1. Presenter : Muhammad Faisal Shaikh
Student ID : SP11-MB-0101
Financial Analysis of the Company

2. Atlas Honda Intro
• Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co.
Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos
Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas
Group.
• Annual Production Capacity
• 1,200,000
• Authorized Capital
• 1 Billion (rupees)
• Paid Up Capital
• 625.52 Million
• Karachi Plant
• Company mother plant is based in the city of lights and provincial capital of Sindh, The
Karachi city. In 1964, production began with 7 motorcycles per day. Now plant production has
reached to 400 units in a day. Plant manufactures CD 70 only.
• Sheikhupura Plant
• Another plant is situated in Sheikhupura city, Punjab. The plant manufactures all four models
i.e. CD 70, CD 100, CG 125 and CG 125 Deluxe.

3. Analysis of the Financial Statements
Balance Sheet
Assets 2011 2010 2009 2008 2007 2006
--------------- Rupees in ‘ 000 ‘ ----------------------
Non Current Assets
Property, plant and equipment 3,259,193 3,224,897 3,412,901 3,376,605 3,566,931 3,598,732
Intangible assets 7,137 8,053 16,601 14,813 24,324 29,090
Long-term investments - available for sale - - - - 51,761 -
Long-term loans and advances 22,403 18,810 14,359 14,043 12,943 17,097
Long-term deposits 10,765 11,336 8,964 13,503 15,900 11,027
Total Non-Current Assets 3,299,498 3,263,096 3,452,825 3,418,964 3,671,859 3,655,946
Current Assets
Stores, spares and loose tools 325,891 322,592 428,188 417,564 407,730 379,380
Stock-in-trade 2,003,029 1,664,297 1,792,036 1,862,069 1,580,925 1,937,675
Trade debts 401,435 445,689 320,180 407,354 282,249 280,448
Loans and advances 33,525 40,485 37,646 39,354 20,553 51,360
Trade deposits and prepayments 36,936 39,079 64,637 223,229 5,075 2,998
Investments at fair value through profit or
loss 1,338,474 1,088,996 455,816 1,377,300 864,989 327,317
Accrued mark-up / interest 8,517 4,513 520 812 90 543
Other receivables 15,075 11,566 101,071 169,838 45,543 38,075
Income tax receivable 68,050 - 91,308 - 138,179 88,892
Cash and bank balances 2,090,800 1,641,963 636,426 504,138 919,623 682,088
Total Current Assets 6,321,732 5,259,180 3,927,828 5,001,658 4,264,956 3,788,776
Total Assets 9,621,230 8,522,276 7,380,653 8,420,622 7,936,815 7,444,722

4. Equity and Liabilities 2011 2010 2009 2008 2007 2006
Share Capital and Reserves
Share capital 625,522 543,932 472,985 472,985 411,291 357,644
Reserves 2,622,118 2,622,118 2,622,118 2,227,118 2,009,004 1,586,118
Unappropriated profits 1,374,774 725,774 226,159 704,066 555,526 665,168
Total Share Capital and Reserves 4,622,414 3,891,824 3,321,262 3,404,169 2,975,821 2,608,930
Long-Term Liabilities
Long-term borrowings -------- 512,500 375,000 1,268,521 1,109,267 1,590,097
Deferred liabilities 649,354 600,015 575,862 697,517 559,487 419,689
Total Long-Term Liabilities 649,354 1,112,515 950,862 571,004 1,668,754 2,009,786
Current Liabilities
Trade and other payables 4,255,584 3,109,999 2,646,221 3,247,381 2,796,376 2,369,727
Accrued mark-up / interest 6,378 37,384 72,328 49,829 57,035 69,088
Short-term finances - - - - - 18,263
Current portion of long-term borrowings 87,500 362,500 389,980 436,751 465,829 368,928
Provision for taxation - 8,054 - 13,971 - -
Total Current Liabilities 4,349,462 3,517,937 3,108,529 3,747,932 3,292,240 2,826,006
Total Equity and Liabilities 9,621,230 8,522,276 7,380,653 8,420,622 7,936,815 7,444,722

5. Verical & Horizontal Analysis of the Financial Statements
Balance Sheet
<------------Vertical Analysis ----------> <--------------Horizontal Analysis------------->
Particulars 2011 2010 2009 2008 2007 2006
2011
vs
2010
2010
vs
2009
2009
vs
2008
2008
vs
2007
2007
vs
2006
2006
vs
2005
Assets % % % % % % % % % % % %
Non Current Assets
Property, plant and equipment 33.9 37.8 46.3 40.1 44.9 48.3 1.1 (5.5) 1.1 (5.3) (0.9) 90.5
Intangible assets 0.1 0.1 0.2 0.2 0.3 0.4 (11.4) (51.5) 12.1 39.1 16.4 55.4
Long-term investments - available for sale 0.0 0.0 0.0 0.0 0.7 0.0 0.0 0.0 0.0 (100.0) 100.0 0.0
Long-term loans and advances 0.2 0.2 0.2 0.2 0.2 0.2 19.1 31.0 2.3 8.5 (24.3) 40.5
Long-term deposits 0.1 0.1 0.1 0.2 0.2 0.1 (5.0) 26.5 33.6 (15.1) 44.2 90.6
Total Non-Current Assets 34.3 38.2 46.8 40.7 46.3 49.0 1.1 (5.5) 1.0 (6.9) 0.4 89.9
Current Assets
Stores, spares and loose tools 3.4 3.8 5.8 5.0 5.1 5.1 1.0 (24.7) 2.5 2.4 7.5 67.5
Stock-in-trade 20.8 19.5 24.4 22.1 19.9 26.0 20.4 (7.1) (3.8) 17.8 (18.4) 23.6
Trade debts 4.2 5.2 4.3 4.7 3.6 3.8 (9.9) 39.2 21.4 44.3 0.6 100.7
Loans and advances 0.3 0.5 0.5 0.5 0.3 0.7 17.2 7.5 (4.3) 91.5 (60.0) 37.7
Trade deposits and prepayments 0.4 0.5 0.9 2.7 0.1 0.0 (5.5) (39.5) (71.3) 4298.6 69.3 (55.9)
Investments at fair value through profit or
loss 13.9 12.8 6.2 16.4 10.9 4.4 22.9 138.9 (66.9) 59.2 164.3 (20.2)
Accrued mark-up / interest 0.1 0.1 0.0 0.0 0.0 0.0 88.7 767.9 (36.0) 802.2 (83.4) (68.7)
Other receivables 0.2 0.1 1.3 1.9 0.6 0.5 30.3 (88.6) 40.4 272.9 19.6 (72.3)
Income tax receivable 0.7 0.0 1.2 0.0 1.7 1.2 100.0 (100.0) 100.0 (100.0) 55.4 100.0
Cash and bank balances 21.7 19.3 8.6 6.0 11.5 9.3 27.3 158.0 26.2 (45.2) 34.8 (52.4)
Total Current Assets 65.7 61.8 53.2 59.3 53.7 51.0 20.2 33.9 (21.5) 17.3 12.6 (4.3)
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 12.9 15.5 (12.4) 6.1 6.6 26.5

6. Equity and Liabilities
Share Capital and Reserves
Share capital 6.5 6.4 6.4 5.6 5.2 4.8 15.0 15.0 0.0 15.0 15.0 40.0
Reserves 27.3 30.8 35.5 26.4 25.3 21.3 0.0 0.0 17.7 10.9 26.7 31.7
Unappropriated profits 14.3 8.5 3.1 8.4 7.0 8.9 89.4 220.9 (67.9) 26.7 (16.5) 7.5
Total Share Capital and Reserves 48.1 45.7 45.0 40.4 37.5 35.0 18.8 17.2 (2.4) 14.4 14.1 25.5
Long-Term Liabilities
Long-term borrowings 0.0 6.0 5.1 8.3 14.0 21.4 (100.0) 36.7 (46.2) (37.1) (30.2) 70.4
Deferred liabilities 6.7 7.0 7.8 6.8 7.0 5.6 8.2 4.2 0.9 2.1 33.3 118.8
Total Long-Term Liabilities 6.7 13.0 12.9 15.1 21.0 27.0 (41.6) 17.0 (25.0) (24.0) (17.0) 78.7
Current Liabilities
Trade and other payables 44.2 36.5 35.8 38.5 34.9 31.9 36.8 17.5 (18.5) 16.5 18.0 1.8
Accrued mark-up / interest 0.1 0.4 1.0 0.6 0.7 0.9 (82.9) (48.3) 45.2 (12.6) (17.4) 299.8
Short-term finances 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 (100.0) 100.0
Current portion of long-term borrowings 0.9 4.3 5.3 5.2 5.9 5.0 (75.9) (7.0) (10.7) (6.2) 26.3 59.0
Provision for taxation 0.0 0.1 0.0 0.2 0.0 0.0 (100.0) 100.0 (100.0) 100.0 0.0 (100.0)
Total Current Liabilities 45.2 41.3 42.1 44.5 41.5 38.0 23.6 13.2 (17.1) 13.8 16.5 5.4
Total Equity and Liabilities 100.0 100.0 100.0 100.0 100.0 100.0 12.9 15.5 (12.4) 6.1 6.6 26.5

7. Analysis of the Financial Statements
Profit and Loss Account
Particulars 2011 2010 2009 2008 2007 2006
Profit and Loss Account
Sales 32521399 25554772 13747820 20855535 16608413 17420263
Cost of sales (30080978) (23555842) (12782165) (19298994) (15044640) (15790546)
Gross profit 2440421 1998930 965655 1556541 1563773 1629717
Distribution cost (815463) (690794) (271346) (267483) (371569) (343087)
Administrative expenses (310742) (264739) (165648) (227759) (209261) (185232)
Other operating income 299337 239047 89744 263870 150681 173035
Other operating expenses (109597) (92600) (13849) (68878) (60772) (75762)
Profit from operations 1503956 1189844 604556 1256291 1072852 1198671
Finance cost (93475) (112613) (251777) (252091) (269337) (151611)
Net profit before taxation 1410481 1077231 352779 1004200 803515 1047060
Taxation (407925) (364773) (128246) (301191) (249924) (370228)
Net profit after taxation 1002556 712458 224533 703009 553591 676832

8. Vertical & Horizontal Analysis of the Financial Statements
Profit and Loss Account
Particlulars 2011 2010 2009 2008 2007 2006
2011
vs
2010
2010
vs
2009
2009
vs
2008
2008
vs
2007
2007
vs
2006
2006
vs
2005
% % % % % % % % % % % %
Sales 100 100 100 100 100 100 27.3 85.9 -34.1 25.6 -4.7 23.4
Cost of sales -92.5 -92.2 -93 -92.5 -90.6 -90.6 27.7 84.3 -33.8 28.3 -4.7 23.6
Gross profit 7.5 7.8 7 7.5 9.4 9.4 22.1 107 -38 -0.5 -4 21.2
Distribution cost -2.5 -2.7 -2 -1.3 -2.2 -2 18 154.6 1.4 -28 8.3 13.5
Administrative expenses -1 -1 -1.2 -1.1 -1.3 -1.1 17.4 59.8 -27.3 8.8 13 29.5
Other operating income 0.9 0.9 0.7 1.3 0.9 1 25.2 166.4 -66 75.1 -12.9 0.9
Other operating expenses -0.3 -0.4 -0.1 -0.3 -0.4 -0.4 18.4 568.6 -79.9 13.3 -19.8 -21.7
Profit from operations 4.6 4.7 4.4 6 6.5 6.9 26.4 96.8 -51.9 17.1 -10.5 23.1
Finance cost -0.3 -0.4 -1.8 -1.2 -1.6 -0.9 -17 -55.3 -0.1 -6.4 77.7 122.8
Net profit before taxation 4.3 4.2 2.6 4.8 4.8 6 30.9 205.4 -64.9 25 -23.3 15.6
Taxation -1.3 -1.4 -0.9 -1.4 -1.5 -2.1 11.8 184.4 -57.4 20.5 -32.5 20
Net profit after taxation 3.1 2.8 1.6 3.4 3.3 3.9 40.7 217.3 -68.1 27 -18.2 13.3

9. 6 Years performance Ratio Analysis
Particulars 2011 2010 2009 2008 2007 2006
Profitability Ratios
9 months
Gross profit margin % 7.5 7.8 7.0 7.5 9.4 9.4
Profit before tax margin % 4.3 4.2 2.6 4.8 4.8 6.0
Net profit margin % 3.1 2.8 1.6 3.4 3.3 3.9
Return on capital employed % 32.2 26.7 14.1 24.6 20.9 24.6
Return on equity - before tax % 30.5 27.7 14.2 29.5 27.0 40.1
Return on equity - after tax % 21.7 18.3 9.0 20.7 18.6 25.9
Return on assets % 10.4 8.4 3.0 8.3 7.0 9.1
EBITDA margin % 6.1 6.4 6.2 7.8 9.3 9.1
Equity Ratio
Cash dividend per share (declared) Rs. 6.5 5.0 3.0 6.5 6.0 6.0
Stock dividend per share (bonus shares
declared for the year) Rs. 1.5 1.5 1.5 0.0 1.5 1.5
Bonus shares declared for the year in 000
9385 8159 7095 0 6169 5365
Earnings per share Rs. 16.0 13.1 4.8 14.9 11.7 14.3
Price earning ratio Times
8.8 10.9 18.7 14.1 13.5 15.5
Market price per share as at year end Rs. 141.8 142.5 88.8 210.0 158.0 221.1
Market price per share for the year
maximum value Rs. 172.5 154.2 211.9 237.0 248.9 327.9
minimum value Rs. 92.0 56.9 87.4 138.5 108.1 193.1

10. Efficiency Ratios
Assets turnover Times 3.4 3.0 1.8 2.4 2.1 2.3
Fixed assets turnover Times 10.0 7.9 4.0 6.1 4.6 4.8
Inventory turnover Times 12.9 11.9 5.8 8.5 7.6 6.8
Debtors turnover Times 81.0 57.3 42.9 51.2 58.9 62.1
Creditors turnover Times 7.1 7.6 4.8 6.0 5.4 6.7
Capital employed turnover Times 7.0 8.5 3.7 5.1 4.1 4.1
Operating Cycle
Period of inventory holding Days 28.0 31.0 48.0 43.0 48.0 54.0
Period of collection from debtors Days 5.0 5.0 7.0 6.0 6.0 4.0
Period of payments to creditors Days (45.0) (45.0) (64.0) (57.0) (65.0) (54.0)
Operating cycle Days (12.0) (9.0) (9.0) (8.0) (11.0) 4.0
Liquidity / Leverage Ratios
Current ratio Times 1.5 1.5 1.3 1.3 1.3 1.3
Quick ratio Times 0.9 0.9 0.6 0.8 0.7 0.6
Debt to equity Times 0.1 0.2 0.2 0.3 0.5 0.8
Total liabilities to equity Times 1.1 1.2 1.3 1.6 1.7 1.9
Interest cover Times 18.4 12.0 2.4 5.0 3.1 5.5

11. Profit & Loss Statement for period of 2011-12 ( Forecasted )
Particulars % In Thousand
Sales (12% GM Growth Applied )
100% 36,423,967
Cost of Sales
-92.5 (33,692,169)
Gross Profit
7.5 2,731,798
Distribution Cost
-2.5 (910,599)
Administration Expense
-1 (364,239)
Other Operating Income
0.9 327,815
Operating Expense -0.3 (109,271)
Profit from Operation 4.6 1,675,504
Finance Cost -0.3 (109,272)
EBT 4.3 1,566,232
Tax -1.3 (473,511)
EAT 3 1,092,721

12. Date Open High Low Close Volume
01/03/2012 134.00 134.95 133.75 134.95 1989
02/03/2012 134.85 137.00 134.85 137.00 3950
05/03/2012 138.00 142.45 137.00 142.45 897
06/03/2012 138.03 141.00 138.03 140.75 1985
07/03/2012 141.50 142.75 140.00 140.52 2648
08/03/2012 140.00 140.70 140.00 140.70 235
09/03/2012 139.70 141.80 139.70 141.00 1592
12/03/2012 140.01 141.00 140.01 140.01 560
13/03/2012 141.00 141.00 139.50 139.50 1501
14/03/2012 140.00 146.77 140.00 146.77 7487
15/03/2012 144.00 149.00 144.00 148.50 677
16/03/2012 148.00 148.00 146.10 146.15 429
19/03/2012 144.90 145.00 139.26 143.00 2560
20/03/2012 143.00 143.00 141.00 141.00 1150
21/03/2012 144.00 144.00 141.50 141.50 500
22/03/2012 143.00 143.89 143.00 143.89 110
26/03/2012 144.00 145.00 144.00 145.00 500
27/03/2012 143.00 144.00 143.00 144.00 250
28/03/2012 144.00 144.00 142.00 143.90 790
29/03/2012 142.23 144.85 142.23 144.85 45
30/03/2012 145.00 145.00 145.00 145.00 125
Karachi Stock Exchange
ATHL Stock Performance for the month of March 2012

13. Q.1 What will be the price of the share if Cash Dividend 65% and Bonus
share 15% as per last year Dividend ratio with zero growth in dividend?
Assume Price of the Market Price is Rs. 130 & 100 Shares lot
100 share x 15% Bonus share = 15 Bonus share
15 share x 130 Market Price = 1950 Total Bonus Share value
100 shares x 10 par value = 1000
1000 Total par value x 65 % Cash Dividend = 650 Total Cash Dividend

14. Q.2 What will be the price of the share according to P/E Ratio & EPS?
EAT 2012 (Forecasted ) is 1,092,718
Total No. of Shares (2011) 62,552.2
15% Bonus share(2012) 9,382.8
Total No. of share (Adjusted) 71,935

15. Q3. Dividend Yield after one year previous slide data input on 100 Share lot

16. Thank You