OXFORD BROOKES UNIVERSITY
An analysis of the financial situation of ATLAS HONDA Ltd.
The topic chosen by me for the research and analysis project is AN ANALYSIS OF THE FINANCIAL SITUATION OF YOUR CHOICE OF ORGANISATION. The reason for choosing this topic is that I am very comfortable with financial techniques and methods that are used to carry out financial analysis. Financial courses covered in ACCA part 1 and 2 were of key interest to me. The organization selected for the financial analysis is ATLAS HONDA LIMITED being the market leader in the motorcycle industry in Pakistan. The company attracted me to be selected for the project because the company is the leading company in the motorcycle industry with few unestablished competitors. The company is a public limited company with an annual turnover of Rs6,977.4 millions, which makes it a leading company of public sector in our country. As the project is related with financial analysis of the company it is easier for me to apply the financial tools learned in ACCA. It is easier for me to examine the financial position of Atlas Honda Ltd, as the management of the company is willing to provide me with sufficient financial data that will aid in carrying out a financial analysis. As this is public limited company information related to the company is also available through different magazines, government agencies, credit rating agencies (pacra), industry experts and websites. Atlas Honda Ltd is a company of Atlas group of companies. The foundation of the Atlas Group was laid in 1962 with the establishment of Shirazi Investments (Pvt) Limited with a capital of half a million rupees and three men doing business in trading shares and real estate. (www.atlasgrouppk.com) Atlas Honda Ltd was incorporated as a public limited company on October 16, 1962 and its shares are listed on Karachi and Lahore Stock Exchanges in Pakistan. Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan. The merger of Panjdarya Limited and Atlas Autos Ltd created the company in 1991. The Atlas Group established both these motorcycle-manufacturing concerns. (www.atlasgrouppk.com) Atlas management is striving to modernize company operations by adapting applicable aspects of research and theory and more specially, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology. (www.atlasgrouppk.com) Atlas Honda Ltd is a dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service. The company ensures attractive returns to equity holders, reward employees according to their ability
and performance. Atlas Honda Ltd fosters a network of researchers and engineers ensuing unique contribution to the development of the industry. The company ensures customer satisfaction and protection of the environment by producing emission friendly green products. The company aims to remain a good corporate citizen fulfilling its social responsibilities in all respects. Atlas Honda Ltd also received the best corporate report excellence awards in the engineering sector by the joint committee of ICAP/ICMAP. (Annual Report 2003) The company quality is gaining greater acceptance globally year after year the company takes it as a national cause to make “MADE IN PAKISTAN” accepted and Atlas Honda Ltd respected all the over world. An increase of 52% in exports on year-to-year basis is an indication of the growing popularity of the company products globally. Atlas Honda Ltd as being a market leader in motorcycle industry recognized the fact that excellence in business is dependent on the quality of human resource. As a result the company has continued to invest in development of its manpower over the years. The company has a well spread out service...
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