Obituary October 20, 2019 will be remembered as the sad day when Mr. Yusuf H. Shirazi, the Founder and Chairman of Atlas Group, left for his heavenly abode. Mr. Shirazi was a visionary with superb business acumen. He will be long remembered as one of the most successful first generation entrepreneurs of Pakistan. After working briefly in public and private sector, he embarked on a long and distinguished career in private enterprise where he set up numerous successful companies in the field of engineering, finance, trading and power generation. In particular his collaboration with Honda Japan paved the way for establishment of the Auto Industry in Pakistan. He touched countless lives by providing inspiring vision, defining new careers and creating numerous opportunities. Mr. Shirazi was highly respected as a patriot, industrialist, author and philanthropist. In recognition of his services, he was decorated with the Sitara-e-Essar and Sitara-e-Imtiaz by the Government of Pakistan. He was also bestowed National Awards by the Government of Japan. His legacy of professional management, integrity and ‘Pakistan first’ mantra will continue to inspire generations. Through his entrepreneurial zeal and perseverance, he managed to build enduring joint ventures with world-renowned foreign companies such as Honda, GS Yuasa, MAN, TOTAL and Bank of Tokyo (MUFG). While we mourn his passing we will celebrate his life with the goal to continue building his beloved Atlas Group Generation after Generation. COMPANY PROFILE CONTENTS Honda Atlas Cars (Pakistan) Limited is a joint venture demand. A major plant expansion was done in 2006 and between Honda Motor, Japan and the Atlas Group, the production capacity was increased to 50,000 units/ Pakistan. The company is public limited and listed on year. Pakistan Stock Exchange Limited. Percentage of local parts conforms to the government’s The company was incorporated on November 04, policy. Local vendors are continuously patronized 1992 and joint venture agreement was signed on to develop parts locally. The quality of local parts is August 05, 1993. The ground breaking ceremony was thoroughly checked to meet stringent international held on April 17, 1993 and within a record time of 11 standards. Management / Company’s Structure Auditor’s Report & Financial Statements months, construction and erection of machinery was Vision Statement 04 Independent Auditor’s Report 57 completed. The first car rolled off the assembly line on We always strive to give outstanding service to our valued Company Information 06 Statement of Financial Position 62 May 26, 1994. Official inauguration was done by the customers. In addition to providing regular service to Board of Directors 08 Statement of Profit or Loss 64 then President of Pakistan, Sardar Farooq Ahmad Khan customers, the company also regularly conducts Service Key Management 12 Statement of Comprehensive Income 65 Leghari. Mr. Nobuhiko Kawamoto, President of Honda Campaigns to facilitate customer’s need for service. This Organization Chart 14 Statement of Changes in Equity 66 Motor, Japan and late Mr. Yusuf H. Shirazi; Founder of has given our customers absolute confidence in our cars Corporate Governance (Organization Structure) 16 Statement of Cash Flows 67 Atlas Group were also present to grace the occasion. which is clearly evident from the ever increasing sale Business Principles 18 Notes to and Forming Part of the The company enlisted on then Karachi & Lahore Stock volumes. Honda Philosophy 20 Financial Statements 68 Exchanges (now Pakistan Stock Exchanges) and Initial Chronicle of Events 22 Public Offer (IPO) was made in November 1994. It is the constant endeavor of Honda Atlas Cars (Pakistan) Notice of Meeting / Reports Limited to achieve No .1 Customer satisfaction. Honda Information & Review Reports Notice of Annual General Meeting 118 On July 14, 1994, car bookings started at six Atlas Cars (Pakistan) Limited is committed to meet Pattern of Shareholding 24 Honda Dealers’ Network 120 dealerships in Karachi, Lahore, and Islamabad. Since customer expectations and to provide good value for Investor Relations Information 26 Directors’ Report (Urdu) 128 then the dealerships network has expanded and money. Significant Events during the year 28 Chairman’s Review (Urdu) 136 now the company has thirty-three 3S (Sales, Service Chairman’s Review 30 Form of Proxy 137 and Spare Parts), eighteen 2S (Service and Spare The company believes that human beings are born to Directors’ Report 40 Parts), and six 1S (Spare Parts) authorized dealerships think, create and express their individuality, thus realizing Statement of Compliance network in all major cities of Pakistan. All dealerships are their hopes and dreams. We strive to attract individuals with Listed Companies (Code of constructed in accordance with the standards defined who share this belief and who will respect one another’s Corporate Governance) Regulations, 2019 47 by Honda World over. individuality. We pursue to foster an atmosphere of mutual Independent Auditor’s Review Report 49 trust & fairness in which our associates are able to realize We started production in 1994, with the launch of 5th their potential and creating new value for society by Financial Analysis generation of Honda Civic model in Pakistan. Later on, following the Honda Philosophy. Revenue Application 50 the company enriched the product line with the launch of Honda City in 1997 and Honda BR-V in 2017. Since Currently, we are offering imported models of Honda Value Added and its Distribution 51 the start of production, the company has produced and Accord & Honda CR-V and locally manufactured Honda Financial Highlights 52 sold more than 440,000 cars in Pakistan. The company Civic (four variants), Honda BR-V, Honda City Aspire (two Horizontal Analysis 54 consistently increased the production with the progress variants), and Honda City (four variants) in wide range of Vertical Analysis 55 of car market and to meet the growing customer colors with advanced technological features. 2 Annual Report 2020 Annual Report 2020 Expanding Limitation! 3 Management / Information & Auditor’s Report Notice of Meeting / Management / Information & Auditor’s Report Notice of Meeting / 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports VISION STATEMENT Striving to be a Company that society wants to exist by sharing joys with people throughout the world. Creating products that maximize the joy of customers with speed, affordability and low CO2. 4 Annual Report 2020 Annual Report 2020 Expanding Limitation! 5 Management / Information & Auditor’s Report Notice of Meeting / Management / Information & Auditor’s Report Notice of Meeting / 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports COMPANY INFORMATION BOARD OF DIRECTORS AUDIT COMMITTEE EXECUTIVE COMMITTEE BANKERS LEGAL ADVISOR REGIONAL OFFICES Mr. Aamir H. Shirazi Mr. Feroz Rizvi Mr. Hironobu Yoshimura Allied Bank Limited Cornelius, Lane & Mufti Chairman Chairman LAHORE Mr. Kenichi Matsuo Citibank N.A. Bokhari Aziz & Karim Asia House, Mr. Hironobu Yoshimura Mr. Saquib H. Shirazi Mr. Maqsood-ur-Rehman Rehmani Deutsche Bank AG 19-C&D, Block L, Gulberg III, President / CEO Member Faysal Bank Limited REGISTERED OFFICE Main Ferozepur Road. COMPANY SECRETARY Mr. Saquib H. Shirazi Mr. Akira Murayama Habib Bank Limited 1-Mcleod Road, Lahore, Pakistan. Tel: +92 42 35694851-53 Director & Senior Advisor Member Mr. Maqsood-ur-Rehman Rehmani MCB Bank Limited Tel: +92 42 37225015-17 Fax: +92 42 35694854 Mr. Kenichi Matsuo Mr. Kazunori Shibayama Meezan Bank Limited Fax: +92 42 37233518 KARACHI Executive Director / VP (P) Member CHIEF FINANCIAL OFFICER National Bank of Pakistan Soneri Bank Limited C16, KDA Scheme No. 1, Mr. Akira Murayama HUMAN RESOURCE AND FACTORY Mr. Ahmad Umair Wajid Standard Chartered Bank (Pakistan) Karsaz Road. Director REMUNERATION COMMITTEE Limited 43 Km, Multan Road, Tel: +92 21 34305411-3 Mr. Kazunori Shibayama Mr. Feroz Rizvi HEAD OF INTERNAL AUDIT United Bank Limited Manga Mandi, Lahore, Pakistan. Fax: +92 21 34305414 Director Chairman Mr. Hamood-ur-Rahman Tel: +92 42 35384671-80 Mr. Feroz Rizvi Mr. Saquib H. Shirazi AUDITORS Fax: +92 42 35384691-92 Independent Director Member E-mail: [email protected] M/s A. F. Ferguson & Co. Mr. Ariful Islam Mr. Hironobu Yoshimura Chartered Accountants Independent Director Member Ms. Rie Mihara Mr. Kenichi Matsuo Independent Director Member Mr. Akira Murayama Member 6 Annual Report 2020 Annual Report 2020 Expanding Limitation! 7 Management / Information & Auditor’s Report Notice of Meeting / Management / Information & Auditor’s Report Notice of Meeting / 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports 1 Company’s Structure 2 Review Reports 3 Financial Analysis 4 & Financial Statements 5 Reports BOARD OF DIRECTORS Mr. Hironobu Yoshimura Mr. Saquib H. Shirazi Mr. Kenichi Matsuo President & CEO Director & Senior Advisor Executive Director / VP (P) Mr. Hironobu Yoshimura has been Mr. Saquib H. Shirazi has been the Mr. Matsuo is associated with associated with Honda Motor Chief Executive Officer of Atlas Honda Motor Company for last Company Limited, Japan for more Honda Limited since 2000. He is a 40 years. He started his career than 32 years. He joined Honda graduate of the Wharton School of as Engineer in Automobile in 1988 and began his career Finance and did his MBA from the Assembly, HM Japan and he has in Service Technology Division, Harvard Business School. a vast experience of Automobile Honda Motor Company, Japan. Assembly and Business Planning He started his career with the Bank Operations. Mr. Hironobu Yoshimura has of Tokyo and was subsequently extensive experience in the appointed as the CEO of Atlas BOT He has worked as Technical Automobile industry, having Investment Bank. In addition to Advisor, Honda Cars India worked in several planning being a member of the Atlas Group, Limited for four years and Vice divisions.