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Objectives of the company
Customer
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.
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.
Employees
To enhance and continuously up-date 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.
Basis of Preparation of financial statements of the company
Statement of compliance
These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan. Approved accounting standards comprise of such
International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board as are notified under the Companies Ordinance, 1984, provisions of and
directives issued under the Companies Ordinance, 1984. In case requirements differ, the
provisions or directives of the Companies Ordinance, 1984 shall prevail.
Accounting convention
These financial statements have been prepared under the historical cost convention except for
certain financial instruments, which are carried at their fair values and staff retirement benefits
which is carried at present value.
Functional and presentation currency
These financial statements are presented in Pak Rupees, which is the Company's functional
currency. All financial information presented in Pak Rupee has been rounded off to the nearest
thousand.
Use of estimates and judgments
The preparation of financial statements in conformity with the above requirements also require
the use of certain critical accounting estimates. It also requires management to exercise its
judgment in the process of applying the Company's accounting policies.
I can find this information in the Notes to the Financial Statements of company in the annual
report of Atlas Honda.
Why notes to the financial statements are important?
I think the notes to the financial statements are important for an effective analysis of company’s
financial statements because notes to financial statements are informative disclosures attach to
the end of financial statements. They provide important information concerning such matters
as depreciation and inventory methods used, details of debt, leases, income taxes, contingent
liabilities, methods of consolidation, and other matters. Notes are considered an integral part
of the financial statements.
Here are just a few examples of the type of notes you may find in annual financial statements:
Information about the Company

Your annual financial statement will include a lengthy explanation about your company and its
activities for the year. But notes to other financial statements will include a brief paragraph
about your company, and also list the company’s legal status.
Significant Accounting Policies

This section is designed to give readers of annual financial statements more context about the
information provided in the report. The notes in this section describe the principles and
procedures used in accounting processes, such as GAAP. It will also list any subsidiaries or
affiliates that are part of the annual financial statements, and will include information about
currency translations for multinational companies.
Does the company have a clean audit report? If not, why not?
Yes, company has a clean audit report. They conducted their audit in accordance with the
auditing standards as applicable in Pakistan and their statements are free of any material
misstatement.
Based on the company financial statements, is the company

increasing or decreasing in size (state how you decided this)?
On the basis of company financial statements, Net Sales increased by 6% driven by volumetric
growth and pricing impact. However, the devaluation of currency and increase in raw material
prices has shrunk the net profit by 31%. This translated in net profit margin of 3.9% which
resulted in return of equity of 20.9%.As I seen that cost of sales increased comparatively as
increased in revenue. The main reason currency devaluation and increase in raw material.
Result in gross profit margin declined from 9.5% to 8.0%.
How is the company financed? Is it financed by debt and equity or

equity alone?
Company is financed with both debt and equity.
Do you think the annual report is useful to all stakeholders?

I think annual report is very useful because annual report is a comprehensive report on a
company's activities throughout the preceding year. Annual reports are intended to give
shareholders and other interested people information about the company's activities
and financial performance. Because every stakeholder want to know how well the company is
doing Are earnings higher, lower, or the same as the year before? How are sales doing? These
numbers should be presented clearly in the financial section of the annual report.
How do you consider the annual report could be improved?

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Objectives of the company

Basis of Preparation of financial statements of the company

Why notes to the financial statements are important?

Information about the Company

Significant Accounting Policies

Based on the company financial statements, is the company

How is the company financed? Is it financed by debt and equity or

Do you think the annual report is useful to all stakeholders?

How do you consider the annual report could be improved?

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