Atlas Honda : Transmission of Annual Report for the Year Ended 31 March 2024

About the Cover

As we step into 2024, our Company proudly embarks on a new era, underscoring a commitment to sustainability, innovation and evolution. In the previous eras, we have established a robust foundation, showcasing progress, efficiency, innovation, competition, and substantial growth. Each chapter in our journey has been a testament to our unwavering dedication to excellence, as we evolved from a burgeoning enterprise in 1963 to a leading two-wheeler manufacturer today. Our relentless pursuit of advancement has consistently set industry benchmarks, reflecting our core values and forward-thinking approach.

Our pursuit of growth remains steadfast, intertwined with the economic progress of our nation and the rapid advancements in technology. We envision a future where innovation not only propels our Company forward but also contributes to the broader societal goal of sustainable development. This era is not just about producing vehicles; it's about crafting a legacy of responsible manufacturing, cutting-edge technology, and unmatched quality.

As we drive forward into this new era, we invite our stakeholders to join us in this exciting chapter, where every ride is a step towards a greener, more prosperous future. Together, we will drive the change, embodying the spirit of sustainable innovation and continued growth.

Table Of Contents

Company Overview		Messages for		Financial Highlights
		Key Financial & Non-Financial	65
		Stakeholder
Vision, Mission, Core Values &			- Financial Ratios	66
04	Chairman's Review	32
Code of Conduct	- Dupont Analysis	69
Strategic Goals & Quality Policy	06	Directors' Report to Shareholders	35
- Statement of Financial Position	70
About the Company &		Directors' Report to Shareholders (Urdu)	42
08	- Statement of Profit or Loss	73
About the Group	Chairman's Review (Urdu)	45
Group Shareholding	10	- Statement of Cash Flows	75
Report of the Board Audit Committee	46
Atlas Group Companies	11	Share Price Sensitivity Analysis	77
Risk and Opportunity Report	48
Engineering Excellence Across Eras	12	Statement of Value Addition and
Additional Information	56	78
Marking the 60th Anniverary Hallmark	14	its Distribution
- Strategy and Resource	56	Quarterly Performance Analysis	79
Organization Chart	16
Allocation
Geographical Presence	17	- Future Outlook	58
Company Information	18	- Business Rationale for Major	59
Board of Directors	20	Capital 58 Expenditure
- Significant Plans & Decisions	59
Business Model	24
- Striving for Excellence in
Significant Events	26	59
Corporate Reporting
Shareholders' Information	27	Notice of the 60th Annual General	60
		Meeting

Sustainability Report		Financial Statements
About the Report	82
Statement of Compliance with
Sustainability Highlights 2023	83
Code of Corporate Governance
General Information	84	Review Report to the Members
CEO's Message on Sustainability	85	on Statement of Compliance with
the Code of Corporate Governance
Sustainable Development Goals	86	Report on the Audit of the
Sustainability Targets	87	Financial Statements
Statement of Financial Position
Sustainability Strategy	88
Statement of Profit or Loss &
Environmental Protection	98
Other Comprehensive Income
Product Responsibility	106	Statement of Changes in Equity
Corporate Citizenship	110	Statement of Cash Flows
Vendor Management	112	Notes to the Financial Statements
Employee Management	115
Definition, Methodology and Scope	120
Independent Assurance Statement	121
GRI Content Index	123

Other Information

	IT Governance, Cyber Security and Enterprise	182
	Resource Planning
132	Product Portfolio	184
	Pattern of Shareholding	186
134	Glossary of Terms	189
135	Feedback Form	191
138

139

140

141

142

Vision

Market leader in the motorcycle industry, emerging as a global competitive centre of production and exports.

Mission

A dynamic growth oriented company through market leadership, excellence 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.

Core Values

Our core values are derived from group's philosophy which is based on the "Atlas Way". It enumerates the principles of "Atlas Culture" and "Atlas System".

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Respect, Recognition &	Education & Training	Value of Time
Reward	We provide education & training	We aim for optimum utilization
We promote a culture of respect	opportunities to our employees	of our time to increase
across the Company and reward	for their professional growth.	productivity and improve work/life
exceptional performances.			balance.

Self Reliance	Meritocracy	Excellence
We trust our abilities and talent to	We foster meritocracies in hiring,	We deliver high-quality products
build a better, stronger and more	rewarding and promoting the best	to our customers.
dynamic organization.	people based on their merit.

Code of Conduct

Directors and employees are required to comply with the Atlas Honda's Code of Conduct, which is intended to help them put the Company's ethical principles into practice. The Code of Conduct clarifies the basic principles and standards they are required to follow and the behaviour expected of them. The Code of Conduct can be found at www.atlashonda.com.pk.

Company Overview 05

Strategic Goals

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

To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.

Shareholders

To ensure health and viability of business and thus safeguarding shareholders' interest by maximizing profit. Payment of regular satisfactory dividends and adding value to the shares.

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Employees

To enhance and continuously update each member's capabilities and education and to provide an environment which encourages practical expression of the individual potential in goal directed team efforts and compensate them attractively according to their abilities and performance.

Corporate Citizen

To comply with all Government laws, rules and regulations and to maintain a high standard of ethics in all operations and to act as a responsible member of the society.

Quality Policy

• Commitment to provide high quality motorcycles and parts
• Right work in first attempt and on time
• Maintain and continuously improve quality
• Training of manpower and acquisition of latest technology
• Safe, clean and healthy environment
• Market leadership and prosperity for all

Company Overview 07

About the Company

Atlas Honda Limited is a public limited company listed on the Pakistan Stock Exchange. It is a joint venture between Shirazi Investments (Private) Limited (SIL) and Honda Motor Company Limited, with SIL holding 52.43% of issued, subscribed and paid-up capital as at March 31, 2023. The Company operates in Pakistan and is engaged in manufacturing and marketing of motorcycles, spare parts and engine oil. The registered office of the Company is located at Lahore whereas its manufacturing & assembly facilities are located at Karachi and Sheikhupura.

The Company serves the needs of automotive sector in Pakistan. The Company's customers mainly include dealers and institutions. The Company manufactures and sells various types of motorcycles in the categories of 70cc, 100cc, 125cc and 150cc through a nation-wide network of dealers. The Company also markets motorcycle parts and offers after-sale services through its dealer network.

About the Group

The foundation of Atlas Group was laid in the year 1962 by Mr. Yusuf H. Shirazi when "Shirazi Investments (Private) Limited" was formed with an initial capital of Rs. 500,000 and 2 associates by his side. It was Mr. Shirazi's vision of empowering Pakistan by building institutions of excellence. This drove the nation's largest motorcycle manufacturing Company's chronicles, showcasing the "Power of Dreams, Generation after Generation."

Today Atlas is a diversified group dealing in engineering, power generation, trading, and financial services. The Group embodies the spirit of development as it endeavours to fuel the growth of Pakistan's economy through 19 companies out of which four are quoted on the Pakistan Stock Exchange.

The Group has harmonized professional management and institutionalized the Group shareholding to build businesses that last generation after generation. Atlas has also been playing a leading role as a corporate citizen promoting professional education centers, contributing to health facilities, helping law enforcement agencies, and improving the standard of life.

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Company Overview 09