364 thousand respectively.
Management
Non management
2014
2013
2014
2013
------------------- % per annum ------------------23.7.12 Actuarial assumptions used
Discount rate
Expected rate of increase in future salaries
Expected rate of return on plan assets
Demographic assumptions
- Mortality rates (for death in service)
- Rates of employee turnover
12.75
11.75
12.75
12.00
11.00
12.00
12.75
11.75
12.75
12.00
11.00
12.00
SLIC
(2001-05)
Moderate
LIC
(1975-79)
Moderate
SLIC
(2001-05)
Moderate
LIC
(1975-79)
Moderate
23.7.13 Sensitivity analysis for actuarial assumptions

The calculation of defined benefit obligation is sensitive to assumptions set-out above. The following table summarizes how the net
defined benefit obligation at the end of the reporting period would have increased / (decreased) as a result of change in respective
assumptions by 1 percent.
Increase in
Decrease in
assumptions
assumptions
------ (Rupees in 000) ----Discount rate
284,192
329,475
Increase in future salaries
330,946
282,561
Withdrawal rates : light
303,956
Withdrawal rates : high
304,425
23.7.14 The weighted average duration of defined benefit obligation for management and non management funds is 8.23 years and 7.22 years
respectively.
23.7.15 Expected maturity analysis of undiscounted retirement benefit plans
Management
staff
Non
management
staff
------ (Rupees in 000) -----
Time in years
1
2
3
4
5
6 - 10
11 - 15
16 - 20
20+
31,666
20,633
38,237
33,358
35,224
246,434
359,661
358,277
2,683,125
2,222
3,651
3,014
4,944
2,028
36,267
53,928
15,766
14,911
2014
2013
2012
2011
2010
----------------------------- Rupees in '000 ----------------------------23.7.16 Comparison of five years
Present value of defined benefit obligation
Fair value of plan assets
Deficit provided in the financial statements
305,323
261,100
281,568
212,932
264,471
195,437
224,050
152,551
190,249
129,080
44,223
68,636
69,034
71,499
61,169
23.8
Other liabilities include vehicle deposits under Company's vehicle policy aggregating Rs.10,991 thousand (2013: Rs.8,750
thousand).
24.
Short Term Borrowings - Secured

Short term finance facilities available from various commercial banks under mark-up arrangements aggregate to Rs.2,865,000
thousand (2013: Rs.2,865,000 thousand) and are secured against pari passu hypothecation charge over the Company's stockin-trade and trade debts to extent of Rs.4,058,000 thousand (2013: Rs.4,058,000 thousand). The rates of mark-up of these
facilities during the year ranged from 9.51% to 11.31% (2013: 9.94% to 13.05%) per annum. These facilities are expiring on
various dates by December 31, 2014.
Foreign currency finance and export re-finance facilities aggregating Rs.400,000 thousand (2013: 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, 2014 aggregated to Rs.3,560,000 thousand (2013: Rs.3,560,000
thousand) of which the amount remained unutilized at year end was Rs.2,710,709 thousand (2013: Rs.2,210,917 thousand).
These finance facilities are also secured against pari passu joint hypothecation charge on stocks-in-trade and trade debts of the
Company.
25.
Contingencies and Commitments
25.1
Contingencies
25.1.1 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.
25.1.2 Guarantees aggregating to Rs.165,735 thousand (2013: Rs.118,315 thousand) have been issued by commercial banks to Collector
of Customs and other Government Institutions for import of raw materials and spare parts as part of normal operations.
25.2
Commitments
25.2.1 Commitments outstanding for letters of credit relating to capital expenditure, raw materials and components as at March 31, 2014
aggregated to Rs.849,291 thousand (2013: Rs.1,349,083 thousand).
25.2.2 Commitments outstanding for capital expenditure other than through letters of credit as at March 31, 2014 aggregated to Rs.81,623
thousand (2013: Rs.91,220 thousand).
25.2.3 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
26.
2014
2013
------ (Rupees in 000) -----
Not later than 1 year
20,856
119,172
Over 1 year and no later than 5 years
30,976
43,626
51,832
162,798
51,494,856
48,660,617
346,210
505,685
51,841,066
49,166,302
159,746
129,180
7,202,607
6,711,880
7,362,353
6,841,060
44,478,713
42,325,242
Sales - Net
Gross sales of motorcycles and spare parts:
- local
- export
Less:
- trade discount and commission
- sales tax
Re-stated
2014
2013
------ (Rupees in 000) ----27.
Cost of Sales
Opening stock of finished goods
Cost of goods manufactured
Purchases during the year
Closing stock of finished goods
27.1
250,247
264,073
38,056,043
36,662,231
2,258,714
1,968,472
40,314,757
38,630,703
(311,075)
(250,247)
40,253,929
38,644,529
Note
27.1
Re-stated
2014
2013
------ (Rupees in 000) -----
Cost of goods manufactured

Opening stock of work-in-process
Raw materials and components consumed
Direct labour
Technical directors' remuneration
Staff salaries, wages and other benefits
Stores consumed
Fuel and power
Insurance
Rent, rates and taxes
Ijarah rentals
Repair and maintenance
Royalty
Technical assistance fee
Traveling, conveyance and entertainment
Postage and telephone
Printing and stationery
Vehicle running expenses
Depreciation
Canteen
Newspapers, magazines and subscriptions
Amortization of intangible assets
Staff training
Marking fee
Other manufacturing expenses
27.2
27.3
27.3
6.2
7
11.2
Closing stock of work-in-process
6,587
31,675,856
701,349
1,970
805,627
618,199
738,531
79,034
50,062
63,325
259,995
2,190,704
29,973
48,328
7,438
8,577
29,052
597,238
79,611
2,785
4,013
13,548
7,055
41,360
375
11,113
30,661,228
639,342
1,888
752,407
561,517
622,853
73,959
45,578
67,050
217,094
2,179,846
29,984
40,877
7,299
9,569
24,533
585,874
77,400
3,983
2,338
13,026
39,596
464
38,060,592
36,668,818
(4,549)
(6,587)
38,056,043
36,662,231
2014
2013
------ (Rupees in 000) ----27.2
Raw materials and components consumed

Opening stock
Purchases during the year
Closing stock
27.4
1,752,565
1,706,831
31,533,045
30,706,962
33,285,610
32,413,793
(1,609,754)
(1,752,565)
31,675,856
30,661,228
27.3
Direct labour and staff salaries, wages & other benefits include Rs.57,354 thousand (2013: Rs.57,161 thousand) in respect of
staff retirement benefits.
27.4
Purchases include government rebates netted-off aggregating Rs.57,350 thousand (2013: Rs.24,723 thousand).
Note
28.
Sales and Marketing Expenses

Directors' remuneration
Staff salaries and other benefits
Advertisement and sales promotion
Repairs and maintenance
Gas and electricity
Freight outward
First free service charges
Insurance
Newspapers, magazines and subscriptions
Others
28.1
28.1
25,889
242,907
76,628
17,905
32,418
431,434
8,312
9,637
361,889
2,777
15,610
54,803
9,670
3,511
548
37,619
206,922
67,686
17,997
29,777
409,970
6,498
8,476
336,172
3,156
14,297
54,656
8,427
4,084
381
1,293,938
1,206,118
Staff salaries and other benefits include Rs.22,589 thousand (2013: Rs.19,886 thousand) in respect of staff retirement benefits.
Note
29.
Re-stated
2014
2013
------ (Rupees in 000) -----
Re-stated
2014
2013
------ (Rupees in 000) -----
Administrative Expenses
Directors' remuneration
Directors' meeting fee
Staff salaries and other benefits
Insurance
Repairs and maintenance
Legal and professional charges
Gas and electricity
Newspapers, magazines, fees and subscriptions
Staff training
Depreciation
Donation
Others
29.1
6.2
29.2
21,665
80
237,143
14,256
10,204
5,971
13,691
12,357
2,141
5,823
2,425
13,351
12,354
17,881
38,032
22,076
604
20,853
80
222,214
14,768
10,019
5,287
10,180
7,475
2,109
3,216
2,840
12,207
12,219
11,666
35,248
16,280
263
430,054
386,924
29.1
Staff salaries and other benefits include Rs.18,446 thousand (2013: Rs.19,906 thousand) in respect of staff retirement benefits.
29.2
Donation of Rs.22,076 thousand (2013: Rs.16,200 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
30.
2014
2013
------ (Rupees in 000) -----
Other Income
Income from financial assets
Mark-up / interest on savings accounts and term deposit receipts
Gain on sale of investments
Net change in fair value of investments at fair value through profit or loss
Exchange gain - net
30.1
181,900
16,724
142,237
-
115,882
13,118
49,999
2,276
340,861
181,275
43,491
4,077
75,628
8,734
47,568
84,362
7,840
20,900
3,482
14,838
38,532
3,661
32,222
57,031
420,651
322,668
Income from investments in related parties

Income from assets other that financial assets

Commission income
Scrap sales
Others
30.1
Mark-up / interest at the rates ranging from 7.75% to 10.15% (2013: 7.50% to 12.15%) per annum has been earned during the
year on savings accounts and term deposit receipts.
Note
31.
Other Operating Expenses

Auditors' remuneration
Exchange loss - net
Loss on disposal of operating fixed assets
Operating fixed assets written off
31.1
23.5
23.6
31.1
6.3
144,407
54,319
2,040
134
23,089
-
118,558
45,052
2,022
24,413
408
223,989
190,453
1,000
212
91
202
438
97
1,000
212
91
202
438
79
2,040
2,022
300
176
7,560
857
373
8,496
8,036
9,726
Auditors' remuneration
Audit fee
Half yearly review
Review of Code of Corporate Governance
Audits of retirement funds and workers' profit participation fund
Certifications for payment of royalty, technical fee and dividend
Out of pocket expenses
32.
2014
2013
------ (Rupees in 000) -----
Finance Cost
Mark-up / interest on short term borrowings
Interest on workers' profit participation fund
Bank charges
23.5
Re-stated
2014
2013
------ (Rupees in 000) ----33.
Taxation
Current tax
Current tax on profit for the year
Adjustments in respect of prior years
775,761
(43,322)
501,853
(22,390)
732,439
479,463
(25,026)
(19,555)
121,180
-
(44,581)
121,180
687,858
600,643
Deferred tax
Origination and reversal of temporary differences
Impact of change in tax rate
33.1
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:
Re-stated
2014
2013
------ (Rupees in 000) ----Profit before taxation
2,689,418
2,210,160
914,402
773,556
- expenses not deductible for tax purposes
272,388
283,873
- expenses deductible for tax purposes but not taken to profit and loss account
(242,501)
(356,205)
- income exempt from tax / income subject to final tax regime / tax credits
(168,528)
(199,371)
(138,641)
(271,703)
Adjustments in respect of prior years
(43,322)
(22,390)
Deferred taxation
(44,581)
121,180
687,858
600,643
Tax at the applicable rate of 34% (2013: 35%)

Tax effect of:
34.
Earnings Per Share
34.1
Basic earnings per share

Earnings per share is calculated by dividing the net profit for the year by weighted average number of shares outstanding during
the year as follows:
Re-stated
2014
2013
------ (Rupees in 000) ----Net profit for the year
2,001,560
1,609,517
------ (Number of shares) ----Weighted average ordinary shares in issue
103,406,613
103,406,613
------ (Rupees) -----Earnings per share
19.36
15.56
34.1.1 Corresponding figures of weighted average number of shares and earnings per share have been restated to include the effect
of bonus shares issued by the Company during the year.
34.2
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
35.
Re-stated
2014
2013
------ (Rupees in 000) -----
Cash Generated from Operations

2,689,418
2,210,160
635,270
4,013
29,955
21,955
13,548
(181,900)
(20,801)
(185,728)
144,583
54,319
23,089
300
1,005,789
621,122
2,338
34,485
21,669
13,026
(115,882)
(21,852)
(125,627)
118,931
45,052
24,413
408
857
(253,087)
4,233,810
2,576,013
Add / (less): Adjustments for non cash charges and other items
Depreciation
Amortization of intangible assets
Provision for compensated absences
Provision for gratuity
Mark-up / interest on savings accounts and term deposit receipts
Loss on disposal of operating fixed assets
Operating fixed assets written off
Mark-up / interest on short term borrowings
Working capital changes
35.1
2014
2013
------ (Rupees in 000) ----35.1
Working capital changes

(Increase) / decrease in current assets:
- Stores, spares and loose tools
- Stock-in-trade
- Trade debts
- Loans and advances
- Trade deposits and prepayments
- Other receivables
(15,138)
120,350
(5,579)
(2,052)
(2,957)
1,636
(41,611)
(23,234)
83,523
(101)
(2,890)
9,036
96,260
24,723
909,529
(277,810)
1,005,789
(253,087)
44,489,051
182,373
(40,257,287)
(300)
(685,278)
(26,371)
(8,161)
(118,931)
(43,530)
42,433,272
108,627
(39,855,093)
(857)
(321,436)
(26,191)
(18,115)
(87,135)
(24,332)
3,531,566
2,208,740
Increase / (decrease) in current liabilities:

- Trade and other payables
35.2
Cash flows from operating activities - Direct method

Receipts from customers
Mark-up / interest received
Payments to trade suppliers, service providers and employees
Mark-up / interest paid
Income tax paid
Contributions made to gratuity funds
Compensated absences paid
Workers' profit participation fund paid
Workers' welfare fund paid
36.
Remuneration of Chief Executive Officer, Directors and Executives

The aggregate amounts charged in the financial statements of the year for remuneration, including certain benefits, to the Chief
Executive Officer, Directors and Executives of the Company are as follows:
Directors
Executives
2014
2013
2014
2013
2014
2013
------------------------------ (Rupees in 000) -----------------------------Managerial remuneration
Rent and utilities
Bonus
Retirement benefits
Medical and other reimbursable expenses
13,634
6,446
4,110
1,289
410
12,260
5,911
4,670
1,182
218
12,320
4,950
4,463
990
912
19,265
8,311
6,499
1,297
747
240,746
115,092
75,127
21,145
11,017
201,774
96,280
74,552
18,086
9,315
25,889
24,241
23,635
36,119
463,127
400,007
219
191
Number of persons
36.1
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.
36.2
Remuneration to other directors

Aggregate amount charged in these financial statements for meeting fees to two Non-Executive Directors (2013: three NonExecutive Directors) was Rs.80 thousand (2013: Rs.80 thousand).
37.
Transactions with Related Parties

The related parties comprise of Associated Companies, staff retirement funds, directors and key management personnel of the
Company. The Company in the normal course of business carries out transactions with various related parties. Significant
transactions with related parties are as follows:
2014
2013
--- Rupees in 000 --Relationship with
the Company
Nature of transactions
(i)
Sales of:
- goods and services
- operating fixed assets
Purchases of:
- goods and services
- operating fixed assets
- intangible assets
Sale of units in mutual funds
Purchase of units in mutual funds
Royalty
Export commission
Technical assistance fee
Commission income
Rent
Insurance premium paid
Insurance claims received
Reimbursement of expenses - net
Dividend paid
Donation paid
Associates
316,944
2,245
232,091
9,243
5,646,554
37,814
3,239
554,605
2,404,605
2,073,572
3,670
14,894
7,840
75,786
203,018
16,755
2,540
560,069
22,076
4,946,662
19,354
200,000
325,000
1,981,512
10,200
8,121
14,838
69,402
208,790
20,991
478
405,824
16,200
--- Number of shares --Bonus shares issued
18,668,946
9,365,176
--- Rupees in 000 --ii)
iii)
Staff retirement
funds
Contributions paid to:

- gratuity funds
- provident funds / pension schemes
26,371
46,479
26,191
40,799
Key management
personnel
Salaries and other short term

employment benefits
97,055
91,214
The related party status of outstanding balances as at March 31, 2014 is included in 'Capital work-in-progress - note 6.4' and
'Trade and other payables - note 23' respectively. These are settled in ordinary course of business.
38.
Financial Risk Management
38.1
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 Companys risk management
framework. The Board is also responsible for developing and monitoring the Company's risk management policies.
The Companys overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize
potential adverse effects on the Companys 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 optimizing the return.
Currency risk
Currency risk represents the risk that the fair values or future cash flows of financial instruments will fluctuate because of changes
in foreign exchange rates.
This exist due to the foreign currency transactions such as import of raw materials, stores, spares, plant & machinery and export
of motorcycles and spare parts. The Company's exposure to foreign currency risk at the balance sheet date is as follows:
2014
2013
Japanese
US
Japanese
US
Yen
Dollar
Yen
Dollar
--------------------(Amounts in 000)---------------------Trade debts
(578,800)
76
(98)
(497,205)
206
(118)
Net balance sheet exposure
(578,800)
(22)
(497,205)
88
The following significant exchange rates have been applied:

2014
2013
2014
2013
Average rate
Balance sheet date rate
--------------------(Rupees)---------------------Japanese Yen to Pakistani Rupee
U.S. Dollar to Pakistani Rupee
1.03
1.15
0.96
1.04
103.26
95.72
98.70
98.30
As at March 31, 2014, 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:
2014
2013
--- Rupees in 000 --Effect on profit before taxation for the year:
Japanese Yen to Pakistani Rupee
U.S. Dollar to Pakistani Rupee
27,782
109
25,969
(433)
27,891
25,536
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, 2014, the Company's interest bearing financial assets
amounted to Rs.2,634,784 thousand (2013: Rs.2,186,733 thousand).
As at March 31, 2014, if the interest rate on the Company's deposits had been higher / lower by 1% with all other variables held
constant, profit before taxation for the year would have been higher / (lower) by Rs.10,348 thousand (2013: Rs.11,867 thousand)
mainly as a result of higher / (lower) interest income.
Other price risk
Other 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's investments in mutual fund securities amounting to Rs.3,691,241 thousand (2013: Rs.1,635,183 thousand) are
exposed to price risk due to changes in Net Asset Value (NAV) of mutual funds.
As at March 31, 2014 , if fair value (NAV) had been 5% higher / lower with all other variables held constant profit before taxation
for the year would have higher / (lower) by Rs.184,562 thousand (2013: Rs.81,759 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 recognized at the balance sheet date if counter parties failed completely
to perform as contracted. Credit risk mainly arises from loans and advances, trade deposits, trade debts, investments, accrued
mark-up / interest, other receivables and bank balances.
The carrying amounts of financial assets represent the maximum credit exposure. The financial assets exposed to credit risk
amounted to Rs.7,137,218 thousand (2013: Rs.4,965,806 thousand) as at March 31, 2014. 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%
(2013: 98%) of the total financial assets.
Significant part of sales of the Company occurs against advance payments, therefore, trade debts mainly arise from exports and
local sales 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:
2014
2013
--- Rupees in 000 --Long term loans and advances
Long term deposits
Trade debts
Loans and advances
Trade deposits
Other receivables
Bank balances
26,396
9,632
520,321
31,105
3,034
3,691,241
11,130
621
2,843,738
25,583
8,399
514,742
27,306
2,373
1,635,183
11,603
629
2,739,988
7,137,218
4,965,806
The maximum exposure to credit risk for trade debts at the balance sheet date by geographic region is as follows:
2014
2013
--- Rupees in 000 --Pakistan
Bangladesh
512,802
7,519
494,533
20,209
520,321
514,742
The maximum exposure to credit risk for trade debts by type of counter party as at balance sheet date is as follows:
2014
2013
--- Rupees in 000 --Government departments
Defence institutions
Others (including exports)
97,530
371,131
51,660
29,104
423,803
61,835
520,321
514,742
The credit quality of financial instruments 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 short term investments can
be assessed with reference to the external credit ratings as follows:
Rating
Banks
Allied Bank Limited
Bank Al Habib Limited
Barclays Bank PLC, Pakistan
Deutsche Bank AG
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
MCB Bank Limited
Meezan Bank Limited
NIB Bank Limited
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited
The Bank of Tokyo - Mitsubishi UFJ, Limited
United Bank Limited
Bankislami Pakistan Limited
(c)
Short term
Long term
A1+
A1+
A1+
A-1
A-1
A1+
A-1+
A1+
A1+
A-1+
A-1+
A1+
A1+
A1+
A-1
A-1+
A1
Rating
agency
AA+
AA+
AA
A
A
AA
AAA
AA+
AAA
AA
AAA
AAAAAAA
A+
AA+
A
PACRA
PACRA
PACRA
S&P
S&P
PACRA
JCR-VIS
PACRA
PACRA
JCR-VIS
JCR-VIS
PACRA
PACRA
PACRA
S&P
JCR-VIS
PACRA
Mutual Funds
Rating
Agency
Atlas Income Fund

Atlas Islamic Income Fund
Atlas Money Market Fund
Lakson Money Market Fund
Lakson Income Fund
NIT Government Bond Fund
NIT Income Fund
HBL Money Market Fund
A+(f)
AA-(f)
AA(f)
AA(f)
A+(f)
AA(f)
A+(f)
AM2
PACRA
PACRA
PACRA
PACRA
PACRA
PACRA
PACRA
JCR-VIS
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, 2014, there is no maturity mismatch between financial
assets and liabilities that exposes the Company to liquidity risk.
38.2
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 long term or short term borrowings.
There was no change in the Company's approach to capital management during the year.
Loans and
Financial assets at fair value
receivables
through profit or loss
2014
2013
2014
2013
---------------------- Rupees in 000 ---------------------38.3
Financial instruments by category

Financial assets as per balance sheet
Long term deposits
Trade debts
Loans and advances
Trade deposits
Other receivables
Bank balances
26,396
9,632
520,321
31,105
3,034
11,130
621
2,843,738
25,583
8,399
514,742
27,306
2,373
11,603
629
2,739,988
3,691,241
-
1,635,183
-
3,445,977
3,330,623
3,691,241
1,635,183
Financial liabilities
measured at amortised cost
Re-stated
2014
2013
--- Rupees in 000 --Financial liabilities as per balance sheet
38.4
4,735,830
3,610,510
Fair value estimation

The table below analyzes 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.3,691,241
thousand (2013: Rs.1,635,183 thousand). The carrying values of other financial assets and liabilities reflected in the financial
statements approximate their fair value.
39.
Information about Company's Products
39.1
The Company markets and sells motorcycles and spare parts. Breakdown of net revenues for both the products of the Company
is as follows:
2014
2013
--- Rupees in 000 --Motorcycles
Spare parts
41,310,283
3,168,430
39,522,971
2,802,271
44,478,713
42,325,242
39.2
Export sales are made to Sri Lanka, Afghanistan and Bangladesh. Result of the Company's revenue from external customers in
Pakistan is Rs.44,136,173 thousand (2013: Rs.41,829,758 thousand) and total revenue from external customers from other
countries is Rs.342,540 thousand (2013: Rs.495,484 thousand).
39.3
All the non current assets of the Company are located in Pakistan.
39.4
The Company's customer base is diverse with no single customer accounting for more than 10% of net revenue.
40.
Plant Capacity
The production capacity of the plant cannot be determined as this depends upon relative proportion of various types of motorcycles
and motorcycle components produced.
41.
Number of Employees
The number of employees as at March 31, 2014 were 1,590 (2013: 1,485). Average number of employees during the year were
1,538 (2013: 1,453).
42.
Provident Fund Related Disclosure

The following information is based on un audited financial statements of the Fund for the year ended March 31, 2014:
2014
2013
--- Rupees in 000 --Size of the fund - total assets
847,710
737,457
Fair value of investments
825,148
715,590
Percentage of investments made
97.34%
97.03%
42.1
The cost of above investments amounted to Rs.742,292 thousand (2013: Rs.640,306 thousand).
42.2
The break up of fair value of investments is as follow:

2014
2013
--- Percentage --Special accounts in schedule banks
Debt securities
Government securities
Mutual fund securities - units
1.07
11.00
53.44
31.83
1.80
15.10
55.98
24.16
2014
2013
--- Rupees in 000 --9,040
93,265
453,037
269,806
13,294
111,324
412,806
178,166
42.3
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.
43.
Non Adjusting Event after the Balance Sheet Date

The Board of Directors, in its meeting held on April 30, 2014, (i) approved the transfer of Rs.630,000 thousand (2013: Rs.630,000
thousand) from unappropriated profit to general reserve and (ii) proposed a final cash dividend of Rs.10.00 (2013: Rs.7.50) per
share amounting to Rs.1,034,066 thousand (2013: Rs.620,440 thousand) for the year ended March 31, 2014. Previously for the
year ended March 31, 2013, the Board of Directors had also approved the issue of bonus shares at the rate of 25%, that is 1
bonus share for every 4 shares held, amounting to Rs.206,813 thousand.
These financial statements do not reflect the proposed appropriations, which will be accounted for in the statement of changes
in equity as appropriations from unappropriated profit in year ending March 31, 2015.
44.
Date of Authorization for Issue

These financial statements were authorized for issue on April 30, 2014 by the Board of Directors of the Company.
45.
Corresponding Figures
Prior year's figures have been restated consequent to the retrospective application of IAS 19 (Revised), as more fully explained
in note 5. Other corresponding figures have been rearranged and reclassified for better presentation wherever considered necessary,
the effect of which is not material.
Yusuf H. Shirazi
Chairman
Saquib H. Shirazi
Number of
Shareholders
Shareholders Category
Number of
Shares held
Percentage
Associated Companies, Undertakings and Related Parties

Atlas Insurance Limited
Shirazi Investments (Pvt.) Limited
Shirazi Capital (Pvt.) Limited
Shirazi (Pvt.) Limited
1
1
1
1
1
2,931,728
36,192,315
25,265,858
25,359,715
3,595,120
2.84%
35.00%
24.43%
24.52%
3.48%
93,344,736
90.27%
1
1
303,988
2,164
0.29%
0.00%
306,152
0.30%
3
1
1
1
1
1
1
1
3
1
400
2,501
1,001
1
1
1
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10
3,909
0.00%
185,951
0.18%
1,373
9,370,126
9.06%
30
195,739
0.19%
1,423
103,406,613
100.00%
36,192,315
25,265,858
25,359,715
35.00%
24.43%
24.52%
NIT and ICP

National Bank of Pakistan Trustee Department
IDBP (ICP Unit)
Directors, CEO and their Spouses, Minor Children and Associates

Mr. Yusuf H.Shirazi & Associates
Mr. Saquib H. Shirazi (CEO)
Mr. Sanaullah Qureshi
Mr. Abid Naqvi
Mr. Tariq Amin
Mr. Hisao Kobayashi
Mr. Kazuhisa Hirota
Banks, Development Finance Institutions, Non-Banking Finance Institutions,

Insurance Companies, Modaraba and Mutual Funds
Individuals
Others
Total
Shareholders Holding 10% or More Voting Interest
Shirazi Investments (Pvt.) Limited
Shirazi Capital (Pvt.) Limited
Details of Trading in the Shares of the Company by Directors, their Spouses and Minor children
Name
Number of Shares Purchased
Mr. Abid Naqvi

Mr. Tariq Muhammad Amin
Mr. Hisao Kobayashi
2,501
1,001
1
1
Number of
Shareholders
Total
Shares Held
Shareholdings
410
From
To
100
12,387
309
From
101
To
500
80,681
143
From
501
To
1,000
105,693
315
From
1,001
To
5,000
737,712
95
From
5,001
To
10,000
702,703
49
From
10,001
To
15,000
595,974
23
From
15,001
To
20,000
408,821
10
From
20,001
To
25,000
220,137
10
From
25,001
To
30,000
266,886
From
30,001
To
35,000
191,833
From
35,001
To
40,000
154,599
From
40,001
To
45,000
216,602
From
45,001
To
50,000
277,587
From
55,001
To
60,000
55,126
From
65,001
To
70,000
66,601
From
70,001
To
75,000
146,152
From
75,001
To
80,000
155,503
From
80,001
To
85,000
163,893
From
85,001
To
90,000
87,671
From
90,001
To
95,000
91,071
From
95,001
To
100,000
195,751
From
110,001
To
115,000
227,696
From
115,001
To
120,000
118,480
From
120,001
To
125,000
366,216
From
125,001
To
130,000
128,936
From
145,001
To
150,000
145,151
From
150,001
To
155,000
151,715
From
155,001
To
160,000
156,961
From
160,001
To
165,000
162,011
From
175,001
To
180,000
176,841
From
215,001
To
220,000
218,625
From
225,001
To
230,000
227,627
From
245,001
To
250,000
490,956
From
300,001
To
305,000
303,988
From
330,001
To
335,000
330,750
From
400,001
To
405,000
402,800
From
490,001
To
495,000
491,833
From
1,025,001
To
1,030,000
1,027,908
From
2,930,001
To
2,935,000
2,931,728
From
3,595,001
To
3,600,000
3,595,120
From
25,265,001
To
25,270,000
25,265,858
From
25,355,001
To
25,360,000
25,359,715
From
36,190,001
To
36,195,000
36,192,315
1,423
103,406,613
Shareholders Category
Directors, CEO, their spouses, minor children and associates
Number of
Shareholders
Number of
Shares held
Percentage
10
3,909
0.00%
93,344,736
90.27%
NIT and ICP
306,152
0.30%
Banks, Development Finance Institutions, Non-Banking Finance

Institutions, Insurance Companies, Modaraba and
Mutual Funds
185,951
0.18%
1,373
9,370,126
9.06%
* Associated companies, undertakings and related parties
General Public
Local
Foreign
Others
Securities & Exchange Commission of Pakistan
0.00%
27
194,766
0.19%
Cooperative Society
971
0.00%
Trustee of Iftikhar Shirazi Family Trust
0.00%
1,423
103,406,613
100.00%
Joint Stock Companies
* 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
Shirazi Capital
Atlas World Wide

Atlas Venture
Atlas Autos
Atlas Hitec
Atlas Metals
Glossary of Terms
Acronym
3G
Description
Acronym
Description
3rd Generation
IAS
International Accounting Standards
ACCA
Association of Chartered Certified Accountants
IASB
International Accounting Standards Board
AGM
Annual General Meeting
ICAP
Institute of Chartered Accountants of Pakistan
AHL
Atlas Honda Limited
ICMAP
B2B
Business to Business
IFAS
Islamic Financial Accounting Standards
Computer Aided Design and Computer Aided Manufacturing
IFRS
International Financial Reporting Standards
CAGR
Compounded Annual Growth Rate
IMF
International Monetary Fund
CDC
Central Depository Company of Pakistan Limited
ISO
International Standardization Organization
CEO
KSE
Karachi Stock Exchange
CFO
LSE
Lahore Stock Exchange
CKD
Completely Knocked Down
LSM
Large Scale Manufacturing
CNIC
Computerized National Identity Card
NA
Not Applicable
COO
Chief Operating Officer
NAV
Net Asset Value
CPI
Consumer Price Index
NBFI
Non-Banking Finance Institutions
CSF
Coalition Support Fund
NHC
New Honda Circle
CSR
Corporate Social Responsibility
PAT
DFI
Development Finance Institutions
PBT
CAD / CAM
EOBI
Employee Old-Age Benefits Institution
EPS
Earnings per Share
RMF
Risk Management Function
ERP
Entity Resource Planner- software
SAFA
South Asian Federation of Accountants
GAAP
Generally Accepted Accounting Principles
SAP
Standard Application Protocol - ERP system
GDC
Gravity Die Casting
SECP
Securities and Exchange Commission of Pakistan
GDP
Gross Domestic Product
SRO
Statutory Regulatory Order
GST
General Sales Tax
TDR
Term Deposit Receipt
High Pressure Die Casting
WWF
World Wildlife Fund
HPDC
PERAC
Institute of Cost Management Accountants of Pakistan
Public Employee Retirement Administration Commission
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 50th Annual General Meeting of the Company to be held at the Registered Office of the Company at 1-Mcleod
Road, Lahore, on Thursday, June 26, 2014 at 12:30 p.m. and at every adjournment thereof.
As witness my/our hand this _____________________________ day of __________________________________________2014
signed by the Said ___________________________________________________________________ in the presence of
(Witness)
(Signature must agree with the

specimen signature registered
with the Company)
Affix
Revenue
Stamp
Signature
NOTE:
Proxies, in order to be effective, must be received at the Companys 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
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Celebrating our 50 years with pride, Atlas Honda

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Celebrating our 50 years with pride, Atlas Honda

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Market leader in the motorcycle industry,

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A dynamic growth oriented company through