THIRD QUARTER REPORT DECEMBER 2021
THIRD QUARTER REPORT DECEMBER 2021
CONTENTS
Management / Company's Structure
Company Information | 01 |
Review Report
Chairman's Review | 02 |
Condensed Interim Financial Statements
Condensed Interim Statement of Financial Position | 05 |
Condensed Interim Statement of Profit or Loss | 06 |
Condensed Interim Statement of Comprehensive Income | 07 |
Condensed Interim Statement of Changes in Equity | 08 |
Condensed Interim Statement of Cash Flows | 09 |
Notes to and Forming Part of the Condensed Interim Financial Statements | 10 |
Chairman's Review (Urdu) | 23 |
Honda Dealers' Network | 24 |
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Company Information
Board of Directors
Mr. Aamir H. Shirazi
Mr. Hironobu Yoshimura
Mr. Saquib H. Shirazi
Mr. Katsumi Kasai
Mr. Eihiko Sato
Mr. Kazunori Shibayama
Mr. Muhammad Naeem Khan
Mr. Ariful Islam
Ms. Rie Mihara
Company Secretary
Mr. Maqsood-ur-Rehman Rehmani
Chief Financial Officer
Mr. Hamood ur Rahman Qaddafi
Audit Committee | |
Mr. Muhammad Naeem Khan | Chairman |
Mr. Saquib H. Shirazi | Member |
Mr. Eihiko Sato | Member |
Mr. Kazunori Shibayama | Member |
Human Resource And | |
Remuneration Comittee | |
Mr. Muhammad Naeem Khan | Chairman |
Mr. Saquib H. Shirazi | Member |
Mr. Hironobu Yoshimura | Member |
Mr. Katsumi Kasai | Member |
Mr. Eihiko Sato | Member |
Executive Committee | |
Mr. Hironobu Yoshimura | |
Mr. Katsumi Kasai | |
Mr. Maqsood-ur-Rehman Rehmani | |
Head Of Internal Audit | |
Mr. Imran Farooq | |
Bankers | |
Allied Bank Limited | |
Citibank N.A. | |
Faysal Bank Limited | |
Habib Bank Limited |
Meezan Bank Limited
National Bank of Pakistan
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited
United Bank Limited
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Auditors
M/s A. F. Ferguson & Co.
Chartered Accountants
Legal Advisor
Cornelius, Lane & Mufti
Bokhari Aziz & Karim
Registered Office
1-Mcleod Road, Lahore, Pakistan
Tel: +92 42 37 225015-17
Fax: +92 42 37233518
Factory
43 Km, Multan Road,
Manga Mandi, Lahore, Pakistan
Tel: +92 42 35384671-80
Fax: +92 42 35384691-92
E-mail: info@honda.com.pk
Regional Offices
Asia House,
Main Ferozepur Road.
Tel: +92 42 35694851-53
Fax: +92 42 35694854
5th Floor,Tower-A Technology Park, Shahrah-e-Faisal.
Tel: +92 21 32785411-14
Third Quarter Report December 2021
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Chairman's Review
I am pleased to present the condensed interim financial statements of the Company for the nine months ended December 31, 2021.
MACROECONOMIC OVERVIEW
The resurgence of the pandemic, owing to a new variant, has sharply augmented uncertainty around global economic prospects. Pakistan has, however, successfully managed previous waves and the Government is taking swift measures to curtail the spread of new variant. The economic recovery, which was underway since FY21, continues as reflected by most indicators of domestic demand. With the current momentum, the Country is expected to achieve the targeted GDP growth of more than 4%. On the fiscal front, revenue growth has been strong, driven by broad based and above target increase in tax collections. Revenue collection was recorded at Rs 2.92 trillion representing growth of 32.5%. The government has also recently passed the "Finance (Supplementary) Bill" which took more measures to increase collections through elimination of tax credits and reduction in development expenditures.
Inflation remains a key challenge as it reached 12.3%, reflecting growth in domestic demand. On the external front, persistently high commodity prices and strong domestic activity kept the current account deficit elevated at USD 9.1 billion at 6MFY22 against surplus of USD 1.9 billion in corresponding period last year. Export grew significantly by 25% to reach USD 15.1 billion. In comparison, imports climbed up by 66% to reach USD 40.7 billion resulting in trade deficit of USD 25.5 billion, up by over 100%. The rising trade deficit was partly offset by remittances which added USD 15.8 billion for 6MFY22 a growth of 11.3%. However, the burden of adjusting to these external pressures has largely fallen on the rupee which weakened from 158 at the start of FY22 to 176.5 at the end of December 2021. The State Bank of Pakistan increased the policy rate by 250 basis points to counter inflationary pressures and preserve growth stability.
The performance of agriculture sector is still promising. Production levels of all major kharif crops are estimated to have reached an all-time high. Agriculture credit disbursement recorded an increase of 3.9% and reached Rs 488.5 billion. Better input situation, supported by better seed availability and credit facility, is expected to make prospects of crops in Rabi season promising. In the absence of any adverse climate shock, the agriculture sector is expected to exceed the initial growth target of 3.5%. This, coupled with significant rise in global prices, is expected to yield a steady growth in farm income. As a result, demand for consumer durables should remain positive in the rural areas.
LARGE SCALE MANUFACTURING
Large Scale Manufacturing (LSM) registered moderate growth of 3.6% in 4MFY22. Indicators of demand including electricity generation, cement dispatches, sales of consumer goods and petroleum products continue to depict a positive growth momentum. This is mirrored in the strength of imports and tax collection. On the other hand, energy tariff hikes, increase in raw material cost, global supply chain disruptions and gas shortages have significantly affected production costs.
AUTOMOBILE INDUSTRY
The automotive industry of Pakistan has lately been a fast-growing sector with an influx of modern vehicles. Compared to pre-pandemic levels, the market has effectively recovered to embark on a new level with robust demand, especially from the SUV segment. The supply chain disruptions, however, continue to undermine the Industry's production capability. The exposure of the auto industry towards foreign exchange risk has always been a concern. Since the beginning of the second quarter, the floating exchange rate has proved to be highly volatile with aggressive fluctuations rendering input costs unpredictable. Emerging global inflation has further intensified the adverse impacts along with unprecedented rise in ocean freights . The
Third Quarter Report December 2021 | 2 | Empowering The Green Dream |
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Honda Atlas Cars (Pakistan) Limited published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 07:18:03 UTC.