Contents · 2020. 10. 15. · Chairman’s Review due to growth in sales of new Honda Civic and...

Company InformationChairman’s ReviewChairman’s Review (Urdu)Condensed Interim Balance SheetCondensed Interim Profit and Loss AccountCondensed Interim Statement of Comprehensive IncomeCondensed Interim Statement of Changes in EquityCondensed Interim Cash Flow StatementSelected Notes to and Forming Part of the Condensed Interim Financial InformationAuthorised Dealers: Sales, Service & Spare Parts (3S)

Contents0102101112131415

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BOARDOFDIRECTORS

Mr. Yusuf H. ShiraziChairman

Mr. Toichi IshiyamaPresident/CEO

Mr. Aamir H. Shirazi

Mr. Kenichi Matsuo

Mr. Kazuhisa Hirota

Mr. M. Naeem Khan

Mr. Nadeem Arshad Elahi

Mr. Shigeru Yamazaki

Mr. Yasutaka Uda

COMPANYSECRETARY

Mr. Maqsood-ur-Rehman Rehmani

CHIEFFINANCIALOFFICER

Mr. Ahmad Umair Wajid

EXECUTIVECOMMITTEE

Mr. Toichi Ishiyama

Mr. Kenichi Matsuo

Mr. Maqsood-ur-Rehman Rehmani

AUDITCOMMITTEE

Mr. Aamir H. ShiraziChairman

Mr. Kazuhisa Hirota

Mr. M. Naeem Khan

Mr. Nadeem Arshad Elahi

Mr. Yasutaka Uda

Mr. Hamood-ur-RahmanSecretary

HUMANRESOURCEANDREMUNERATIONCOMMITTEE

Mr. Aamir H. ShiraziChairman

Mr. Toichi Ishiyama

Mr. Kenichi Matsuo

Mr. Kazuhisa Hirota

Mr. M. Naeem Khan

HEADOFINTERNALAUDIT

Mr. Hamood-ur-Rahman

AUDITORS

M/s A. F. Ferguson & Company

Chartered Accountants

LEGALADVISOR

Cornelius, Lane & Mufti

Bokhari Aziz & Karim

BANKERS

Citibank N.A.

Deutsche Bank AG

Faysal Bank Limited

Habib Bank Limited

MCB Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited

The Bank of Tokyo-Mitsubishi UFJ, Limited

United Bank Limited

REGISTEREDOFFICE

1-Mcleod Road, Lahore, Pakistan.

Tel: +92 42 37225015-17

Fax: +92 42 37233518

SHAREREGISTRAR

M/s Hameed Majeed Associates

HM House, 7-Bank Square,

Lahore, Pakistan.

Tel: +92 42 37235081-82

FACTORY

43 Km, Multan Road,

Manga Mandi, Lahore, Pakistan.

Tel: +92 42 35384671-80

Fax: +92 42 35384691-92

E-mail: [email protected]

REGIONALOFFICES

Lahore

Asia House, 19-C/D, L Block,

Gulberg III, Ferozepur Road.

Tel: +92 42 35832001-2

Fax: +92 42 35832003

Karachi

C16, KDA Scheme No. 1,

Karsaz Road.

Tel: +92 21 34305411-3

Fax: +92 21 34305414

WEBSITE

www.honda.com.pk

www.facebook.com/hacpl

Company Information

1 2Company’sInformation 3 InterimFinancialInformationReviewReport

Third Quarter Report December 31, 2016 1

It is my pleasure to present you the Condensed Interim Financial Information for the third quarter and nine months ended December 31, 2016.

THEECONOMY

The economic activity picked up momentum

during first half of the FY17 with fresh investments

particularly driven by CPEC-related projects

whose scope is expected to expand. Inflation,

although higher compared to the same period of

last year, nevertheless remained under control at

3.9%, and is expected to remain well within the

target 6% for the fiscal year 2016-17. Tax revenue

increased to Rs 1,460 billion against Rs 1,370

billion of last year. The foreign exchange reserves

were steady at US$ 23.164 billion as on December

31, 2016. The Pakistan Stock Exchange which has

been ranked fifth-best performing stock market

in the world for 2016 by Bloomberg, continued to

flourish and its 100 share index crossed all time

high of 47,000 points.

Trade deficit widened by 22.6% during the first half

of the current fiscal year 2016-17, as compared to

the same period of the last financial year. Exports

were US$ 9.91 billion, 3.87% lower as compared

to US$ 10.31 billion in the first six months of last

fiscal year. Imports were US$ 24.40 billion during

this period, 10.11% higher from US$ 22.16 billion.

Remittances from overseas Pakistanis during

first five month of FY17 declined by 2.5% to US$

7.87 billion against US$ 8.07 billion in the same

period, last year. Consequently, trade deficit

increased to US$ 14.5 billion in the first half of the

current fiscal year from US$ 11.9 billion for the

same period, a year ago.

The agriculture sector maintained its momentum

recording growth in all crops including cotton,

sugarcane and maize. Moreover, better supplies

of minor crops were also witnessed. Large-scale

manufacturing however remained subdued. It is

expected that growth will gain some momentum

mainly on the back of supporting policies and

encouraging outlook for automobile, sugar,

pharmaceuticals and construction-related

sectors.

AUTOMOBILEINDUSTRY

The overall automobile industry remained

buoyant during first three quarters of the FY

2016-17 after adjusting for some 5,000 and

45,000 units generated by the Punjab government

scheme for this year and last year respectively.

The total industry production during this period

Chairman’s Review


2

was 128,109 units against 90,125 units in the

same period of last year. Accordingly the sales

were also up to 124,837 units against 90,610 units

in the same corresponding period, last year.

YOURCOMPANY

Your company’s production and sales showed

growth of 24.8% and 33.5% respectively.

Production for first three quarters ended

December 31, 2016 was 23,330 units against

18,699 units in the same period, last year. Sales

improved to 23,816 units against 17,836 units of

last year. The launch of 10th generation Honda

Civic attracted overwhelming response from

customers and its sales grew by 102.3% over the

same period of last year. Honda City continued to

enjoy steady progress and showed 8.5% increase

in sales, over the corresponding period, last year.

ACHIEVINGMILESTONES

–PRODUCTIONOF300,000THUNIT!

Your company achieved production milestone of

300,000th unit on October 20, 2016, having started

its operations in May 1994. To commemorate this

occasion Mr. Takahiro Hachigo, President and

CEO, Honda Motors, Japan, along with other

distinguished dignitaries from Honda Motors,

Japan & Thailand and Atlas Group were present

at the line-off ceremony of 300,000th production

unit. It may be mentioned that during this period,

the company has introduced a variety of models of

Civic and City providing Joy Of Buying to its valued

customers.

ACHIEVINGMILESTONES–HIGHESTSALESINACALENDARYEAR!

In calendar year 2016 the company achieved

another milestone of selling 31,780 units, the

highest in any year. Previously it had sold a record

28,579 units in 2006, which was bettered this year

by 11.2%. The company owes this success to its

customers who have always reposed trust and

confidence in its products.

INCREASEINPRODUCTION

In response to the overwhelming orders from

customers on the launch of new Honda Civic, the

company started double shift operations in the

quarter under review to speed up deliveries and

reduce waiting period of its valued customers.

To cater the requirements of second shift, total

workforce was increased by 45%. The company is

cognizant of the pressing demand and is geared

up to meet future targets as well.

FINANCIALRESULTS

Sales for the period ended December 31, 2016

improved by 49.6% and recorded at Rs 41,729.0

million against Rs 27,896.1 million in the

corresponding period of last year. This was mainly



Chairman’s Reviewdue to growth in sales of new Honda Civic and

consistently increasing demand for Honda City.

Cost of sales was Rs 35,420.7 million against Rs

23,716.1 million. Gross profit improved by more

than 50% to Rs 6,308.4 million against Rs 4,180.0

million of last corresponding period, showing

improved GP margin of 15.12% as compared

with 14.98% of last year. The increase in gross

profit was mainly due to growth in sales volume

and rationalization of production cost efforts.

Administration and selling expenses increased

to Rs 691.1 million against Rs 479.3 million.

However, as percentage of sales, expenses

equate to 1.66% during the period against 1.72%

of last year.

Other income improved more than thrice to

Rs 665.6 million against Rs 208.9 million, whereas

other financial charges increased from Rs 345.3

million of last year to Rs 444.1 million on account

of statutory provisions.

Profit before tax improved to Rs 5,838.8 million

for the period under review against Rs 3,564.3

million in the same period of last year. Profit

after tax improved by 65.7% to Rs 4,015.9 million,

against Rs 2,423.2 million. The after tax return on

equity improved to 36.6% whereas earnings per

shares grew to Rs 28.12 against Rs 16.97 for the

same period of last year!

FUTUREOUTLOOK

The GDP growth as per World Bank is expected

to strengthen to 5.2% during the year. Improving

political stability and security situation, increased

infrastructure spending and reforms, record

low commodity prices and consistent low

interest rates are some of the factors resulting

in low inflation and creating a business friendly

atmosphere.

Large Scale Manufacturing is expected to pick up

pace on the back of continued supportive policies,

such as Federal government relief package,

low interest rates, reduced cost of energy with

improved availability, strong domestic demand,

healthy corporate margins and a conducive

environment. Likewise, the agriculture sector

too is being supported by timely government

measures and is expected to record higher

growth.

The inauguration of Gwadar port has opened

new doors for business potential with so far

untapped regional markets. The interest shown

by neighboring countries to be a part of it augurs

well for our business sectors.


4

(Your determination may be your self resolve)

ACKNOWLEDGEMENT

I thank our valued customers who have always

shown overwhelming confidence in the company’s

products. I would also like to acknowledge our

dealers, vendors, bankers, shareholders, Honda

Motors and Atlas Group for their great support.

Mr. Toichi Ishiyama and his TEAM deserve

appreciation for the commendable performance

and I wish his team every success for the future.

YusufH.Shirazi

Chairman

Karachi,

January 25, 2017




6


8


10

Un-audited Audited

Rupeesinthousand Note December31, March31, 2016 2016

EQUITYANDLIABILITIESSHARE CAPITAL AND RESERVESAuthorized share capital200,000,000 (March 31, 2016 : 200,000,000) ordinary shares of Rs. 10 each 2,000,000 2,000,000Issued, subscribed and paid up share capital142,800,000 (March 31, 2016 : 142,800,000) ordinary shares of Rs. 10 each 1,428,000 1,428,000Reserves 5,506,000 2,956,000 Un-appropriated profit 4,023,221 3,556,949 10,957,221 7,940,949 NON-CURRENT LIABILITIESDeferred liabilities 108,132 82,824 Deferred taxation 291,062 134,108 Deferred revenue 9,638 8,835 408,832 225,767 CURRENT LIABILITIESCurrent portion of deferred revenue 5,140 6,194 Accrued mark up 12,734 669 Trade and other payables 26,599,324 8,031,319 26,617,198 8,038,182 CONTINGENCIES AND COMMITMENTS 6 37,983,251 16,204,898

ASSETSNON-CURRENT ASSETSProperty, plant and equipment 7 3,672,828 2,511,897 Intangible assets 217,525 71,035 Capital work-in-progress 783,135 1,198,229 Long term loans and advances 107,602 81,547 Long term deposits 4,042 4,042 4,785,132 3,866,750 CURRENT ASSETS Stores and spares 131,612 122,954 Stock-in-trade 6,096,250 4,009,825 Trade debts 15,638 86,242 Loans, advances, prepayments and other receivables 3,747,870 1,006,233 Short term investments 9,452,850 1,149,777 Cash and bank balances 13,753,899 5,963,117 33,198,119 12,338,148 37,983,251 16,204,898

The annexed notes 1 to 16 form an integral part of this condensed interim financial information.

Condensed InterimBalance SheetAS AT DECEMBER 31, 2016 (UN-AUDITED)

YusufH.Shirazi ToichiIshiyama Chairman Chief Executive




Condensed InterimProfit and Loss Account FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2016 (UN-AUDITED)

Rupees in thousand Note October - December April - December 2016 2015 2016 2015

Sales 8 15,713,581 6,877,042 41,729,032 27,896,118 Cost of sales 9 (13,527,167) (5,818,869) (35,420,666) (23,716,074)

Gross profit 2,186,414 1,058,173 6,308,366 4,180,044

Distribution and marketing costs (105,513) (94,367) (332,143) (222,921)Administrative expenses (145,207) (83,681) (358,998) (256,373)Other income 312,020 63,120 665,601 208,870 Other expenses (106,628) (72,625) (424,969) (340,668)

(45,328) (187,553) (450,509) (611,092)

Profit from operations 2,141,086 870,620 5,857,857 3,568,952

Finance cost (6,684) (1,648) (19,094) (4,678)

Profit before taxation 2,134,402 868,972 5,838,763 3,564,274

Taxation (642,272) (257,046) (1,822,891) (1,141,105)

Profit after taxation 1,492,130 611,926 4,015,872 2,423,169

Earnings per share- basic and diluted (Rupees) 10.45 4.29 28.12 16.97



12

Condensed Interim Statement of Comprehensive Income FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2016 (UN-AUDITED)


Rupees in thousand October - December April - December 2016 2015 2016 2015

Profit after taxation 1,492,130 611,926 4,015,872 2,423,169

Items that may be subsequently reclassified to profit or loss - - - -

Items that will not be subsequently reclassified to profit or loss - - - -

Total comprehensive income for the period 1,492,130 611,926 4,015,872 2,423,169




Rupeesinthousand CapitalReserve RevenueReserves Share Share General Un-appropriated capital premium reserve profit Total

BalanceasonApril01,2016(audited) 1,428,000 76,000 2,880,000 3,556,949 7,940,949

Transfer to general reserve - - 2,550,000 (2,550,000) -

Profitfortheperiod - - - 4,015,872 4,015,872 Other comprehensive income - - - - -

Totalcomprehensiveincomefortheperiod - - - 4,015,872 4,015,872

Transactionswithowners Final dividend for the year ended March 31, 2016 @ Rupees 7.00 per ordinary share - - - (999,600) (999,600)

BalanceasonDecember31,2016(un-audited) 1,428,000 76,000 5,430,000 4,023,221 10,957,221

BalanceasonApril01,2015(audited) 1,428,000 76,000 450,000 3,165,752 5,119,752

Transfer to general reserve - - 2,430,000 (2,430,000) -

Profitfortheperiod - - - 2,423,169 2,423,169 Other comprehensive income - - - - -Totalcomprehensiveincomefortheperiod - - - 2,423,169 2,423,169

TransactionswithownersFinal dividend for the year ended March 31, 2015 @ Rupees 5.00 per ordinary share - - - (714,000) (714,000)

BalanceasonDecember31,2015(un-audited) 1,428,000 76,000 2,880,000 2,444,921 6,828,921



Condensed Interim Statement of Changes in Equity FOR THE NINE MONTHS ENDED DECEMBER 31, 2016 (UN-AUDITED)


14


Condensed Interim Cash Flow Statement FOR THE NINE MONTHS ENDED DECEMBER 31, 2016 (UN-AUDITED)

Rupeesinthousand Note April-December

2016 2015

CashflowsfromoperatingactivitiesCash generated from operations 11 20,207,768 2,134,943 Finance cost paid (50) (806)Employees retirement benefits and other obligations (44,620) (35,074)Net increase in loans to employees (34,643) (19,713)Income tax paid (1,627,382) (179,849)Royalty paid (745,223) (653,966)Increase in deferred revenue 4,441 2,122

Net cash generated from operating activities 17,760,291 1,247,657

CashflowsfrominvestingactivitiesPurchase of property, plant and equipment (1,128,550) (563,097)Purchase of intangible assets (106,899) (97,092)Proceeds from sale of property, plant and equipment 62,490 11,394 Short term investments made (4,755,563) (200,000)Realized gain on short term investments 13,623 - Proceeds from disposal of short term investment 250,000 - Interest received 412,347 173,051 Net cash used in investing activities (5,252,552) (675,744)

CashflowsfromfinancingactivitiesDividend paid (995,275) (710,619)Net cash used in financing activities (995,275) (710,619)Net increase / (decrease) in cash and cash equivalents 11,512,464 (138,706)Cash and cash equivalents at the beginning of the period 6,708,494 3,358,383 Cash and cash equivalents at the end of the period 12 18,220,958 3,219,677




1. LEGALSTATUSANDNATUREOFBUSINESS

Honda Atlas Cars (Pakistan) Limited (the ‘Company’) is a public limited company incorporated in Pakistan

on November 4, 1992. The Company is a subsidiary of Honda Motor Co., Ltd., Japan. The Company’s

ordinary shares are listed on the Pakistan Stock Exchange Limited. The registered office of the Company

is situated at 1-Mcleod Road, Lahore, and its manufacturing facility is located at 43 km, Multan Road,

Manga Mandi, Lahore. Its principal activities are assembling and progressive manufacturing and sale of

Honda vehicles and spare parts. The Company commenced commercial production from July 1994.

2. BASISOFPREPARATION

This condensed interim financial information is unaudited and is being submitted to members in

accordance with section 245 of the Companies Ordinance, 1984. It has been prepared in accordance

with the requirements of International Accounting Standard (IAS) 34 - ‘Interim Financial Reporting’ and

provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements

differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.

This condensed interim financial information does not include all the information required for annual

financial statements and therefore should be read in conjunction with the annual financial statements

for the year ended March 31, 2016.

3. SIGNIFICANTACCOUNTINGPOLICIES

3.1 The accounting policies adopted in the preparation of this condensed interim financial information are

the same as those applied in the preparation of preceding annual published financial statements of the

Company for the year ended March 31, 2016.

3.2 Initialapplicationofstandards,amendmentsoraninterpretationtoexistingstandards The following amendments to existing standards have been published that are applicable to the

Company’s financial statements covering annual periods, beginning on or after the following dates:

3.2.1 Standards,amendmentsandinterpretationstoapprovedaccountingstandardsthatareeffectiveinthecurrentperiod

Certain standards, amendments and interpretations to approved accounting standards are effective

for accounting periods beginning on April 01, 2016, but are considered not to be relevant or to have

any significant effect on the Company’s operations (although they may affect the accounting for future

transactions and events) and are, therefore, not detailed in this condensed interim financial information.

3.2.2 Standards,amendmentsandinterpretationstoexistingstandardsthatarenotyeteffectiveandhavenotbeenearlyadoptedbytheCompany

There are certain standards, amendments to the approved accounting standards and interpretations

that are mandatory for the company’s accounting periods beginning on or after January 01, 2017, but

are considered not to be relevant or to have any significant effect on the Company’s operations and are,

therefore, not detailed in this condensed interim financial information.

4. Income tax expense is recognized based on management’s best estimate of weighted average annual

income tax rate for the full financial year.

SELECTED Notes to AND FORMING PART OF theCondensed Interim Financial Information FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2016 (UN-AUDITED)


16

5. The preparation of interim financial information requires management to make judgments, estimates

and assumptions that affect the application of accounting policies and the reported amounts of assets

and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed interim financial information, the significant judgements made by

management in applying the Company’s accounting policies and the key sources of estimation uncertainty,

were the same as those applied to the financial statements for the year ended March 31, 2016, with the

exception of changes in estimates that are required in determining the provision for income taxes as

referred to in note 4.

6. CONTINGENCIESANDCOMMITMENTS

6.1 Contingencies There is no significant change in contingencies from the preceding annual published financial statements

of the Company for the year ended March 31, 2016.

6.2 Commitmentsinrespectof(i) Letters of credit and purchases for capital expenditure amounts to Rs 42.49 million (March 2016:

Rs 52.78 million).

(ii) Letters of credit and purchases, other than capital expenditure, amounts to Rs 1,104.47 million

(March 2016: Rs 607.87 million).

Un-audited Audited

Rupeesinthousand Note December31, March31, 2016 2016

7. PROPERTY,PLANTANDEQUIPMENT

Opening book value 2,511,897 2,822,852 Additions during the period / year 7.1 1,566,014 128,210

4,077,911 2,951,062

Disposals during the period / year (book value) (46,825) (17,802) Assets written off during the period / year (book value) (1,852) - Depreciation charged during the period / year (356,406) (421,363)

(405,083) (439,165)

Closing book value 3,672,828 2,511,897

7.1 Additionsduringtheperiod/year

- Buildings on freehold land 1,713 5,797 - Plant and machinery 1,287,216 22,544 - Furniture and office equipment 21,979 13,024 - Vehicles 221,030 58,073 - Tools and equipment 8,437 11,161 - Computers 25,639 17,611

1,566,014 128,210



Rupees in thousand October - December April - December

2016 2015 2016 2015

8. SALES

Own manufactured goods 18,290,789 7,807,678 48,310,101 32,096,986 Sales tax (2,657,460) (1,134,402) (7,019,064) (4,663,618) Commission to dealers (355,626) (166,227) (953,781) (660,959) Discount to customers (51,162) - (52,119) -

15,226,541 6,507,049 40,285,137 26,772,409

Trading goods 544,150 412,532 1,613,230 1,250,861 Sales tax (56,322) (42,329) (166,628) (126,242) Commission to dealers (788) (210) (2,707) (910)

487,040 369,993 1,443,895 1,123,709

15,713,581 6,877,042 41,729,032 27,896,118

9. COSTOFSALES

Own manufactured goods 13,194,141 5,575,877 34,445,979 22,976,099 Trading goods 333,026 242,992 974,687 739,975

13,527,167 5,818,869 35,420,666 23,716,074



18

Rupeesinthousand April-December

2016 2015

10. TRANSACTIONSANDBALANCESWITHRELATEDPARTIES

RelationshipwiththeCompany Natureoftransaction

i. Holding company Purchase of goods 3,856,463 2,248,839 Purchase of property, plant and equipment 45,994 - Purchase of intangible assets 104,855 - Technical assistance fee 652 8,437 Royalty 808,083 536,842 Dividend paid 509,796 364,140

ii. Associated undertakings Sale of goods 102,087 126,932 Purchase of goods 16,709,744 9,819,212 Sale of property, plant and equipment 10,877 - Purchase of property, plant and equipment 621,549 455,042 Purchase of intangible assets - 48,219 Insurance premium 269,715 203,554 Technical assistance fee 9,264 13,528 Royalty 1,778 2,315 License fee - 6,470 Insurance claims 21,178 11,008 Dividend paid 307,788 215,598

iii. Key management personnel Salaries and other employee benefits 106,159 93,710

iv. Post employment benefit Expense charged in respect of plans retirement benefit plans 55,827 46,615

Un-audited Audited

Rupeesinthousand December31, March31, 2016 2016

Related party balances at period / year end are as follows: Receivable from related parties 14,923 11,133 Payable to related parties 3,613,860 2,716,570




Rupeesinthousand Note April-December

2016 2015

11. CASHGENERATEDFROMOPERATIONS

Profit before taxation 5,838,763 3,564,274 Adjustment for: - Depreciation on property, plant and equipment 356,406 324,752 - Profit on disposal of property, plant and equipment (15,665) (716) - Assets written off 1,852 - - Amortization of deferred revenue (4,693) (3,271) - Liabilities no longer payable written back (404) (1,265) - Profit on bank deposits, loans to employees and advances to suppliers (438,180) (159,720) - Gain on short term investments (89,450) (887) - Finance cost 12,519 956 - Provision for employee’s retirement benefits and other obligations 60,730 56,909 - Amortization of intangible assets 32,105 45,898 - Royalty 818,078 542,758 - Working capital changes 11.1 13,635,707 (2,234,745) 20,207,768 2,134,943

11.1 Workingcapitalchanges

(Increase)/decrease in current assets - Stores and spares (8,658) 8,665 - Stock-in-trade (2,086,425) (21,695) - Trade debts 70,604 (23,328) - Advances, prepayments and other receivables (2,796,801) (768,967)

Increase/(decrease) in current liabilities - Trade and other payables 18,456,987 (1,429,420) 13 ,635,707 (2,234,745)

Rupeesinthousand December31, December31, 2016 2015

12. CASHANDCASHEQUIVALENTS

Cash and cash equivalents included in the condensed interim cash flow statement comprise of the following balance sheet amounts:

Short term investments 4,467,059 497,701 Cash and bank balances 13,753,899 2,721,976 18,220,958 3,219,677


20

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2,14

1,086

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3,56

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(1,64

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(19,0

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(4,67

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fore

taxa

tion

2,13

4,402

86

8,972

5,

838,7

63

3,56

4,274

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tion

(642

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(2

57,04

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(1,82

2,891

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1,49

2,130

61

1,926

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72

2,42

3,169

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and

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.




14. FINANCIALRISKMANAGEMENT

14.1 Financialriskfactors The Company’s activities expose it to a variety of financial risks: market risk (including currency

risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The condensed interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at March 31, 2016.

There have been no changes in the risk management department or in any risk management policies since the year end March 31, 2016.

14.2 Fairvalueestimation The different levels for fair value estimation used by the Company have been explained 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 following table presents the financial assets and liabilities that are measured at fair value at December 31, 2016.

Un-auditedRupeesinthousand December31,2016

Level1 Level2 Level3 Total

Atfairvaluethrough profitorloss Short term investments 4,985,791 4,467,059 - 9,452,850

TotalAssets 4,985,791 4,467,059 - 9,452,850

TotalLiabilities - - - -


22


23

The following table presents the financial assets and liabilities that are measured at fair value at March 31, 2016.

AuditedRupeesinthousand March31,2016

Level1 Level2 Level3 Total

Atfairvaluethrough profitorloss Short term investments 404,000 745,377 - 1,149,377

TotalAssets 404,400 745,377 - 1,149,777

TotalLiabilities - - - -

During the period, there were no significant changes in the business or economic circumstances that affect the fair value of the Company’s financial assets and financial liabilities. Furthermore, there were no reclassifications of financial assets.

15. DATEOFAUTHORISATIONFORISSUE

This condensed interim financial information was authorized for issue on January 25, 2017 by the Board of Directors of the Company.

16. CORRESPONDINGFIGURES

In order to comply with the requirements of International Accounting Standard 34 ‘Interim Financial Reporting’, the condensed interim balance sheet has been compared with the balances of annual audited financial statements of preceding financial year, whereas, condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim cash flow statement have been compared with the balances of comparable period of immediately preceding financial year.



Authorised Dealers: Sales, Service & Spare Parts (3S)

LAHOREHondaCitySales75-B, Block L, Gulberg III,Ferozepur Road.Tel: (042) 35841100-06Fax: (042) 35841107

HondaFort32 Queens Road.Tel: (042) 36314162-3, 36309062-3, 36313925Fax: (042) 36361076

HondaPointMain Defence Road.Tel: (042) 35700994-5, 35700997Fax: (042) 35700993

HondaGateway15 - Km, Multan Road,Tel: (042) 111 333 789Fax: (042) 37511075

ISLAMABADHondaClassicPlot 179, I 10/3, Industrial Area.Tel: (051) 4438801-5Fax: (051) 4436446

HondaAvenue1-Km, Koral Chowk,Islamabad Highway,Opp. Judicial Colony. Tel: (051) 2326121-4, 0320 5007373Fax: (051) 2326126

RAWALPINDIHondaCentre300, Peshawar Road.Tel: (051) 5125181-5UAN: (051) 111 300 123Fax: (051) 5125186

MULTANHondaBreeze63 Abdali Road.Tel: (061) 4588871-3, 4547484Fax: (061) 4588874

KARACHI

HondaShahrah-e-Faisal13-Banglore Town,Main Shahrah-e-FaisalTel: (021) 34547113-6, 34527070, 34527373, 34527474, 34527575Fax: (021) 34526758

HondaDefence67/1, Korangi RoadNear HINO Circle.Tel: (021) 35805291-4Fax: (021) 35389648

HondaSITEC-1, Main Manghopir Road, SITE.Tel: (021) 32577411-2, 32564926, 32570301, 32569381Fax: (021) 32577412

HondaSouth1-B/1, Sec. 23, Korangi Industrial Area. Tel: (021) 35050251-4Fax: (021) 35064599

HondaDriveIn118-C, Rashid Minhas Road.Tel: (021) 34992832-7, 34992824-5Fax: (021) 34992823

HondaQuaideen233-A-2, PECHS.Tel: (021) 34556071-3, 34556510-12Fax: (021) 34554644

HYDERABADHondaPalaceShahbaz Town,Jamshoro Road.Tel: (0223) 667178-9, 667032Fax: (0223) 667519

FAISALABADHondaFaisalabadEast Canal Road.Tel: (041) 8731741-4Fax: (041) 8524029

HondaChenab123 JB Raja Wala,Green View Colony.Tel: (041) 2603449, 2603549Fax: (041) 2603549

SARGODHAHondaCitrusFields7-Km Lahore Road.Tel: (048) 3225186-7Fax: (048) 3225869

GUJRANWALAHondaGujranwalaG.T. Road.Tel: (055) 3893481-3Fax: (055) 3893484

SIALKOTHondaFalconPakki Kotti, Daska Road.Tel: (052) 3252000, 3251251-4Fax: (052) 3563203

MIRPURHondaEmpireMirpurMian Muhammad Road, Quaid-e-Azam Chowk, Mirpur Azad KashmirTel: (05827) 451501-3Fax: (05827) 451500

PESHAWARHondaNorthMain University Road. Tel: (091) 5854901, 5700807, 5700808Fax: (091) 5854753

DERAGHAZIKHANHondaHiSunMultan Road, Dera Ghazi Khan Tel: (064) 111-690-690Fax: (064) 2689009

24

FAISALABADHondaFaisalabadEast Canal Road.Tel: (041) 8731741-4Fax: (041) 8524029

HondaChenab123 JB Raja Wala,Green View Colony.Tel: (041) 2603449, 2603549Fax: (041) 2603549

SARGODHAHondaCitrusFields7-Km Lahore Road.Tel: (048) 3225186-7Fax: (048) 3225869

GUJRANWALAHondaGujranwalaG.T. Road.Tel: (055) 3893481-3Fax: (055) 3893484

SIALKOTHondaFalconPakki Kotti, Daska Road.Tel: (052) 3252000, 3251251-4Fax: (052) 3563203

MIRPURHondaEmpireMirpurMian Muhammad Road, Quaid-e-Azam Chowk, Mirpur Azad KashmirTel: (05827) 451501-3Fax: (05827) 451500

PESHAWARHondaNorthMain University Road. Tel: (091) 5854901, 5700807, 5700808Fax: (091) 5854753

DERAGHAZIKHANHondaHiSunMultan Road, Dera Ghazi Khan Tel: (064) 111-690-690Fax: (064) 2689009

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