Table of Contents

Company Information 2

Chairman’s Review (English) 4

Chairman’s Review (Urdu) 7

Condensed Interim Statement of Financial Position 8

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income 9

Condensed Interim Statement of Changes in Equity 10

Condensed Interim Statement of Cash Flows 11

Notes to the Condensed Interim Financial Statements 12

Company Information

Board of Directors Saquib H. Shirazi

Member
Aamir H. Shirazi
Chairperson Saadullah Ejaz
Secretary
Azam Faruque
Director Management

Abid Naqvi Saquib H. Shirazi

Director Chief Executive Officer

Mashmooma Zehra Majeed Afaq Ahmed

Director Vice President Marketing

Masanori Kito Khawaja Shujauddin

Director General Manager JVs Coordination

Tetsuya Komine Danyal Ahmed Rasheed

Director Chief Financial Officer

Kazushi Yamanaka Saadullah Ejaz

Director General Manager Human Resources &
Administration
Saquib H. Shirazi
Faisal Mahmud
Chief Executive Officer
General Manager Plants
Maheen Fatima
Muhammad Ammar
Company Secretary
General Manager New Model Center
Audit Committee Hassan Mushtaq Cheema
General Manager Production, Planning & Control
Mashmooma Zehra Majeed
Chairperson Zia Ul Hassan Khan
General Manager Sales
Azam Faruque
Member Muhammad Zafar Iqbal
General Manager After Sales
Abid Naqvi
Member Rashid Ahmed
General Manager Commercial & Planning
Farrukh Munir
Head of Internal Audit Tahir Nazir
General Manager Supply Chain & Secretary
Maheen Fatima
Secretary Muhammad Rashad Rashid
General Manager Quality Assurance
Human Resource &
Remuneration Committee Tahir Khan
General Manager Information Technology
Mashmooma Zehra Majeed
Chairperson Auditors

Abid Naqvi Shinewing Hameed Chaudhri & Co.

Member Chartered Accountants

02 Quarterly Report December | 2024

Company Information

Legal Advisors Factories

Mohsin Tayebaly & Co. F-36, Estate Avenue, S.I.T.E., Karachi-75730

UAN: (92-21) 111-111-245
Tax Advisors Tel: (92-21) 32575561-65
Fax: (92-21) 32563758
EY Ford Rhodes,
Chartered Accountants 26-27 KM, Lahore-Sheikhupura Road,
Sheikhupura-39321
Shares Registrar Tel: (92-56) 3406501-8
Fax: (92-56) 3406009
Hameed Majeed Associates (Pvt.) Limited
H.M. House, 7-Bank Square,
Shahrah-e-Quaid-e-Azam, Lahore Branch Offices & Customer Care Centres
Tel: (92-42) 37235081-82
Fax: (92-42) 37358817 Azmat Wasti Road, Multan
Tel: (92-61) 4570413-14
Bankers (92-61) 111-112-411
Fax: (92-61) 4541690
Allied Bank Limited
Islamabad Corporate Center,
Askari Bank Limited Plot No. 784/785, Golra Road, Islamabad
Bank Al-Habib Limited Tel: (92-51) 5495921-7
Fax: (92-51) 5475928
Bank Alfalah Limited
Makhdoom Altaf Road, West Sadiq Canal
Faysal Bank Limited Bank, Near City School, Rahimyar Khan
Habib Bank Limited Tel: (068) 5883415-19
Fax: (068) 5883414
Habib Metropolitan Bank Limited
2nd Floor, Dawood Centre, Autobhan Road,
Khushali Bank Limited Hyderabad
MCB Bank Limited Tel: (022) 3411361-9
Fax: (022) 34113670
Meezan Bank Limited
1st Floor, Meezan Executive Tower,
National Bank of Pakistan 4 – Liaquat Road, Faisalabad
Standard Chartered Bank (Pakistan) Limited Tel: (92-41) 2541011-7, 2541014

United Bank Limited 1st Floor, 28-Mozang Road, Lahore

Tel: (92-42) 36361191-5, 36360740-7

Registered Office Show Room

1-McLeod Road, Lahore-54000 West View Building, Preedy Street,

Tel: (92-42) 37225015-17, 37233515-17 Saddar, Karachi
Fax: (92-42) 37233518, 37351119 Tel : (92-21) 32720833, 32727607
E-mail: [email protected]
Website: www.atlashonda.com.pk Customer Contact Centre

UAN: (92-42) 111-245-222

Toll Free: 0800-245-22
Email: [email protected]
(Within working hours from Monday to Friday)

Atlas Honda Limited 03

Chairman’s Review

I am pleased to present the unaudited condensed interim financial information of the

Company for the nine months ended December 31, 2024.

MACROECONOMIC OVERVIEW
Pakistan’s economy has maintained its positive momentum, with key indicators demonstrating
significant improvement. This progress is the result of a combination of factors, including
the implementation of supportive monetary policies, assistance from international financial
institutions, and a steadfast commitment to structural reforms. Consequently, GDP growth
is projected to accelerate to 3.4% in FY25, up from 2.5% in the previous year. Furthermore,
enhanced management of the external account, easing inflationary pressures, and an
increase in non-debt foreign inflows are expected to further stimulate economic activity and
contribute to sustainable growth.
On the external front, the current account posted a surplus of USD 1.21 billion during the
first half of FY25, a remarkable improvement compared to the deficit of USD 1.40 billion in
the same period last year. Exports grew by 7.2%, reaching USD 16.2 billion, which helped
narrow the trade deficit to USD 11.5 billion. However, on a year-on-year (YoY) basis, the trade
deficit rose by 12.5%, driven by increased import volumes due to higher economic activity.
Home remittances provided crucial support, recording robust YoY growth of 32.8% to reach
USD 17.8 billion. Consequently, foreign exchange reserves rose significantly to USD 16.4
billion, reflecting a 30% increase compared to the same period last year.
The country also made progress in controlling inflation, with the Consumer Price Index (CPI)
declining to 4.1% in December 2024. This enabled the State Bank of Pakistan to reduce
the policy rate by 200 basis points to 13%, marking a cumulative reduction of 900 basis
points since June 2024. Consequently, the PSX 100 index reached historic highs, surpassing
115,000 points. However, fiscal collections fell short of the estimated target by Rs. 386 billion.
Pakistan’s agricultural sector is expected to witness modest growth of 2.1% in FY25, primarily
due to climate-related disruptions, lower wheat prices, and a decline in cotton cultivation.
Nevertheless, the adoption of advanced mechanization techniques and improved access
to farm inputs have yielded positive results, particularly in sugarcane and rice production.
The significant increase in agricultural machinery imports during FY25 indicates growing
investment in farming technology, which is expected to drive productivity gains over time. As
farming efficiency improves, it is likely to stimulate sustained demand for consumer durables
in rural areas, contributing to broader economic growth.
The Large-Scale Manufacturing Industries (LSMI) sector in Pakistan recorded a contraction of
1.25% during the first five months of the fiscal year 2024-25, compared to the same period
last year. However, a notable aspect of this trend is that 11 out of 22 sectors have exhibited
considerable growth, with significant expansions observed in
industries such as automobiles, textiles, food and beverages, and Sales Growth
petroleum products. The continued easing of monetary policy is (Rs. in million)

likely to have a positive ripple effect, which may reinforce a broader +27% 9.5%

growth trajectory and suggest an encouraging outlook for the future. 6.8%

OPERATING RESULTS
146,855

During the nine months period ended December 31, 2024, the
115,417

Company achieved net sales of Rs. 146.8 billion, an increase of

27.2% compared to the corresponding period of the last year. The
gross profit increased from Rs. 7.8 billion to Rs. 14.0 billion, up by
79.1% as a result of higher sales volume, better sales mix and stable Dec Dec
exchange rates. Sales and marketing expenses rose to Rs. 2.84 2023 2024

billion, an increase of 22.5% attributable to promotional activities Sales Gross Profit (%)

and general inflation. Administrative expenses also increased by

04 Quarterly Report December | 2024

24.1% mainly due to inflation and CSR initiatives. Other income, net Profit Growth
of other operating expenses and financial charges, contributed an
impressive Rs. 6.7 billion to the bottom line on account of efficient +75%
85.84
treasury operations. The above factors supported the Company
49.01
in achieving nine months profit before tax of Rs. 17.0 billion as
compared to profit before tax of Rs. 10.3 billion in the same period

10,651
last year. Resultantly, the profit after tax for the nine months stood
at Rs.10.7 billion, up by 75.2%. This is translated into Earnings per

6,081
Share (EPS) of Rs. 85.84 against Rs. 49.01 in the corresponding
period of last year.

FUTURE OUTLOOK Dec

2023
Dec
2024

The economic outlook for Pakistan remains optimistic, with a Profit after tax (Rs. in million)
Earning per share (Rs.)
broad-based recovery gaining traction across key sectors. A
pivotal factor contributing to this stability has been the successful
rollover of IMF program and implementation of structural reform. This development has
not only bolstered investor confidence but also facilitated a more predictable economic
environment. Resultantly, business sentiment has experienced a significant boost. Upgrades
in credit ratings have enhanced the credibility, while reduced political uncertainty has
created a more favorable investment climate. The declining inflation rate, combined with
lower interest rates, is expected to have a positive impact on the economy. As purchasing
power improves, consumer demand is expected to increase. Looking ahead, sustaining
this positive momentum will hinge on the successful implementation of critical structural
reforms. By maintaining a strong focus on these key initiatives, Pakistan is well-positioned to
consolidate its economic achievements, drive sustained long-term sustainable growth, and
ultimately realize its full economic potential.

The Company is strategically aligned and dedicated to addressing challenges by enhancing its
operational performance and maintaining market leadership, with the objective of developing
a long-term business strategy that consistently generates value for stakeholders. In this
regard, the “Atlas Way” and “Atlas Systems” remain integral to our core business philosophy.

(With socio economic public sense of

direction industry does very well)

ACKNOWLEDGEMENT

The Atlas Group takes great pride in its partnership with Honda Motor Company Limited.
We wish to acknowledge their continued support and cooperation in maintaining high
standards of excellence. I would like to thank our valued customers for their ongoing trust,
the management team for their dedicated efforts, the Board of Directors for their guidance,
and Mr. Saquib H. Shirazi - CEO, for his inspiring leadership. I also express gratitude to all
stakeholders - including bankers, dealers, vendors, associates and shareholders for their
contributions in building Atlas Honda Limited into an exceptional company.

Dated: January 30, 2025 Aamir H. Shirazi

Karachi

Atlas Honda Limited 05

 Profit Growth

+75%
85.84

49.01

10,651
6,081
Dec Dec
2023 2024
Profit after tax (Rs. in million)
Earning per share (Rs.)

(With socio economic public sense of

direction industry does very well)

06 Quarterly Report December | 2024

Sales Growth
(Rs. in million)

+27% 9.5%
6.8%
146,855
115,417

Dec Dec
2023 2024

Sales Gross Profit (%)

Atlas Honda Limited 07

Condensed Interim Statement of Financial Position
(Unaudited) As at December 31, 2024
(Unaudited) (Audited)
December 31, March 31,
2024 2024
ASSETS Note ------- (Rupees in ‘000) -------
Non current assets
Property, plant and equipment 5 12,392,686 12,445,718
Intangible assets 9,134 7,826
Long term investments 6 387,306 350,593
Long term loans and advances 113,908 106,531
Long term deposits 7 43,915 41,672
12,946,949 12,952,340
Current assets
Stores, spares and loose tools 968,975 1,027,714
Stock-in-trade 8,942,635 9,621,651
Trade debts 2,573,925 1,021,954
Loans and advances 98,764 89,211
Trade deposits and prepayments 367,978 229,118
Accrued mark-up / interest 551,199 656,355
Other receivables 111,738 16,137
Short term investments 8 31,604,538 13,959,667
Cash and bank balances 18,209,479 36,369,606
63,429,231 62,991,413
76,376,180 75,943,753
EQUITY AND LIABILITIES
Equity
Authorized capital
150,000,000 (March 31, 2024: 150,000,000)
ordinary shares of Rs.10 each 1,500,000 1,500,000
Issued, subscribed and paid-up capital
124,087,935 (March 31, 2024: 124,087,935)
ordinary shares of Rs.10 each 1,240,879 1,240,879
Reserves 30,484,611 27,526,690
31,725,490 28,767,569
Liabilities
Non current liabilities
Lease liabilities 281,748 289,306
Staff retirement benefits 689,208 663,559
Deferred taxation 936,257 877,658
1,907,213 1,830,523
Current liabilities
Trade and other payables 42,138,845 43,151,951
Taxation - net 359,971 1,237,690
Dividend payable 46,327 682,949
Unclaimed dividend 159,703 215,084
Current portion of lease liabilities 38,631 57,987
42,743,477 45,345,661
44,650,690 47,176,184
Contingencies and commitments 9
76,376,180 75,943,753
The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Aamir H. Shirazi Saquib H. Shirazi Danyal Ahmed Rasheed

Chairman Chief Executive Officer Chief Financial Officer

08 Quarterly Report December | 2024

Condensed Interim Statement of Profit or Loss and Other
Comprehensive Income (Unaudited)
For The Nine Months Ended December 31, 2024
Quarter ended Nine months period ended
December 31, December 31,
2024 2023 2024 2023
Note --------------------- (Rupees in ‘000) ---------------------

Sales - net 53,910,836 41,232,056 146,855,221 115,416,812

Cost of sales 10 (48,158,809) (37,709,569) (132,843,143) (107,592,413)
Gross profit 5,752,027 3,522,487 14,012,078 7,824,399
Sales and marketing expenses (969,582) (804,111) (2,838,063) (2,316,127)
Administrative expenses (233,230) (204,808) (799,710) (644,618)
Other income 2,152,970 1,977,463 7,375,209 6,240,138
Other operating expenses (299,737) (369,824) (662,859) (750,371)
Share of net profit of an Associate 13,511 2,172 41,426 8,149
Operating profit 6,415,959 4,123,379 17,128,081 10,361,570

Finance cost (30,467) (18,503) (85,879) (55,145)

Profit before levies and income tax 6,385,492 4,104,876 17,042,203 10,306,425
Minimum tax differential (5,463) (9,834) (18,242) (28,291)
Final taxes - (72,580) (273,446) (316,684)

Profit before income tax 6,380,029 4,022,462 16,750,515 9,961,450

Income tax

Current tax - for the period (2,290,889) (1,526,057) (5,806,550) (3,477,827)

- for the prior period - - (314,767) (247,012)
Deferred tax - (charge) / income (58,598) 25,112 22,179 (155,820)

(2,349,487) (1,500,945) (6,099,138) (3,880,659)

Profit for the period 4,030,542 2,521,517 10,651,377 6,080,791

Other comprehensive income - - - -
Total comprehensive income
for the period 4,030,542 2,521,517 10,651,377 6,080,791
------------------------- (Rupees) -------------------------
Earnings per share
- basic and diluted 11 32.48 20.32 85.84 49.01

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Aamir H. Shirazi Saquib H. Shirazi Danyal Ahmed Rasheed

Chairman Chief Executive Officer Chief Financial Officer

Atlas Honda Limited 09

Condensed Interim Statement of Changes in Equity (Unaudited)
For the Nine Months Period Ended December 31, 2024
Issued, sub- Capital reserves Revenue reserves
scribed Gain on
Share General Unappropriated Total
and paid-up sale of
premium reserve profit
capital land
----------------------------- (Rupees in ‘000) -----------------------------

Balance as at April 1, 2023 (Audited) 1,240,879 39,953 165 9,492,000 12,006,945 22,779,942
Transaction with owners, recognised
directly in equity
Final dividend for the year
ended March 31, 2023 at
the rate of Rs. 13 per share - - - - (1,613,143) (1,613,143)

Interim dividend for the half year

ended September 30, 2023 at
the rate of Rs. 17 per share - - - - (2,109,495) (2,109,495)
Total comprehensive income
for the nine months ended December 31, 2023

Profit for the period - - - - 6,080,791 6,080,791

Other comprehensive income - - - - - -
- - - - 6,080,791 6,080,791
Balance as at December 31, 2023 (Unaudited) 1,240,879 39,953 165 9,492,000 14,365,098 25,138,095

Total comprehensive income

for three months ended March 31, 2024
Profit for the period - - - - 3,627,254 3,627,254
Other comprehensive income - - - - 2,220 2,220
- - - - 3,629,474 3,629,474
Balance as at March 31, 2024 (Audited) 1,240,879 39,953 165 9,492,000 17,994,572 28,767,569

Transaction with owners

in their capacity as owners
Final dividend for the year
ended March 31, 2024 at
the rate of Rs. 30 per share - - - - (3,722,638) (3,722,638)

Interim dividend for the half year

ended September 30, 2024 at
the rate of Rs. 32 per share - - - - (3,970,817) (3,970,817)

Total comprehensive income

for the nine months ended December 31, 2024
Profit for the period - - - - 10,651,377 10,651,377
Other comprehensive income - - - - - -
- - - - 10,651,377 10,651,377
Balance as at December 31, 2024 (Unaudited) 1,240,879 39,953 165 9,492,000 20,952,493 31,725,490

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Aamir H. Shirazi Saquib H. Shirazi Danyal Ahmed Rasheed

Chairman Chief Executive Officer Chief Financial Officer

10 Quarterly Report December | 2024

Condensed Interim Statement of Cash Flows (Unaudited)
For the Nine Months Period Ended December 31, 2024
Nine months period ended
December 31,
2024 2023
Note ---- (Rupees in ‘000) ----
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from / (used in) operations 12 9,593,502 (2,035,334)
Income taxes paid (6,969,261) (3,153,893)
Mark-up / interest received 4,113,596 4,081,716
Workers’ profit participation fund paid (384,717) (271,661)
Workers’ welfare fund paid (267,692) (135,782)
Long term loans and advances - net (7,377) (17,820)
Long term deposits - net (2,243) (20)
Net cash generated from / (used in) operating activities 6,075,808 (1,532,794)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment (1,219,407) (1,764,439)

Proceeds from sale of property, plant and equipment 90,118 77,675
Payments for intangible assets (10,585) (2,940)
Payments for investments (14,612,242) (15,746,183)
Proceeds from sale of investments - 10,750,000
Dividend received 4,712 2,689
Net cash used in investing activities (15,747,404) (6,683,198)

CASH FLOWS FROM FINANCING ACTIVITIES

Lease rentals paid (103,073) (107,628)

Dividend paid (8,385,458) (4,091,880)
Net cash used in financing activities (8,488,531) (4,199,508)
Net decrease in cash and cash equivalents (18,160,127) (12,415,500)

Cash and cash equivalents at beginning of the period 36,369,606 34,702,516

Cash and cash equivalents at end of the period 18,209,479 22,287,016

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Aamir H. Shirazi Saquib H. Shirazi Danyal Ahmed Rasheed

Chairman Chief Executive Officer Chief Financial Officer

Atlas Honda Limited 11

Notes to the Condensed Interim Financial Statements (Unaudited)
For the Nine Months Period Ended December 31, 2024
1. THE COMPANY AND ITS ACTIVITIES

Atlas Honda Limited (the Company) is a public limited company incorporated

in Pakistan and is listed on Pakistan Stock Exchange Limited. The Company is
principally engaged in progressive manufacturing and marketing of motorcycles and
spare parts. The Company is a subsidiary of Shirazi Investments (Private) Limited,
which holds 52.43% (March 31, 2024: 52.43%) of issued, subscribed and paid-up
capital of the Company.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance

with the accounting and reporting standards as applicable in Pakistan for interim
financial reporting. The accounting and reporting standards as applicable in Pakistan
for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, ‘Interim Financial Reporting’, issued
by the International Accounting Standards Board (IASB) as notified under the
Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered
Accountants of Pakistan (ICAP) as notified under the Companies Act, 2017; and

- Provision of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issues under the Companies Act, 2017 differ
with the requirements of IAS 34 or IFAS, the provisions of and directives issued under
the Companies Act, 2017 have been followed.

3. MATERIAL ACCOUNTING POLICY INFORMATION

3.1 The material accounting policies and the methods of computation adopted in the
preparation of these condensed interim financial statements are consistent with
those applied in the preparation of audited annual financial statements for the year
ended March 31, 2024.
There are certain International Financial Reporting Standards, amendments to
published standards and interpretations that are mandatory for the financial year
beginning on April 1, 2024. These are considered not to be relevant or to have
any significant effect on the Company’s financial reporting and operation and are,
therefore, not disclosed in these condensed interim financial statements.

3.2 Taxes on income in the interim periods are accrued using tax rate that would be
applicable to expected annual profit or loss.
3.3 Actuarial valuations are normally carried out on annual basis. The Board of Trustees,
passed the resolutions by circulation, on June 10, 2024, approved the revision of
the existing gratuity payable criteria. The new criteria changes from 15 days’ last
drawn basic salary for each year of eligible service to a graduated scale of gratuity
payable based on the length of eligible service, effective from June 1, 2024. In order
to ascertain the past service cost, the actuarial valuation was carried out on May
31, 2024. The impact of re-measurement of post-employment benefit plans has not
been incorporated in the condensed interim financial statements.

12 Quarterly Report December | 2024

3.4 Accounting guidance issued by the Institute of Chartered Accountants of Pakistan
(ICAP) on accounting for minimum taxes and final taxes
During the period the Institute of Chartered Accountant of Pakistan (ICAP) have
withdrawn the Technical Release 27 “IAS 12, Income Taxes (Revised 2012)” and
issued guidance - “IAS 12 Application Guidance on Accounting for Minimum Taxes
and Final Taxes” vide its circular No.07/2024 dated May 15, 2024. The said guidance
requires certain amounts of tax paid under minimum and final tax regime to be shown
separately as a levy in accordance with IFRIC 21 ‘Levies’ and IAS 37 ‘Provision,
Contingent Liabilities and Contingent Assets’ instead of showing it in current tax.

Accordingly, the impact has been incorporated in these financial statements
retrospectively in accordance with the requirement of International Accounting
Standard (IAS 8) - ‘Accounting Policies, Change in Accounting Estimates and Errors’.
There has been no effect on the statement of financial position, the statement of cash
flows and earning per share as a result of this change.

4. ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of these condensed interim financial statements in conformity with

the approved accounting standards requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process
of applying the Company’s accounting policies. Estimates and judgements are
continually evaluated and are based on historical experience and other factors,
including the expectation of future events that are believed to be reasonable under
the circumstances. Actual results may differ from these estimates.
During the preparation of these condensed interim financial statements, the
significant judgements made by management in applying the Company’s accounting
policies and the key sources of estimation of uncertainty were the same as those
that applied to the audited annual financial statements of the Company for the year
ended March 31, 2024.
(Unaudited) (Audited)
December 31, March 31,
2024 2024
Note ---- (Rupees in ‘000) ----
5. PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 5.1 12,053,898 12,062,500

Capital work-in-progress 66,667 86,621
Right of use assets 272,121 296,597
12,392,686 12,445,718

5.1 Operating fixed assets

Book value at beginning of the period / year 12,062,500 11,931,412

Additions during the period / year 1,239,361 1,832,625

Disposals costing Rs. 514,396 thousand

(March 31, 2024: Rs. 686,217 thousand) - at book value (110,371) (261,152)
Written-off costing Rs. 503,990 thousand
(March 31, 2024: Rs. Nil) - at book value (11,152) -
Depreciation charge for the period / year (1,126,441) (1,440,385)
Book value at end of the period / year 12,053,898 12,062,500

Atlas Honda Limited 13

 (Unaudited) (Audited)
December 31, March 31,
2024 2024
Note ---- (Rupees in ‘000) ----
6. LONG TERM INVESTMENTS
Unquoted
Associate - equity accounted investment 6.1 387,306 350,593
387,306 350,593

6.1 Equity accounted investment -

Atlas Hitec (Private) Limited

Balance at beginning of the period / year 350,593 340,816

Share of (loss) / profit for the period / year - net of tax 41,426 12,475
Dividend received during the period / year (4,712) (2,698)
Balance at end of the period / year 387,306 350,593
6.1.1 Investment in Atlas Hitec (Private) Limited (AHTL) represents 19,000,000 fully paid
ordinary shares of Rs.10 each representing 29.23% (March 31, 2024 : 29.23%) of its
issued, subscribed and paid up capital as at December 31, 2024.
6.1.2 The value of investment in an Associate is based on unaudited condensed interim
financial statements of the investee company as at December 31, 2024.
7. Long term deposits includes Rs. 28,000 thousand (March 31, 2024 : Rs. 28,000
thousand) paid to Atlas Energy Limited, a related party.
8. SHORT TERM INVESTMENTS - at fair value through profit or loss
(Unaudited) (Audited)
December 31, March 31,
Investments in units of mutual funds: 2024 2024
---- (Rupees in ‘000) ----
- Related parties 21,917,245 12,247,371
- Others 1,771,677 592,062
23,688,921 12,839,433
At amortised cost - Treasury bills 7,915,617 1,120,234
31,604,538 13,959,667

9. CONTINGENCIES AND COMMITMENTS

9.1 Contingencies
9.1.1 There is no change in status of the contingencies as disclosed in note 26.1.1 of the
audited annual financial statements of the Company for the year ended March 31, 2024.
(Unaudited) (Audited)
December 31, March 31,
2024 2024
---- (Rupees in ‘000) ----

9.1.2 Guarantees issued by banks on behalf of the Company 2,499,646 2,120,312

9.2 Commitments

9.2.1 Commitments in respect of:

- capital expenditure, raw materials and

components through confirmed letters of credit 5,182,941 3,975,827
- capital expenditure other than through
letters of credit 82,143 41,641

14 Quarterly Report December | 2024

9.2.2 Aggregate commitments for ijarah arrangements of vehicles and plant and machinery
as at period / year end are as follows:

(Unaudited) (Audited)
December 31, March 31,
2024 2024
---- (Rupees in ‘000) ----

Not later than one year 600,081 452,800

Over one year and no later than five years 1,533,333 1,256,230
More than five years 189,080 287,046
2,322,494 1,996,076

-------------- (Unaudited) --------------

Quarter ended Nine months period
December 31, ended December 31,
2024 2023 2024 2023
---------------- (Rupees in ‘000) ----------------
10. COST OF SALES

Opening stock of finished goods 1,677,758 1,917,836 2,993,078 1,730,184

Cost of goods manufactured 44,596,764 27,105,078 120,647,178 89,819,123
Purchases during the period 4,342,204 10,786,660 11,660,805 18,143,111
48,938,969 37,891,738 132,307,983 107,962,234
50,616,727 39,809,574 135,301,061 109,692,418
Closing stock of finished goods (2,457,918) (2,100,005) (2,457,918) (2,100,005)
48,158,809 37,709,569 132,843,143 107,592,413

11. EARNINGS PER SHARE

- basic and diluted

Profit for the period 4,030,542 2,521,517 10,651,377 6,080,791

----------------- (Number of shares) -----------------

Weighted average number of ordinary
shares in issue during the period 124,087,936 124,087,936 124,087,936 124,087,936

----------------------- (Rupees) -----------------------

Basic earning per share 32.48 20.32 85.84 49.01

11.1 There is no dilutive effect on the basic earnings per share of the Company.

Atlas Honda Limited 15

12. CASH GENERATED FROM OPERATIONS -------- (Unaudited) --------
Nine months ended
December 31,
2024 2023
Note ---- (Rupees in ‘000) ----

Profit before levies and income tax 17,042,203 10,306,425

Adjustments for:
Depreciation 1,181,080 1,123,065
Amortization 9,277 29,403
Provision for compensated absences 25,649 74,403
Provision for gratuity 520,000 53,591
Mark-up / interest on savings deposit accounts
and term deposit receipts (4,008,440) (3,860,779)
Gain on sale of investments at fair value
through profit or loss (135,451) (39,453)
Fair value gain on investments at fair value
through profit or loss (1,533,297) 154,643
Dividend income (1,604,567) (1,673,811)
Workers’ profit participation fund 347,065 398,303
Workers’ welfare fund 276,406 210,169
Loss on disposal and write-off of operating fixed assets 31,405 66,436
Share of profit of an Associate (41,426) (8,149)
Interest on lease liabilities 45,995 22,777
Changes in working capital 12.1 (2,562,398) (8,892,357)
9,593,502 (2,035,334)

12.1 Changes in working capital

(Increase) / decrease in current assets:

- Stores, spares and loose tools 58,739 34,804

- Stock-in-trade 679,016 (2,904,220)
- Trade debts (1,551,971) (1,231,160)
- Loans and advances (9,553) 8,063
- Trade deposits and prepayments (138,860) 1,918,154
- Other receivables (95,601) (1,513)
(1,058,230) (2,175,872)
Decrease in trade and other payables (1,504,168) (6,716,485)
(2,562,398) (8,892,357)

16 Quarterly Report December | 2024

13. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

13.1 Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk (including
foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

There have been no significant changes in the risk management policies since the
year end.

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 audited annual financial
statements for the year ended March 31, 2024.

13.2 Fair value measurement of financial instruments

The carrying values of all financial assets and liabilities reflected in the financial
information are a reasonable approximation of their fair values.

The table below analyses 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].

Level 1 Level 2 Level 3 Total

---------------- (Rupees in ‘000) ----------------
Assets - Recurring fair value
measurement

Financial assets at fair value

through profit or loss
December 31, 2024
Short term investments 23,688,921 - - 23,688,921

March 31, 2024

Short term investments 12,839,433 - - 12,839,433

There was no transfer amongst the levels and any change in valuation techniques
during the period.

Atlas Honda Limited 17

14. TRANSACTIONS WITH RELATED PARTIES -------- (Unaudited) --------
Nine months period ended
December 31,
2024 2023
---- (Rupees in '000) ----
14.1 Significant transactions with related parties are as follows:

The Holding Company

Sales of:
- goods and services 1,954 1,091
- operating fixed assets - 100
Purchases of:
- goods and services 16,764 26,064
- operating fixed assets 238 7,189
Lease rentals paid 27,153 51,447
Dividend paid 4,034,020 1,951,945
Associated companies
Sales of:
- goods and services 1,961,238 1,456,523
- operating fixed assets 9,758 16,653
Purchases of:
- goods and services 35,543,705 29,892,646
- operating fixed assets 643,581 420,354
Sale of units in mutual funds - 10,739,450
Purchase of units in mutual funds 6,800,000 15,500,000
Royalty paid 10,918,059 6,902,567
Technical assistance fee paid 45,853 65,000
Commission income received - 116
Lease rental paid 36,799 33,453
Insurance premium paid 779,341 686,803
Insurance claims received 27,730 14,308
Reimbursement of expenses - net 16,584 14,200
Dividend paid 2,910,829 105,542
Dividend received 1,577,839 2,098,059
Donation paid 207,381 131,030

Other related parties

Contributions paid to gratuity funds,
provident funds / pension schemes 127,359 105,107
Key Management Personnel
- salaries and other employment benefits 235,320 189,784
- sale of assets under company policy 2,006 6,465

18 Quarterly Report December | 2024

 (Unaudited) (Audited)
December 31, March 31,
2024 2024
------- (Rupees in ‘000) -------
14.2 Period / year end balances are as follows:

Receivables from related parties

Long term loans 3,890 6,113
Long term deposits 28,000 28,000
Trade deposits and prepayments 273,798 260,696

Payable to related parties

Lease liabilities 239,797 116,840

Staff retirement benefits 51,097 42,599
Trade and other payables 3,294,681 5,121,741
Dividend payable - 738,323

These are in the normal course of business and are settled in ordinary course of business.

15. CORRESPONDING FIGURES

In order to comply with the requirements of International Accounting Standard

34 - ‘Interim Financial Reporting’, corresponding figures in the condensed interim
statement of financial position comprise of balances as per the audited annual
financial statements of the Company for year ended March 31, 2024 and the
corresponding figures in the condensed interim statement of profit or loss and other
comprehensive income, condensed interim statement of cash flows and condensed
interim statement of changes in equity comprise of balances of comparable period as
per the condensed interim financial statements of the Company for the nine months
period ended December 31, 2023. The corresponding figures have been rearranged
and reclassified due to adoption of guidance as disclosed in note 3.4 and wherever
considered necessary for the purposes of comparison and better presentation the
effect of which is not material.

16. DATE OF AUTHORIZATION

These condensed interim financial information were authorized for issue on

January 30, 2025 by the Board of Directors of the Company.

Aamir H. Shirazi Saquib H. Shirazi Danyal Ahmed Rasheed

Chairman Chief Executive Officer Chief Financial Officer

Atlas Honda Limited 19

20 Quarterly Report December | 2024