Report - Annual Report - 2019-1 - Suzuki

ANNUAL REPORT 2019
TABLE OF
02 Our Vision & Mission 64 Notice of Meeting

06 Company Information 72 Review Report on Statement of
10 Company Profile Compliance with the Code of
14 Code of Conduct Corporate Governance
16 Milestones 73 Auditors’ Report
20 Highlights of the Accounts 80 Statement of Financial Position
22 Highlights of the Accounts 82 Statement of Profit or Loss
Segment Wise 83 Statement of Comprehensive
24 6 Years at a Glance Income
26 Horizontal Analysis of 84 Statement of Changes in Equity
Balance Sheet 85 Statement of Cash Flows
27 Horizontal Analysis of 86 Notes to the Financial
Profit or Loss Account Statements
28 Vertical Analysis of 148 Pattern of Shareholding
Balance Sheet 152 Dealer Network
29 Vertical Analysis of 158 Directors’ Report (Urdu)
Profit or Loss Account 162 Chairman’s Review (Urdu)
30 Statement of Value Addition 163 Form of Proxy
& its Distribution 165 Electronic Dividend
34 Visits & Events Mandate Form
39 Inauguration of Dealerships
42 Chairman’s Review
54 Directors’ Report
62 Statement of Compliance
with the Code of
Corporate Governance
2 Annual Report 2019 Pak Suzuki Motor Company Limited 3

Vision
To be recognized as a leading organization that values customers’
needs and provides motoring solutions with strong customer care.
Mission
• Develop products of superior value by focusing on the customer
• Establish a refreshing and innovative company through teamwork
• Strive for individual excellence through continuous improvement
The interior of the all new Alto is designed modern and spacious.
Whether you’re driving in the town or going for a long drive, you will be pleased to
recline and relax in the spacious interior of the car.

Company Information
Board of Directors Bankers

Kinji Saito Chairman Bank Alfalah Ltd.
Masafumi Harano Chief Executive Bank Al Habib Ltd.
Tadashi Homma Dy. Managing Director Citibank N.A.
Shigeo Takezawa Director Habib Bank Ltd.
Kazuyuki Yamashita Director Habib Metropolitan Bank Limited
Moin M. Fudda Director MCB Bank Ltd.
Rukhsana Shah Director National Bank of Pakistan
Standard Chartered Bank (Pakistan) Ltd.
Chief Financial Officer
Miki Nakahara Registered Office
DSU-13, Pakistan Steel Industrial
Company Secretary Estate, Bin Qasim, Karachi.
Abdul Nasir Tel No. (021) 34723551 - 58
Fax No. (021) 34723521 - 22
Audit Committee Website: www.paksuzuki.com.pk
Moin M. Fudda Chairman
Kinji Saito Member Regional Offices
Shigeo Takezawa Member
Lahore Office:
Human Resource and Remuneration 7-A, Aziz Avenue, Canal Bank Road,
(HR & R) Committee Gulberg V, Lahore.
Rukhsana Shah Chairman Tel No. (042) 35775456, (042) 35775457
Kinji Saito Member Fax No. (042) 35775467
Masafumi Harano Member
Rawalpindi Office:
Auditors 3rd Floor, 112-B Mallahi Plaza,
KPMG Taseer Hadi & Co. Chartered Accountants Murree Road, Rawalpindi Cantt.
Tel No. (051) 5130230 - (051) 5130229
Registrar Fax No. (051) 5130232
CDC Share Registrar Services Limited
CDC House, 99 - B, Block “B”, S.M.C.H.S, Main Multan Office:
Shahrah-e-Faisal Karachi. 402, 4th Floor United Mall, Abdali Road Multan.
Tel No. (061)-4586499
Legal Advisors Fax No. (061)-4516765
M/s Shahid Anwar Bajwa & Co.
ORR Dignam & Company

With the improved R series engine (R06A Type), high power-to-weight ratio, increased strength and
the aerodynamic shape, the all new Alto is a highly reliable and fuel-efficient hatchback vehicle.

Company Profile
Location performed in early 1989 by the Prime Minister then

Downstream Industrial Estate of Pakistan Steel, in office. By early 1990, on completion of first phase
Karachi of this plant, in-house assembly of all the Suzuki
engines started. In 1992, the plant was completed
and production of the Margalla Car commenced.
Total Area
259,200 m 2 (64 acres) Under the Government’s privatization policy, the
Company was privatized and placed under the
Facilities Japanese management in September 1992. At the time
Press Shop, Welding Shop, Paint Shop, Plastic Shop, of privatization, SMC increased its equity from 25%
Engine and Transmission Assembly Shop, Final to 40%. Subsequently, SMC progressively increased
Assembly & Hi-Tech Inspection Shop. The Company its equity to 73.09% by purchasing remaining shares
has also established a modern Waste Water Treatment from PACO. The Suzuki Management immediately
Plant as its contribution to the preservation of after privatization started expansion of the existing
environment. plant to increase its installed capacity to 50,000 per
annum. The expansion was completed in July 1994.
Cost
However the capacity remained substantially under-
Rs. 32.094 billion
utilized until 2002 because of economic recession.
Thereafter realizing growth in demand, the Company
Production Capacity (double shift) increased capacity in phases. The first phase was
completed in January 2005 when capacity was
Car & LCV’s Plant enhanced to 80,000 vehicles. The second phase was
150,000 units per annum completed in January 2006 and capacity was raised
to 120,000. The third phase was completed when on
6th February 2007, Prime Minister of Pakistan, Mr.
Motorcycles Plant
Shaukat Aziz inaugurated 150,000 vehicles capacity
44,000 units per annum
expansion facilities.
Pak Suzuki Motor Company Limited (PSMCL) is a public
On 25th April 2007, the Board of Directors of
limited company with its shares quoted on Pakistan PSMCL and Suzuki Motor Corporation (SMC) Japan The Company continues to be in the fore-front of
Pak Suzuki Motor Company Limited (PSMCL)
Stock Exchange. The Company was formed in August held 41% and 43% shares in SMPL respectively. Pak automobile industry of Pakistan. Over a period of
and Suzuki Motorcycles Pakistan Limited (SMPL)
1983 in accordance with the terms of a joint venture Suzuki issued and allotted 1,233,300 ordinary shares time, the Company has developed an effective and
approved Scheme of Arrangement (The Scheme)
agreement between Pakistan Automobile Corporation of Rs.10/- each to the qualifying shareholders of comprehensive network of sales, service and spare
to amalgamate SMPL into PSMCL with effect from
Limited (representing Government of Pakistan) and SMPL @ one ordinary share in Pak Suzuki for every parts dealers who cater to the needs of customers
1st January 2007. The scheme was approved by the
Suzuki Motor Corporation (SMC) Japan. The Company twenty one shares held by SMPL shareholders as and render effective after-sale service country wide.
shareholders of the respective Companies at the
started commercial production in January 1984 with on the date of final book closure i.e. 29th October
Extra - Ordinary General Meeting held on 30th June
the primary objective of progressive manufacturing, 2007. The trading in shares of SMPL on Karachi Joint Venture Agreement was signed between Pak
2007. The scheme was sanctioned by the Honourable
assembling and marketing of Cars, Pickups, Vans and Lahore Stock Exchanges ceased from the Suzuki Motor Company Limited and Tecno Pack
High Court of Sindh (the court) on 17th September
and 4x4 vehicles in Pakistan. The Company’s same date. Telecom (Private) Limited to set up Tecno Auto Glass
2007. The certified copy of the Order of the Court
long term plans inter-alia include tapping of Limited (“TAG”). TAG’s main area of operations will be
sanctioning the scheme was filed with the Registrar
export markets. The Company setup a new plant for motorcycles manufacturing, development and designing of Auto
Companies Karachi on 1st October 2007, from which
at Bin Qasim. All the operations of motorcycles Glass products to cater local as well as international
date the scheme became operative.
The foundation stone laying ceremony of the have been shifted to the new plant effective markets.
Company’s existing plant located at Bin Qasim was from July 2011.

Code of Conduct
The Code of Conduct shall be applied to all favour when reacting to indications from our evaluated and effective measures will be adopted (7) Environmental Activities
Directors, Officers and Employees of Suzuki customers related to the quality on our products. and widespread amongst Suzuki Group companies In order to succeed the beautiful earth and affluent
Motor Corporation and its consolidated for a growth of the entire group. society to the next generations, we must all realize
subsidiaries (hereinafter collectively referred to as • We will treat aforesaid quality related problems that actions of each and every one of us have a great
“Suzuki Group”) and customers’ indications on quality with Suzuki Group will create basic rules on our work for effect on our earth’s future therefore Suzuki Group
utmost sincerity, and will devote our best efforts the employees to follow. will make every effort to preserve global environment.
Every Suzuki Group company should fully disseminate not to spoil customers’ trust. • We will always think seriously about our • We will endeavour to produce environmentally
this Code of Conduct to its directors, officers and business, take the lead in action and make a friendly products that will be required by our
employees and oblige them to observe it in its For a Better Working Environment proposal to the company when we notice any customers, by contributing to development and
internal rules and/or employment agreement and (3) Respect of Human Right points of improvement. diffusion of environmentally friendly technology.
in case of their breach of this Code of Conduct, it Suzuki Group will be aware of international norms
will be dealt with in accordance with the applicable pertaining to human rights and respect fundamental • We will thoroughly enforce mutual understanding • We will reduce burden on the environment
disciplinary provisions. human rights with reference to laws in each country at our workplace and communicate over and sourced from our workplace and devote our
or region. over again until others comprehend sufficiently. sincere efforts to maintain the environment of
For our customers • We will cooperate with each other as a member our workplace and local community.
(1) Realization of products and services of superior

of Suzuki Group to create a working environment • We will always be conscious of overall
with no discrimination by personal attributes optimization and make efforts to share (8) Refusing relations with antisocial forces
value
Suzuki Group will provide customers with products
or harassment.

information
companies.
between departments and
• Suzuki Group will thoroughly refuse any
and services exceeding their expectation as in line relationships with antisocial forces* and
(4) Occupational Safety - Traffic Safety organizations which are threatening the order
with the spirit “Develop products of superior value by
focusing on the customer” which is listed as the first
Suzuki Group will review the workplace environment • We will observe the business rules provided from and safety of civil society.
to create safe workplace. time to time in each workplace.
item in our “Mission Statement”.
• We will make every effort to provide products • We will never accept any unreasonable demand
and services that will satisfy our customers, by
Suzuki Group will thoroughly carry out education on For Shareholders And All Other from antisocial forces* and organizations on our
standing in our customers’ place at all times.
safety to prevent occurrence of occupational injury. Stakeholders own decision and will always report to or consult
• We will strictly obey rules related to safety so (6) Compliance with our supervisors or related department.
that we can maintain safe workplace and prevent While Suzuki Group acknowledges the existence
(2) Activities on Quality occurrence of occupational injury. of difference in laws related to competition such * “Antisocial forces” means any group or individuals
Suzuki Group will develop and produce high quality
as Antitrust Law and laws related to fair trading by pursuing illicit financial gain by violence, power and
products which customers can use in relief and will
provide after-sales services considering customers’
• We will immediately report to our supervisors for each country or region, Suzuki Group will grasp the fraudulence.
improvement when we notice any problem difference and carry out training on employees to
safety and security with first priority. related to safety at our workplace. observe laws and societal norms in their respective Questions on Code of Conduct?
If by any chance a quality related problem occurs, countries and regions. In case any query or question arose when following
Suzuki Group will devote its sincere efforts to react • We will be conscious that we take part in the • We will observe the content of the guidance this Code of Conduct, please consult with your
automobile industry, observe traffic rules, keep in and training provided by the company on laws
on customer’s voice, grasp the problem at an early supervisor or other responsible person in your
mind to drive vehicles safely as a social norm, and societal norms.
stage and take measures with thorough investigation company. The person who was consulted must
and endeavour to prevent traffic accidents while
into the causes so that the customer can continue make every effort to correspond to the consulter. In
using Suzuki products in relief. on duty or in private.
• We will immediately consult with our supervisors case you could not solve the problem within your
• We will never neglect any quality related problem (5) Promoting Kaizen Activities and Observing
when we notice any noncompliance or departments or within your company, please inform
on our product that may affect our customers’ suspected noncompliance by another employee. the related department or the Secretariat of Corporate
Basic Business Rules
safety or security, noticed during development, In case we think it is improper to consult with Governance Committee at Suzuki Motor Corporation.
Suzuki Group encourages employees to come up
production or after-sales service. our supervisors, we will report to the
with inventive ideas to improve the workplace.
Consultation & Reporting Desk in our company
Suggestions from employees on Kaizen will be
• We will never lead to a conclusion in our own or those provided by Suzuki Motor Corporation.

MILESTONES Inauguration of first phase of capacity expansion Introduction of Suzuki GS 150 SE. Inauguration
2005
2016
(80,000 vehicles) by the Federal Minister for of Suzuki Booking Office & Facilitation Centre.
Production, Industries and Special Initiatives. Achieving Highest Award from SMC-Japan on
Achieved milestone of 100,000 online factory completion of 50,000 units to Government of
fitted CNG Vehicles. The Company received Punjab under “Apna Rozgar Scheme”. Introduced
ISO 14001 : 2004 and OHSAS 18001 : 1999 Suzuki Cultus Limited Edition. Launched Suzuki
Joint Venture Agreement was signed between Shifting of Head Office and production of all
1996 1995 1994

1982
certification from AIB- VINCOTTE International Vitara.

Suzuki Motor Corporation-Japan and Pakistan models to new plant completed. Limited Brussels, Belgium.
Automobile Corporation to set up Pak Suzuki
Motor Co. Ltd. Locally assembled Suzuki SS-80 Second phase of capacity expansion (120,000 Joint Venture Agreement was signed between
2017
2012 2011 2010 2009 2007 2006
(FX) car launched. The paid-up capital was increased again with Vehicles) completed. Production of locally Pak Suzuki Motor Company Limited and Tecno
the issuance of 100% right shares, raising the manufactured LIANA Car. Production of 100,000 Pack Telecom (Private) Limited to set up Tecno
Pak Suzuki as a Public Limited Company capital to Rs. 490 million. vehicles crossed in a calendar year. Auto Glass Limited.
1992 1990 1989 1988 1985 1984 1983
incorporated. Industrial Collaboration Agreement

executed with SMC - Japan. Suzuki Motorcycles Pakistan Ltd. merged with Introduction of Suzuki Ciaz, Suzuki Mega Carry
Taking initiative to control environmental
Pak Suzuki Motor Company. Plant Capacity and Heavy Bike Suzuki GSX-R600 Launching
pollution, the Company set-up waste water
Expanded upto 150,000 Vehicles per year. of New Suzuki Cultus and Suzuki GR150
treatment plant at a cost of Rs. 40 million. The
The Company started commercial operations. Inauguration of New Delivery Yard at Port Qasim,
Joint Venture Agreement ended, PACO divested
Karachi.
its entire shareholding to SMC, raising SMC’s
The 1,000,000th vehicle rolled out from the Pak
equity to 72.8%.
Suzuki Plant. Cargo Van was introduced.
Landmark achievement of 2 million vehicles
2018
The 100,000th vehicle rolled out from the Bin
2003 2002 2001 2000 1999 1997
line - off achieved by Pak Suzuki, Chairman
Mr. Osamu Suzuki, Chairman & CEO of Suzuki Qasim Plant. 1300 cc BALENO was introduced
Suzuki and Advisor to PM graced the ceremony.
Motor Corporation was awarded “Sitara-e- replacing MARGALLA. 1300 cc locally manufactured car Swift was
Pakistan” by Government of Pakistan. introduced. Pak Suzuki Launched Suzuki Finance
Exports of RAVI pickups to Bangladesh Arrangement Program (SFAP).
commenced. Pak Suzuki was Certified on ISO 9001:2015-QMS
1000 cc passenger car SWIFT SA-310, later Inauguration of new motorcycle plant at Bin & ISO 14001:2015-EMS.
on called KHYBER introduced through local Qasim.
manufacturing. 1000 cc passenger car SF-310 CULTUS replacing
KHYBER was introduced. 1000 cc passenger car Introduced All New Suzuki Alto 660cc and
2019
ALTO was introduced. Automatic version of Suzuki Swift 1300cc was Suzuki Gixxer (The Street Sport Bike).
Foundation stone of the new plant at Bin Qasim introduced. New Suzuki Motorcycle “Raider Launched Suzuki Genuine Oil “Super-Efficient”.
was laid by the then Prime Minister of Pakistan, 110cc” was launched replacing “Shogun”. Started export of leather gloves for Heavy Bikes
Mohtarma Benazir Bhutto. Reborn MEHRAN was introduced. CNG version of
Complete range of Suzuki products was customers to European and Japanese Market.
MEHRAN, BOLAN and RAVI were launched.
upgraded to Euro II technology. Introduced an “Exchange Financing Scheme”.
Inaugurated corporate day care center for all
Suzuki Gear Oil marketing started. Suzuki
2015 2014 2013

Operation of the first phase of the new plant at female staff.
New BALENO was introduced. CNG version motorcycle, GD 110 launched. Suzuki heavy
Bin Qasim started with engine and transmission
of BALENO, ALTO and CULTUS launched. The bikes introduced.
assembly.
milestone of 250,000th vehicle from the new
plant crossed. Suzuki WagonR introduced Suzuki Motorcycle
GD 110S launched Suzuki Outboard Motors
New plant commissioned with the production
The Company received ISO 9001 : 2000 introduced.
of three box Sedan passenger car initially SF-
certification from AIB-VINCOTTE International
410 later on SF-413, known as MARGALLA. The
Limited Brussels, Belgium, 20th Anniversary
Company was privatized with SMC acquiring 2400cc Suzuki KIZASHI car introduced. Heavy
Celebrations. Commencement of Component
additional 15% shares from PACO thus enhancing Bike Suzuki Inazuma Aegis Launched. Pak
export to Hungary, Sub-leasing of land to Vendors
its shareholding to 40% and taking over the Suzuki awarded by Ozone Award from Govt. of
Industry of Pak Suzuki adjacent to its assembly
management. Pakistan. Inauguration of Vendor Development
plant.
Program II by Federal Minister. Inauguration of
The paid-up capital was doubled with issuance New Plastic Injection Molding Shop commenced Expansion of Parts Manufacturing Facilities by
1993
2004
of 100% right shares which increased the capital production of Bumpers, Instrument Panels, Federal Minister. Inauguration of Resumption of
to Rs. 250 million. Radiator Grills and Wheel Caps. CNG Fitted Vehicle (Mehran & Cultus) by Federal
Minister.

The back door opens leaving maximum width allowing ease of loading and
unloading. A luggage under box offers storage space for umbrellas and other objects.

Highlights of the Accounts
For the year ended December 31, 2019
Increase/(Decrease) Increase/(Decrease)
2019 2018 Amount % 2019 2018 Amount %
------------------ (Rupees in ’000) ------------------ ------------------ (Rupees in ’000) ------------------
Production volume (Nos.)
- Motorcar 107,999 143,239 (35,240) (24.6)
- Motorcycle 22,737 23,014 (277) (1.2) Other income 222,504 565,943 (343,439) (60.7)
as a % of net sales 0.2 0.5 (0.3)
Sales volume (Nos.)
- Motorcar 113,270 140,313 (27,043) (19.3) Other operating expenses (WPPF & WWF) 348 154,204 (153,856) (99.8)
- Motorcycle 22,589 23,160 (571) (2.5) as a % of net sales 0.0 0.1 (0.1)
Gross Sales 122,186,750 125,842,362 (3,655,612) (2.9) Share of loss from associated company 3,349 3,212 137 4.3
as a % of net sales 0.1 0.1 -
Selling Commission 5,334,195 5,988,464 (654,269) (10.9)
as a % of gross sales 4.4 4.8 (0.4) Profit/(Loss) before taxation (4,951,744) 2,082,936 (7,034,680) (337.7)
as a % of net sales (4.2) 1.7 (5.9)
Net Sales 116,548,013 119,853,898 (3,305,885) (2.8)
Profit/(Loss) after taxation (2,920,485) 1,298,108 (4,218,593) (325.0)
Gross profit 1,984,527 7,044,865 (5,060,338) (71.8) as a % of net sales (2.5) 1.1 (3.6)
as a % of net sales 1.7 5.9 (4.2)
Shareholders' equity 25,950,886 29,232,865 (3,281,979) (11.2)
Distribution expenses 2,539,251 2,706,853 (167,602) (6.2)
as a % of net sales 2.2 2.3 (0.1)
Earnings per share (Rs.) -35.49 15.77 (51.26) -325.0
Administration expenses 2,550,663 2,323,313 227,350 9.8 Break-up value per share (Rs.) 315.32 355.20 (39.88) (11.2)
as a % of net sales 2.2 1.9 0.3
Number of shares issued (000) 82,300 82,300 - -
Reversal/ (provision) of impairment on 22,588 22,233 355 1.6
trade & installment sales Exchange Rate (JPY to PKR) 1.3124 1.0412 0.27 26.1
as a % of net sales - - -
Finance Cost 2,087,752 362,523 1,725,229 475.9 Exchange Rate (USD to PKR) 142.9354 117.5524 25.38 21.6
as a % of net sales 1.8 0.3 1.5
Sales Revenue Breakup - 2019
Sales Revenue Breakup - 2018
Commission 4.8%
4.4%
1.6% Cost of Sales Commision
Gross profit 5.6% Cost of Sales
Gross Profit
89.6%
94.0%

Highlights of the Accounts Segment Wise
CAR DIVISION MOTORCYCLE DIVISION TOTAL
2019 2018 INCREASE/ % 2019 2018 INCREASE/ % 2019 2018 INCREASE/ %
DECREASE DECREASE DECREASE
------------------- (Rupees in ’000) ------------------- ----------- (Rupees in ’000) ----------- ----------------- (Rupees in ’000) -----------------
Production volume (Nos.) 107,999 143,239 (35,240) -25 22,737 23,014 (277) -1 130,736 166,253 (35,517) -21
Sales volume (Nos.) 113,270 140,313 (27,043) -19 22,589 23,160 (571) -2 135,859 163,473 (27,614) -17
Gross Sales 118,519,470 122,532,685 (4,013,215) -3.3 3,667,280 3,309,677 357,603 10.8 122,186,750 125,842,362 (3,655,612) -3
Selling Commission & Discount 5,323,824 5,967,010 (643,186) -11 10,371 21,454 (11,083) -52 5,334,195 5,988,464 (654,269) -11
as a % of gross sales 4.5 4.9 -0.37 0.3 0.6 (0.36) -30 4.38 4.76 -0.38
Net Sales 112,994,512 116,565,675 (3,571,163) -3 3,553,501 3,288,223 265,278 8 116,548,013 119,853,898 (3,305,885) -3
Gross profit 1,693,139 6,724,635 (5,031,496) -75 291,388 320,230 (28,842) -9 1,984,527 7,044,865 (5,060,338) -72
as a % of net sales 1.5 5.8 -4.27 8.2 9.7 (1.54) 1.70 5.88 -4.18
Distribution expenses 2,479,961 2,645,962 (166,001) -6 59,290 60,891 (1,601) -3 2,539,251 2,706,853 (167,602) -6
as a % of net sales 2.2 2.3 -0.08 1.7 1.9 (0.18) 2.18 2.26 -0.08
Administration expenses 2,303,766 2,099,491 204,275 10 246,897 201,589 45,308 22 2,550,663 2,301,080 249,583 11
as a % of net sales 2.0 1.8 0.24 6.9 6.1 0.82 2.19 1.92 0.27
Reversal/ (provision) of impairment on 1,000 5587 - - 21,588 16,798 22,588

trade & installment sales
as a % of net sales - - -
Finance Cost 2,084,717 360,604 1,724,113 478 3,035 1,919 1,116 58 2,087,752 362,523 1,725,229 476
as a % of net sales 1.8 0.3 1.54 0.1 0.1 0.03 1.79 0.30 1.49
Other income 176,011 513,901 (337,890) -66 46,493 52,042 (5,549) -11 222,504 565,943 (343,439) -61
as a % of net sales 0.2 0.4 (0.29) 1.3 1.6 (0.27) 0.19 0.47 -0.28
WPPF & WWF 348 154,204 (153,856) -100 - - - - 348 154,204 (153,856) -100
as a % of net sales 0.0 0.1 (0.13) 0.0 0.0 - 0.00 0.13 -0.13
Share of loss of equity accounted investee 3,349 3,212 137 4 0 0 - - 3,349 3,212 137 4
as a % of net sales 0.0 0.0 0.00 0.0 0.0 - 0.00 0.00 0.00
Profit before taxation -5,001,991 1,975,063 (6,977,054) -353 50,247 107,873 (57,626) -53 (4,951,744) 2,082,936 (7,034,680) -338
as a % of net sales (4.4) 1.7 (6.12) 1.4 3.3 (1.87) -4.25 1.74 -5.99
Profit after taxation -2,970,732 1,190,235 (4,160,967) -350 50,247 107,873 (57,626) -53 (2,920,485) 1,298,108 (4,218,593) -325
as a % of net sales (2.6) 1.0 (3.65) 1.4 3.3 (1.87) -2.51 1.08 -3.59
Earnings per share (Rs.) -36.10 14.46 (51) -350 0.61 1.31 (0.70) -53 (35.49) 15.77 (51) -325
Number of shares issued (000) 82,300 82,300 - 0 82,300 82,300 - - 82,300 82,300 - 0

6 Years at a Glance
2019 2018 2017 2016 2015 2014 2019 2018 2017 2016 2015 2014
------------------------------------ (Rupees in ’000) ------------------------------------

PROFITABILITY RATIOS
OPERATING RESULTS
Gross profit as a % of net sales 1.7 5.9 9.5 9.6 13.6 7.8
Production volume ( Nos.) Profit before taxation
- Motorcar 107,999 143,239 132,725 111,979 134,391 80,384 as a % of net sales -4.2 1.7 5.5 5.8 10.3 4.9
- Motorcycle 22,737 23,014 19,603 18,374 19,610 23,871
Profit/(loss) after taxation
Sales volume ( Nos.)
as a % of net sales -2.5 1.1 3.8 3.6 6.9 3.6
- Motorcar 113,270 140,313 132,548 110,000 133,952 78,005
- Motorcycle 22,589 23,160 19,901 17,946 20,617 23,453 Earning/(loss) per Share (Rs.) (35.5) 15.8 46.5 33.7 71.0 23.4
Sales revenue 116,548,013 119,853,898 101,811,611 76,516,040 84,548,757 53,664,947 LIQUIDATY & LEVERAGE
RATIOS
Gross profit 1,984,527 7,044,865 9,652,573 7,348,577 11,487,448 4,183,699
Profit before taxation (4,951,744) 2,082,936 5,619,214 4,415,236 8,685,171 2,623,394 Current ratio 1.14 1.36 1.92 2.62 2.55 2.53
Profit/(loss) after taxation (2,920,485) 1,298,108 3,825,821 2,772,635 5,842,671 1,921,894 Quick ratio 0.40 0.44 0.79 1.21 1.51 0.88
Dividends (cash/bonus shares) - 260,068 1,530,777 452,649 1,234,498 411,499 Liabilities as a % of total assets 67 52 42 31 34 32
Equity as a % of total assets 33 48 58 69 66 68
Profit retained (2,920,485) 1,038,040 2,295,044 2,319,986 4,608,173 1,510,395
EFFICIENCY RATIOS
CAPITAL EMPLOYED
Inventory turn over ratio 3.1 3.8 3.8 4.2 5.6 3.3
No. of days stock held 120 95 95 86 65 110
Share capital 822,999 822,999 822,999 822,999 822,999 822,999
No. of days sales in trade debts 2.2 0.7 0.8 5.7 6.7 9.2
Reserves 28,069,713 27,109,749 24,898,931 22,619,294 18,009,762 16,488,378 Total assets turn over ratio 1.5 1.9 2.0 2.0 2.3 1.9
Unappropriated profit (2,941,826) 1,300,117 3,827,786 2,774,614 5,846,477 1,925,305 Net worth turn over ratio 4.5 4.1 3.4 2.9 3.4 2.8
Shareholders' equity 25,950,886 29,232,865 29,549,716 26,216,907 24,679,238 19,236,682
EQUITY RATIOS
Non-Current Liabilities 515,679 215,730
Current Liabilities 51,193,261 32,061,254 21,360,751 11,635,058 12,772,749 9,117,477 Break up value per share (Rs.) 315.32 355.20 359.05 318.55 299.87 233.74
77,659,826 61,509,849 50,910,467 37,851,965 37,451,987 28,354,159 Cash Dividend as a % of capital 0 32 186 55 150 50
Dividend payout ratio (%) 0 20 40 16 21 21
Plough-back ratio (%) 100 80 60 84 79 79
Represented By:
OTHER DATA
Fixed Assets 15,685,850 15,654,827 8,800,002 6,672,057 4,510,789 4,790,506

Permanent employees strength
Other Non - Current Assets 3,828,757 2,173,188 1,104,378 661,665 425,792 456,080 (Nos.) 1,964 2,024 1,345 1,269 1,257 1,272
Current Assets 58,145,219 43,681,834 41,006,087 30,518,243 32,515,406 23,107,573
Number of shares 82,299,851 82,299,851 82,299,851 82,299,851 82,299,851 82,299,851
77,659,826 61,509,849 50,910,467 37,851,965 37,451,987 28,354,159

Horizontal Analysis of Balance Sheet Horizontal Analysis of Profit or Loss Account
2019 % 2018 % 2017 % 2016 % 2015 % 2014 % 2019 % 2018 % 2017 % 2016 % 2015 % 2014 %
------------------------------------------------- (Rupees in Millions) ------------------------------------------------- ------------------------------------------------- (Rupees in Millions) -------------------------------------------------
BALANCE SHEET
Fixed assets 16,031 1.7 15,768 75.5 8,985 33.2 6,745 46.8 4,594 (8.0) 4,996 (1.6)
Sales 116,548 (2.8) 119,854 17.7 101,812 33.1 76,516 (9.5) 84,549 57.5 53,665 5.1
Right to use of Assets 145 - 0 - 0 - 0 - 0 - 0 -
Long-term investments 326 (0.9) 329 58.2 208.00 - 0 - 0 - 0 (100.0)
Long-term loans 4 - 4 100.0 2 (99.1) 231 2,210.0 10 - 10 66.7 Cost of sales (114,563) 1.6 (112,809) 22.4 (92,159) 33.2 (69,167) (5.3) (73,061) 47.7 (49,481) 3.5
Long-term deposits, prepayments

and other receivables 378 (17.1) 456 19.4 382 1,217.2 29 16.0 25 8.7 23 (37.8)
Long-term installment sales Gross profit 1,985 (71.8) 7,045 (27.0) 9,653 31.4 7,349 (36.0) 11,487 174.5 4,184 29.0
receivables 272 130.5 118 (18.6) 145 51.0 96 (15.8) 114 (29.6) 162 (4.7)
Deferred taxation 2,359 104.8 1,152 386.1 237 1.3 234 20.0 195 258.2 56 (62.2)
Stores, spares and loose tools 260 76.9 147 27.8 115 3.6 111 12.1 99 20.7 82 24.2 Distribution and selling costs (2,539) (6.2) (2,707) (3.5) (2,804) 39.9 (2,004) 3.0 (1,946) 160.9 (746) 33.0
Stock-in-trade 37,517 27.6 29,397 22.8 23,946 47.0 16,289 24.5 13,082 (12.6) 14,977 39.6
Trade debts 691 190.3 238 12.8 211 (82.5) 1,205 (22.9) 1,562 15.5 1,352 37.5
Administrative expenses (2,528) 9.9 (2,301) 43.8 (1,600) 3.9 (1,540) 25.1 (1,231) 11.7 (1,102) 14.9
Current portion of long-term
installment sales receivables 799 45.3 550 71.3 321 10.3 291 (16.4) 348 (10.3) 388 17.2
Loans and advances 55 34.1 41 10.8 37 (81.6) 201 1.5 198 (61.6) 515 25.0
Reversal/ (provision) of 23 4.5 22 - - - - - - - - -
Trade deposits and short term impairment on trade &
prepayments 279 (79.4) 1,357 40.5 966 1,154.5 77 8.5 71 34.0 53 (15.9) installment sales
Accrued profit on bank deposits 0 (100.0) 269 827.6 29 (76.0) 121 (37.3) 193 1,106.3 16 23.1
Other receivables 349 - 0 (100.0) 92 (27.9) 129 48.3 87 (35.1) 134 17.5 Other expenses - (100.0) (154) (62.8) (414) 24.0 (334) (48.9) (653) 233.2 (196) 12.0
Sales tax and excise duty adjustable 7,701 76.2 4,370 282.0 1,144 (30.7) 1,651 493.9 278 (72.3) 1,002 24.8
Taxation - net 7,226 24.6 5,798 18.3 4,900 158.7 1,894 19.1 1,590 (42.1) 2,747 (5.2)
Other income 223 (60.6) 566 (34.6) 865 (16.8) 1,040 (1.7) 1,058 107.5 510 (40.9)
Cash and bank balances 3,268 115.5 1,516 (83.5) 9,190 7.5 8,548 (43.0) 15,006 715.1 1,841 (6.3)
Total assets 77,660.0 26.3 61,510.0 20.8 50,910 34.5 37,852 1.1 37,452 32.1 28,354 19.1 Operating profit (2,861) (216.8) 2,449 (57.0) 5,699 26.3 4,511 (48.2) 8,716 228.9 2,650 9.9
Share capital 823 - 823 - 823 - 823 - 823 - 823 -

Share of loss of equity accounted (3) - (3) (75.0) (12) - - - - - - -
Reserves 25,128 (11.6) 28,410 (1.1) 28,727 13.1 25,394 6.4 23,856 29.6 18,414 9.5 investee
Total Equity 25,951 (11.2) 29,233 (1.1) 29,549 12.7 26,217 6.2 24,679 28.3 19,237 9.0
Trade and other payables 12,887 (10.6) 14,411 26.6 11,378 80.6 6,301 (2.2) 6,443 30.3 4,945 33.8 Finance cost (2,088) 475.2 (363) 433.8 (68) (29.2) (96) 209.7 (31) 14.8 (27) (53.4)
Advances 1,497 (34.2) 2,276 (57.3) 5,332 228.1 1,625 (61.5) 4,226 95.7 2,159 243.2
Accrued mark-up 0 - 0 - 0 - 0 - 0 (100.0) 9 -
Short-term finance 32,411 186.6 11,310 - 0 - 0 - 0 - 0 - Profit before taxation (4,952) (337.7) 2,083 (62.9) 5,619 27.3 4,415 (49.2) 8,685 231.1 2,623 11.5
Security deposits 4,164 (1.4) 4,222 (8.2) 4,601 25.3 3,673 77.6 2,068 7.9 1,917 12.6
Unclaimed dividend 19 (13.6) 22 57.1 14 - - - -

Taxation 2,031 (358.7) (785) (56.2) (1,793) 9.1 (1,643) (42.2) (2,843) 305.0 (702) 39.3
Lease liability Unclaimed dividend 148 - 0 - - - - -
Provision for custom duties and

sales tax 583 1,519.4 36 - 36 - 36 - 36 (58.1) 87 (37.7)
Total equity and liabilities 77,660.0 26.3 61,510.0 20.8 50,910 34.5 37,852 1.1 37,452 32.1 28,354 19.1 Profit after taxation (2,920) (325.0) 1,298 (66.1) 3,826 38.0 2,773 (52.5) 5,843 204.0 1,922 3.9

Vertical Analysis of Balance Sheet Vertical Analysis of Profit or Loss Account
2019 % 2018 % 2017 % 2016 % 2015 % 2014 % 2019 % 2018 % 2017 % 2016 % 2015 % 2014 %
------------------------------------------------- (Rupees in Millions) ------------------------------------------------- ------------------------------------------------- (Rupees in Millions) -------------------------------------------------

BALANCE SHEET
Fixed assets 16,031 20.6 15,768 25.6 8,985 17.6 6,745 17.8 4,594 12.3 4,996 17.6
Sales 116,548 100 119,854 100 101,812 100 76,516 100 84,549 100 53,665 100
Right to use of Assets 145 0.2 - 0.0 - 0.0 - 0.0 - 0.0 - 0.0
Long-term investments 326 0.4 329 0.5 208 0.4 - 0.0 - 0.0 0 0.0 Cost of sales (114,563) (98.30) (112,809) (94.12) (92,159) (90.52) (69,167) (90.40) (73,061) (86.41) (92.20)
Long-term loans 4 0.0 4 0.0 2 0.0 231 0.6 10 0.0 10 0.0 (49,481)
Long-term deposits, prepayments Gross profit 1,985 1.70 7,045 5.88 9,653 9.48 7,349 9.60 11,487 13.59 4,184 7.80
and other receivables 378 0.5 456 0.7 382 0.8 29 0.1 25 0.1 23 0.1
Long-term installment sales Distribution and selling costs (2,539) (2.18) (2,707) (2.26) (2,804) (2.75) (2,004) (2.62) (1,946) (2.30) (746) (1.39)
receivables 272 0.4 118 0.2 145 0.3 96 0.3 114 0.3 162 0.6
Administrative expenses (2,528) (2.17) (2,301) (1.92) (1,600) (1.57) (1,540) (2.01) (1,231) (1.46) (1,102) (2.05)
Deferred taxation 2,359 3.0 1,152 1.9 237 0.5 234 0.6 195 0.5 56 0.2
Stores, spares and loose tools 260 0.3 147 0.2 115 0.2 111 0.3 99 0.3 82 0.3 Reversal/ (provision) of 23 0.02 22 0.02 - - - - - - - -
Stock-in-trade 37,517 48.3 29,397 47.8 23,946 47.0 16,289 43.0 13,082 34.9 14,977 52.8 impairment on trade &
installment sales
Trade debts 691 0.9 238 0.4 211 0.4 1,205 3.2 1,562 4.2 1,352 4.8
Other expenses - - (154) (0.13) (414) (0.41) (334) (0.44) (653) (0.77) (196) (0.37)
Current portion of long-term
installment sales receivables 799 1.0 550 0.9 321 0.6 291 0.8 348 0.9 388 1.4
Other income 223 0.19 566 0.47 865 0.85 1,040 1.36 1,058 1.25 510 0.95
Loans and advances 55 0.1 41 0.1 37 0.1 201 0.5 198 0.5 515 1.8
Trade deposits and short term
prepayments 279 0.4 1,357 2.2 966 1.9 77 0.2 71 0.2 53 0.2 Operating profit (2,861) (2.45) 2,449 2.04 5,699 5.6 4,511 5.9 8,716 10.31 2,650 4.94
Accrued profit on bank deposits - 0.0 269 0.4 29 0.1 121 0.3 193 0.5 16 0.1
Other receivables 349 0.4 - 0.0 93 0.2 129 0.3 87 0.2 134 0.5
Short-term investment - 0.0 - 0.0 - 0.0 - 0.0 - 0.0 - 0.0 Share of loss of equity
accounted investee (3) (0.00) (3) 0 (12) (0.01) - - - - - -
Sales tax and excise duty adjustable 7,701 9.9 4,370 7.1 1,144 2.2 1,651 4.4 278 0.7 1,002 3.5
Taxation - net 7,226 9.3 5,798 9.4 4,900 9.6 1,894 5.0 1,590 4.2 2,747 9.7
Cash and bank balances 3,268 4.2 1,516 2.5 9,189 18.1 8,548 22.6 15,006 40.1 1,841 6.5 Finance cost (2,088) (1.79) (363) (0.30) (68) (0.07) (96) 0.13 (31) (0.04) (27) (0.05)
Non-current assets classified as
held for sale - - - 0.0 - 0.0 - 0.0 - 0.0
Profit /(loss) before taxation (4,952) (4.25) 2,083 1.74 5,619 5.52 4,415 5.77 8,685 10.27 2,623 4.89
Total assets 77,660.0 100.0 61,510.0 100.0 50,910.0 100.0 37,852.0 100.0 37,452.0 100.0 28,354.0 100.0
Taxation 2,031 1.74 (785) (0.65) (1,793) (1.76) (1,643) (2.15) (2,843) (3.36) (702) (1.31)
EQUITY AND LIABILITIES -

Share capital 823 1.1 823 1.3 823 1.6 823 2.2 823 2.2 823 2.9
Profit /(loss) after taxation (2,920) (2.51) 1,298 1.08 3,826 3.76 2,773 3.62 5,843 6.91 1,922 3.58
Reserves 25,128 32.4 28,410 46.2 28,726 56.4 25,394 67.1 23,856 63.7 18,414 64.9
Total Equity 25,951 33.4 29,233 47.5 29,549 58.0 26,217 69.3 24,679 65.9 19,237 67.8
Trade and other payables 12,887 16.6 14,411 23.4 11,378 22.3 6,301 16.6 6,443 17.2 4,945 17.4
Advances 1,497 1.9 2,276 3.7 5,332 10.5 1,625 4.3 4,226 11.3 2,159 7.6
Accrued mark-up - 0.0 - 0.0 - 0.0 - 0.0 - 0.0 9 0.0
Short-term finance 32,411 41.7 11,311 18.4 - 0.0 - 0.0 - 0.0 - 0.0
Security deposits 4,164 5.4 4,222 6.9 4,601 9.0 3,673 9.7 2,068 5.5 1,917 6.8
Unclaimed dividend 19 0.02 22 0.04 14 0.0 - 0.0 - 0.0 - 0.0
Lease liability 148 0.2 - 0.0 - - 0.0 - 0.0 - 0.0
Provision for custom duties and
sales tax 583 0.8 36 0.1 36 0.1 36 0.1 36 0.1 87 0.3
Total equity and liabilities 77,660.0 100.0 61,510.0 100.0 50,910.0 100.0 37,852.0 100.0 37,452.0 100.0 28,354.0 100.0

Statement of Value Addition and its Distribution
2019 2018
(Rupees in ’000) % (Rupees in ’000) %
Wealth Generated
Total gross revenue and other income 116,770,517 148,806,459
Brought in materials and services 92,287,976 120,527,971
24,482,541 100 28,278,488 100
Wealth distribution to stakeholders

To Employees
Salaries, wages ,other cost including retirement benefits 3,339,067 13.64 2,996,012 10.59
and WPPF
To Government
Income tax, sales tax, excise duty, development 19,211,233 78.47 22,130,723 78.26
surcharge, WWF
To Society
Donation 8,952 0.04 10,414 0.04
To Shareholders
Dividend 260,068 1.06 1,530,777 5.41
To providers of finance
Finance charges for borrowed funds 1,948,546 7.96 185,827 0.66
To Company
Depreciation, amortisation and retained profit/ (loss) (285,325) -1.17 1,424,735 5.04
24,482,541 100.00 28,278,488 100.00

The all new Alto is a highly efficient performance car that makes your daily shopping and outings a
pleasant experience. Spacious cabin and storage accessories of the new model ensure complete
comfort for you and your family.

Visits & Events
Pakistan Auto Parts Show 2019

• Pak Suzuki participated as a Platinum sponsorship at Pakistan Auto Parts Show which was
held on April 12 to 14, 2019 at Expo Centre, Karachi.
• All Automobile OEMs participated in this show with the objective to show their strengths
and contribution towards development of local industry.
• With this event Pak Suzuki took the opportunity to display the most awaited product i.e
SUZUKI ALTO 660cc with the introduction of BOOKING OPEN at PAPS 2019.
• Suzuki Alto, Cultus, WagonR, Gixxer SF, GR-150, GD-110S, GS-150SE, OBM, SGO, SGA &
Localization of Alto were displayed.
All-new Suzuki Alto Launch

Bringing another option for its customers,
Pak Suzuki launched all-new Suzuki Alto
660 cc on 15th June 2019. All authorized
dealerships, media personnels, corporate
customers and many dignitaries attended
this event.

Visits & Events
Collector of Customs Training and Development:

A delegation of officers from Customs along with Collector customs visited Pak Suzuki on 17th April In the year 2019, 371 locals as well as 25 foreign trainings were conducted for the benefit of the
– 2019 The Delegation was led by Mr. Mumtaz Ali Khoso (Collector of Customs) Mr. Masafumi Harano employees to further improve their productivity and skills related to their work responsibilities.
CEO Pak Suzuki Presented an overview on Pak Suzuki and Conducted Q&A Session.
Consul General Thailand Visit

A delegation of Consul General of Thailand along with Thai BOI Team visited Pak Suzuki on 21st
June, – 2019 The Delegation was led by Consul General of Thailand.

Visits & Events Inauguration of Dealerships
Sports and Social Events:

The Company arranges sport tournaments for recreation and entertainment of employees and to
provide an environment where all employees can enjoy without any stress and job pressure.
Suzuki Jacobabad Motors Suzuki Bhalwal Motors
Suzuki Shorkot Motors Suzuki Barakahu Motors
Suzuki Khushab Motors Suzuki Malir Cantt Motors
Suzuki Moro Motors Suzuki Kashmore Motors

When the sensor detects more than a certain impact, the
airbag is instantly deployed. Together with the effects of
the seat belt, it reduces the impact on the head and chest
of front occupants.

Chairman’s Review
I am pleased to report that your Company continues to be Sales Revenue 107,999 units of automobiles. Sales volume for motorcycles Sales volume Motorcycles
pioneer in automotive industry in Pakistan and maintained its Rs. In Million declined by 3%, Company achieved sales volume of 22,589 No. of Units
position of market leader with more than 50% market share units as compared to sales volume of 23,160 units in
in cars and light commercial vehicles by providing diversified corresponding period of last year.
product range at competitive prices. The Company is playing
an important role in the development of engineering sector Net sales revenues decreased by Rs 3,306 million from
of the country by promoting localization of components Rs 119,854 million to Rs 116,548 million. Sales revenue
through suppliers’ network and in-house manufacturing of decreased by 3% in current year over last year due to decline
components. The Company also contributes in the socio- in sales volume. Gross profit decreased in absolute terms by
economic development of the country by creating job Rs 5,060 million from Rs 7,045 million to Rs 1,985 million.
opportunities and technology transfer to part manufacturing Gross profit margins as a percentage of net sales declined
101,812
119,854
116,548
20,617
17,946
19,901
23,160
22,589
84,549
76,516
industry. I hereby present review on the performance of the from 5.9% to 1.7%. Massive devaluation of Pak Rupee and
Company for the year ended December 31, 2019. multiple duty & tax increase levied from July 2019 budget
resulted in increased imported material cost, consequently
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Industry adversely affecting the profit margins. Company incurred net
In the year 2019, sales volume of auto industry for cars and Sales Volume Motorcars loss of Rs 2,921 million as compared to net profit Rs 1,298 Production volume Motorcycles
light commercial vehicles was recorded at 187,846 units No. of Units million in last year. Beside decline in gross profits, another No. of Units
compared to 254,936 units in last year, registering decrease factor for adverse profitability was increase in financial
of 26%. Auto sales were badly hit during the 2nd half July charges by Rs. 1,763 million in current year from Rs. 185
– December 2019 and steep fall of 44% was witnessed in million in 2018 to Rs. 1,948 million in 2019. Company has
sales volume as compared to sales volume of corresponding taken countermeasures and initiated cost cutting measures
period of last year. Sales volume declined in 2nd half of the and improving efficiencies. Company also gradually increased
year due to increase in prices of vehicles as OEMs passed on the selling prices of its products to pass on the impact of
the impact of increase in duties & taxes and devaluation of increase in production cost. Prices are being increased in
Pak Rupee. Contraction in demand forced the OEMs to opt phases to maintain the sales volume.
for non-production days to manage their inventory.
133,952
110,000
132,548
140,313
113,270
19,610
18,374
19,603
23,014
22,737
Marketing & Exports
During 2019, the organized market (PAMA member Automobile Market:
companies) for motorcycles and three wheelers decreased 2015 2016 2017 2018 2019 Although our sales faced decline due to increase in product 2015 2016 2017 2018 2019
from 1,889,662 units to 1,655,216 units. Decrease of 244,446 costs; however, we remain committed to our strengths of
units represents 13% decline in sales volume over last year. Production volume Motorcars providing quality products with diversified product range Share Price vs Breakup Value
No. of Units supported by 3S (Sales, Service & Spare Parts) Dealerships’ Rupees
Operating Results of the Company network, spread all over Pakistan. Strong dealership network
Sales volume during the year 2019 for cars and light ensured efficient services to customers including reliable
commercial vehicles declined by 19% from 140,313 units to after sales service and availability of spare parts.
113,270 units. As a result of less rate of decline in sales
volume of Company in comparison with total industry, Motorcycle Market:
231
315
market share of your Company improved from 54% in year Motorcycle market in Pakistan is dominated by motorcycle
2018 to 59% in 2019. New Alto performed exceptionally well with engine capacity of 70cc. Pak Suzuki markets motorcycles
in this depressed market and contributed in lower decline in with engine capacities of 110cc and above. The Company
174
355
sales volume and improved market share of the Company. expects that motorcycle demand in Pakistan will gradually
134,391
111,965
132,725
143,239
107,999
The production volume of automobile and motorcycles were shift towards higher engine capacity like other countries in
495
300
613
319
498
359
adjusted according to the demand. The Company operated at the region and market for Suzuki motorcycles will improve.
72% capacity utilization and achieved production volume of Company sales operations ensures efficient services to
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

customers through smooth workshop operations. Company PBT/PAT Automobile Parts sales for the year recorded Rs 3,433 • Systemizing logistics to enhance spare parts
Rs. In Million
is trying to expand its business in this segment. million, showing overall growth of 11% as compared availability, and extended the logistics service
to last year. Yearly sales for Engine Oil reached to providers to shorten lead time and to satisfy
Exports: 2,168,891, liters, which shows growth of 6% as customers.
During the year, KD parts worth Rs.16.2 million were exported compared to last year. The motorcycle parts sale also • Digitalized the spare parts warehouse operations
2,083
1,298
to sister concerns Vietnam Suzuki Corporation (VISUCO), reached to Rs. 244 million showing growth of 15% as to ensure accurate processes for quick and right
Vietnam and Suzuki Indomobil Motors (SIM), Indonesia compared to last year. part availability.
against KD parts exports of Rs.21.7 million in 2018. KD parts
8,685
5,843
Customers’ Satisfaction & Retention
4,415
2,773
5,619
3,826
were exported for mass production of Suzuki mini-truck 2019
Induction of GENESYS CRM Call Center System enables
model in Vietnam and Suzuki WagonR Car model in Indonesia. Company carried out follow-up surveys of customers quick access to the relevant information that saves
(2,920)
(4,952)
2015 2016 2017 2018
Outboard motors of Rs 14.1 million were exported to Sri on regular basis by our 24/7 Customer Relations customers’ valuable time. It helps in prioritizing the
Lanka and Morocco. Further, during the year accessories Centre. task and deliver work more accurately and efficiently.
of Rs. 6.6 million were exported to Hungary for after sale The value addition of SMS service in Call Center
market. Solution and CRM for customer information has LOCALIZATION
Export Sales enhanced our customer services for timely handling Your Company is proud to be the pioneer in the
Sales And Distribution Net Work Rs. In Thousands of customer queries/complaints. development of auto parts industry in Pakistan.
We aim to provide quality services with convenient access Our customers have shown more trust and The Company has been striving for localization of
to customers. The Company has strong dealership network satisfaction on the services rendered to them through components through suppliers’ network and in-house
spread all over the country. The Company has been dealers’ network. Survey of 105,297 customers was manufacturing of components. The Company also
continuously enhancing and strengthening the dealership carried out in 2019 which indicated the customers’ contributes in the socio-economic development of the
network. As of December 31, 2019, Pak Suzuki dealership satisfaction level of 88%. country by creating job opportunities and technology
network expanded to 162 sales outlets in 95 cities all across transfer to part manufacturing industry. The Company
Pakistan. To serve customers in uncovered areas, six 1S parts Dealers’ Staff Skill Development & Motivation: continues to pursue localization in order to reduce
outlets were opened. Company gives high priority for skill development of the cost of products and keep the prices competitive
dealers’ staff. On job trainings and regular training besides saving of foreign exchange.
To facilitate the customers, Pak Suzuki opened 9 booking sessions were conducted for dealers’ staff. Major
64,783
55,722
64,435
86,157
62,287
offices all over Pakistan. Suzuki Booking Offices facilitated areas covered through trainings include: It is essential for the local auto parts industry
customers by giving them the opportunity of booking vehicles
2015 2016 2017 2018 2019
• The dealers technicians certification on global to upgrade their production facilities with latest
with the initial advance payment. Further, 16 company standards created a professional environment at technology. Pak Suzuki has been coordinating
operated showrooms for motorcycles are in operation dealers’ workshops and ensures quality services to Technical Collaborations for its suppliers to align them
where customers are provided sales and after sales service. Fixed Assets vs Capex customers. with latest technologies. Pak Suzuki arranged several
In 2019; eight motorcycles ‘franchise outlets’ at dealerships Rs. In Million • “Skill Contests” were organized for dealers’ Service ‘Technical Assistance Agreements’ for local suppliers
were set up. Managers, Parts Managers, Customer Relation with reputable international parts manufacturers to
Managers, Customer Relation Officers, Service enhance localization of functional and high-tech
Aftersales (Parts & Service): Advisors, Technicians & Painters. components.
Aftersales operations ensure efficient services to customers • Promoted dealers’ staff motivational activities
through smooth workshop operations and timely availability such as, employees’ get together, recreation Further, Company took initiative and made a strategy
of parts at dealerships. As a result, the dealers’ operations activities, incentive prizes and foreign trips. to enter into Joint Venture agreement with suppliers to
showing increasing trend. Total number of automobile provide confidence to Technical Assistance provider.
job cards (services provided to customers for schedule New Initiatives: In this regard, Tecno Auto Glass Limited (TAG) was
22,631
32,094
8,459
2,867
20,494
maintenance, running repairs, mechanical repairs, body Following ‘New Initiatives’ taken to facilitate established on March 16, 2017 for manufacturing
3,519
16,395
15,509
9
3,123
and dent jobs) reached up to 1.26 million. The motorcycle Customers: automobile glass. TAG is a Joint Venture Company
•
732
aftersales market also shown positive trend in business Wide range of Suzuki Genuine accessories between Tecno Pack Telecom (Private) Limited and
operations. Total 259,597 Job cards were served in 2019. introduced to meet customers’ expectations. Company. Company had contributed equity investment
2015 2016 2017 2018 2019

of Rs 344.4 million which was approved by shareholders Concern (SOC) like Asbestos and other prohibited conducted for the benefit of the employees to further participants at the end of the event.
in Extraordinary General Meeting of the Company held substance as designated by Pak Suzuki along with improve their productivity and skills related to their
on February 16, 2017. TAG has planned to commence applicable law and regulations with respect to work responsibilities. Besides, 10 Permanent workers Labor and Management Relations:
commercial production by first half of 2020. This Joint environment. attended 6 months technical intern training at Suzuki At Pak Suzuki, Labor-Management relations aim
Venture is a first green field project between Pak Sagara Plant to enhance their technical skills. to protect the interests of labor and management,
Suzuki & its suppliers. Beside technology transfer and We have introduced Green Procurement Policy Company also enriched its Learning & Development hence a strong and cordial relations between
localization of glass for auto industry, the project will Guideline in 2019 and provided necessary trainings portfolio with the launch of Digital Trainings, labor and management are considered as key for a
contribute significant cost saving to Company and to all suppliers about the awareness of Green through which employees can access wide range conducive environment essential for moving towards
earn reasonable returns on the investment. procurement policy and implementation framework. of e-trainings from anywhere & at any time. In the and achieving desired goals.
All suppliers were trained through documentation year 2019, 206 e-Trainings have been completed by
Pak Suzuki continuing the enhancement in localization process and one-to-one training where required. employees. Keeping in view the above, Referendum activity
contents and working rigorously to provide maximum Our dedicated team of engineers working on Green was smoothly conducted in the company in which
benefit of cost savings through localization thus procurement guideline implementation among Health and Safety: permanent workers used their right of vote to elect a
providing business opportunities to local suppliers. suppliers and performing regular audits. The Green Employee Wellbeing: CBA in a peaceful manner. Furthermore, the elected
Procurement Policy guideline is also shared with all Company is fully aware of the importance of employee CBA submitted their Charter of Demand for the two
IMPROVEMENT & DEVELOPMENT OF stakeholders at Pak Suzuki official webpage. wellbeing at workplace, therefore a wellness year period 2019 & 2020 which were negotiated and
SUPPLIERS: campaign “STAYWELL” was rolled out with an aim to settled in a harmonious manner.
HUMAN RESOURCE provide knowledge and understanding to employees
For promoting the culture of continual improvement, Our employees are not only part of the Suzuki about how to become more fulfilled, accomplished Information Technology:
Company carried out: Family but are also considered the back bone of and contented by taking care of their interpersonal, Information Technology is driving innovation in the
• Up gradation program for suppliers by KAMI the Company’s efforts in achieving and maintaining emotional & physical wellness. 1010 employees got business environment. The key success factor is our
Supervisor from Suzuki Motor Company Japan to highest standards of productivity, work ethics and benefitted from this wellness campaign. ‘Lean Thinking’ and that is an integral part of our
upgrade supplier’s skills up to level of Suzuki Motor conducive environment. Enterprise IT. It helps us in adapting new technologies
suppliers in term of safety, quality by March 2021. Sports and Social Events: more quickly and minimizes the transformation
• multiple trainings in the areas of Quality, KPI Company is committed to provide an environment Corporate sports events help to improve health and challenges through IT-Business Footprint. Pak
management, Value Engineering, Development, which facilitates the employees in performing to wellbeing, as well as influence engagement, culture Suzuki IT is focused to bring more robust systems to
Supplier’s drawing development and OJT for Sheet their maximum potential while maintaining required and staff retention. Every year, the Company arranges enhance collaboration among business stakeholders,
Metal Vendors at Pak Suzuki, etc. amount of work life balance. At the same time, it sport tournaments for recreation and entertainment innovation and smart adaption of digital technologies
• comprehensive assessment of all suppliers at is also ensured that with the passage of time the of employees and to provide an environment where for improving quality of services and better customer
organizational level for improvement, employees get substantial amount of opportunities to all employees can enjoy without any stress and experience.
• audits of suppliers along with SMC experts. develop themselves in terms of skills through specially job pressure. During the year, we arranged inter-
designed programs for training and development. All departmental Cricket tournaments & Indoor games. People Engagement & Collaboration
Study Tours for Employees: measures are taken for the betterment and wellbeing These events provide an excellent opportunity for Automation processes were implemented back in
In order to align business practices of our local parts of the employees and special activities are carried the staff to go a long way in instilling the spirit of 2017. The main objective was to improve business
suppliers with international practices, Supply Chain out to keep up the motivation level. competition among them in a healthy environment. workspace and automation experience. Recently,
Function arranged study tours for its employees to The winners and runner up teams are presented with Company collaborated with Global Suzuki Subsidiaries
Suzuki Motor Company, Japan and its suppliers for Training and Development: prizes and trophies. using SharePoint to work on Global Projects as TEAM
Sheet Metal, Plastic and Casting forging components. Your Company strives to provide its employees SUZUKI. In addition to that, an edge for cognitive data
with inspiring training and education experiences Furthermore, Company also organized congregation analytics with Microsoft Business Intelligence was
Green Procurement: that broaden and enhance skills and uncover new of Milad-un-Nabi within its premises in which along added. It brings data visualization and empowers users
Pak Suzuki, in coordination with Suzuki Motor concepts and ideas. Talent development takes many with company employees, contractor(s) employees to get business insights and meaning full information
Corporation, Japan initiated Green Procurement forms at Pak Suzuki Motor Company, including also participated. Renowned Naat Khawans and out of the BIG DATA.
Guideline activities for its suppliers. The purpose of training sessions for key functional areas. In the year religious scholars were invited to commemorate
this activity is to ensure non-usage of Substance of 2019, 371 locals as well as 25 foreign trainings were the event. Sweets were also distributed to all the

ECONOMIC CONTRIBUTION the bloated trade deficit as imports have dropped 2019 of Pak Suzuki). Projects related to auto industry
Foreign Exchange Savings despite nominal growth in exports proceeds. needed long period to materialize. Any abrupt change
The Company has a distinctive position in the
Rs. In Million in policy affects the overall feasibility of the project.
automobile industry as a leading contributor to the
public exchequer. The duties and taxes paid and the EFFECT OF CORONO VIRUS Additional Customs Duty (ACD) on imported material
foreign exchange saved by the Company in its last six (COVID – 19) ON ECONOMY has been increased by 2% to 5%. Further Government
years of operations are as follows: Coronavirus is severely impacting the economies withdrew gradual reduction in corporate tax rate
around the world. Global economy is suffering from 29% to 25% and on the other hand increased
Year Duties & Foreign exchange from an unprecedented supply shock. People are minimum tax from 1.25% to 1.5% of turnover. These
(Jan-Dec) taxes Savings * not at work because they are sick or quarantined, additional taxes coupled with massive depreciation
(Rupees in billion) potentially leading to stagflation, falling GDP growth of Pak Rupee adversely affected the cost of vehicles
alongside rising prices. Policy measures must be and it forced the OEMs to increase the prices of their
2014 17.442 25.067 taken to prevent job loss with sustainable economic vehicles. Consequently, higher prices of vehicles
39,688
36,457
43,182
55,396
42,994
2015 26.422 39.688 activity. Fiscal measures should be announced by affected sales volume of auto industry resulting in
2016 24.448 36.457 Government so that economy could recover quickly sharp decline in sales volumes.
2015 2016 2017 2018 2019 once the pandemic is over. Company took following
2017 35.162 43.182
precautionary preventive measures to combat the FUTURE OUTLOOK & CONCLUSION
2018 41.218 55.396 menace of COVID-19 and ensured the safety & health Pakistan has a population of over 212 million (the
2019 43.091 42.994 of employees: world’s 6th-largest). The economy of Pakistan is the
Duties & Taxes
1. An awareness guideline which contains 23rd largest in the world in terms of purchasing power
Rs. In Million
Duties and taxes paid by Company during the information about symptoms & preventive parity. Yet, Pakistan has a low ratio of consumption
year represent around 0.74% of total tax revenues measures was circulated among all the employees; of cars as compared to other emerging economies.
estimated in the Federal Budget for the fiscal year 2. Travel advisory was issued to avoid travelling in Hence there is potential for growth of the auto
2019-20. critical countries and enacted mandatory virus industry.
*Converted into Pak Rupees at year end exchange rate. screening upon arrival back before joining duty;
3. Temperature screening has been started at Current auto policy was applicable for the period
ECONOMIC CONDITION OF COUNTRY Entrance gate; 2016 to 2021 and new auto policy is expected to
Pakistan’s economy is in challenging situation. We 4. Employees visiting company dispensary with be announced. It is expected that new auto policy
witnessed sharpest increase in policy rates in recent suspected symptoms are being referred to will be Industry friendly and it will offer incentives
time by State Bank of Pakistan (SBP). However, SBP hospital for detailed checking; & to existing OEMs and vendors’ industry. Suzuki Motor
26,422
24,448
35,162
41,218
43,091
reduced the policy rate by 75 basis points from 5. Sufficient quantity of hand sanitizers has been Corporation, Japan (SMC), Principal shareholder
13.25% to 12.50% in the March 2020 monetary policy. provided in company and dealers and vendors and parent company of Pak Suzuki Motor Company
2015 2016 2017 2018 2019
This is the first rate cut by the SBP since May 2016. were also advised to provide the same. Limited, is looking for opportunities for further growth
We foresee inflation to gradually decline in the year in Pakistan.
2020 assuming stable exchange rate, downtrend in outlook seems promising. During first eight months GOVERNMENT FISCAL POLICIES
global commodity prices and higher base effect. of current financial year, Country’s trade deficit Tax measures announced in the Federal Budget New entrants, enjoying incentives under ADP 2016-21,
witnessed significant reduction and improved by 2019-20 have severely hit the auto industry. The are gradually entering into market. Macroeconomic
Economic reforms have gradually started showing 26.52% as compared to the corresponding period of government has enlarged the scope of Federal Excise indicators of the country are challenging for auto
positive results and fiscal consolidation measures last year. Current Account deficit has continued to Duty (FED) on locally assembled cars. FED has been industry, yet the Company is endeavoring to improve
have brought financial discipline and increased decline, easing external pressure. Country’s exports imposed @ 2.5% on major segment of Company’s sales, pro¬fitability and diversity in its operations by
revenue growth by bringing about stability in the registered 3.65% growth, whereas imports reduced cars with engine capacity upto 1000cc, consequently upgrading the existing products and offers quality
economy and it is expected that a path of sustainable by 14.06% according to the data of foreign trade increasing the cost to the customers. Tax credit on products to customers at competitive prices through
economic growth can be achieved. Stable exchange statistics, released by the Pakistan Bureau of Statistics investment in Plant & Machinery under section 65B of an efficient network of authorized dealers.
rate, improved current account and better fiscal and (PBS). The constant decline in the trade deficit shows Income Tax Ordinance has been withdrawn with effect In conclusion, I on behalf of the Board and
monetary management, denote that the economic the effectiveness of the Government policies to curb from tax year 2020 (corresponding income year of shareholders would like to express my appreciation

to the management, executives, workers, dealers,
suppliers and Suzuki experts for their efforts and
contribution to the affairs of the Company. My
sincere hope is that all the government departments
continue their support to the automobile industry.
KINJI SAITO
Chairman
Karachi. March 20, 2020.
Exchange Rates Movement
Yen - Rs. PARITY

1.529
1.480
1.476
1.452
1.422
1.435
1.430
1.361
1.270
1.270
1.257
1.277
1.260
1.182
1.170
1.120
1.099
1.119
1.096
1.085
1.061
1.066
1.016
1.032
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
18 18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 19
USD - Rs. PARITY

164.50
160.25
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156.70
156.20
155.70
155.35
148.50
141.70
139.10
139.00
139.40
140.70
133.90
132.40
124.30
124.20
124.30
121.60
115.40
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115.70
110.60
110.60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
18 18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 19

The unique rear end design inspires a moment of awe and appreciation. The back door
emphasizes the shape of the rear end while the tail lamps fitted in the rear bumper
complete the compact design. The all new Alto comes in a variety of colours and you might
find it difficult to settle for a choice.

Director’s Report
The Directors of the Company are pleased to Corporate Governance Key Operating and Financial Data Audit Committee Meetings
submit their report together with audited financial The key operation and financial data of the Company During the year four (4) meetings of the Audit
The management of the Company is committed to
statements and Auditors’ Report thereon, for the year for six years are summarized on page No. 24. Committee were held. Attendance of each director
good corporate governance and complying with the
ended December 31, 2019. is as follows:
best practices. As required under Code of Corporate
Governance, Directors are pleased to state as follows: Government Taxes No of meetings
Outstanding taxes and levies have been explained in attended
Accounts • The financial statements, prepared by the note 28 to the annexed audited financial statements. Mr. Moin M. Fudda 4
management of the Company, present fairly its
(Rs in 000) Mr. Kinji Saito 4
state of affairs, the result of its operations, cash Investments of Employees’
Loss before taxation (4,951,744) flows and changes in equity. Mr. Shigeo Takezawa 4
Retirement Funds
Taxation 2,031,259
Loss after taxation (2,920,485) • Proper books of accounts have been maintained The following were the values of investments held by
employees’ retirement benefits fund at the year-end: Human Resource & Remuneration
by the Company.
Retained earnings of Committee Meetings
prior years 1,049 • Appropriate accounting policies have been Dec 19 Dec 18 During the year no meeting was held of the Human
Net loss available for consistently applied in preparation of financial Resource & Remuneration Committee. However, key
Provident Fund Rs. 945.222 Rs. 852.215
appropriation (2,919,436) statements and accounting estimates are based HR matters were discussed and approved during the
million million
Less: Appropriations on reasonable and prudent judgment. board meetings.
Gratuity Fund Rs. 553.850 Rs. 495.998
Transfer to General
Reserve
(2,920,000) • International Financial Reporting Standards, million million
Directors’ Training Program
as applicable in Pakistan, have been followed in
All the directors on the Board are fully conversant
Proposed Cash - preparation of financial statements.
Dividend Rs.Nil @ Nil%
Board of Directors Meetings with their duties and responsibilities as directors of
During the year five (5) meetings of the Board of corporate bodies. In accordance with the criteria
(2,920,000) • The system of internal controls including internal Directors were held. Attendance of each director was specified in regulation 19 of the Code, four directors
Retained earnings controls over financial reporting is sound in as follows: of the Company have certification under Directors
carried forward 564 design and has been effectively implemented
Training Program and one directors of the Company
and monitored. No of meetings has the exemption from the requirement of Directors’
attended Training Program.
Earnings per Share
The loss per share for the year was Rs. 35.49. • There are no doubts upon the Company’s ability Mr. Kinji Saito 5
to continue as a going concern. Mr. Masafumi Harano 5 Remuneration for Non- Executive and
Independent Directors
Holding Company • Appropriate whistleblower protection mechanism Mr. Tetsuya Fujioka /
Mr. Tadashi Homma 5 Through the Articles of Association of the company,
Suzuki Motor Corporation, incorporated in Japan, is is in place.
the board of directors is authorized to fix the
the holding company of Pak Suzuki Motor Company Ms. Rukhsana Shah 5
Limited with 73.09% shares. • Company places priority to safety and health of its Mr. Shigeo Takezawa 4
remuneration of independent and non-executive
directors for attending meetings of the board of
employees. Provide proper medical cover and
carry out periodical medical screening of Mr. Kazuyuki Yamashita 5 directors and its committees from time to time.
Chairman’s Review employees. Mr. Moin M. Fudda 5
The Chairman’s review on page 42 to 50 deals with Pattern of Shareholdings
the year’s activities and the directors of the Company • There has been no material departure from the Leave of absence was granted to director who could
not attend the meeting. The pattern of shareholdings as of December 31,
endorse contents of the same. best practices of corporate governance, as 2019 is given on pages 148 to 151.
detailed in the listing regulations.

Trading in Shares of the Company by Related Party Transactions Corporate Social Responsibility (CSR) Abbottabad on 26th September, 2019. It will cater
The company being responsible corporate the need of transportation of special needs children
Directors and Executives All transactions with related parties have been
organization, is committed to well-being of the and teaching staff. SAM Institute is helping the
During the year following director and executives executed at arm’s length and in normal course of special needs children affected by physical, mental
society through its contribution in the field of
have carried out trading in shares of the Company: business, which have been disclosed in the financial and thalassemic disabilities through physical and
education, health and environment as a whole to
statements under relevant notes. Related party intellectual exercises, so that they would lead to live
improve quality of life of people.
Name of Director Date of No. of No. of Rate of
transactions were duly approved by Audit Committee
/ Executive Transaction Purchased Sold Transaction and notified to Board of directors in accordance with
Shares Shares PKR
section 208 of the Companies Act 2017.
Masafumi Harano Jan 22, 2019 119 218.00
M. Ali Lodi Feb 4, 2019 100 300.19
Changes in Board, Audit Committee
S.M. Raza Rizvi Feb 4, 2019 700 325.00
S.M. Raza Rizvi Dec 4, 2019 700 270.20
and Human Resource & Remuneration
Committee
On September 20, 2019, Mr. Tadashi Homma was
Except these transactions, no other director,
appointed on the Board as member in place of Mr.
executives and their spouses and minor children
Tetsuya Fujioka who had resigned as member.
have carried out trading in shares of Company.
As at December 31, 2019 the Board comprised of the

Business Risk Management System following directors: -
Formal risk management framework is in place
to assess the risks faced in the context of the
broader political, operational and macroeconomic 1. Mr. Kinji Saito
environment. The risk management system identifies 2. Mr. Masafumi Harano
risks related to broader business operations. The 3. Mr. Tadashi Homma
purpose of risk management is about to make 4. Mr. Shigeo Takezawa
informed decisions regarding risks and having 5. Mr. Kazuyuki Yamashita
processes in place to effectively manage and Education & Technical Support healthier and normal life. The institute is also striving
6. Mr. Moin M. Fudda
respond to risks in pursuit of a Company’s objectives Program to provide students best of academic program and
by maximizing opportunities and minimizing adverse 7. Mrs. Rukhsana Shah creating public awareness regarding the children with
Construction & Renovation of Government
effects. Autism and other disabilities, offering these services
School, Nishtarabad.
Total number of directors: free of cost to poor children of town.
Pak Suzuki successfully completed the Construction
Directors’ Evaluation and Renovation Project in Government Boys &
Effective mechanism has been put in place to review a) Male directors 06 NED Scholarship Awarding Ceremony
Girls Urdu Primary School, Nishtarabad, Karachi.
the Board’s performance on self-assessment basis. b) Female director 01 NED University of Engineering and Technology is one
The project has been inaugurated by Mr. Masafumi
Board of directors continued to provide valuable of the most reputable institution of Pakistan, serving
Harano, MD & CEO Pak Suzuki on 18th July, 2019.
guidance to ensure effective governance. Composition: the nation since 1922. The company is committed
This project includes, constructions and renovation
of new school building with five classrooms, office, to support higher education in Pakistan in order to
Appointment of Auditors i. Independent directors 02 washrooms, assembly area, donating furniture contribute in the economic and socio development
The present Auditors M/s. KPMG Taseer Hadi & Co., ii. Non-executive directors 03 including benches, chairs, cupboard, tables & sound of the nation. Continuing the Education Support
Chartered Accountants, retire and offer themselves iii. Executive directors 02 system, water cooler & play rides, etc. Program under CSR, total 6 scholarships were awarded
for re-appointment. The Audit Committee has among students of NED University of Engineering &
recommended for their re-appointment for the year Technology during scholarship ceremony held on
Suzuki Bolan Van Donation to SAM Institute
ending December 31, 2020. The Directors endorse 22nd August, 2019. From 2013 to 2019, Pak Suzuki
Pak Suzuki donated a Suzuki Bolan Van to SAM Institute
recommendation of Audit Committee. granted total 211 scholarships to students of NED
of Special (Inclusive) Education & Rehabilitation,
University.

Awareness Sessions “CSR Guidelines for
Scholarship Programs Donation to BasicNeeds Pakistan Suppliers”
Company started Scholarship Programs to extend Pak Suzuki donated Sewing Machines, Stitching Pak Suzuki has a mission to consider the safety of its
the support to local community by motivating and related items, Stationery, Medicines, etc. to customers, conservation of environment, laws and
encouraging the needy and talented students to BasicNeeds Pakistan on 17th December, 2019. The social norms to run the business while keeping the
keep continue their education, which empower purpose of this donation is to enhance the training proper relationship with all stakeholders and SUZUKI
them to achieve their dreams and lead to become a facilities at their training centers. BasicNeeds Pakistan Family in accordance with the guideline of Suzuki
successful person and productive citizen for country. is helping underprivileged women affected by mental Motor Corporation, Japan (SMC). For strengthening
Higher Secondary Scholarship ceremony held on illness or epilepsy by providing mental health care mutual understanding and trust with our stakeholders,
29th March, 2019. Total 81 scholarships awarded to and socio-economic services through outreach Pak Suzuki conducted awareness sessions on “SMC-
selected students of Government Schools, Colleges clinics and livelihoods programs. The women are CSR Guidelines For Suppliers” to share the concepts
and Universities students. given vocational trainings such as fashion designing, & issues related to social responsibilities with our 14 types of 90 saplings including Mulberry, Java
Used Machines Donation to Pak Swiss Training making of dresses, purses, hand embroidery, jewelry, suppliers. In January 2020, these sessions were Plum, Almond, Common Fig, Indian Jujube, Guava,
Centre (PSTC) etc. Psychiatric patients are also provided with clinical conducted for Karachi & Lahore based suppliers which Pomegranate, Lemon, Curry Leaf, Tamarind, Berry,
Pak Suzuki donated 29 Used Machines (Drill, consultancy and medicines, all free of cost. The was attended by ~ 100 supplier’s representatives. Golden Shower, Sapodilla, Sugar Apple.
Milling, Vector, Turret Lathe Machines, etc.) to Pak objective is to enable these underprivileged women
Swiss Training Centre (PSTC), ceremony held on to live a normal and healthy life, become financially Plantation by Area Office Multan
4th October, 2019. After overhauling, these used independent and contribute to their family as well. Tree plantation campaign was also organized by
machines would be used for students’ practical Regional Office Multan with the help of Multan Region
training and skills development. PSTC is engaged in Water Cooler Set Donation dealers from 1st March to 30th April, 2019. The main
Human Resource development by degree programs, Pak Suzuki has donated Water Cooler Sets to purpose of this campaign was to create awareness
Diploma of Associate and Short Professional Courses Pak Swiss Training Centre and Government Girls about importance of Environment Protection among
in different technologies. Secondary School, Natho Khoso, in November & public.
December, 2019 to fulfill their need. Total 17 dealers of Multan Region participated in
Plantation activity and planted total 47,150 plants
at different place e.g. Industrial Area, Public parks,
School, Universities, Hospitals, etc.
Beach Cleaning Campaign

‘Beach Cleaning Campaign’ under Suzuki Motor
Corporation “Clean-up the World Campaign” was
carried out on 9th December, 2019 at Seaview,
Clifton. The purpose was to create awareness about
the importance of environment protection and
marine life conservation among public. The campaign
Environment
was very successful as around 250 employees of Pak
Urban Forest Plantation Project at NED University
Suzuki and representatives of our nearby vendors
Urban Forest Plantation Project completed at NED
participated in this campaign. Around 1 Ton of
University of Engineering & Technology on 19th
garbage was collected and disposed off properly via
February, 2020 for enhancing the beautification and
Cantonment Board Clifton (CBC).
make the environment cleaner and healthier. On
With above activities, Pak Suzuki is also contributing
growing, it will also be the natural protection against
towards Government’s vision of “Clean & Green
heat stroke in summer season and the research
Pakistan.
based Urban Forest will be helpful in reduction of 2
tons CO2 per year. The project consisted of planting

Quality, Environment, Health & Safety continuously monitors the waste generated from its
Management Systems: activities and, wherever required, has Environmental
Pak Suzuki Motor Company Limited is committed Control Equipment and facilities in place like
to continually promote a “Quality, Health & Safety wastewater treatment plant. Company is complying
and Environment (QHSE)” culture. The Company with applicable regulatory requirement with respect
periodically reviews its QHSE framework and if to environment. Hazardous Waste is properly disposed
needed takes countermeasures to improve the of as per SEPA requirement. Company complies with
system performance. the Environment policy of Zero Landfill and, as a
result, sludge pit was cleaned & closed permanently.
Quality Management system (QMS):
Pak Suzuki maintains certification on ISO 9001:2015 Occupational Health and Safety Management
Quality Management System through regular System (OHSAS):
surveillance audits conducted by the Lloyd’s Register Pak Suzuki is committed to provide a system that helps
Quality Assurance (LRQA) and as per External Auditors, in eliminating unsafe & unhealthy work conditions.
PSMC systems are updated, maintained and following Hazard identifications and risk assessment are being
standard requirements. Further, certification will performed, reviewed and all necessary preventive
be maintained through regular surveillance audits measures are taken to minimize the accidents.
as well as internal audits that will be conducted
at regular intervals. This system is a major tool to The purpose of the Occupational Health & Safety
improve productivity and quality of our products. QMS management system is to focus on the employees’
has helped to provide quality products at competitive Safety and Health at workplace and ensure best
Health, Safety & Environment (HSE) purpose of these sessions was to enhance the safety
level of Car Carrier Team to ensure their safe journey. price to the satisfaction and requirement of our practices are being implemented. Emergency
Awareness Session: customers. preparedness, response procedures and plans are
During the session, supervisors and drivers were
Health, Safety & Environment and Computer established to deal with accidents and emergencies.
educated about Safe Driving Techniques, Highway
Literacy Awareness Sessions Driving Rules and Tips for Maintenance of Vehicles. Environmental Management system (EMS):
Health, Safety & Environment (HSE) Awareness Awareness sessions also comprised of pictorial/video Pak Suzuki is committed to improve Environment. To improve safety measures on continual basis
Session conducted on 3rd May, 2019 for company demonstration about driving signs and techniques, Company was also recertified on ISO 14001:2015 in each area, Pak Suzuki identifies and analyses
employees’ children, brothers & sisters. In accidents and their precautions. Total 95 participants which is in place and maintained through regular potential risks related to work and equipment and
awareness session, importance of safety & security, were trained through these sessions. surveillance audits. It is a key factor in operations establish measures to be taken via Hiyari Hatto
environmental issues and tips to stay healthy were of the company. It helps organization to improve its (near miss and narrow escape) activity, an effective
highlighted. Total 37 participants attended the environmental performance through more efficient Japanese Technique.
awareness session.
Community Health
use of resources and reduction of waste. Pak Suzuki
Blood Donation Camp
HSE Awareness Sessions & Computer Literacy Blood Donation Camp organized in the company
Programs were also conducted at Area Offices on 21st & 24th June, 2019 in collaboration with
Multan, Rawalpindi and Lahore respectively on 3rd Indus Hospital. Blood Donation Campaign was also By Order of the Board
July, 27th September, 2019 and 24th January, 2020 organized at Area Office Multan in collaboration
for the employees’ children, brothers & sisters. Total with Indus Hospital on 15th July, 2019. The Indus
52 children participated in these sessions. Hospital Blood Centre is the first centralized regional
blood center of Pakistan with a vision to provide
safest possible blood and bi-products by meeting MASAFUMI HARANO KINJI SAITO
Safe Driving Techniques Awareness Session Chief Executive Chairman
international standards, to all segments of the society
Awareness Sessions about “SAFE DRIVING
without discrimination. Total 280 donors donated
TECHNIQUES” conducted in company for Car
their blood voluntarily.
Carriers’ Owner, Managers, Supervisors and Drivers Karachi
on 1st March, 24th July & 29th November, 2019. The March 20, 2020

Statement of Compliance with Listed Companies
(Code of Corporate Governance) Regulations, 2019
The Company has complied with the requirements of 6. All the powers of the Board have been duly 13. The terms of reference of the aforesaid 3, 6, 7, 8, 27,32, 33 and 36 of the Regulations
the Regulations in the following manner: exercised and decisions on relevant matters committees have been formed, documented and have been complied with; and
have been taken by the Board / shareholders as advised to the committees for compliance;
1. The total number of directors are 7 as per the empowered by the relevant provisions of the Act 19. Explanation for non-compliance with
following: and these Regulations. 14. The frequency of meetings of the committees requirements, other than regulations 3, 6, 7, 8,
a. Male 6 during the year was as per the following: 27, 32, 33 and 36 are below:
b. Female 1 7. The meetings of the Board were presided over • Board Audit Committee: Four quarterly meetings
by the Chairman and, in his absence, by a director during the financial year ended December 31, a) Board HR & Remuneration Committee: There
2. At the year ended December 31, 2019, the elected by the Board for this purpose. The Board 2019 were no meetings during the financial year ended
composition of the Board of Directors (the has complied with the requirements of the Act December 31, 2019 as there was no agenda to
Board) is as follows: and these Regulations with respect to frequency, 15. The Board has set up an effective internal audit discuss and recommend to the Board. However,
a) Independent Director recording and circulating minutes of the meeting function who is considered suitably qualified and key HR matters were discussed and approved
1. Mr. Moin M. Fudda Director of the Board. experienced for the purpose and is conversant during the board meetings.
with the policies and procedures of the company;
b) Independent Female Director 8. The board of directors have a formal policy and b) Approval of related party transactions: All related
2. Mrs. Rukhsana Shah Director transparent procedures for remuneration of 16. The statutory auditors of the company have party transactions of the Company were carried
c) Non-Executive Directors directors in accordance with the Act and these confirmed that they have been given a satisfactory out in ordinary course of business on arm’s
3. Mr. Kinji Saito Chairman Regulations. rating under the quality control review program length basis and were therefore exempt under
4. Mr. Shigeo Takezawa Director of the Institute of Chartered Accountants of the Companies Related Party Transactions and
5. Mr. Kazuyuki Yamashita Director 9. During the year, board has not arranged any Pakistan and registered with the Audit Oversight Maintenance of Related Records Regulations,
director training program, as five out of seven Board of Pakistan, that they and all their partners 2018 notified under section 208 of the Companies
d) Executive Directors
directors are compliant with training requirement; are in compliance with International Federation Act, 2017 from the requirement to obtain Board
6. Mr. Masafumi Harano Chief Executive
of Accountants (IFAC) guidelines on code of Approval. Accordingly, these transactions were
7. Mr. Tadashi Homma Director
10. There has been no change in the position of ethics as adopted by the Institute of Chartered approved by the Board Audit Committee and
Chief Financial Officer, Company Secretary and Accountants of Pakistan and that they and the notified to the Board.
3. The directors have confirmed that none of them
Head of Internal Audit during the year; partners of the firm involved in the audit are not
is serving as a director on more than seven listed
a close relative (spouse, parent, dependent and
companies, including this Company.
11. Chief financial officer and chief executive officer non-dependent children) of the chief executive
4. The Company has prepared a Code of Conduct duly endorsed the financial statements before officer, chief financial officer, head of internal
and has ensured that appropriate steps have approval of the Board; audit, company secretary or director of the
been taken to disseminate it throughout the company;
Company along with its supporting policies and 12. The Board has formed Committees comprising of
procedures. members given below: 17. The statutory auditors or the persons associated KINJI SAITO MASAFUMI HARANO
a) Audit Committee with them have not been appointed to provide Chairman Chief Executive Officer
5. The Board has developed a vision/mission Mr. Moin M Fudda Chairman other services except in accordance with the March 20, 2020
statement, overall corporate strategy and Mr. Kinji Saito Member Act, these Regulations or any other regulatory
significant policies of the Company. The board Mr. Shigeo Takezawa Member requirement and the auditors have confirmed
has ensured that complete record of particulars that they have observed IFAC guidelines in this
of the significant policies along with their date b) HR & Remuneration Committee regard;
of approval or updating is maintained by the Ms. Rukhsana Shah Chairman
company; Mr. Kinji Saito Member 18. We confirm that all requirements of regulations
Mr. Masafumi Harano Member

Notice of Meeting
Notice is hereby given that the 37th Annual General of financing facilities for setting up plant of proxy to attend the meeting and vote for him/her. who will not submit the copies of their CNICs will
Meeting of the shareholders of Pak Suzuki Motor automobile glass for further period of two years, Proxies in order to be effective must be received be withheld by the or Company.
Company Limited will be held at Registered Office, starting from July 01, 2020 to June 30, 2022. by the Company not less than 48 hours before 7- Under the provisions of Section 242 of the
Karachi on Wednesday, May 20, 2020 at 09:30 a.m. to 6- To authorize the Board of Directors of the the meeting. Companies Act, 2017, it is mandatory for a listed
transact the following business: company to approve transaction with the Related 4- Members are requested to notify change in their Company to pay cash dividend to its shareholders
Parties for the financial year ending December 31, address, if any, to the Company’s share registrar only through electronic mode directly into bank
Ordinary Business 2020 by passing the following special resolution CDC Share Registrar Services Limited, CDC House, account designated by the entitled shareholders.
1- To confirm minutes of Annual General Meeting with or without modification: 99-B, Block ‘B’, S.M.C.H.S. Main Shahrah-e-Faisal, In order to receive dividends directly into their
held on April 23, 2019. “Resolved that the Board of Directors of the Karachi - 74400. bank account, shareholders, who own physical
2- To receive, consider and adopt the audited company be and is hereby authorized to approve 5- CDC Account Holders will further have to follow shares, are requested to fill in Electronic Credit
accounts of the Company for the year ended the transactions to be conducted with the related the under mentioned guidelines as laid down Mandate Form available on Company’s website
December 31, 2019, together with Directors’ and parties for the financial year ending December in the Circular 1 dated January 26, 2000 issued and send duly signed form along with a copy of
Auditors’ reports thereon. 31, 2020.” by the Securities and Exchange Commission of CNIC to the Registrar of the Company. In case
3- To appoint auditors for the year ending December “Further resolved that these transactions by the Pakistan. shares are held in CDC then Electronic Credit
31, 2020 and fix their remuneration Messrs KPMG Board of Directors shall be deemed to have been For Attending the Meeting Mandate Form must be submitted directly to
Taseer Hadi & Co., Chartered Accountants, retire approved by the shareholders and shall be placed i. In case of individuals, the account holder or shareholder’s broker/participant/CDC account
and being eligible have offered themselves for re- before the shareholders in the next Annual sub account holder and/ or the person whose services.
appointment. General Meeting for their formal ratification / securities are in group account and their 8- Video Conference Facility: In light of the very recent
4- To consider any other business with the approval.” registration detail are uploaded as per the direction of the Government of Sindh through its
permission of the Chair. A Statement of Material Facts under Section 199(3) regulations, shall authenticate his/her identity notification No. SO(CIV)/SGA&CD/3-l/2020, dated
(b) of The Companies Act 2017 covering the above- by showing his/her original Computerized 14 March, 2020, for the control and prevention of
SPECIAL BUSINESS mentioned special businesses is being sent to the National Identity Card (CNIC) or original Coronavirus (COVID/19), all functions, events and
5- To approve extension of Corporate Guarantee shareholders along with a copy of this notice. passport at the time of attending the Meeting. gatherings at clubs, hotels, halls, auditoriums etc.
upto PKR 600 million to Meezan Bank Limited for ii. In case of corporate entity, the Board of have been suspended with immediate effect.
Tecno Auto Glass Limited (TAG), an associated BY ORDER OF THE BOARD Directors’ resolution/power of attorney in favor In compliance with the guidelines issued by
company, in respect of financing facilities for of the nominee shall be produced (unless it has Securities and Exchange Commission of Pakistan
setting up plant of automobile glass for further been provided earlier) at the time of the Meeting. vide circular No. 5 of 2020 and directives of
period of two years starting from July 01, 2020 to ABDUL NASIR Government of Sindh, Company has arranged
June 30, 2022. COMPANY SECRETARY 6- SECP vide its SRO 779(1)/2011 dated August 18, video link facility for shareholders to participate in
To consider and if thought fit, pass the 2011 has made it mandatory for the companies the meeting proceedings. Shareholders interested
following Special Resolution under section 199 Karachi: April 27, 2020 to provide CNIC numbers of the shareholders in attending the meeting through webinar are
of the Companies Act, 2017, with or without on dividend warrants. Therefore, members who requested to register by submitting their following
modification(s), addition (s) or deletion (s). Notes: have not yet submitted photocopies of their particulars at the Company Secretary’s email
1- The share transfer books of the Company will valid CNICs to the Company are again requested ([email protected]) before
Resolved that approval of the shareholders of Pak remain closed from May 14, 2020 to May 20, to immediately submit the same directly to the close of business hours on Tuesday, 19th May,
Suzuki Motor Company Limited (“the Company”) 2020 (both days inclusive) and no transfer will Company’s share registrar CDC Share Registrar 2020. The link to participate in the webinar will be
be and is hereby accorded in terms of Section 199 be accepted for registration during this period. Services Limited, CDC House, 99-B, Block ‘B’, sent to the shareholders on the email address
of the Companies Act, 2017, Regulation No. 5(7) of Transfers received in order till close of business S.M.C.H.S. Main Shahrah-e-Faisal, Karachi - provided by them. Shareholders are requested to
Companies (Investment in Associated Companies on May 13, 2020 will be accepted for transfer. 74400. Dividend Warrants of the shareholders fill the particulars as per below table:
or Associated Undertakings) Regulations 2017 2- Only those persons whose names appear in the
and subject to the compliance with all statutory Register of Members of the Company as at May
and legal requirement, to approve corporate 13, 2020 will be entitled to attend / participate in Name of CDC Account No. of Shares
S.No. CNIC NO. Folio No. Cell No. Email address
guarantee up to PKR 600 million to Meezan Bank / vote at the Annual General Meeting. Shareholder No. held
Limited on behalf of Tecno Auto Glass Limited 3- A member entitled to attend and vote at this
(TAG), an associated undertaking, in respect meeting may appoint another member as his/her

The login facility will be opened at 9:00 a.m. on are PKR 0.15, PKR 0.39, PKR 0.58 respectively. conceptualization; Benefit
20th May, 2020 enabling the participants to join (iv) Break-up value per share, based on latest audited Tecno Auto Glass Limited incorporated in -To facilitate the associated company (TAG) for
the proceedings which will start at 9:30 a.m. sharp. financial statements; Pakistan as a public limited company under continued financial arrangements for project
- The break-up value per as at June 30, 2019 is the Companies Ordinance, 1984 (Repealed financing from Meezan Bank. Pak Suzuki will
Shareholders can also provide their comments/
PKR 9.50 (Audited). with the enactment of the Companies Act, purchase automobile glass for its vehicles from
suggestions via email: company.secretary@
(v) Financial position, including main items of 2017 on May 30, 2017) on 16 March 2017. TAG after the commencement of commercial
paksuzuki.com.pk. for the agenda items proposed
statement of financial position and profit and The Company’s main area of operations will production.
to be conducted in the meeting in the same manner
loss account on the basis of its latest financial be manufacturing, of Auto Glass to cater local Period of Corporate Guarantee
as it is to be discussed in the meeting, and later
statements; as well as international markets. - 2 years from July 1, 2020 to June 30, 2022.
shall be made part of the minutes of the meeting.
- Financial Position as per the latest audited The Company is a subsidiary of Tecno Pack (ix) Sources of funds to be utilized for investment
The purpose of the aforementioned arrangements Financial Statements of TAG as on June 30, 2019, Telecom (Pvt) Ltd, which holds 51,660,000 and where the investment is intended to be made
is to ensure maximum participation of the is as follows: (60%) of the shares of the Company, while using borrowed funds;
shareholders in the meeting through an online Pak Suzuki Motor Company Limited holds - Not applicable.
‘Rupees in
facility (webinar). Shareholders are also requested 34,440,000 (40%). (x) Salient features of the agreement(s), if any, with
thousand”
to consolidate their attendance through proxies, so (II) Starting date and expected date of completion associated company or associated undertaking
that the quorum requirement may also be fulfilled. Non-current assets:
of work; with regards to the proposed investment;
Property, plant & equipment 2,138,033 The project was started on July 2017 and - Not applicable.
9- Notice of the Annual General meeting and Annual Other non-current asset 390 expected to be completed by April 2020. (xi) Direct or indirect interest of directors, sponsors,
Report of the company for the year ended Total non-current assets 2,138,423 (III) Time by which such project shall become majority shareholders and their relatives, if any, in
December 31, 2019 have been placed on the commercially operational; the associated company or associated undertaking
website of the company, -June 2020 or the transaction under consideration;
https://www.paksuzuki.com.pk. Total current assets 152,511 (IV) Expected time by which the project shall start - The Directors of the company have no personal
Total assets 2,290,934 paying return on investment; and interest in TAG which is an associated company,
Statement of Material Facts under Section -Financial year 2021 – 22. except that a director of the company is also a
134(3)(b) of The Companies Act 2017. (V) Funds invested or to be invested by the Director of TAG and he hold a share in TAG as
Equity:
promoters, sponsors, associated company nominee director of the company.
Item No. 5 of the Notice: Issuance of Corporate Issued, subscribed &paid-up capital 861,000
or associated undertaking distinguishing
Guarantee up to PKR 600 million to Meezan Bank Accumulated loss (42,409) between cash and noncash amounts; (xii) In case any investment in associated company or
Limited for Tecno Auto Glass Limited (TAG), an Total equity 818,591 - Pak Suzuki Motor Company has injected PKR associated undertaking has already been made,
associated company, in respect of financing 344.4 million as equity participation in the the performance review of such investment
Non-current liabilities
facilities for setting up plant of automobile glass. associated company. including complete information/justification for
Long term finance- secured 795,135
- Tecno Pack Telecom (Pvt) Ltd has injected any impairment or write offs;
The information required to be annexed to the Current liabilities PKR 516.6 million as equity participation in - There is no impairment or write off in the
Notice by Companies (Investment in Associated Trade and other payables 48,728 the Tecno Auto Glass Limited investment in the associated company.
Companies or Associated Undertakings) - Tecno Pack Telecom (Pvt) Ltd also injected
Current portion of Long term
Regulation 2017 is set out below: 308,980 PKR 319.5 million as short term loan. (xiii)Any other important details necessary for the
finance- secured
(i) Name of the associated company or associated (vii) Maximum amount of investment to be made; members to understand the transaction;
Short term borrowing 319,500
undertaking; - The maximum amount of corporate guarantee - None.
- Tecno Auto Glass Limited (TAG). Total current liabilities 677,208
is PKR 600 million.
(ii) Basis of relationship; Total equity & liabilities 2,290,934 (xiv) Category-wise amount of investment is as
- TAG is an associated company with 40% (viii) Purpose, benefits likely to accrue to the follows;
shareholding held by Pak Suzuki Motor Company (vi) The project has not commenced operations, the investing company and its members from such - The maximum amount of corporate guarantee
Limited (PSMCL). additional information required to be disclosed investment and period of investment is PKR 600 million
(iii) Earnings per share for the last three years; are as follows: Purpose
- The loss per share for year 2019, 2018 and 2017 (I) Description of the project and its history since - To support the associated company. (xv) Average borrowing cost of the investing

company, the Karachi Inter Bank Offered Rate The duly audited latest annual financial statements
(KIBOR) for the relevant period, rate of return for along with the latest interim financial statements,
Shariah compliant products and rate of return for if any, shall be made available for inspection of the
unfunded facilities, as the case may be, for the members in the shareholder meeting.
relevant period;
- Not applicable. Declaration pursuant to Section 199(2) of the
Companies Act 2017 and Regulations 3(4) of the
(xvi)Rate of interest, mark up, profit, fees or Companies (Investment in Associated Companies
commission etc. to be charged by investing or Associated Undertakings) Regulations, 2017.
company; The directors certify to the members of the company
- PSMCL will charge 0.5% per annum as service that they have carried out necessary due diligence
charge for issuance of Corporate Guarantee till for the proposed investment before recommending it
the Corporate Guarantee served as a security for for members approval.
financing facilities by TAG.
The duly signed recommendations of the due
(xvii)Particulars of collateral or security to be obtained diligence report, shall be made available to the
in relation to the proposed investment; members for inspection in the meeting.
- Counter Corporate guarantee from TAG.
Item No. 6 of the Notice:
(xviii)If the investment carries conversion feature i.e. The Company shall be conducting transactions with
it is convertible into securities, this fact along its related parties during the year ending Dec 31,
with terms and conditions including conversion 2020 on an arm’s length basis as per approved policy
formula, circumstances in which the conversion with respect to ‘transactions with related parties’
may take place and the time when the conversion in the normal course of business. The majority of
may be exercisable; Directors are interested in these transactions due to
- None. their relationship with the parent company. In order
(xix)Repayment schedule and terms and conditions to promote the transparent business practices, the
of loans or advances to be given to the associated shareholders authorize the Board of Directors to
company or associated undertaking; approve transactions with the related parties from
- Not applicable. time-to-time basis for the year ending December
30, 2020, which transactions shall be deemed to be
approved by the shareholders. The nature and scope
of such related party transactions is explained in
the note 41 of the Financial Statement for the year
Information pursuant to the Regulation 4 of the ended December 31, 2019. These transactions shall
Companies (Investment in Associated Companies be placed before the Shareholders in the next AGM
or Associated Undertakings) Regulations, 2017 for their formal ratification / approval.
The following director of TAG is also member of the
investing company: The Directors are interested in the resolution only
- Mr. Masafumi Harano, director has no personal to the extent of their relationship with such related
interest in the matter. parties.

KPMG Taseer Hadi & Co. KPMG Taseer Hadi & Co.
Chartered Accountants Chartered Accountants
Sheikh Sultan Trust Building No. 2 Sheikh Sultan Trust Building No. 2
Beaumont Road Beaumont Road
Karachi, 75530 Pakistan Karachi, 75530 Pakistan
+92(21) 35685847, Fax +92(21) 35685095 +92(21) 35685847, Fax +92(21) 35685095
INDEPENDENT AUDITOR’S REVIEW REPORT INDEPENDENT AUDITOR’S REPORT

To the members of Pak Suzuki Motor Company Limited To the members of Pak Suzuki Motor Company Limited
Review report on the Statement of Compliance contained in Listed Companies Report on the Audit of the Financial Statements
(Code of Corporate Governance) Regulations. 2019
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Opinion
Governance) Regulations, 2019 (“the Regulations”) prepared by the Board of Directors of Pak Suzuki Motor We have audited the annexed financial statements of Pak Suzuki Motor Company Limited (the Company),
Company Limited (“the Company”) for the year ended 31 December 2019 in accordance with the requirements which comprise the statement of financial position as at 31 December 2019, and the statement of profit or
of regulation 36 of the Regulations. loss, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our for the year then ended, and notes to the financial statements, including a summary of significant accounting
responsibility is to review whether the Statement of Compliance reflects the status of the Company’s compliance policies and other explanatory information, and we state that we have obtained all the information and
with the provisions of the Regulations and report if it does not and to highlight any non-compliance with the explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit.
requirements of the Regulations. A review is limited primarily to inquiries of the Company’s personnel and review
of various documents prepared by the Company to comply with the Regulations. In our opinion and to the best of our information and according to the explanations given to us, the statement
As a part of our audit of financial statements we are required to obtain an understanding of the accounting and of financial position, statement of profit or loss, statement of comprehensive income, the statement of
internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to changes in equity and the statement of cash flows together with the notes forming part thereof conform
consider whether the Board of Directors’ statement on internal control covers all risks and controls or to form an with the accounting and reporting standards as applicable in Pakistan and give the information required by
opinion on the effectiveness of such internal controls, the Company’s corporate governance procedures and risks. the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view
of the state of the Company’s affairs as at 31 December 2019 and of the loss and other comprehensive loss,
The Regulations require the Company to place before the Audit Committee, and upon recommendation of the Audit
the changes in equity and its cash flows for the year then ended.
Committee, place before the Board of Directors for their review and approval, its related party transactions and
also ensure compliance with the requirements of section 208 of the Companies Act, 2017. We are only required
and have ensured compliance of this requirement to the extent of the approval of the related party transactions Basis for Opinion
by the Board of Directors upon recommendation of the Audit Committee. We have not carried out procedures to We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in
assess and determine the Company’s process for identification of related parties and that whether the related Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities
party transactions were undertaken at arm’s length price or not. for the Audit of the Financial Statements section of our report. We are independent of the Company in
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
does not appropriately reflect the Company’s compliance, in all material respects, with the requirements contained Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled
in the Regulations as applicable to the Company for the year ended 31 December 2019. our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Further, we highlight below instances of non-compliance with the non-mandatory provisions of the Regulations as
reflected in the paragraph reference wherein these are stated in the Statement of Compliance.
Key Audit Matters
Paragraph reference Description Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
9(a) No meetings held of Board HR & Remuneration Committee during the year of the financial statements of the current period. These matters were addressed in the context of our audit
19(b) Explanation of the matter pertaining to approval of related party transactions of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Date: March 31, 2020 KPMG Taseer Hadi & Co.

Karachi Chartered Accountants

Following are the key audit matters:
S No. Key audit matters How the matters were addressed in our audit S No. Key audit matters How the matters were addressed in our audit
1. Revenue recognition Our audit procedures in relation to recognition of 2. Valuation of Stock-in-trade Our audit procedures in relation to valuation of stock-
revenue, amongst others, included the following: in-trade, amongst others, included the following:
Refer notes 4.1.2, 4.15 and 30 to the Refer notes 4.6 and 14 to the Company’s
Company’s financial statements. • assessed the design, implementation and operating financial statements. • obtained an understanding of controls over
effectiveness of the relevant key internal controls valuation of stock in trade including creation of
Revenue is recognised when (or as) over the Company’s system which governs revenue Stock-in-trade forms a significant part provision for slow moving and obsolete items.
the entity satisfies a performance recognition; of the Company’s total assets. Stock-in- Further, we tested on a sample basis their design,
obligation by transferring a promised trade comprises of raw material, work implementation and operating effectiveness;
good or service to a customer. Revenue • assessed the appropriateness of the Company’s in process, finished goods and trading
• obtained an understanding of management’s
is measured based on the consideration accounting policies for revenue recognition stocks which are stated at lower of cost
including those related to discounts and determination of net realizable value (NRV) and
specified in a contract with a customer and estimated net realizable value.
commissions including its compliance with the key estimates adopted, including future selling
and is stated net of discounts, returns
applicable accounting standards; prices and costs necessary to make the sales and
and value added taxes. We identified the valuation of stock-
their basis;
in-trade as a key audit matter because
We identified revenue recognition as • evaluated management’s assessment of applicable determining an appropriate write- • tested, on a sample basis, management’s
key audit matter because revenue is accounting standard to check the reasonableness, down as a result of net realizable
accuracy and completeness of the impact on assessment of the NRV of stock in trade by
one of the key performance indicators value (NRV) being lower than their cost comparing to its recent sales prices and executed
and there is a potential risk that the financial statements including adequacy of and provisions for slow moving and
disclosures; purchase orders for future sales, if any;
revenue transactions may not be obsolete inventories involve significant
recognized in the appropriate period
• obtained an understanding of the nature of the management judgment and estimation. • compared NRV, on a sample basis, with cost to
and risk of misapplication of new revenue contracts entered into by the Company, assess valuation of stock-in-trade has been in
accounting standard IFRS 15 “Revenue tested a sample of sales contracts to understand accordance with the Company’s accounting policy;
from Contracts with Customers” in and assess appropriateness of management’s and
revenue recognition. application of applicable accounting standard’s
requirements;
• assessed adequacy of provision for slow-moving
stock-in-trade at year end is in line with the
company policy.
• checked invoices and related documents, on a
sample basis for selected revenue transactions
recorded during the current year to assess
whether the related revenue was recognized in
accordance with the requirements of applicable
accounting standard; and
• tested on a sample basis, specific revenue

transactions recorded before and after the
reporting date with underlying documentation to
assess whether revenue have been recognized in
the appropriate accounting period.

Information Other than the Financial Statements and Auditor’s Report Thereon As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and
Management is responsible for the other information. The other information comprises the information maintain professional skepticism throughout the audit. We also:
included in the Annual Report but does not include the financial statements and our auditor’s report thereon.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
Our opinion on the financial statements does not cover the other information and we do not express any or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
form of assurance conclusion thereon.
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
In connection with our audit of the financial statements, our responsibility is to read the Other Information and,
in doing so, consider whether the Other Information is materially inconsistent with the financial statements • Obtain an understanding of internal control relevant to the audit in order to design audit procedures
or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
work we have performed, we conclude that there is a material misstatement of this Other Information, we effectiveness of the Company’s internal control.
are required to report that fact. We have nothing to report in this regard.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
Responsibilities of Management and Board of Directors for the Financial
Statements
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
Management is responsible for the preparation and fair presentation of the financial statements in accordance conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
Act, 2017(XIX of 2017) and for such internal control as management determines is necessary to enable the the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
preparation of financial statements that are free from material misstatement, whether due to fraud or error. opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the • Evaluate the overall presentation, structure and content of the financial statements, including the
going concern basis of accounting unless management either intends to liquidate the Company or to cease disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
operations, or has no realistic alternative but to do so.
We communicate with the board of directors regarding, among other matters, the planned scope and timing
Board of directors are responsible for overseeing the Company’s financial reporting process.
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
We also provide the board of directors with a statement that we have complied with relevant ethical
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
requirements regarding independence, and to communicate with them all relationships and other matters
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
in accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
From the matters communicated with the board of directors, we determine those matters that were of
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
most significance in the audit of the financial statements of the current period and are therefore the key
financial statements.
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public

Financial Statement
KPMG Taseer Hadi & Co.
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
Assets 2019 Assets 2018
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication. 20.20%
20.76%
3.53%
Report on Other Legal and Regulatory Requirements 22.36% 4.93% 25.45%
2.46%
4.21%
Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of
2017);
b) the statement of financial position, the statement of profit or loss, statement of comprehensive income,
the statement of changes in equity and the statement of cash flows together with the notes thereon have
been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the
books of account and returns;
48.31% 47.79%
c) investments made, expenditure incurred and guarantees extended during the year were for the purpose
of the Company’s business; and
Cash & Bank Balances Other Current Assets Property Plant & Equipment Other Non Current Assets Stock in Trade
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by
the Company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
Equity & Liabilities Equity & Liabilities
The engagement partner on the audit resulting in this independent auditor’s report is Mohammad Mahmood Hussain. 2019 2018
16.41% 6.51% 1.93% 3.70% 18.39%

1.06% 1.34%
6.92%
32.36%
23.46%
Date: March 31, 2020 KPMG Taseer Hadi & Co.

Karachi Chartered Accountants
41.73% 56.42%
Trade, Other Payables & Unclaimed Dividend Trade, Other Payables & Unclaimed Dividend
Short term finance Short term finance
Advances Advances
Security Deposits & Other Current Liabilities Security Deposits & Other Current Liabilities
Paid-up Capital Paid-up Capital
Reserves Reserves

Statement of Financial Position
As at 31 December 2019
2019 2018 2019 2018

Note ------------- (Rupees in ’000) ------------- Note ------------ (Rupees in ’000) ------------
Assets Equity and Liabilities

Non-current assets Share capital and reserves
Property, plant and equipment 5 15,685,850 15,654,827 Authorized share capital
Intangible assets 6 345,419 113,297 500,000,000 (2018: 150,000,000) ordinary shares of Rs. 10 each 5,000,000 1,500,000
Right-of-use assets 7 144,959 -
Long-term investments 8 325,925 329,274 Issued, subscribed and paid-up share capital 21 822,999 822,999
Long-term loans 9 3,500 4,203 Capital reserves 844,596 844,596
Long-term deposits, prepayments and other receivables 10 378,019 456,208 Revenue reserves 24,283,291 27,565,270
Long-term installment sales receivables 11 271,873 118,318 25,950,886 29,232,865
Deferred taxation - net 12 2,359,062 1,151,888 Non-current liabilities
19,514,607 17,828,015 Payable against purchase of asset 22 163,357 -
Current assets Security deposits 23 236,130 215,730

Stores, spares and loose tools 13 260,424 146,878 Lease liabilities 24 116,192 -
Stock-in-trade 14 37,516,571 29,397,056 515,679 215,730
Trade debts 15 690,658 237,538 Current liabilities
Loans and advances 16 55,390 40,627 Trade and other payables 25 12,723,689 14,409,566
Trade deposits and short term prepayments 17 279,304 1,357,271 Lease liabilities 24 31,757 -
Current portion of long-term installment sales receivables 11 799,036 549,627 Short-term finance 26 32,411,037 11,310,497
Other receivables 18 348,919 268,622 Advance from customers 1,497,117 2,276,078
Taxation - net 19 7,226,470 5,798,056 Security deposits 27 3,927,506 4,006,519
Sales tax and excise duty adjustable 7,700,937 4,369,996 Provision for custom duties and sales tax 28 582,826 36,299
Cash and bank balances 20 3,267,510 1,516,163 Unclaimed dividend 19,329 22,295
58,145,219 43,681,834 51,193,261 32,061,254
Total Equity And Liabilities 77,659,826 61,509,849
Total Assets 77,659,826 61,509,849 Contingencies and commitments 29
The annexed notes from 1 to 50 form an integral part of these financial statements.
Chairman Chief Financial Officer Chief Executive Officer

Statement of Profit or Loss Statement of Comprehensive Income
For the year ended 31 December 2019 For the year ended December 31, 2019
2019 2018 2019 2018

Note ------------- (Rupees in ’000) ------------- ------------- (Rupees in ’000) -------------
Sales 30 116,548,013 119,853,898 (Loss)/ profit for the year (2,920,485) 1,298,108
Cost of sales 31 (114,563,486) (112,809,033)
Gross profit 1,984,527 7,044,865 Other comprehensive loss
Distribution and marketing expenses 32 (2,539,251) (2,706,853) Items that may not to be reclassified
Administrative expenses 33 (2,550,663) (2,323,313) subsequently to statement of profit or loss
Reversal of impairment losses 22,588 22,233 Remeasurement loss on defined benefit plan - net of tax (79,036) (84,182)
Other expenses 34 (348) (154,204)
Other income 35 222,504 565,943
Total comprehensive (loss)/ income for the year (2,999,521) 1,213,926
Finance costs 36 (2,087,752) (362,523)
(6,932,922) (4,958,717)
(4,948,395) 2,086,148
Share of loss of equity accounted investee (3,349) (3,212)
(Loss)/ profit before taxation (4,951,744) 2,082,936
Taxation 37 2,031,259 (784,828)
(Loss)/ profit for the year (2,920,485) 1,298,108
------------- (Rupees) -------------
(Loss)/earnings per share - basic and diluted 38 (35.49) 15.77
Chairman Chief Financial Officer Chief Executive Officer Chairman Chief Financial Officer Chief Executive Officer

Statement of Changes in Equity Statement of Cash Flows
For the year ended December 31, 2019 For the year ended December 31, 2019
Reserves
Share 2019 2018
capital Capital reserves Revenue reserves
Issued, Un - Re - Note ------------- (Rupees in ’000) -------------

Reserve Total measurement Total
subscribed
and
Share
on capital General
appropriated
profit/ loss revenue Total
Cash Flows From Operating Activities
paid-up premium (Accumulated
merger reserve on defined reserve
capital Loss) benefit plan
Cash used in operating activities 39 (14,048,233) (6,399,681)
------------------------------------------------- (Rupees in ’000) -------------------------------------------------
Markup paid on short-term finance (1,464,539) (231,499)
Balance as at 1 January 2018 822,999 584,002 260,594 844,596 24,144,818 3,827,786 (90,483) 27,882,121 29,549,716 Income tax paid (604,329) (2,598,304)
Transaction with owners in the Long-term loans 703 (1,842)
capacity as owners directly recorded Long-term deposits, prepayments and other receivables 78,189 (128,889)
in equity - distribution
Final dividend on ordinary shares @ 186%
Long-term installment sales receivables (153,555) 26,461
for the year ended 31 December 2017 - - - - - (1,530,777) - (1,530,777) (1,530,777) Net cash used in operating activities (16,191,764) (9,333,754)
Transfer to general reserve - - - - 2,295,000 (2,295,000) - - -

Cash Flows From Investing Activities
Total comprehensive income for the
Purchase of property, plant and equipment (2,538,745) (8,458,516)
year ended 31 December 2018
Purchase of intangible assets (410,298) (16,845)
Proceeds from sale of property, plant and equipment 45,681 75,184
Profit for the year - - - - - 1,298,108 - 1,298,108 1,298,108
Profit received on bank accounts 74,024 397,064
Other comprehensive loss - - - - - - (84,182) (84,182) (84,182)
Investment in joint venture - (124,400)
- - - - - 1,298,108 (84,182) 1,213,926 1,213,926
Balance as at 31 December 2018 822,999 584,002 260,594 844,596 26,439,818 1,300,117 (174,665) 27,565,270 29,232,865 Net cash used in investing activities (2,829,338) (8,127,513)
Effect of initial application of IFRS 16 - - - - - (22,390) - (22,390) (22,390) Cash Flows From Financing Activities
Balances as at 1 January 2019 - Restated 822,999 584,002 260,594 844,596 26,439,818 1,277,727 (174,665) 27,542,880 29,210,475
Transaction with owners in the Payment of lease liabilities (65,057) -

capacity as owners directly recorded Dividend paid (263,034) (1,522,619)
in equity - distribution
Final dividend on ordinary shares @ 31.6% - - - - - (260,068) - (260,068) (260,068)
(328,091) (1,522,619)
for the year ended 31 December 2018
Net decrease in cash and cash equivalents (19,349,193) (18,983,886)
Transfer to general reserve - - - - 1,039,000 (1,039,000) - - -
Cash and cash equivalents at beginning of the year (9,794,334) 9,189,552
Total comprehensive loss for the
year ended 31 December 2019
Cash and cash equivalents at end of the year 40 (29,143,527) (9,794,334)
Loss for the year - - - - - (2,920,485) - (2,920,485) (2,920,485)

Other comprehensive loss - - - - - - (79,036) (79,036) (79,036)
- - - - - (2,920,485) (79,036) (2,999,521) (2,999,521) The annexed notes from 1 to 50 form an integral part of these financial statements.
Balance as at 31 December 2019 822,999 584,002 260,594 844,596 27,478,818 (2,941,826) (253,701) 24,283,291 25,950,886
Chairman Chief Financial Officer Chief Executive Officer Chairman Chief Financial Officer Chief Executive Officer

Notes to the Financial Statements
1. Corporate Information, Operations - Plot No. 233/A, Ali Bhai Centre, Ground - SR Suzuki, Sialkot Mohallah Bijli Ghar Near - PR Peshawar, Tajwar Palace, Chugal pura,
Floor, Shahrah-e-Qaideen, Block 2, P.E.C.H.S Anmol Shadi Hall, Shahabpura road, Near Mall Mandi, Ring Road Peshawar.
and Legal Status Karachi. Sialkot. - Ravi motors (Franchise), Lahore Ring Rd,
Pak Suzuki Motor Company Limited
- Mohalla bijli ghar, near anmol marriage hall, - Multan Suzuki, 494-A, Al-Tamash Road, Dera Lahore, Punjab.
Pak Suzuki Motor Company Limited (“the shahab pura road, Siakot. Adda Chowk, Multan. - Falcon motors (Franchise), Lahore Rd,
Company”) was incorporated in Pakistan as a - Plot No. 749, Near Peoples colony chowk. - AR Suzuki, Dua Arcade, Survey # 391, Sheet Sargodha, Punjab.
public limited company in August 1983 and Near cinema GT road Gujranwalla. A.M., Frere Road, Artillery Maidan Quarters,
started commercial production in January 1984. Tecno Auto Glass Limited
- Plot No. 25, Dhoobi Ghaat, GC university link Karachi.
The Company was formed in accordance with the Tecno Auto Glass Limited (“TAG”) is a Company
road, saeed mart, Faislabad. - M.R Suzuki, 3-Mareer Pull, Near Wheel & incorporated in Pakistan as a public limited
terms of a joint venture agreement concluded
between Pakistan Automobile Corporation - Shop No. 149-B, Main Chandni chowk, Muree Wheels Workshop, Adjacent Murree Road, Company under the repealed Companies
Limited (“PACO”) and Suzuki Motor Corporation road, Rawalpindi. Behind Jang Building, City Branch, Ordinance,1984 (now Companies Act, 2017)
(SMC), Japan (the Holding Company) having Rawalpindi. on 16 March 2017. The registered office of the
- Tajwar palace, chughal pura, near mal
registered address of 300 Takatsuka-Cho, - FR Suzuki, Shop G-3 Jilani Centre, Plot Company is situated at 255 A, Block 6, P.E.C.H.S,
mandi, ring road, Peshawar.
Minami-Ku, Hamamatsu City. In 1996, the joint No. Am-303, J.M.A School Street , Frere Road Shahrah-e-Faisal, Karachi. TAG is currently in the
venture agreement was ended & PACO divested Regional offices: Karachi. process of setting up a manufacturing plant of
its entire shareholding to SMC. The Company - Regional Office Multan, Office No: 402, 4th auto glass at Bin Qasim National lndustrial Parks
- Empress Suzuki, 7, Empress Road, Fort Gujjar, - Special Economic Zone (SEZ). The import
is engaged in the assembling, progressive Floor United Mall, Abdali Road, Main Branch, Near Haji Camp,Mecleod Road Branch, Lahore.
manufacturing and marketing of Suzuki cars, Multan. of plant and machinery for manufacturing of
pickups, vans, 4x4s and motorcycles and related - UP Suzuki, Shop No. 1,2&3 Plot No. Sb-42, auto glass from Australia has been completed
- Regional Office Lahore, 7-A, Aziz Avenue Super Terrace UP Motorcycle Market, North and is currently in the process of installation.
spare parts. The Company is listed on Pakistan
Canal, Road, LDA Plaza Branch, Kashmir Karachi. The Company also entered into a technical
Stock Exchange Limited. The registered office of
Road, Lahore. assistance agreement with Asahi India Glass
the Company is situated at DSU – 13, Pakistan - Riaz Motor Suzuki (Franchise), 233-A/2,
Steel Industrial Estate, Bin Qasim, Karachi. - Regional Office Rawalpindi, 3rd Floor, 112-B, Shahrah-E-Qaideen, Block 2 Pechs, Limiled to provide assistance for installation of
Mallahi Plaza Muree Road, Rawalpindi Cantt. plant and machinery.
Karachi.
The manufacturing facilities, warehouses, area The Mall Branch, Rawalpindi.
- KR Suzuki, Plot #55-T, Nr Metro Station, TAG is a subsidiary of Tecno Pack Telecom
offices and sales offices of the Company are Sales offices (Motorcycle Division): Chowk Kumharan Wala, Multan. (Private) Limited, which owns 60% of the shares
situated

at the following locations:
- BJ Suzuki, 7, Nizam Chamber, Ground Floor of TAG, while remaining 40% of the shares were
- Suzuki South (Franchise), Main Korangi
Factory: Shahrah-e-Fatima Jinnah, Queens Road, acquired by Pak Suzuki Motor Company Limited
Industrial Area Service Rd, Mehran
Lahore. as more explained in note 8.1 to these financial
- DSU – 13, Pakistan Steel Industrial Estate, Bin Town Sector 23 Korangi, Karachi.
statements.
Qasim, Karachi. - SG Suzuki, 8-A, 118 opp Mian Park - Suzuki Motorcycles Gujrat (Franchise),
Warehouses: University of Engineering & Tech Gate # 6, Opposite Science College G.T Road, Gujrat. 2. BASIS OF PREPARATION
- DSU – 13A, Pakistan Steel Industrial Estate, G.T Road, Lahore. 2.1 Statement of compliance
- Suzuki Motorcycles Gujranwala (Franchise),
Bin Qasim, Karachi. - GT Suzuki, Gujranwala Near Peoples Colony Rahwali Mandiala Mor Besides Executive, These financial statements have been prepared
- Tradda Manga Mandi, Raiwind Multan Road, Chowk, Nigar cinema, GT Road, Gujranwala. Passport Office G. T. Road, Gujranwala. in accordance with the accounting and
Lahore. - FSD Suzuki, P-25, Dhobi Ghat GC University - H.S Traders-Gujjar Motor (Franchise), Waris reporting standards as applicable in Pakistan.
Booking offices: Link Road, Main Branch, Faisalabad. Khan Stop, Motorcycle plaza, Murree Road, The accounting and reporting standards as
Rawalpindi. applicable in Pakistan comprise of:
- 7-A, Aziz Avenue, Canal Bank Road, Gulberg - UR Suzuki, Shop # A-45 & A-46, Ground
Floor, National Complex - Block 10/A, KDA - International Financial Reporting Standards
V, Lahore. - MR Showroom, Chandni Chowk, Murree
Scheme # 33, Opp Aladdin Park, (IFRS Standards) issued by the International
- Office No. 402, 4th Floor United Mall, Abdali Road, Rawalpindi.
Main Rashid Minhas Road, Karachi. Accounting Standards Board (IASB) as notified
Road Multan. - TR Showroom, 233-A/2, Shahrah-e-Qaideen, under the Companies Act, 2017;
- Shop No. 6, Ground and 1st Floor, 170 - TS Suzuki, Plot # 862, Block-D, Near Akber Block 2 PECHS, Karachi.
Chowk, Faisal Town, Lahore. - Islamic Financial Accounting Standards
Arcade block, Fortress stadium, Lahore - GR Showroom, 139 Multan Rd near Yateem (IFAS) issued by the Institute of Chartered
Cantt. - WR Suzuki, 39-E, Main Walton Road, Lahore. Khana Chowk, Lahore. Accountants of Pakistan as are notified under

the Companies Act, 2017; and Information about judgements made by the have any significant effect on the Company’s issued a revised Conceptual Framework
- Provisions of and directives issued under the management in the application of approved financial statements and are therefore not for Financial Reporting which is applicable
Companies Act, 2017. accounting and reporting standards, as stated in these financial statements. immediately contains changes that will set
applicable in Pakistan, that have most significant a new direction for IFRS in the future. The
Where provisions of and directives issued 3.2 Standards, interpretations and amendments
effect on the amount recognized in the financial Conceptual Framework primarily serves as a
under the Companies Act, 2017 differ from the statements and information about assumptions to published approved accounting standards tool for the IASB to develop standards and
IFRS Standards or IFAS, the provisions of and and estimation uncertainties with significant that are not yet effective: to assist the IFRS Interpretations Committee
directives issued under the Companies Act, risk of resulting in a material adjustment to the The following standards, amendments and in interpreting them. It does not override
2017 have been followed. carrying amounts of assets and liabilities in the interpretations of accounting standards are only the requirements of individual IFRSs and any
2.2 Basis of measurement next year are described in the following: effective for annual periods beginning from the inconsistencies with the revised Framework
- Determining the useful lives and residual value dates specified below: will be subject to the usual due process - this
These financial statements have been prepared means that the overall impact on standard
under the historical cost convention except as of items of property, plant and equipment - Amendment to IFRS 3 ‘Business Combinations’
(note 4.2 and 5). setting may take some time to crystallise.
otherwise disclosed. - Definition of a Business (effective for
The companies may use the Framework as
- Investment in joint venture (note 4.4 and 8). business combinations for which the
2.3 Functional and presentation currency a reference for selecting their accounting
acquisition date is on or after the beginning
- Provision for slow moving and obsolete store policies in the absence of specific IFRS
These financial statements are presented in of annual period beginning on or after January
and spares (note 4.5 & 13). requirements. In these cases, companies
Pakistan Rupees which is Company’s functional 01, 2020). The IASB has issued amendments
should review those policies and apply the
and presentation currency. All financial - Provision for slow moving and obsolete aiming to resolve the difficulties that arise
new guidance retrospectively as of January
information presented in Pakistan Rupees stock-in-trade (note 4.6 & 14). when an entity determines whether it has
01, 2020, unless the new guidance contains
has been rounded to the nearest thousand of acquired a business or a group of assets. The
- Provision for impairment of trade debt & specific scope outs.
rupees, unless stated otherwise. amendments clarify that to be considered a
installment sales receivable (note 4.8 & 15)
business, an acquired set of activities and - “Interest Rate Benchmark Reform which
2.4 Significant accounting estimates and - Provision for retirement benefits (note 4.12 assets must include, at a minimum, an input amended IFRS 9, IAS 39 and IFRS 7 is
judgements and 25.3). and a substantive process that together applicable for annual financial periods
The preparation of financial statements in - Provision for custom duties and sales tax significantly contribute to the ability to beginning on or after 1 January 2020. The
conformity with approved accounting and (note 28). create outputs. The amendments include G20 asked the Financial Stability Board (FSB)
reporting standards, as applicable in Pakistan, an election to use a concentration test. to undertake a fundamental review of major
requires management to make judgements, - Provision for taxation (note 4.13, 12, 19 and 37). The standard is effective for transactions in interest rate benchmarks. Following the
estimates and assumptions that affect the - Provision for warranty obligations (note 4.16 the future and therefore would not have an review, the FSB published a report setting
application of accounting policies and the and 25.4). impact on past financial statements. out its recommended reforms of some major
reported amounts of assets, liabilities, income interest rate benchmarks such as IBORs.
- Contingencies and commitments (note 29). - Amendments to IAS 1 Presentation of
and expenses. The estimates and associated Public authorities in many jurisdictions
Financial Statements and IAS 8 Accounting
assumptions are based on historical experience - Lease liabilities (note 4.1.3 and 24) have since taken steps to implement those
Policies, Changes in Accounting Estimates
and various other factors that are believed to recommendations. This has in turn led to
be reasonable under the circumstances, the
3. Accounting Standards, and Errors (effective for annual periods
uncertainty about the long-term viability
beginning on or after January 01, 2020).
results of which form the basis of making the Interpretations And Amendments of some interest rate benchmarks. In
The amendments are intended to make
judgements about the carrying values of assets To Published Approved Accounting the definition of material in IAS 1 easier to
these amendments, the term ‘interest rate
and liabilities that are not readily apparent benchmark reform’ refers to the market-
Standards understand and are not intended to alter
wide reform of an interest rate benchmark
from other sources. Actual results may differ the underlying concept of materiality in IFRS
from these estimates. 3.1 New or amendments / interpretations to including its replacement with an alternative
Standards. In addition, the IASB has also
The estimates and underlying assumptions existing standards, interpretation and issued guidance on how to make materiality
benchmark rate, such as that resulting
are reviewed on an ongoing basis. Revisions forthcoming requirements from the FSB’s recommendations set out
judgments when preparing their general
to accounting estimates are recognized in in its July 2014 report ‘Reforming Major
There are new and amended standards purpose financial statements in accordance
the period in which the estimate is revised if Interest Rate Benchmarks’ (the reform). The
and interpretations that are mandatory for with IFRS Standards.
the revision affects only that period, or in the amendments made provide relief from the
accounting periods beginning on or after - On 29 March 2018, the International
period of the revision and future periods if the potential effects of the uncertainty caused
July 01, 2018 other than those disclosed in note Accounting Standards Board (the IASB) has
revision affects both current and future periods. by the reform. A company shall apply the
4.1, are considered not to be relevant or do not

exceptions to all hedging relationships Classification and measurement of financial IAS 39 IFRS 9
directly affected by interest rate benchmark assets and financial liabilities
reform. The amendments are not likely to lFRS 9 largely retains the existing requirements Financial Liabilities
Measurement Carrying Measurement Carrying
Category Amount Category Amount
affect the financial statements. in lAS 39 for the classification and measurement
----------------------- (Rupees in ’000) -------------------
4. Summary of significant of financial liabilities. However, it eliminates the
previous lAS 39 categories for financial assets Short-term finance Amortised Cost 11,310,497 Amortised Cost 11,310,497
accounting policies of held to maturity, loans and receivables, Trade and other payables Amortised Cost 13,122,522 Amortised Cost 13,122,522
The significant accounting policies set out held for trading and available for sale. IFRS 9, Security deposits Amortised Cost 4,222,249 Amortised Cost 4,222,249
below are consistently applied for all periods classifies financial assets in the following three Unclaimed dividend Amortised Cost 22,295 Amortised Cost 22,295
presented in these financial statements except categories:

as disclosed in note 4.1 below. - Fair value through other comprehensive 4.1.2
IFRS 15 ‘Revenue from contracts with on variable consideration (e.g free service and
4.1 Changes in significant accounting policies income (FVOCI); customers’ warranty period) did not have any impact on
the revenue recognised by the company as
The Company has adopted IFRS 9 ‘Financial - Fair value through profit or loss (FVTPL); and IFRS 15 - Revenue from contracts with
the warranty of raw material is given by the
Instruments’, IFRS 15 ‘Revenue from Contracts customers (IFRS 15) became applicable to
- Measured at amortised cost. vendors.
with Customers’ and IFRS 16 ‘Leases’ from 01 the Company from 01 January, 2019. IFRS 15
January 2019. Impairment establishes a five-step model to account for The above is generally consistent with the timing
From 01 January, 2019 the Company has revenue arising from contracts with customers. and amounts of revenue that the Company
The details of new significant accounting recognised in accordance with the previous
implemented an expected credit loss IFRS 15 establishes a comprehensive framework
policies adopted and the nature and effect of standard, IAS 18. Therefore, management has
impairment model for financial assets. For trade for determining whether, how much and when
the changes to previous accounting policies are concluded that the adoption of IFRS 15 did not
& installment sales receivables, the calculation revenue is recognised. It replaced IAS 18
set out below: have material impact on the timing and amounts
methodology has been updated to consider Revenue, IAS 11 Construction Contracts and
4.1.1 IFRS 9 ‘Financial Instruments’ expected losses based on aging profile. The related interpretations. Under IFRS 15, revenue of revenue recognition of the Company.
IFRS 9 - Financial Instruments became applicable adoption of the expected loss approach has is recognised when a customer obtains control Extended warranty services for which
to the Company for the reporting period not resulted in a material change in impairment of goods or services. management has concluded that the income
beginning from 01 January 2019. IFRS 9 sets provision for trade & installment receivables The Company has applied the modified from such service be recognized over time as
out requirements for recognising and measuring only. The comprehensive policy is disclosed in retrospective method upon adoption of IFRS the management concluded that the customer
financial assets, financial liabilities and some note 4.10.1. 15 as allowed under the standard. This method simultaneously receives and consumes the
contracts to buy or sell non-financial items. This Classification and measurement of financial requires the recognition of the cumulative benefit as and when the services are being
standard replaces IAS 39 Financial Instruments: instruments effect (without practical expedients) of rendered.
Recognitionand Measurement. The details of initiallyapplying IFRS 15 to retained earnings. Prior to adoption of IFRS 15, certain expenses
new significant accounting policies adopted and The measurement category and the carrying Accordingly, the information presented for
amount of financial assets and liabilities in were included in ‘Distribution and marketing
the nature and effect of the changes to previous comparative period in thesefinancial statements expenses’ which are now deducted from ‘Sales’
accounting policies are set out below: accordance with IAS 39 and IFRS 9 at 01 January, have not been restated i.e. it is presented, as
2019 are compared as follows: directly. In addition to this ‘Income from extended
previously reported under IAS 18 and related warranty’ was included in ‘Other income’ which
IAS 39 IFRS 9 interpretations. has now been reclassified to ‘Sales’.
Measurement Carrying
Management has concluded that revenue from The impact of adoption of IFRS 15 on the
Measurement Carrying
Financial Assets sale of goods be recognized at a point in time
Category Amount Category Amount statement of profit or loss for year ended 31
when control of the asset is transferred to the December 2019 is as follows:
----------------------- (Rupees in ’000) -------------------
customer, which is when the goods are delivered
Loans and advance Loans and receivables 8,334 Amortised Cost 8,334
and invoiced to the customer. The company’s
Trade deposits Loans and receivables 1,115,222 Amortised Cost 1,115,222 contract with the customer for the sale of goods
Other receivables Loans and receivables 686,938 Amortised Cost 686,938 generally include one performance obligation.
Trade Debts Loans and receivables 237,538 Amortised Cost 237,538
Installment sales receivable Loans and receivables 667,945 Amortised Cost 667,945 In general the contracts for the sale of goods
Cash and bank balances Loans and receivables 1,516,163 Amortised Cost 1,516,163 do not provide customers with a right of return.
Long term investments Available for sale - Fair value through OCI - Accordingly, the application of the constraint

borrowing rate is used, being the rate that the - Restoration costs.
As reported under As reported under
IAS 18
Reclassification
IFRS 15 lessee would have to pay to borrow the funds The company has elected not to recognise right-
necessary to obtain an asset of similar value of-use assets and lease liabilities for short-term
Sales (201,134) 116,548,013
116,749,147 in a similar economic environment with similar leases of properties that have a lease term of 12
Cost of sales (114,563,486) - (114,563,486)
terms and conditions. months or less and leases of low-value assets.
Gross profit 2,185,661 (201,134) 1,984,527
Right-of-use assets are measured at cost The company recognises the lease payments
Distribution and marketing expenses (2,747,510) 208,259 (2,539,251) comprising the following: associated with these leases as an expense on
Administrative expenses (2,550,663) - (2,550,663) - The amount of the initial measurement of a straight-line basis over the lease term.
Reversal of impairment losses 22,588 - 22,588
lease liability; The impact of adoption of IFRS 16 on the
Other expenses (348) - (348)
- Any lease payments made at or before statement of financial position as at 31
Other income 229,629 (7,125) 222,504
the commencement date less any lease December 2019 is as follows:
Finance costs (2,087,752) - (2,087,752)
incentives received;
(7,134,056) 201,134 (6,932,922)
(4,948,395) - (4,948,395)

- Any initial direct costs, and
Share of loss of equity accounted investee (3,349) - (3,349)
Loss before taxation (4,951,744) - (4,951,744)
31 December 1 January
2019 2019
------------- (Rupees in ’000) -------------
4.1.3 IFRS 16 ‘Leases’ The Company recognises a right-of-use asset
and a lease liability at the lease commencement
The Company has adopted IFRS 16 ‘Leases’ Right-of-use assets 7 144,959 214,732
date. The lease liabilities are measured at the
from 1 January 2019. The standard introduces Lease liability 24 147,949 237,122
present value of remaining lease payments,
a single, on-balance sheet accounting model
discounted using the lessee’s incremental
for leases. As a result, the Company as a lessee
has recognised right-of-use assets representing
borrowing rate as of 1 January 2019. The weighted 4.2 Property, plant and equipment The assets’ residual values, useful lives and
average lessee’s incremental borrowing rate depreciation methods are reviewed and adjusted
its right to use the underlying assets and lease Operating assets and depreciation
applied to the lease liabilities on 1 January 2019 if appropriate, at each financial year end.
liabilities representing its obligations to make Operating fixed assets are stated at cost less
is 12%. The carrying value of the property, plant and
lease payments. accumulated depreciation and impairment (if
Lease liabilities include the net present value of equipment is reviewed at each reporting date
The Company has applied IFRS 16 using the any) except for freehold land which is stated at
the following lease payments: to determine whether there is any indication
modified retrospective approach, under which cost.
- Fixed payments (including in-substance of impairment. If such indication exists, the
the cumulative effect of initial application is Depreciation on plant and machinery, welding
fixed payments), less any lease incentives recoverable amount of the relevant asset is
recognised in retained earnings at 1 January guns, waste water treatment plant, permanent
receivable; estimated. An impairment loss is recognized in
2019. Accordingly, the comparative information and special tools, dies, jigs and fixtures and profit and loss account whenever the carrying
presented for 2018 has not been restated – i.e. - Variable lease payment that are based on an electric installations is charged using the amount of an asset exceeds its recoverable
it is presented, as previously reported, under IAS index or a rate; straight line method, whereas depreciation on amount. An impairment loss is reversed if
17 and related interpretations. The details of other assets is charged applying the reducing
- Amounts expected to be payable by the the reversal can be objectively related to an
the change in accounting policies are discussed balance method. The cost of the leasehold
lessee under residual value guarantees; event occurring after the impairment loss was
below. land and leasehold improvements is written off recognized.
The Company has various lease agreements - The exercise price of a purchase option if over its lease term. Depreciation on additions
the lessee is reasonably certain to exercise Capital work-in-progress
for Suzuki houses, area offices and showrooms is charged for the full month in which an asset
which were previously classified by the that option, and is put to use and on deletions up to the month Capital work-in-progress is stated at cost less
company based on its assessment of whether - Payments of penalties for terminating the immediately preceding the deletion. impairment (if any) and represents expenditures
the lease transferred substantially all of the lease, if the lease term reflects the lessee incurred and advances made in respect of
Maintenance and normal repairs are charged to
risks and rewards of ownership. Under IFRS 16, exercising that option. specific assets during the construction / erection
income as and when incurred. Gain or loss on
the Company recognises right-of-use assets period. These are transferred to specific assets
The lease payments are discounted using the sale or retirement of fixed assets is included in
and lease liabilities for all the leases - i.e. these as and when assets are available for use.
interest rate implicit in the lease. If that rate income currently.
leases are on statement of financial position.
cannot be determined, the lessee’s incremental

4.3 Intangible assets the carrying amount of investment. When the factory overhead and direct labor. Provision is 4.9 Trade and other payables
Company’s share of losses exceeds its interest made annually in the financial statements for
These represent costs which are capitalized Liabilities for trade and other amounts payable
in an equity accounted investee, the carrying slow moving and obsolete items.
when it is probable that future economic benefits are carried at cost which is the fair value of the
amount of that investment (including any long- Net realizable value is determined by considering
attributable to them will flow to the Company. consideration to be paid in the future for goods
term interests that, in substance, form part the prevailing selling prices of products in the
These are stated at cost less accumulated and services received, whether or not invoiced
of the Company’s net investment in the joint ordinary course of business less estimated cost
amortization and any identified impairment loss. to the Company and subsequently measured at
venture) is reduced to nil and the recognition of of completion and cost necessary to be incurred amortized cost using the effective interest rate
Amortization is charged to income on the further losses is discontinued. in order to make the sale. The net realizable method.
straight line method. Amortization on additions The carrying amount of investments in joint values are determined on the basis of each line
is charged from the month in which an asset venture is reviewed at each reporting date of product.
4.10 Financial instruments
comes into operation while no amortization is to determine whether there is any indication 4.10.1 Financial assets
charged for the month in which the asset is 4.7 Non-current assets classified as held for
of impairment. If any such indication exists, Classification
written off. the recoverable amount of the investments is sale
The assets’ residual values, useful lives and estimated which is higher of its value in use and Non-current assets are classified as held for The Company classifies financial assets on
amortization methods are reviewed and adjusted its fair value less costs to sell. An impairment loss sale if their carrying amount is to be recovered the basis of the business model within which
if appropriate, at each financial year end. is recognized if the carrying amount exceeds its principally through a sale transaction rather than they are held and their contractual cash flow
recoverable amount and is charged to statement through continuing use. These assets are available characteristics. The financial assets of the
The carrying value of the intangible assets is Company are categorized as follows:
reviewed at each reporting date to determine of profit or loss. An impairment loss is reversed for sale in their present condition subject only to
whether there is any indication of impairment. if there has been a change in estimates used to terms that are usual and customary for sales of a) Financial assets at amortised cost
If such indication exists, the recoverable determine the recoverable amount but limited to such assets and their sale is highly probable.
- These are the financial assets held within
amount of the relevant asset is estimated. An the extent of carrying amount that would have The Company measures its non-current assets a business model whose objective is to hold
impairment loss is recognized in profit and been determined if no impairment loss had been classified as held for sale at the lower of carrying financial assets in order to collect contractual
loss account whenever the carrying amount recognized. A reversal of impairment loss is amount and fair value less costs to sell. Costs cash flows and
of an asset exceeds its recoverable amount. recognized in the profit or loss. to sell signify the incremental costs directly
- The contractual terms of the financial asset
An impairment loss is reversed if the reversal 4.5 Stores, spares and loose tools attributable to the disposal of an asset, excluding
give rise on specified dates to cash flows that
can be objectively related to an event occurring finance costs and income tax expense.
Stores, spares and loose tools are valued at are solely payments of principal and interest on
after the impairment loss was recognized.
lower of net realizable value and cost, calculated 4.8 Trade debts and installment sales the principal amount outstanding.
4.4 Investment in joint venture on a weighted average basis. Provision is made receivables b) Financial assets measured at fair value
“Joint venture are those entities in which the annually in the financial statements for slow through other comprehensive income (FVOCI)
moving and obsolete items. Trade debts & installment sales receivables are
Company has significant influence, but not recognized initially at fair value (original value - These are the financial assets held within
control or joint-control,” over the financial and 4.6 Stock-in-trade of invoice amount less any part payment) and a business model whose objective is achieved
operating policies. Interests in joint venture is subsequently measured at amortized cost or
Stock-in-trade is valued at the lower of cost by both collecting contractual cash flows and
accounted for using the equity method. cost, as the case may be, less allowance for
and net realizable value. Cost is calculated on selling financial assets and
These are initially recognized at cost, a weighted average or specific consignment impaired debts. Installment sales receivables are
- The contractual terms of the financial asset
which include transaction cost, if any. The basis, depending upon their categories. Stock- recognized at original invoice amount and are
give rise on specified dates to cash flows that
financial statements include the Company’s in-transit are stated at invoice value plus other subsequently reduced by the principal portion of
are solely payments of principal and interest on
share of profit or loss and movements in charges accrued thereon to the reporting date. installments received.
the principal amount outstanding.
other comprehensive income of the equity Vehicles on wheels are taken as work-in- The Company applies the IFRS 9 simplified
accounted joint venture, after adjustments, if process until they are approved by the quality c) Financial assets measured at fair value
approach for measuring expected credit loss (ECL)
any, from the date that significant influence control department. After such approval the through profit or loss (FVPL)
on trade debts & installment sales receivables at
commences until the date it ceases. Share of vehicles are classified as finished goods. The an amount equal to lifetime credit loss. The ECL - These are the financial assets measured at fair
post acquisition profit and loss of joint venture engines assembled are included in raw material. on trade receivables are calculated based on value through profit or loss unless it is measured
is recognized in the statement of profit or loss The cost of engines assembled, work-in-process actual credit loss experience over the last year at fair value through other comprehensive
and other comprehensive income is recognized and finished goods consists of landed cost of on the total balance of non-credit impaired trade income (FVOCI).
in the statement of comprehensive income. imported materials, average local material cost, debts & installment sales receivables.
Distributions received from joint venture reduce

Initial recognition and measurement by impairment losses. Interest / markup or realize the assets and settle the liabilities latest actuarial valuation was conducted at the
All financial assets are recognised at the time income, foreign exchange gains and losses and simultaneously. balance sheet date by a qualified professional
the Company becomes a party to the contractual impairment are recognised in the statement of 4.10.4 Derecognition of financial assets and firm of actuaries.
provisions of the instrument. Financial assets are profit or loss. liabilities Provident fund
initially recognised at fair value plus transaction Impairment Financial assets are derecognized at the The Company operates an approved defined
costs except for financial assets carried at fair IFRS 9 replaces the ‘incurred loss’ model in IAS 39 time when the Company loses control of the contributory provident fund scheme for
value through profit or loss. Financial assets with an ‘expected credit loss’ (ECL) model. IFRS contractual rights that comprise the financial all permanent employees. Equal monthly
carried at fair value through profit or loss are 9 introduces a forward looking expected credit assets. Financial liabilities are derecognized contributions are made by the Company and the
initially recognised at fair value and transaction losses model, rather than the current incurred at the time when they are extinguished i.e. employees to the fund at the rate of 10 percent
costs associated with these financial assets are loss model, when assessing the impairment of when the obligation specified in the contract of basic salary.
taken directly to the statement of profit or loss financial assets in the scope of IFRS 9. The new is discharged, cancelled, or expires. Any gain
and other comprehensive income account. Compensated absences
impairment model applies to financial assets or loss on derecognition of financial assets and
Subsequent to initial recognition, financial measured at amortized cost, contract assets financial liabilities is taken to the profit and loss The Company accounts for employees’
assets are valued as follows: and debt investments at FVOCI, but not to account. compensated absences on the basis of unavailed
investments in equity instruments. earned leave balance of each employee as at the
a) Debt Investments at FVOCI 4.11 Provisions end of the year and the last drawn salary.
These assets are subsequently measured at The Company applies the IFRS 9 simplified
Provisions are recognized in the balance sheet 4.13 Taxation
fair value. Interest / markup income calculated approach to measuring expected credit losses
where the Company has a present legal or
using the effective interest method, foreign which uses a lifetime expected loss allowance Current tax
constructive obligation as a result of past event,
exchange gains and losses and impairment for all trade, installment and other receivables.
it is probable that an outflow of resources Provision for current taxation is based on
are recognised in the statement of profit or Impairment losses related to trade and other
embodying economic benefits will be required taxable income at the current rates of taxation
loss. Other net gains and losses are recognised receivables, are presented separately in the
to settle the obligation and a reliable estimate after taking into account tax credits and
in other comprehensive income. On de- Statement of Profit or Loss. Trade and other
of the amount of the obligation can be made. rebates available, if any. The charge for the
recognition, gains and losses accumulated in receivables are written off when there is
Provisions are reviewed at each balance sheet current tax also includes adjustments where
other comprehensive income are reclassified to no reasonable expectation of recovery. The
date and adjusted to reflect current best necessary, relating to prior years which arise
the statement of profit or loss. Management used actual credit loss experience
estimate. from assessments framed / finalized during the
over past years to base the calculation of ECL
b) Equity Investments at FVOCI on adoption of IFRS 9. Given the Company’s 4.12 Employees benefit schemes year.
These assets are subsequently measured at fair experience of collection history and no Gratuity scheme Deferred tax
value. Dividends are recognised as income in the historical loss rates / bad debts and normal
The Company operates a funded Gratuity Deferred tax is recognized using the balance
statement of profit or loss unless the dividend receivable aging, the move from an incurred
Scheme (the Plan) for eligible employees of sheet liability method, on temporary differences
clearly represents a recovery of part of the cost loss model to an expected loss model has not
the Company. The Company’s obligation under at the balance sheet date between the tax bases
of the investment. Other net gains and had an impact on the financial position and / or
the scheme is determined through actuarial of assets and liabilities and their carrying amounts
losses are recognised in other comprehensive financial performance of the company.
valuation carried out at each year end under the for financial reporting purposes. Deferred
income and are never reclassified to the 4.10.2 Financial liabilities tax assets are recognized for all deductible
statement of profit or loss. Projected Unit Credit Method. Remeasurements
All financial liabilities are recognized at the which comprise actuarial gains and losses are temporary differences to the extent that the
c) Financial assets at FVTPL time when the Company becomes a party to recognized immediately in other comprehensive temporary differences will reverse in the future
the contractual provisions of the instrument. income. The Company determines the net interest and taxable income will be available against
These assets are subsequently measured at
These are initially recorded at fair value and expense on the net defined benefit liability for which the deductible temporary differences can
fair value. Net gains and losses, including any
subsequently measured at amortized cost. the period by applying the discount rate used be utilized. Deferred tax liabilities are recognized
interest / markup or dividend income, are
to measure the defined benefit obligation at for all taxable temporary differences.
recognised in profit or loss. 4.10.3 Offsetting of financial assets and liabilities
the beginning of the annual period to the then The carrying amount of deferred tax assets is
d) Financial assets measured at amortized Financial assets and financial liabilities are offset defined benefit liability, taking into account any reviewed at each reporting date and reduced
cost and the net amount is reported in the financial changes in the net defined benefit liability during to the extent that it is no longer probable that
These assets are subsequently measured at statements, when there is a legally enforceable the period as a result of contribution and benefit sufficient taxable profit will be available to
amortised cost using the effective interest right to set off the recognized amounts and payments. Interest cost and current service cost allow all or part for the deferred tax asset to be
rate method. The amortised cost is reduced there is an intention to settle on a net basis, are recognized in profit and loss account. The utilized.

Deferred tax assets and liabilities are measured Amount received on account of sale of extended are expensed out in the period they occur. business of the Company has two reportable
at the tax rates that are expected to apply to the warranty is recognised initially as deferred Borrowing costs consist of interest and other operating segments i.e. Automobiles segment
period when the asset is realized or the liability revenue and is credited to the statement of cost that an entity incurs in connection with the and Motorcycles segment.
is settled, based on tax rates (and tax laws) that profit or loss in the relevant period covered by borrowing of funds. Segment results that are reported for review and
have been enacted or subsequently enacted at the warranty. performance evaluation include items directly
4.20 Segment reporting
the balance sheet date. Profit on bank accounts is accounted for on attributable to a segment as well as those
Operating segments are reported in a manner
Sales tax accrual basis using effective interest rate method. that can be allocated on a reasonable basis.
consistent with the internal reporting structure.
Revenues, expenses and assets are recognized Mark-up on installment sales receivables is Unallocated items comprise mainly corporate
Management monitors the operating results
net of the amount of sales tax except, where recognized on the basis of effective interest rate. assets and liabilities, certain other operating
of the business separately for the purpose of
the sales tax incurred on a purchase of income and expenses, certain finance costs, tax
Dividend income is recognized when the making decisions regarding resource allocation
assets or services is not recoverable from the assets and liabilities and income tax expense.
Company’s right to receive such dividend is and performance assessment. All operating
taxation authority, in which case the sales tax established. segments’ operating results are reviewed Segment capital expenditure is the total cost
is recognized as part of the cost of acquisition regularly by the Company’s Chief Executive incurred during the year to acquire tangible
of assets or as part of the expense item as Commission income is recognized as and when Officer and Board of Directors to make decisions fixed assets and intangible assets other than
applicable. such service is provided. about resources to be allocated to the segment goodwill.
4.14 Foreign currency translation Miscellaneous income is recognized on receipt and to assess its performance, and for which
basis. discrete financial information is available. The
Transactions in foreign currencies are translated
into reporting currency at the rates of exchange 4.16 Warranty obligations
prevailing on the date of transactions. Monetary The Company accounts for its warranty
assets and liabilities denominated in foreign 5. Property, Plant and Equipment
obligations on accrual basis.
currencies are translated into reporting currency 2019 2018
equivalents using year end spot foreign exchange 4.17 Cash and cash equivalents Note ------------- (Rupees in ’000) -------------
rates. Non-monetary assets and liabilities are For the purpose of the statement of cash flows,
translated using exchange rate that existed cash and cash equivalents include cash in hand, Operating fixed assets 5.1 15,033,621 7,820,608
when the values were determined. Exchange cheques, balances held with banks in current Capital work-in-progress 5.4 652,229 7,834,219
differences on foreign currency translations are accounts, and short-term running finances that
15,685,850 15,654,827
taken to profit and loss account currently. are repayable on demand and form an integral
part of Company’s cash management. Short-
4.15 Revenue recognition
term running finances are shown within short-
Revenue is recognised when (or as) the term borrowings in current liabilities on the
entity satisfies a performance obligation by statement of financial position.
transferring a promised good or service to a
customer. Revenue is measured based on the 4.18 Dividend and appropriation to reserves
consideration specified in a contract with a Dividend declared and appropriations to
customer and is stated net of discounts, returns reserves made subsequent to balance sheet
and value added taxes. are considered non-adjusting events and are
In case of the Company, sales of vehicles recognized in the financial statements in the
and spare parts are recognised as revenue period in which they are approved.
when goods are dispatched and invoiced to 4.19 Borrowing costs
the customers. Revenue is measured at the
transaction price agreed under the contract, Borrowing costs that are directly attributable
adjusted for variable consideration such as to the acquisition, construction or production
discount, if any. Transaction price is adjusted of an asset that necessarily takes a substantial
for time value of money in case of significant period of time to get ready for its intended use
financing component. or sale are capitalized as part of the cost of
the respective assets. All other borrowing costs

5.1 Operating fixed assets
The following is a statement of operating fixed assets:
2019 2018
Accumulated Accumulated Accumulated
Accumulated
depreciation Book depreciation
depreciation / depreciation / Book
Cost as at Depreciation Depreciation and Depreciation Depreciation
Cost as at Deletions / impairment Impairment value Years / Cost as at and
Additions 31 charge for on deletion / impairment Cost as at Deletions / impairment Impairment value Years /
01 January written off losses as for the year as at 31 rate % Additions 31 charge for on deletion / impairment
December losses as 01 January written off losses as for the year as at 31 rate %
the year written off December the year written off losses as
at 01 at 31 December at 01 at 31 December
January December January December
------------------------------------------------------------ (Rupees in ’000) ------------------------------------------------------------ ------------------------------------------------------------ (Rupees in ’000) ------------------------------------------------------------
Leasehold land 934,620 - - 934,620 153,012 15,854 - - 168,866 765,754 60-75 Leasehold land 934,620 - - 934,620 137,158 15,854 - - 153,012 781,608 60-75
Years Years
Freehold land 371,514 - - 371,514 - - - - - 371,514 Freehold land 371,514 - - 371,514 - - - - - 371,514
Buildings on leasehold land Buildings on leasehold land

- Factory 2,164,650 43,675 - 2,208,325 1,205,055 99,352 - - 1,304,407 903,918 10-20 - Factory 2,050,937 113,713 - 2,164,650 1,103,331 101,724 - - 1,205,055 959,595 10-20
- Office 3,253 - - 3,253 2,701 110 - - 2,811 442 20 - Office 3,253 - - 3,253 2,563 138 - - 2,701 552 20
Buildings on Freehold land Buildings on Freehold land

- Factory 642,894 55,645 - 698,539 5,357 66,018 - - 71,375 627,164 10 - Factory - 642,894 - 642,894 - 5,357 - - 5,357 637,537 10
Test tracks other buildings 63,463 - - 63,463 41,900 4,313 - - 46,213 17,250 20 Test tracks other buildings 63,463 - - 63,463 36,509 5,391 - - 41,900 21,563 20
Plant and machinery 8,253,708 2,417,541 (329,441) 10,341,808 6,762,338 522,026 (329,171) - 6,955,193 3,386,615 8 Years Plant and machinery 7,856,083 435,705 (38,080) 8,253,708 6,472,060 326,092 (35,814) - 6,762,338 1,491,370 8 Years
Welding guns 401,467 126,235 (17,054) 510,648 374,921 33,785 (17,054) - 391,652 118,996 4 Years Welding guns 401,467 - - 401,467 358,552 16,369 - - 374,921 26,546 4 Years
Waste water treatment plant 120,222 - - 120,222 120,222 - - - 120,222 - 8 Years Waste water treatment plant 120,222 - - 120,222 120,222 - - - 120,222 - 8 Years
Permanent and special tools 628,024 65,104 (6,072) 687,056 467,433 66,254 (6,065) - 527,622 159,434 4 Years Permanent and special tools 575,479 77,184 (24,639) 628,024 435,419 56,653 (24,639) - 467,433 160,591 4 Years
Dies (Note 5.1.1) 6,074,615 6,372,310 (72,277) 12,374,648 3,877,482 1,561,680 (72,277) - 5,366,885 7,007,763 5 Years Dies (Note 5.1.1) 5,422,011 654,399 (1,795) 6,074,615 3,185,804 684,224 (1,685) 9,139 3,877,482 2,197,133 5 Years
Jigs and fixtures 1,393,129 617,781 (14,789) 1,996,121 925,919 241,615 (14,698) - 1,152,836 843,285 5 Years Jigs and fixtures 1,336,623 92,873 (36,367) 1,393,129 775,596 186,690 (36,367) - 925,919 467,210 5 Years
Electrical installations 370,224 93,635 - 463,859 254,409 33,755 - - 288,164 175,695 8 Years Electrical installations 314,292 55,932 - 370,224 227,030 27,379 - - 254,409 115,815 8 Years
Furniture and fittings 74,059 12,460 (154) 86,365 24,819 10,974 (149) - 35,644 50,721 20 Furniture and fittings 24,582 49,477 - 74,059 15,318 9,501 - - 24,819 49,240 20
Vehicles 736,619 144,327 (111,607) 769,339 328,920 97,169 (84,062) - 342,027 427,312 20 Vehicles 670,287 171,324 (104,992) 736,619 327,055 84,398 (82,533) - 328,920 407,699 20
Air conditioners and refrigerators 69,127 13,841 (3,054) 79,914 28,301 9,098 (2,412) - 34,987 44,927 20 Air conditioners and refrigerators 55,119 14,395 (387) 69,127 20,676 7,916 (291) - 28,301 40,826 20
Office equipment 103,320 44,654 (13,354) 134,620 64,877 10,621 (12,437) - 63,061 71,559 20 Office equipment 96,700 12,135 (5,515) 103,320 60,468 9,019 (4,610) - 64,877 38,443 20
Computers 225,821 42,027 (17,644) 250,204 172,455 33,955 (17,478) - 188,932 61,272 50 Computers 197,661 36,194 (8,034) 225,821 148,481 31,818 (7,844) - 172,455 53,366 50
22,630,729 10,049,235 (585,446) 32,094,518 14,810,121 2,806,579 (555,803) - 17,060,897 15,033,621 20,494,313 2,356,225 (219,809) 22,630,729 13,426,242 1,568,523 (193,783) 9,139 14,810,121 7,820,608
5.1.1 Dies include assets having book value of Rs. 3,971.8 million (2018: Rs. 1,425.38 million) which are
in the possession of seventy eight (78) {2018: seventy five (75)} vendors dispersed all over Pakistan
for contract manufacturing of components. Vendor wise breakup is summarized below: Cost
Accumulated depreciation
Book value
and impairment losses
Accumulated depreciation 2019 2018 2019 2018 2019 2018
Cost Book value
and impairment losses ------------------------------------ (Rupees in ’000) ------------------------------------
2019 2018 2019 2018 2019 2018
Mumtaz Engineering 2,913 2,913 2,388 1,937 525 976
------------------------------------ (Rupees in ’000) ------------------------------------
National Automotive Components (Pvt) Ltd 114,233 23,912 25,740 9,329 88,493 14,583
Ab Engineering (Pvt) Ltd. 25,944 25,602 15,339 10,167 10,605 15,435 Noor Engineering Services (Pvt) Ltd. 16,919 10,432 9,617 7,643 7,302 2,789
Aerotech Industries (Pvt.) Ltd. 5,478 2,266 1,946 1,276 3,532 990 Pak Orient Industries 10,110 2,956 2,691 1,263 7,419 1,693
Al-Aftab Metals Engineering Ind. (Pvt) Ltd. 7,705 4,333 2,528 1,239 5,177 3,094 Pci Automotive (Private) Limited 306,398 264,073 85,148 132,415 221,250 131,658
Alba Engineering Company 6,331 3,823 2,900 1,916 3,431 1,907 Peracha Engineering Co 6,779 2,192 1,839 801 4,940 1,391
Al-Huda Engineering (Pvt) Ltd. 12,740 6,092 3,093 1,099 9,647 4,993 Pioneer Plastic Industries 1,117 758 513 329 604 429
Alsons Auto Parts (Pvt)Ltd 46,853 46,853 30,651 21,710 16,202 25,143 Plastech Pakistan 4,980 4,980 4,196 3,471 784 1,509
A-One Techniques (Pvt) Ltd. 98,447 49,134 41,522 26,748 56,925 22,386 Poly Crafts (Pvt) Limited 336 336 262 199 74 137
Aq Industries. 8,533 - 1,100 - 7,433 - Pressed Steel Industries (Pvt) Ltd 758 758 602 468 156 290
Asif Engg. & Mechanical Works. 2,093 2,093 1,607 1,190 486 903 Procon Engineering Pvt Ltd 1,157,162 373,518 318,709 142,947 838,453 230,571
Asif Rubber Industries (Pvt) Ltd. 839 839 789 750 50 89 Ravi Autos Sheikhupura (Pvt) Limited. 15,678 5,449 4,697 1,998 10,981 3,451
Automate Industries (Pvt) Ltd. 362 362 362 353 - 9 Ravi Autos Sundar (Pvt) Limited. 4,961 7,287 2,811 2,044 2,150 5,243
Automotive Components Limited 171,057 2,751 131,536 1,622 39,521 1,129 Razi Sons (Pvt.) Ltd. 472,172 333,665 203,332 121,042 268,840 212,623
Auvitronics Limited 185,532 63,904 50,271 24,043 135,261 39,861 Rubatech Manufacturing Co.Pvt.Ltd. 28,215 11,536 9,696 5,217 18,519 6,319
Bahawalpur Engineering Limited 46,111 46,111 12,069 2,846 34,042 43,265 S.T.Engineering Services (Pvt) Ltd 161,997 110,244 63,002 33,534 98,995 76,710
Baluchistan Wheels Ltd. 27,334 - 3,189 - 24,145 - Sadiq Engineering Works 59 59 59 57 - 2
Brothers Engineering Industries 9,512 4,956 3,737 2,214 5,775 2,742 Sanpak Engineering Industries (Pvt) Ltd. 96,235 35,731 34,453 20,248 61,782 15,483
Cosmos Engineering. 364 364 263 209 101 155 Shah Rubber Products. 35,929 19,287 14,228 8,152 21,701 11,135
Darson Industries (Pvt) Limited. 4,960 3,718 2,803 2,037 2,157 1,681 Shaheen Automotive Private Limited 15,452 10,614 7,463 4,927 7,989 5,687
Dawood Engineering (Pvt) Ltd. 129,326 60,496 41,581 19,157 87,745 41,339 Shahid Engineering Works 33,813 20,809 14,343 8,327 19,470 12,482
Electropolymers (Pvt) Ltd. 32,207 32,207 18,349 12,499 13,858 19,708 Silver Falcon Engg:Corporation 3,344 398 705 241 2,639 157
Engineering Excellence Company(Pvt) Ltd. 32,412 11,053 10,362 5,443 22,050 5,610 Standard Mechanical Works 1,157 593 464 261 693 332
Fatima Industries (Pvt) Ltd 48,697 14,597 15,321 7,724 33,376 6,873 Stanley Industries 14,329 5,688 5,016 2,672 9,313 3,016
Feroz Industries 4,204 4,204 2,802 1,962 1,402 2,242 Super Engineering Company (Pvt) Ltd. 520 520 445 404 75 116
Galaxy Polymer Engineering(Private)Limited 1,194 2,889 925 2,514 269 375 Super Tech Autoparts (Pvt) Ltd. 1,754 1,754 1,194 843 560 911
Galaxy Enterprises 24,008 1,194 5,791 693 18,217 501 Synthetic Products Enterprises Ltd. 250,715 12,610 25,168 3,065 225,547 9,545
The General Tyre & Rubber Co. Of Pakistan Ltd. 19,025 19,025 12,435 8,630 6,590 10,395 Tariq Engineering Products (Pvt) Ltd. 10,207 5,205 4,061 2,436 6,146 2,769
Halfman 106,528 15,580 21,317 5,145 85,211 10,435 Techmen Engineering. 999 999 566 366 433 633
Hawks Engineering Services (Pvt.) Limited 32,207 17,437 12,763 7,712 19,444 9,725 Techno Fabrik (Pvt) Ltd. 211,920 36,602 40,759 7,435 171,161 29,167
Hybrid Technics (Pvt) Ltd 291 291 254 222 37 69 Technoline Industries 255 255 195 144 60 111
Indus Engineering 6,626 3,809 3,244 2,185 3,382 1,624 Tecno Pack Telecom (Pvt) Ltd. 21,352 16,904 10,411 6,511 10,941 10,393
Javed Steel Manufacturing Works 2,092 2,092 1,604 1,186 488 906 Thal Limited Engineering Division 137,382 75,004 47,874 26,574 89,508 48,430
Jawed Metal Industries Pvt Ltd 4,405 4,405 3,307 2,706 1,098 1,699 Thermosole Industries (Pvt) Ltd. 73,114 25,829 22,734 11,140 50,380 14,689
Khan Engineering Works 24 24 18 14 6 10 United Mechanical Industries (Pvt) Ltd. 17,336 12,883 8,811 5,863 8,525 7,020
Loads Limited 918,394 281,318 239,152 91,965 679,242 189,353 Ushin Thailand 4,214 - 421 - 3,793 -
Masood Engineering Works 7,043 5,439 3,468 2,204 3,575 3,235 Yusuf Auto Industries (Pvt) Ltd 79,508 7,967 16,828 5,417 62,680 2,550
Mehran Commercial Enterprises 2,157 1,703 1,282 903 875 800 Zaib Engineering (Pvt) Ltd. 1,392 1,392 1,030 752 362 640
Mehran Engineering Industries (Pvt) Ltd. 475 475 364 269 111 206 Zia Engineering Works 7,757 4,915 2,917 1,885 4,840 3,030
Metaline Industries (Pvt) Ltd. 349,943 87,313 81,281 28,107 268,662 59,206 5,807,016 2,352,467 1,835,213 927,085 3,971,803 1,425,382
Mga Industries (Pvt) Limited. 102,092 72,688 58,500 44,069 43,592 28,619
5.2 Depreciation charge for the year has been allocated as follows: 5.5 Particulars of immovable property (i.e. land and building) in the name of
the Company are as follows:
2019 2018
Note ------------- (Rupees in ’000) ------------- Total Area
Location (In Sq. Ft.)
Cost of goods manufactured 31.1 2,625,616 1,404,580 Leasehold land DSU-13,Port Qasim 2,789,974
Administrative expenses 33 180,963 163,943 Leasehold land DSU-32,Port Qasim 658,627

2,806,579 1,568,523 Leasehold land DSU-38,Port Qasim 612,236
Leasehold land DSU-13a,Port Qasim 5,227,200

5.3 Impairment loss for the year amounting to Rs. Nil (2018: Rs. 9.139 million) has been allocated to
Land Eastern Industrial Zone, Port Qasim 1,742,400
cost of goods manufactured.
Property situated at Plot No.84/1,Korangi Karachi 43,560
5.4 Capital work-in-progress Land at Multan road, Lahore 1,329,669
2019 2018
6. Intangible Assets
------------- (Rupees in ’000) -------------
Accumulated Book value
Cost as Cost as Accumulated
(Retirements) Charge (Retirements) amortization as at
at 01 at 31 amortization
Years Additions during the for the during the as at 31 31
January December at 01 January
Plant and machinery 632,254 7,774,888 2019
year
2019 2019
year year December December
2019 2019
Civil works 19,975 59,331 ------------------------------------------ (Rupees in ’000) ------------------------------------------
652,229 7,834,219 License fees and drawings 3 382,940 344,983 (191,920) 536,003 303,347 146,646 (191,920) 258,073 277,930
Softwares 3 105,112 65,315 (86,763) 83,664 71,408 31,530 (86,763) 16,175 67,489
2019 488,052 410,298 (278,683) 619,667 374,755 178,176 (278,683) 274,248 345,419
5.4.1 Movement in capital work-in-progress Accumulated Book value

Cost as Cost as Accumulated
(Retirements) Charge (Retirements) amortization as at
at 01 at 31 amortization
Years Additions during the for the during the as at 31 31
January December at 01 January
year year year December December
2018 2018 2018
2018 2018
------------------------------------------ (Rupees in ’000) ------------------------------------------
License fees and drawings 3 382,940 - - 382,940 239,674 63,673 - 303,347 79,593
Opening balance 7,834,219 1,731,931 Softwares 3 88,267 16,845 - 105,112 46,200 25,208 - 71,408 33,704
Additions during the year 2,708,531 8,292,609 2018 471,207 16,845 - 488,052 285,874 88,881 - 374,755 113,297
Transfer to operating fixed assets (9,890,521) (2,190,321)

Closing balance 652,229 7,834,219 6.1 Amortization charge has been allocated as follows:
2019 2018
Note ------------ (Rupees in ’000) ------------
Cost of goods manufactured 31.1 146,646 63,673

Administrative expenses 33 31,530 25,208
178,176 88,881
7. RIGHT-OF-USE ASSETS 8.2 TAG was incorporated on 16 March 2017 and has not yet commenced commercial operations. The
incorporation and principle place of business of TAG is The Islamic Republic of Pakistan. TAG is a joint
Suzuki Houses Showrooms Area Offices Total venture company between Tecno Pack Telecom (Private) Limited (TPT) and the Company where the
Company holds 40% shareholding and balance 60% is held by the TPT.
----------------------------- (Rupees in ’000) -----------------------------
Balance as at 1 January, 2019 21,582 86,547 106,603 214,732 8.2.1

The joint venture’s share of loss has been included in these financial statement based on the unaudited
Add: Additions during the year condensed interim financial information of the investee company as at 31 December 2019. The latest
- 10,091 - 10,091
annual financial statements of TAG have been prepared on going concern basis. The auditor of TAG
Less: Disposal during the year - (3,015) (19,730) (22,746) has expressed an unmodified opinion on the financial statements for the year ended 30 June 2019.
Depreciation charge for the year (10,744) (19,777) (26,599) (57,118) The details of the financial statements of half year ended 31 December of TAG are as follows:
Balance as at 31 December, 2019 10,838 73,846 60,274 144,959
2019 2018
The term of lease agreements is as follows: Note ------------ (Rupees in ’000) ------------
Suzuki houses: 2 years

34,440,000 (2018: 22,000,000) fully paid ordinary
Showrooms: 2 - 10 years 8.2 344,400 344,400
shares of Rs. 10/- each (Shareholding 40%)
Area offices: 3 - 7 years Share of loss of equity accounted investee (18,475) (15,126)
325,925 329,274
325,925 329,274
8. Long-Term Investments
2019 2018
Percentage Ownership Interest 40% 40%
Note ------------ (Rupees in ’000) ------------
Non-current assets 946,503 663,407

Investment in related party (equity accounted) Current assets (including cash and cash equivalents –
Investment in joint venture - unquoted 2019: Rs. 32 Million, 2018: Rs. 3 Million) 81,344 43,817
Tecno Auto Glass Limited (TAG) 8.2 325,925 329,274
Non-current liabilities (including non-current
Other long term investments financial Non-current liabilities (including non-
Equity securities - at FVOCI 8.1 - - current financial liabilities excluding trade and other
325,925 329,274 payables and provisions – 2019: Rs. Nil Million, 2018:
Rs. Nil Million) 343,174 362,628
8.1 Equity securities - at FVOCI Current liabilities (including current financial liabilities
excluding trade and other payables and provisions –
Shares Fair value 2019: Rs. 38 Million, 2018: Rs. 49 Million) 358,748 15,322
Note 2019 Net Assets (40%) 325,925 329,274
(Number) (Rupees)
Group’s share of net assets 325,925 329,274
Carrying Amount of Interest in Joint Venture 325,925 329,274
Arabian Sea Country Club Limited (ASCCL) 8.3 500,000 -
Automotive Testing & Training Centre (Private) Profit and total comprehensive loss (100%) (8,373) (8,030)
Limited (AT & TC) 8.4 1,250 - Profit and total comprehensive loss (40%) (3,349) (3,212)
-
Group’s Share of Total Comprehensive Loss (3,349) (3,212)
8.3 Investment in ASCCL (unquoted) represents 0.5 million (2018: 0.5 million) fully paid ordinary shares of Rs. 10.1
This represent receivables against vehicles sold to employees under the Vehicle Ownership Employee
10 each, representing 6.45% (2018: 6.45%) of ASCCL’s paid up share capital as at 31 December 2019. Scheme. These receivables are secured against the personnel guarantees and provident/gratuity
fund balances of respective employees. These are receivable in maximum eighty-four equal monthly
8.4 Investment in AT & TC (unquoted) represents 0.125 million (2018: 0.125 million) fully paid ordinary installments.
shares of Rs. 10 each, representing 6.94% (2018: 6.94%) of AT & TC’s paid up share capital as at 31
December 2019. Gross amount of receivables Present value of receivables
from employees from employees
2019 2018 2019 2018
8.5 Investment in ASCCL (unquoted) and AT & TC (unquoted) were fully impaired in previous year and no
change in fair value is recognised in current year financial statements. ----------------------------- (Rupees in ’000) -----------------------------
Less than one year

9. Long-Term Loans 107,344 81,255 99,919 81,255
One to five years 388,311 358,986 267,325 358,986
2019 2018 Less: Provision for doubtful receivables 150,834 59,330 67,281 59,330
Note ------------ (Rupees in ’000) ------------ 646,489 499,571 434,525 499,571
Loans to employees 9.1 8,070 8,334 11. Long Term Installment Sales Receivables
Less: Receivable within one year 16 (4,570) (4,131)
3,500 4,203
2019 2018
----------- (Rupees in ’000) -----------
9.1 This represents interest free personal loans to employees. These are repayable in maximum thirty six
equal monthly installments and are secured against staff retirement benefits of the employees. 1,198,632 704,273
Gross amount of installment sales receivables
Less: Impact of discounting (103,408) -
10. Long-Term Deposits, Prepayments and Other Receivables Installment sales receivables 1,095,224 704,273
Less: Unearned finance income (6,210) (13,558)
2019 2018 11.1 1,089,014 690,715
Note ------------ (Rupees in ’000) ------------ Less: Provision of impairment allowance on (18,105) (22,770)
11.2
receivables
1,070,909 667,945
Deposits 43,380 35,295
Less: Current maturity (799,036) (549,627)
Prepayments 33 2,597
271,873 118,318
43,413 37,892
Secured, considered good 646,489 499,571 11.1

This represent balances receivable under various installment sale agreements in equal monthly
installments. It includes installment sales to customers (motorcycles) and registered vendors of the
Other receivables from employees (211,964) - Company. In case of installment sales to customers, the Company retains the title and registers the
10.1 434,525 499,571 documents of the motorcycles in its name as a security. For installment sales to vendors, vehicles
less: Receivable within one year 18 (99,919) (81,255) are lien marked and registered in joint names of vendor and the Company. Such documents are
retained in Company’s custody and transferred in the name of customer / vendor after the entire
334,606 418,316 dues are cleared. Mark-up on installment sales receivables ranges from 9% to 28% (2018: 9% to
378,019 456,208 28%) per annum, excluding up to 24 months installment sales which subject to 0% markup. However,
overdue rentals are subject to additional surcharge. The gross amount and the present value of the
installment sales receivables are as follows:
Gross amount of installment sales Present value of installment sales Note 2019 2018
receivables receivables
------------ (Rupees in ’000) ------------
2019 2018 2019 2018
----------------------------- (Rupees in ’000) ----------------------------- Unused tax losses and credits arising from:
Excess of minimum turnover tax carried forward - 920,980
Less than one year 842,550 559,926 799,036 549,627 Unused tax credit u/s 65B carried forward 12.2 548,421 -
One to five years 356,082 144,347 289,978 141,088
Business losses other than depreciation carried forward 12.3 381,439 -
1,198,632 704,273 1,089,014 690,715
Unrealized tax depreciation losses carried forward 1,298,522 -
Less: Provision of impairment allowance on
(18,105) (22,770) (18,105) (22,770) 2,228,382 920,980
receivables
1,180,527 681,503 1,070,909 667,945 2,359,062 1,151,888
11.2 Impairment for doubtful installment sales receivables 12.1 Movement of deferred tax is as follows:
2019 2018 2019 2018

------------ (Rupees in ’000) ------------ Note ------------ (Rupees in ’000) ------------
Balance at beginning of the year 22,770 14,903 Opening balance 1,151,888 236,500
(Reversal) / provision during the year (2,463) 7,867 Less: Transfer from deferred tax asset to taxation - net (920,980) -
Write - off during the year (2,202) - Add: Deferred tax income during the year 2,128,154 915,388
Balance at end of the year 18,105 22,770 Closing balance 2,359,062 1,151,888
12. Deferred Taxation

12.2 Unused tax credit u/s 65B carried forward
Deductible temporary differences arising from:

(Rupees in ‘000) Expiry tax Year
Provisions 666,165 349,886
Local development costs 33,879 42,908 Recognised in 2019 548,421 2021
Lease liability 42,335 -
742,379 392,794
Taxable temporary differences arising from:
12.3 Business losses other than depreciation carried forward
Accelerated tax depreciation and tax amortisation (570,220) (161,886)

Right-of-use assets (41,479) -
Recognised in 2019 381,439 2025
(611,699) (161,886)
13. Stores, Spares And Loose Tools 14.1 Stock in trade includes Rs. 7,784 million (2018: Rs. 7,217 million) whinch were in the custody of dealers
2019 2018 and vendors dispersed all over the Pakistan.
Note ------------ (Rupees in ’000) ------------
14.2 Raw material and components, work-in-process, finished goods and trading stocks have been written
Stores 166,660 77,059 down by Rs. 39.65 million, Rs. Nil, Rs. 1.05 million and Rs.50.06 million (2018: Rs. 272.25 million, Rs.
Spares 144,882 102,203 0.016 million, Rs. 1.12 million and Rs. 309.08 million) respectively to arrive at net realizable value.
Loose tools 31,829 26,280
343,371 205,542
15. Trade Debts
Less: Provision for slow moving and obsolete items 2019 2018
- at beginning of the year 58,664 55,948
Note ------------ (Rupees in ’000) ------------
- provision for the year 31.1 24,283 2,716 Trade debts 700,945 267,950
82,947 58,664 Less: Provision for impairment allowance 15.1 (10,287) (30,412)
260,424 146,878 690,658 237,538
14. Stock-In-Trade
15.1 Provision for impairment allowance
Raw material and components [including items in 21,363,836 14,484,249
transit Rs. 4,578.33 million (2018: Rs. 6,063.46 million)] Balance at the beginning of the year 30,412 60,512
Reversal of provision of impairment allowance (20,125) (30,100)
Less: Provision for slow moving and obsolescence Balance at the end of the year 10,287 30,412
- provision for the year 140,102 54,916
226,462 86,360 15.2 Receivable from related parties
21,137,374 14,397,889
2019 2018
------------ (Rupees in ’000) ------------
Work-in-process 160,626 56,425
Suzuki Motor Corporation - 88
Finished goods 14,903,629 12,929,908
Magyar Suzuki Corporation - 285
TTrading stocks [including items in transit Rs. 198.204 million
PT. Suzuki IndoMobil Motor - 48
(2018: Rs. 52.489 million)] 1,389,339 2,072,049
- 421
Less: Provision for slow moving and obsolescence
15.2.1 The maximum aggregate amount receivable from the related parties at the end of any month
- provision / (reversal) for the year 15,182 (6,571)
during the year are as follows:
74,397 59,215
Suzuki Motor Corporation 19,297 1,680
1,314,942 2,012,834
Magyar Suzuki Corporation 6,564 1,061
PT. Suzuki IndoMobil Motor 4,332 48
37,516,571 29,397,056
15.2.2 The age analysis of trade debts due from related parties are as follows: 17. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
2019 2018 2019 2018

Gross Impairment Gross Impairment ------------ (Rupees in ’000) ------------
----------------------------- (Rupees in ’000) -----------------------------
Not past due Trade deposits 1,090 1,972

- - - -
Past due over 360 days - - 421 - Margin with banks against letter of credits and imports 168,006 1,077,955
- - 421 - 169,096 1,079,927
15.3 The detail of export sales in respect of outstanding trade debts is as follows: Prepayments:
- Collector of customs 49,054 211,030

Particulars of Customer Location 2019 2018 - Rent 31,150 50,439
--------- (Rupees in ’000) ---------
- Insurance 4,142 2,049
- Others 25,862 13,826

Suzuki Motor Corporation Japan - 41,597
Magyar Suzuki Corporation Hungary - 1,909 110,208 277,344
- 43,506
279,304 1,357,271
16. Loans And Advances

2019 2018
18. Other Receivables
Note ------------ (Rupees in ’000) ------------
Loans 2019 2018
Current portion of loans to employees 9 4,570 4,131 Note ------------ (Rupees in ’000) ------------
Due from related parties 18.1 196,019 105,263

Advances Due from vendors for material / components returned 851 3,359
- Suppliers 16.1 45,715 30,549 Duty draw back 486 486
- Employees - against expenses 5,105 5,947 Expenses recoverable from dealers 15,873 55,762
50,820 36,496 Current portion of long term other receivables 10 99,919 81,255
Accrued profit on bank deposits 525 46
55,390 40,627
Others 35,246 22,451
348,919 268,622
16.1 These advances do not carry any mark up arrangement.
18.1 This represents receivable from following related parties: 19.2 Excess of minimum turnover tax carried forward
2019 2018
(Rupees in ‘000) Expiry tax Year
Note ------------ (Rupees in ’000) ------------
Recognised in 2018 920,980 2023

PT. Suzuki IndoMobil Motor 694 694
196,019 105,263
20. Cash and Bank Balances
2019 2018
Note ------------ (Rupees in ’000) ------------
18.1.1 The maximum aggregate amount receivable from the related parties at the end of any month during
the year are as follows: Cash in hand 10,692 9,507
Cash at bank:
- In deposit accounts - Conventional 20.1 1,048,100 355,164
PT. Suzuki IndoMobil Motor 694 694
- In a special deposit account - Conventional 20.2 130,955 117,955
- In current accounts 2,077,763 1,033,537
18.1.2 The age analysis of other receivables due from related parties are as follows:
3,256,818 1,506,656
2019 2018
3,267,510 1,516,163
Gross Impairment Gross Impairment
--------------------------- (Rupees in ’000) ---------------------------
Not past due 40,943 - 97,360 - 20.1 These carry profits rates ranging from 5.5% to 12.85% (2018: 6.10% to 7.30%) per annum.
Past due 91-180 days 17,955 - 613 -
Past due 181-360 days 22,768 - - - 20.2 A special account is maintained in respect of security deposits (note 23) in accordance with the requirements
Past due over 360 days 114,353 - 7,290 - of Section 217 of the Companies Act, 2017.
196,019 - 105,263 -
20.3 The Company does not have any Shariah compliant bank deposits / bank balances as at 31 December 2019.
19. TAXATION - NET
19.1
This also includes minimum tax on turnover chargeable under section 113 of the Income Tax
Ordinance, 2001 of Rs. 921 million. Minimum tax is paid where, the Company has suffered taxable
losses or has insufficient taxable profits due to which actual tax liability is not sufficient to meet the
minimum tax requirements as per the said section 113. The excess of minimum tax over actual tax
chargeable (where actual tax is nil in case of taxable losses) is adjustable against taxable income of
limited number of future years (refer Note 19.2). The Company has recognised the minimum tax paid
in advance during the year as an asset because the management considers it probable that sufficient
future taxable profits would be available against which this excess minimum tax can be utilised.
21. Issued, Subscribed and Paid-Up Share Capital 24. Lease Liabilities
2019 2018
Note ------------ (Rupees in ’000) ------------
2019 2019 2019 2018
----- (Number of Shares) ----- ------- (Rupees in ’000) ------- Maturity Analysis – Contractual discounted Cash
Flows
Less than one year 31,757 -
45,517,401 45,517,401 Fully paid ordinary shares of Rs. 10/- each 455,174 455,174
issued for cash One to five years 84,076 -
2,800,000 2,800,000 Issued for consideration other than cash 28,000 28,000 More than five years 32,116 -
33,982,450 33,982,450 Issued as fully paid bonus shares 339,825 339,825 147,949 -
82,299,851 82,299,851 822,999 822,999
Lease liabilities included in the statement of
financial position as at 31st December
21.1
The Holding Company held 60,154,091 (2018: 60,154,091) ordinary shares of Rs. 10 each, constituting
73.09% (2018: 73.09%) holding in the Company. Current 31,757 -
Non-current 116,192 -
22. Payable Against Purchase Of Asset 147,949 -
2019 2018
Note ------------ (Rupees in ’000) ------------
24.1 This represents present value of lease liabilities discounted at the incremental borrowing rate of the
Company against various lease agreements for Suzuki houses, area offices and showrooms.
Payable against purchase of asset 22.1 618,994 290,494
Less: Payable within one year 25 (455,637) (290,494) 25. Trade and Other Payables
163,357 - Creditors 1,598,600 2,215,730
Bills payable 25.1 3,320,134 4,009,536
Accrued liabilities 2,362,717 2,320,592
22.1 This represents payable to vendors dispersed all over Pakistan against contract manufacturing of components. Royalties and technical fee payable to the Holding
1,421,584 2,330,492
Company
Mark-up on waiting for delivery of vehicles 3,676 3,676
23. Security Deposits Payable to dealers 292,821 1,063,283
2019 2018 Accrued makup on Short term borrowing 614,940 131,026
Note ------------ (Rupees in ’000) ------------ Workers’ Profit Participation Fund 25.2 - 1,855
Workers’ Welfare Fund - 44,642
Dealership deposits 20.2 130,955 117,955 Retention money 5,226 2,520
Deposits from employees against purchase of vehicles 182 7,592
Others 105,175 97,775
Payable to gratuity fund 25.3 324,764 190,583
236,130 215,730
Un-earned income - extended warranty 118,292 84,594
Payable against purchase of asset 22 455,637 290,494
Provision for unexpired free service and warranty 25.4 70,662 84,778
Provision for Sindh Infrastructure Development Cess 25.5 1,613,229 1,202,266
Others 521,225 425,907
12,723,689 14,409,566
25.1
This include Rs. 2,513.94 million (2018: Rs. 1,919.479 million) due to the Holding Company and Rs. 2019 2018
743.06 million (2018: Rs. 1,951.137 million) due to other related parties.
----------- (Rupees in ’000) -----------
25.2 Workers’ Profit Participation Fund
2019 2018 Component of defined benefit costs recognized in
Note ------------ (Rupees in ’000) ------------ statement of profit or loss account
Current service cost 59,867 47,205
Balance at beginning of the year 1,855 1,660 Interest cost on defined benefit obligation 88,298 42,909
Return on plan assets (65,874) (37,758)
Interest on funds utilized in the Company’s business 36 93 508
82,291 52,356
1,948 2,168
Allocation for the year 34 - 111,856
Component of defined benefit costs (re-measurement)
1,948 114,024 recognized in statement of comprehensive income
Less: Paid during the year (1,948) (112,169) Re-measurements: Actuarial (gain) / loss on obligation
Balance at end of the year - 1,855 - Gain due to change in financial assumptions (9,777) (660)
- Loss due to change in experience adjustments 80,784 90,825
71,007 90,165
25.3 Payable to gratuity fund 324,764 190,583
Return on plan assets excluding interest income 8,022 (5,983)
25.3.1 The latest actuarial valuation of gratuity fund was carried out as at 31 December 2019 using the 79,029 84,182
Projected Unit Credit Method. Total defined benefit cost recognized in statement of
other comprehensive income 79,029 84,182
25.3.2 Amount recognized in the statement of financial position

Expected contribution in the following year 106,786 82,090
2019 2018
Weighted average duration of the defined
----------- (Rupees in ’000) ----------- benefit obligation (years) 9 8
Present value of defined benefit obligation 867,927 684,151

Fair value of plan assets (553,850) (495,998) 25.3.4 Movement in net liability recognized in the statement of financial position
Benefits due but not paid (payables) 10,687 2,430
324,764 190,583
Opening balance 190,583 94,920
Expense recognized during the year 82,292 52,356
Re-measurement loss recognized in other
79,029 84,182
comprehensive income
25.3.3 Amounts recognized in total comprehensive income Contribution made by the Company during the year (27,140) (40,875)
Closing balance 324,764 190,583
The following amounts have been charged in respect of these benefits to statement of profit or loss
and statement of comprehensive income:

25.3.5 Movement in present value of defined benefit obligation 25.3.8 Actual return on plan assets
2019 2018
2019 2018 ----------- (Rupees in ’000) -----------
----------- (Rupees in ’000) -----------
Interest income on plan assets 65,874 37,758
Opening balance 684,151 536,351 Remesurement (loss) / gain on plan assets (8,022) 5,983
Current service cost 59,867 47,205 57,852 43,741
Interest cost on defined benefit obligation 88,298 42,909

Benefits due but not paid (payables) (10,687) (2,430) 25.3.9 Analysis of present value of defined benefit obligation
Benefit paid (24,709) (30,049)
Type of Members:
Remeasurement loss on defined benefit obligation 71,007 90,165
- Management 731,691 559,748
Closing balance 867,927 684,151
- Non - management 136,236 124,403
867,927 684,151
25.3.6 Movement in fair value of plan assets
25.3.10 Major categories / composition of plan assets are as follows
Opening balance 495,998 452,257
Contributions 27,140 (40,875) Government securities 40,622 377,602
Return on plan assets 65,874 37,758 Mutual funds 76,411 67,800
Benefit paid (27,140) 40,875 Term finance certificates 41,303 38,872
Remeasurement (loss)/ gain on plan assets (8,022) 5,983 Bank balances 395,514 11,724
Closing balance 553,850 495,998 553,850 495,998
25.3.7 Principle actuarial assumption used are as follows 25.3.11 Sensitivity analysis
Discount rate used for profit and loss charge 13.25% 8.25% The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Discount rate used for year end obligation 11.25% 13.25%
Change in assumption Defined benefit obligation
Expected rate of eligible salaries increase in future years 11.25% 13.25% (Incase of changes)
SLIC 2001 - 2005 SLIC 2001 - 2005
Mortality rates
Setback 1 Year Setback 1 Year Discount rate + 1% 793,608 650,025
Withdrawal Rates Age Based Age Based Discount rate - 1% 954,476 723,955
Long term salary increase + 1% 954,659 723,895
Retirement assumption Age 60 Age 60
Long term salary decrease - 1% 792,091 650,024
25.4 Provision for unexpired free service and warranty

Balance at the beginning of the year 84,778 87,197
Paid during the year (225,757) (302,636)
Charge during the year 211,641 300,217
Balance at the end of the year 70,662 84,778
25.5 Provision for Sindh Infrastructure Development Cess 27. Security Deposits
Sindh Infrastructure Cess was levied in the province of Sindh in 1994 vide section 9 of the This represents the amount deposited by the dealers as security against the vehicles delivered to
Sindh Finance Act on the goods entering or leaving the province from or for outside the country, them for display.
ostensibly for services rendered in respect of development and maintenance of infrastructure.
Levy is applicable on imported goods and it is charged at the time of custom clearance. Group of
importers challenged the levy on the grounds that imposing levy on ‘import and export’ does not fall 28. Provision For Custom Duties And Sales Tax
within legislative competence of the provincial legislature. In 2011, Sindh High Court (SHC) through
its interim order granted an interim relief to all the petitioners directing that the future imports of 2019 2018
the petitioners will be cleared on payment of 50% of the disputed cess while for remaining 50% Note ----------- (Rupees in ’000) -----------
bank guarantee is to be submitted till the final decision by Court.
In May 2014, Pak Suzuki filed a petition in SHC against Government of Sindh and Court granted Provision for custom duties and sales tax 28.1 36,299 36,299
same interim relief as was available to other petitioners, i.e., Company continue to make payment
Provision for additional custom duties 28.2 546,527 -
for 50% Cess and provided bank guarantee for 50% balance payable. As a matter of prudence,
Company fully charged the Sindh Government Infrastructure Cess to cost by providing provision for 582,826 36,299
50% balance payable.
28.1 Revenue Receipts Auditors – Government of Pakistan conducted an audit in the year 2001 and
26. Short-Term Finance alleged that the Company short paid Rs. 120 million on account of custom duties and sales tax
against royalty during the period from July 1997 to February 1999. According to clause 2(d) of
2019 2018
Section 25 of the Customs Act, 1969, payment in the nature of royalty without which goods cannot
----------- (Rupees in ’000) -----------
be legitimately imported and sold or used in Pakistan are to be included in value for import purpose.
The Company paid Rs. 33.677 million after reconciliation with the Collector - Customs in prior
Short term running finance - conventional 32,411,037 11,310,497 years. Despite reconciliation, Deputy Collector – Customs adjudicated to pay balance amount of
Rs. 86.323 million. The Company filed an appeal before the Customs Appellate Tribunal which was
26.1 The effective rate of mark-up on short-term running finance facility ranges from 13.03% to 13.68% disallowed in the year 2015. Consequently, the Company filed Reference Application in the Sindh
(2018: 8.8% to 10.4%) per annum. These facilities are renewable subject to payment of repurchase High Court which is pending for adjudication. Further, in 2015, the Customs Authorities adjusted Rs.
price on specified dates. The facilities for running finance available from various commercial banks 50.02 million against the above demand.
are for the purpose of meeting working capital requirements. The total limit of short term running
28.2 On 28th June 2019, Ministry of Finance issued notification vide SRO 670/2019 through which
financing facilities available from banks aggregate to Rs. 38,000 million (2018: Rs. 15,547.76 million) the Additional Customs duty was increased from 2% up to 7% on imported goods falling under
out of which Rs. 5,588 million (2018: 4,237.27 million) remained unutilised as of reporting date. various tariff slabs. Petition has been filed in Sindh High Court (SHC) to challenge the increase
Financing facilities from two banks, amounting Rs. 25,000 million (2018: 2,000 million) are secured in additional customs duty. The plea of the Industry, including Pak Suzuki, is that in pursuance
against support from holding company, Suzuki Motor Corporation. of Auto Policy 2016-21, five year tariff plan for customs duties was committed by Government of
Pakistan, covering the period from 2016 to 2021. SHC granted stay on 5th October 2019 against
26.2 The Company does not have any Shariah compliant borrowings as at 31 December 2019. SRO and directed petitioners to submit the corporate guarantee amounting to Rs. 1,260 million to
cover additional duty levied through the challenged SRO till the petition is decided. As a matter
of prudence, provision amounting to Rs. 546 million has been accounted for in these financial
statements.
29. Contingencies and Commitments
29.1 Capital expenditure contracted for but not incurred amounted to Rs. 392.470 million (2018: Rs.
930.907 million).
29.2 The facilities for opening letters of credit as at 31 December 2019 amounted to Rs. 10,300 million 2019 2018
(2018: 10,400 million) of which the amount remaining unutilized at year end was Rs. 9,897 million
(2018: 9,778.72 million). Note ----------- (Rupees in ’000) -----------
29.3 The facilities for opening letters of guarantees as at 31 December 2019 amounted to Rs. 2,126 Less: Sales tax 910,715 894,432
million (2018: Rs. 1,728 million) of which the amount remaining unutilized at December end was
Federal excise duty 30.4 26,646 -
Rs. 456.371 million (2018: Rs. 365.486 million).
Discounts 2,560 11,263
29.4 The Company has issued a corporate guarantee on behalf of Tecno Auto Glass Limited, an associated Sales commission to dealers 86,175 137,613
company, amounting to Rs. 600 million (2018: Rs. 600 million) to a commercial bank in relation to (1,026,096) 1,043,308
borrowing facilities granted to the associated company.
5,704,595 6,714,300
30. Sales
2019 2018 30.3 These include export sales of Rs. 62.287 million (2018: Rs. 86.157 million)
Note ----------- (Rupees in ’000) -----------
30.4 During the year federal excise duty (FED) has been imposed vide Finance Act 2019 effective from
Manufactured goods 30.1 111,147,960 113,139,598 July 01, 2019 on all motor vehicles excluding commercial vehicle.
Trading stocks 30.2 5,704,595 6,714,300
30.5 The amount of Rs. 2,155 million included in advances from customers as at 31 December 2018 has
116,852,555 119,853,898 been recognised as revenue in 2019.
Add: Extended warranty income 7,125 -
116,859,680 119,853,898 30.6 In the following table, revenue is disaggregated by primary geographical market, major products/
service lines and timing of revenue recognition. The table also includes a reconciliation of the
Less: Mark-up on discounting of financial assets (103,408) -
disaggregated revenue with the Company’s two strategic divisions, which are its reportable
Free service (208,259) - segments (Refer Note 30).
116,548,013 119,853,898
Automobile Motorcylce Total

30.1 Manufactured goods 2019 2018 2019 2018 2019 2018
--------------------- (Rupees in ’000) -----------------

- Vehicles 139,206,536 139,866,732
- Spare parts 645,278 616,176
Primary Geographical Markets
139,851,814 140,482,908
Pakistan 112,940,403 116,479,519 3,545,323 3,288,222 116,485,725 119,767,741
Japan 25,339 42,694 - - 25,339 42,694

Less: Sales tax 20,331,777 20,409,115
Vietnam 7,262 21,759 - - 7,262 21,759
Federal excise duty 30.4 1,227,456 -
Others 23,122 21,704 6,564 - 29,687 21,704
Discounts 1,896,601 1,083,344
112,996,126 116,565,676 3,551,887 3,288,222 116,548,013 119,853,898
Sales commission to dealers 5,248,020 5,850,851
(28,703,854) 27,343,310
Major product/service lines
111,147,960 113,139,598
Automobile Products 112,989,001 116,565,676 - - 112,989,001 116,565,676
30.2 Trading stocks Motorcycle Products - - 3,551,887 3,288,222 3,551,887 3,288,222
Extended Warranty 7,125 - - - 7,125 -

- Vehicles 3,096,174 4,717,976
112,996,126 116,565,676 3,551,887 3,288,222 116,548,013 119,853,898
- Spare parts 3,634,517 3,039,632
6,730,691 7,757,608
Automobile Motorcylce Total 31.1 Cost of goods manufactured
2019 2018 2019 2018 2019 2018 2019 2018
--------------------- (Rupees in ’000) ----------------- Note ----------- (Rupees in ’000) -------
Timinig of Revenue Recognition Raw materials and components at beginning of the year 14,397,889 11,754,415
Products transferred at a point in time 112,996,126 116,565,676 3,551,887 3,288,222 116,548,013 119,853,898 Purchases during the year 31.1.1 108,809,785 106,297,839
123,207,674 118,052,254
Products and services transferred over time - - - - - -
Less: Raw materials and components at end of the year 21,137,374 14,397,889
112,996,126 116,565,676 3,551,887 3,288,222 116,548,013 119,853,898 Raw materials and components consumed 102,070,300 103,654,365
Stores and spares consumed 61,630 72,584

31. Cost of Sales Provision for slow moving and obsolete
2019 2018 stores, spares and loose tools 13 24,283 2,716
Utilities 425,306 445,511
Note ----------- (Rupees in ’000) -----------
Vehicle running expenses 29,126 23,764
Manufactured goods Salaries, wages and other benefits 31.1.2 2,072,281 1,778,470
Finished goods at beginning of the year 12,929,908 8,499,570 Outsourced job contractor charges 907,628 1,060,684
Cost of goods manufactured 31.1 111,401,501 111,411,390 Expenses relating to short-term leases 32,541 25,091
Export expenses 14,829 15,805 Travelling 85,278 118,376
124,346,238 119,926,765 Training 10,157 34,305
14,903,629 12,929,908 Insurance 20,796 10,000
Less: Finished goods at end of the year
Repairs and maintenance 639,582 520,084
109,442,609 106,996,857
Royalty 31.1.3 1,680,777 1,597,221
Trading stocks Technical fee 31.1.3 345,018 330,526
Travelling expenses of supervisors 9,059 1,609
Stocks at beginning of the year 2,012,834 3,621,473 (Reversal) of provision of provincial sales tax on
Purchases during the year 4,422,985 4,203,537 royalty and technical fees - (160,094)
6,435,819 7,825,010 Depreciation 5.2 2,625,616 1,404,580
1,314,942 2,012,834 Impairment loss 5.3 - 9,139
Less: Stocks at end of the year
Amortization 6.1 146,646 63,673
5,120,877 5,812,176
Conveyance and transportation 300,145 290,013
Communication 4,642 3,064
114,563,486 112,809,033 Hired security guards services 22,563 15,750
Local development costs 69,652 215,892
Printing and stationery 533 1,212
Computer software license fee and ERP maintenance charges 5,787 -
Legal & Professional charges 500 -
Others 18,282 21,494
9,537,828 7,885,664
111,608,128 111,540,029
Add: Work-in-process at beginning of the year 56,425 70,600
111,664,553 111,610,629
Less: Work-in-process at end of the year 160,626 56,425
111,503,927 111,554,204
Less: Cost of own used vehicles 102,426 142,814
111,401,501 111,411,390
31.1.1 Purchases are stated net of proceeds from the sale of packing materials amounting to Rs. 313.466 million
2019 2018
(2018: Rs. 345.967 million).
Note ----------- (Rupees in ’000) -----------
31.1.2 This includes Rs. 33.813 million (2018: Rs. 29.153 million) and Rs. 51.027 million (2018: Rs. 31.869 million) in
respect of provident fund and gratuity fund respectively.
Vehicle running expense 81,078 70,839
Insurance 30,055 16,240
31.1.3 This represents royalty and technical fee payable to the Holding Company, Suzuki Motor Corporation Japan
as per License agreement’ duly registered with the State Bank of Pakistan which expired on 10 December, Repairs and maintenance 83,310 80,754
2019. The agreement is in the process of renewal and the Compnay has accrued the charges for royalty and
Depreciation 5.2 180,963 163,943
technical fee for the period on the basis of subject agreement duly approved by the Board which is submitted
to the State Bank of Pakistan for approval. Amortization 6.1 31,530 25,208
Auditors’ remuneration 33.2 3,742 3,564
32 Distribution And Marketing Expenses Legal and professional charges 38,179 12,478
2019 2018 Conveyance and transportation 118,481 117,336
Note ----------- (Rupees in ’000) ----------- Entertainment 441 130
Printing and stationery 42,870 40,857
Transportation and handling charges 1,736,317 1,715,390 Communication 26,598 17,777
Advertising and sales promotion 734,925 634,499 Directors’ fees 8,600 6,395
Free service - 242,302 Trade debts written-off 204 71
Computer software license fee and ERP maintenance
Warranty claims 3,381 57,915 16,131 13,337
charges
Royalty on trading spare parts 32.1 64,628 59,246 Corporate Social Responsibility 33.3 8,952 10,414
(Reversal) of provision of provincial sales tax on Others 24,261 47,030
royalty and technical fees - (2,499) 2,550,663 2,323,313
2,539,251 2,706,853
33.1 This includes Rs. 21.587 million (2018: Rs. 17.712 million) and Rs. 31.582 million (2018: Rs. 20.486 million) in
32.1 This represents royalty and technical fee payable to the Holding Company, Suzuki Motor Corporation Japan respect of defined contributory provident fund and gratuity fund respectively.
as per License agreement’ duly registered with the State Bank of Pakistan which expired on 10 December,
2019. The agreement is in the process of renewal and the Compnay has accrued the charges for royalty and
technical fee for the period on the basis of subject agreement duly approved by the Board which is submitted
33.2 Auditors’ remuneration
to the State Bank of Pakistan for approval. 2019 2018
----------- (Rupees in ’000) -----------
33. Administrative Expenses
2019 2018 Audit fee 1,500 1,500
Note ----------- (Rupees in ’000) ----------- Half-yearly review 450 450
Fee for corporate governance certificate 110 110
Salaries, wages and other benefits 33.1 1,266,786 1,105,686 Fee for special certifications 940 940
Outsourced job contractor charges 226,856 249,043 Out of pocket expenses 465 247
Travelling 140,756 112,312 Sindh sales tax 277 317
Training 17,955 48,697 3,742 3,564
Hired security guards services 52,351 48,599
Depreciation - Right of use of asset 57,119 -
Expenses relating to short-term leases 57,651 102,719
Utilities 35,794 29,884
33.3 Contribution for Corporate Social Responsibility to the following organizations exceed Rs. 1,000,000 or 10% of 35.1 The Company has not earned any profit from Shariah compliant bank deposits / bank balances during the year
donation amount whichever is higher: ended 31 December 2019.
2019 2018
35.2 This represent commission income on corporate guarantee provided to Meezan Bank Limited on behalf of
Tecno Auto Glass Limited, associated company, amounting to Rs. 600 million (2018: Rs. 600 million) in relation
----------- (Rupees in ’000) ----------- to borrowing facilities granted to the associated company.
35.3 This includes loss on fixed assets written off during the year amounting to Rs. 2.402 million
Burns Central Civil Hospital - 1,164
GDA Hospital Gawadar - 2,578
36. Finance Costs
Joint Committee of Ghulkin and Passu - 726
Note 2019 2018
NED University - 656
----------- (Rupees in ’000) -----------
Uqaily Family & Friends Association - 766
Karachi Vocational Training Centre - 1,334 Mark-up on lease liability 19,954 -
Govt. Girls Primary School, Nishtarabad 4,729 - Mark-up on short-term running finance 36.1 1,948,453 185,319
4,729 7,224 Markup on Workers’ Profit Participation Fund 25.2 93 508
Exchange loss - net 52,899 102,157
Bank charges 66,353 74,539
33.3.1 None of the donations were made to any donee in which a director or his spouse had any interest at any time
2,087,752 362,523
during the year.
34. Other Expenses 36.1 The Company has not paid any markup on Islamic mode of financing during the year ended 31 December 2019.
2019 2018
37. Taxation
Note ----------- (Rupees in ’000) -----------
Current
Workers’ Profit Participation Fund 25.2 - 111,856 - for the year 96,895 1,744,746
Workers’ Welfare Fund - 42,348 - prior year - (44,530)
Workers’ Welfare Fund - Prior year charge 348 - Deferred (2,128,154) (915,388)
348 154,204 (2,031,259) 784,828
37.1 Reconciliation between tax expense and accounting profit

35. Other Income
Accounting (loss)/profit for the year before taxation (4,951,744) 2,082,936
Income from financial assets
Profit on bank accounts 35.1 74,024 368,411 Corporate tax rate 29% 29%
Commission income 35.2 3,000 3,000
Tax on accounting profit/(loss) at applicable rate (1,436,006) 604,052
Finance income on installment sales 11,904 24,757 Tax effect of:
88,928 396,168 - prior year - (44,530)
- tax rebate on additions under section 65B under
Income from non-financial assets
Income Tax Ordinance, 2001 (548,421) (97,101)
Gain on disposal of fixed assets 35.3 16,038 49,158 - income assessed under Final Tax Regime 39,468 17,007
Extended warranty income - 30,960 - effect of super tax - 212,120
- tax effect of permanent differences 971 70,570
Scrap sales 20,950 16,758
- Deferred tax Adjustment due to change in future
Miscellaneous income 96,588 72,899 corporate tax rate & FTR adjustment (55,146) -
133,576 169,775 - others (32,125) 22,710
222,504 565,943 (2,031,259) 784,828
37.2 The Company computes tax expense based on the generally accepted interpretation of the tax laws to ensure
that the sufficient provision for the purpose of taxation is available.
39.1 Working capital changes
Minimum tax charge under section 113 of the Income Tax Ordinance, 2001 amounting to Rs. 1,808 million
for current year has not been accounted for in these financial statements as management is confident that 2019 2018
sufficient future taxable profits would be available against which this minimum tax can be utilized. Note ----------- (Rupees in ’000) -----------
38. (Loss)/Earnings Per Share - Basic And Diluted 2019 2018 (Increase) / decrease in current assets:
------------ (Rupees in ’000) ------------ Stores, spares and loose tools (113,546) (32,089)
38.1 Basic Stock in trade (8,119,515) (5,450,998)
Trade debts (453,120) (26,180)
(Loss)/Profit for the year (2,920,485) 1,298,108 Current portion of long-term installment sales receivables (249,409) (228,631)
Loans and advances (14,763) (3,146)
(Number of shares) Trade deposits and short-term prepayments 1,077,967 (391,549)
Weighted average number of ordinary shares in Other receivables (80,297) (120,801)
issue during the year 82,299,851 82,299,851 Sales tax and excise duty adjustable (3,330,941) (3,226,311)
(11,283,624) (9,479,705)
(Rupees) Increase / (decrease) in current liabilities:
Trade and other payables (2,422,996) 3,431,423
Basic (loss)/earnings per share (35.49) 15.77 Provision for custom duties and sales tax 546,527 -
Security deposits (58,613) (993,174)
38.2 A diluted earnings per share has not been presented as the Company did not have any convertible instruments Advance from customers (778,961) (3,055,870)
in issue as at reporting date which would have any effect on the earnings per share if the option to convert
(2,714,043) (617,621)
is exercised.
(13,997,667) (10,097,326)
39. Cash Generated From Operations
2019 2018 40. Cash And Cash Equivalents
Note ----------- (Rupees in ’000) -----------
Cash and cash equivalents included in the Statement of Cash Flow comprise of the following statement of
financial position amounts:
(Loss) / profit before taxation (4,951,744) 2,082,936
Adjustments for non cash charges and other items:
Depreciation 2,806,579 1,568,523 Cash and bank balances 20 3,267,510 1,516,163
Impairment loss - 9,139 Short-term running finance facilities 26 (32,411,037) (11,310,497)
Amortization 178,176 88,881 (29,143,527) (9,794,334)
Depreciation - right of use assets 57,119 -
Gain on disposal of fixed assets (16,038) (49,158)
Share of loss of equity accounted investee 3,349 3,212
Profit on bank accounts (74,024) (368,411)
Effect of initial application of IFRS 16 (22,390) -
Mark-up on lease liability 19,954 -
Markup on short term borrowings 1,948,453 362,523
4,901,178 1,614,709
Working capital changes 39.1 (13,997,667) (10,097,326)
(14,048,233) (6,399,681)
41. Transactions With Related Parties 41.1 Outstanding balances with related parties as at year end have been included in other receivables and trade
and other payables respectively. These are settled in ordinary course of business.
Related parties of the Company include the Holding Company and related group companies, local associated
companies, staff retirement funds, directors and key management personnel. Transactions with related parties Aggregate % of
are entered into at commercial terms, as per the terms of employment and actuarial advice, as the case may be. 41.2 Name of the related party Basis of association
Shareholding
Amount due from and to related parties and remuneration of directors and executives are disclosed in the Suzuki Motor Corporation Holding Company 73.09%
relevant notes to the financial statements. Details of transactions and balances with related parties, other PT. Suzuki Indomobil Motor Group Company N/A
than those which have been specifically disclosed elsewhere in these financial statements are as follows:
Thai Suzuki Motor Co. Limited Group Company N/A
Jiangmen Dachangjiang Group Co. Limited Group Company N/A
Holding Other related Changzhou Haojue Suzuki Motorcycle Co. Limited Group Company N/A
Total
Company parties Magyar Suzuki Corporation Limited Group Company N/A
Note ------------- (Rupees in ’000) ------------- Suzuki Motor (Thailand) Co. Limited Group Company N/A
Jinan Qingqi Motorcycle Co. Limited Group Company N/A
For the year ended 31 December 2019
Suzuki Deutschland Group Company N/A
Purchases of components 34,337,038 23,589,052 57,926,090 Vietnam Suzuki Corporation Group Company N/A
Purchases of operating fixed assets 58,699 - 58,699 Suzuki Italia S.P.A. Group Company N/A
Dividend paid Tecno Auto Glass Limited Associate Company 40%
190,087 - 190,087
Export sales 25,339 16,239 41,578
Royalties and technical fee 1,988,106 - 1,988,106 41.3 Following are the details of related parties incorporated outside Pakistan, with whom the country had entered
into transactions or had agreements or arrangements in place during the year.
Purchase of intangible assets 305,700 - 305,700
Travelling expenses of supervisors - - - Aggregate % of
Name of the related party Country of Incorporation
Staff retirement benefits 41.4 - 138,009 138,009 Shareholding
Commission income from Corporate Guarantee - 3,000 3,000
Suzuki Motor Corporation Japan 73.09%
Remuneration to key management personnel - 141,678 141,678 PT. Suzuki Indomobil Motor Indonesia N/A
Sales promotional expenses and development Thai Suzuki Motor Co. Limited Thailand N/A
4,013 - 4,013
expenses Jiangmen Dachangjiang Group Co. Limited China N/A
Magyar Suzuki Corporation Limited Hungary N/A
Holding Other related Suzuki Motor (Thailand) Co. Limited Thailand N/A
Total Jinan Qingqi Motorcycle Co. Limited China N/A
Company parties
Suzuki Deutschland Germany N/A
Note ------------- (Rupees in ’000) -------------
Vietnam Suzuki Corporation Vietnam N/A
For the year ended 31 December 2018 Suzuki Italia S.P.A. Italy N/A
Purchases of components 27,946,226 26,254,787 54,201,013
Purchases of operating fixed assets 3,569,530 62 3,569,592
41.4 All investments out of provident fund have been made in accordance with the provisions of Section 218 of the
Export sales 41,597 23,700 65,297 Companies Act 2017 and the conditions specified there under.
Royalties and technical fee 1,970,877 - 1,970,877
Travelling expenses of supervisors 706 - 706
Staff retirement benefits 41.4 - 99,222 99,222
Commission income from Corporate Guarantee - 3,000 3,000
Remuneration to key management personnel - 158,238 158,238
Sales promotional expenses and development expenses 106,358 1,276 107,634
42. Plant Capacity and Actual Production 44. Financial Risk Management Objectives and Policies
The Company’s activities expose it to a variety of financial risk such as market risk, credit risk and liquidity
2019 2018
risk. The Company’s overall risk management focuses on the unpredictability of financial markets and seeks
(Number of vehicles) to minimize potential adverse effects on the Company’s financial performance. The Company’s Board of
Directors oversees the management of these risk which are summarized below:
Plant capacity - Motorcar (double shifts basis) 150,000 150,000

44.1 Market risk
Plant capacity - Motorcycle (double shifts basis) 44,000 44,000
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
Actual production - Motorcar 107,999 143,239 of changes in market prices. Market risk comprises of interest rate risk, currency risk and equity price risk.
Actual production - Motorcycle 22,737 23,014
(i) Interest rate risk
42.1 Under utilization of capacity was due to lower demand of certain products. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. As of the balance sheet date, the Company had
following interest bearing financial instruments:
43. Remuneration of Executives, Directors and Chief Executive
2019 2018
The aggregate amounts charged in these financial statements in respect of remuneration including all benefits
----------- (Rupees in ’000) -----------
to chief executive, directors and executives of the Company are as follows:
Fixed rate financial instruments
Installment sales receivables 1,070,909 667,945
2019 2018
Bank balances in deposit accounts 1,179,055 473,119
Non- Non-
Description
Chief
Executive
Executive
Executive
Chief
Executive
Executive
Executive 2,249,964 1,141,064
Executive Directors Executive Directors
Directors Directors
--------------------------------------------- (Rupees in ’000) --------------------------------------------

Variable rate financial instruments
The Company holds various variable rate financial instruments amounting to Rs. 32,411 million (2018:
Directors fees - 6,100 - - - 2,290 - - 11,310 million) exposing the Company to cash flow interest rate risk. A change of 100 basis points as
Managerial remuneration 17,520 - 12,605 270,000 17,680 - 14,523 236,522 at 31 December 2019 would have increased / (decreased) profit after tax and equity for the year by
Rs. 324.110 million (2018: 19.238 million). This analysis assumes that all other variables, in particular
Bonus 10,220 - 5,608 166,270 3,452 - 8,746 152,369
foreign currency rates, remain constant.
Retirement benefits - - - 17,758 - - - 15,754
Reimbursable expense - 2,500 - - 10 4,105 569 8,381

Fair value sensitivity analysis for fixed rate instruments
27,740 8,600 18,213 454,028 21,142 6,395 23,838 413,026 The Company does not account for any fixed rate financial assets and liabilities at fair value through
profit and loss. Therefore, a change in interest rates at the reporting date would not affect profit and
Number of persons 1 5 2 62 1 5 2 58 loss account.
43.1 The directors, chief executive and certain executives of the Company are provided with free use of Company
(ii) Currency risk
maintained cars and accommodations.
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
due to changes in foreign exchange rates. It arises where receivables and payables exist due to
transactions in foreign currency. Open exposures are vigorously monitored. The Company is exposed
to such risk in respect of the following:
2019 2018 44.1.1 Reconciliation of movements of liabilities to cash flows arising from financing activities
2019
JPY - Japanese Yen
Bills payable 1,761,635 1,526,811 Unappropriated
Lease Liabilities Total
profit
Royalty and technical fees payable to the Holding Company 77,527 1,100,489
Due from related parties (42,763) (20,202)
--------------------- (Rupees in ’000) ---------------------
Net exposure - JPY in '000 1,796,399 2,607,098
Balance as at 1 January 2019 - 27,565,270 27,565,270

USD - US Dollar
Effect of initial application of IFRS 16 237,122 (22,390) 214,732
Bills payable 5,119 14,578 Balances as at 1 January 2019 - Restated 237,122 27,542,880 27,780,002
Export sales receivables - (4)
Due from related parties (694) (694) Changes from financing cash flows
Net exposure - USD in '000 4,425 13,880 Payment of lease liabilities (65,057) - (65,057)
Dividend paid - (263,034) (263,034)
Total changes from financing activities 172,065 27,279,846 27,451,911
Other changes - interest cost

RMB - Chinese Ren-Min-Bi
Interest expense 19,954 - 19,954
Bills payable in '000 4 2,710
Interest paid (19,954) - (19,954)
Changes in lease liabilities (24,116) - (24,116)
EUR - Euros Total loan related other changes (24,116) - (24,116)
Bills payable in '000 11 5
SGD - Singapore Dollar Total equity related other changes - (2,996,555) (2,996,555)
Bills payable in '000 32 22 Balance as at 31 December 2019 147,949 24,283,291 24,431,240
GBP - Great Britain pound 44.2 Credit risk

Bills payable in '000 2 2
Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to
discharge its obligation and cause the other party to incur a financial loss. The Company attempts to control
credit risk by monitoring credit exposures, limiting transactions with specific counterparties and continually
At December 31, 2019 if Pak Rupee had depreciated / appreciated by 1% against JPY, US Dollar, RMB, EUR, SGD
assessing the creditworthiness of counterparties.
and GBP with all other variables held constant, Company’s profit before tax would have been Rs. 32.512 million
(2018: Rs. 37.553 million) higher / lower as a result of exchange loss / gain on translation of foreign currency
Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities
denominated financial instruments.
or have similar economic features that would cause their ability to meet contractual obligations to be similarly
affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the
Other price risk
relative sensitivity of the Company’s performance to developments affecting a particular industry.
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk). The The Company seeks to minimize the credit risk exposure through having exposures only to customers
Company is not exposed to other price risk. considered credit worthy, allowing advances to vendors / suppliers who have long standing with Company and
placing deposits with banks with good rating. The maximum exposure to credit risk at the reporting date is:
44.3 Liquidity risk
2019 2018
----------- (Rupees in ’000) ----------- Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company applies the prudent risk management policies by maintaining sufficient cash and bank balances and
by keeping committed credit lines. The table below summarizes the maturity profile of the Company’s financial
Trade debts 690,658 237,538 liabilities at the following reporting dates:
Installment sales receivable 1,070,909 667,945 Carrying More than
Upto one year
Loans and advances 8,070 8,334 Amount one year
Trade deposits 212,476 1,115,222 ----------- (Rupees in ’000) -----------
Other receivables 683,525 686,938 31 December 2019
Bank balances 3,256,818 1,506,656 Trade and other payables 10,584,161 (10,584,161) -
5,922,456 4,222,633 Payable against purchase of asset 618,994 (455,637) (163,357)
Short term finance 32,411,037 (32,411,037) -
Trade debts and installment sales receivables
Security deposits 4,163,636 (3,927,506) (236,130)
Lease liabilities 147,949 (31,757) (116,192)
The Company reviews the recoverable amount of each trade debt and installment sales receivable on an
Unclaimed dividend 19,329 (19,329) -
individual basis at the end of the reporting period to ensure that adequate loss allowance is made for
irrecoverable amounts. Further, an impairment analysis is also performed at each reporting date based on the 47,945,106 (47,429,427) (515,679)
facts and circumstances existing on that date to identify expected losses on account of time value of money
and credit risk. For the purposes of this analysis, the receivables are categorized into portfolios comprising
of homogeneous receivables. Each portfolio is then assessed for impairment using the Expected Credit Loss 31 December 2018
(ECL) model as per the provisions of IFRS 9. The calculation is based on provision matrix which considers Trade and other payables 13,122,522 (13,122,522) -
actual historical data adjusted appropriately for the future expectations and probabilities.
Short term finance 11,310,497 (11,310,497) -
Receivables from group companies and secured receivables are excluded for the purposes of this analysis Security deposits 4,222,249 (4,006,519) (215,730)
since no credit risk is perceived on them. The loss rates are based on actual credit loss experience over Unclaimed dividend 22,295 (22,295) -
past years. These loss rates are then adjusted appropriately to reflect differences between current and
historical economic conditions and the Company’s view of economic conditions over the expected lives of 28,677,563 (28,461,833) (215,730)
the receivables. In determining the recoverability of trade receivables and Instalment sales receivable the
Company considers the credit quality of the receivables from the date credit was initially granted up to the end 44.4 Fair value of financial instruments
of the reporting period. Allowance for doubtful debts are recognised against trade receivables at an amount
equal to life time credit losses using a provision matrix.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as
possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in
Bank balances the valuation techniques as follows:
Bank balances are held with reputable banks with high quality credit ratings. At year end, the Company has Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
bank balances with banks having credit ratings ranging from A1+ to A1.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities,
including their levels in the fair value hierarchy.
2019 45. Capital Risk Management
Carrying amount Fair value
The primary objective of the Company’s capital management is to maintain healthy capital ratios, strong
Fair value Other credit rating and optimal capital structures in order to ensure ample availability of finance for its existing and
Amortised Fair value
through financial Level 1 Level 2 Level 3
Cost
OCI
liabilities
liabilities potential investment projects, to maximize shareholder value and reduce the cost of capital.
--------------------------------------- (Rupees in ’000) ---------------------------------------
The Company manages its capital structure and makes adjustment to it, in light of changes in economic
Financial assets not measured at
fair value conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of
Other long-term investments - - - - - - - dividends paid to shareholders, return capital to shareholders or issue new shares. The Company is currently
Trade debts 690,658 - - - - - - financing its operations through equity and short-term finance.
Installment sales receivable 1,070,909 - - - - - -
Loans and advances 8,070 - - - - - - 46. Segment Information
Trade deposits 212,476 - - - - - -
Other receivables 683,525 - - - - - - The activities of the Company have been grouped into two segments of related products i.e. automobile and
Cash and bank balances 3,267,510 - - - - - -
motorcycles as follows:
5,933,148 - - - - - -
- The Automobile segment includes sales of own manufactured vehicles, spare parts, trading vehicles
Financial liabilities not measured at
and spare parts.
fair value - The Motorcycles segment includes sales of own manufactured vehicles, spare parts, trading vehicles
Trade and other payables - - - 10,584,161 - - -
and spare parts.
Short-term finance - - - 32,411,037 - - -
Security deposits - - - 4,163,636 - - -
Unclaimed dividend - - - 19,329 - - -
46.1 Segment revenue and results
Lease liabilities - - - 147,949 - - - Following is an analysis of the Company’s revenue and results by reportable segment:
Payable against purchase of asset - - - 618,994 - - -
- - - 47,945,106 - - - 2019 2018
2018 Automobile Motorcycle Total Automobile Motorcycle Total
Carrying amount Fair value ----------------------------------- (Rupees in ’000) -----------------------------------
Loan Fair value Other Net sales 112,994,512 3,656,909 116,548,013 116,565,676 3,288,222 119,853,898
Fair value
and through financial Level 1 Level 2 Level 3
liabilities
receivables OCI liabilities
Gross profit 1,693,139 291,388 1,984,527 6,724,635 320,230 7,044,865
--------------------------------------- (Rupees in ’000) --------------------------------------- Distribution and marketing expenses (2,479,961) (59,290) (2,539,251) (2,645,962) (60,891) (2,706,853)
Financial assets not measured at Administration expenses (2,303,766) (246,897) (2,550,663) (2,099,491) (201,589) (2,301,080)
fair value Reversal of impairment losses 1,000 21,588 22,588 5,435 16,798 22,233
Long-term investments - - - - - - - Other income 176,011 46,493 222,504 513,901 52,042 565,943
Trade debts 237,538 - - - - - - Finance cost (2,084,717) (3,035) (2,087,752) (360,604) (1,919) (362,523)
Installment sales receivable 667,945 - - - - - -
Loans and advances 8,334 - - - - - - Segment results 4,998,294 50,247 (4,948,047) 2,132,479 107,873 2,240,352
Trade deposits 1,115,222 - - - - - -

Unallocated corporate expenses
Other receivables 686,938 - - - - - -
Other expenses (348) (154,204)
Cash and bank balances 1,516,163 - - - - - - Share of loss of equity accounted investee (3,349) (3,212)
4,232,140 - - - - - - Taxation 2,031,259 (784,828)
2,027,562 (942,244)
Financial liabilities not measured at Loss after tax (2,920,485) 1,298,108
fair value
Trade and other payables - - - 13,122,522 - - -
Short-term finance - - - 11,310,497 - - -
Security deposits - - - 4,222,249 - - - Revenue from sale of Automobiles represent 97% (2018: 98%) of the gross sales of the Company.
Unclaimed dividend - - - 22,295 - - - 99.95% (2018: 99.99%) of the gross sales of the Company are made to customers located in Pakistan.
- - - 28,677,563 - - - All non-current assets of the Company at 31 December 2019 are located in Pakistan.
The estimated fair value of all financial assets and liabilities is considered not significantly different from The Company’s customer base is diverse with no single customer accounting for more than 10% of sales.
carrying values as the items are either short-term in nature or periodically repriced
46.2 Segment assets and liabilities 48. Non-Adjusting Event After the Balance Sheet Date
2019 2018 48.1 The Board of Directors in their meeting held on 20th March, 2020 has recommended a final cash dividend on
ordinary shares at the rate of Nil (2018: 31.6%). The Board of Directors have further approved the transfer of
Automobile Motorcycle Total Automobile Motorcycle Total
unappropriated loss of Rs. 2,920 million (2018: unappropriated profit Rs.1,039 million) to general reserves. The
------------------------------------------ (Rupees in ’000) ------------------------------------------ approval of the members for the said appropriations will be obtained at the Annual General Meeting of the
Company to be held on 20th May, 2020.
Assets
Segment assets 56,670,776 2,854,697 59,525,473 46,060,015 2,015,834 48,075,849
Unallocated corporate assets
56,670,776
- -
2,854,697
18,134,353
77,659,826 46,060,015
-
2,015,834
- 13,434,000
61,509,849
49. Number of Employees
Liabilities The detail of number of employees are as follows: 2019 2018

Segment liabilities 17,614,158 74,987 17,689,145 20,878,740 87,747 20,966,487
Unallocated corporate liabilities - - 34,019,795 - - 11,310,497
17,098,479 74,987 51,708,940 20,878,740 87,747 32,276,984 Total employees of the Company at the year end 1,964 2,024
Average employees of the Company during the year 1,994 1,649
46.3 Other segment information

Capital expenditure 2,712,229 155,016 2,867,245 8,257,285 201,231 8,458,516
50. Date of Authorisation For Issue
Impairment - - - 9,139 - 9,139
Depreciation 2,686,478 120,101 2,806,579 1,438,779 129,744 1,568,523
These financial statements have been authorized for issue by the Board of Directors of the Company in its
meeting held on March 20, 2020.
47. Corresponding Figures

The corresponding figures have been rearranged and reclassified, wherever considered necessary for better
presentation, to comply with the requirements of Companies Act, 2017. Following reclassification has been
made at year end other than disclosed elsewhere in these financial statements.
Description Reclassified from Reclassified to 2019
--- (Rupees in ’000) ---
Dealership deposits Security deposit Security deposit 215,730

and others (Short-term) (Long-term)
Provision / (reversal) Administrative expenses Reversal of impairment

for doubtful: losses
-Installment sales receivables 7,867

-Trade debts (30,100)
Management consider that above reclassifications are not material to these financial statements.
Chairman Chief Financial Officer Chief Executive Officer
Pattern of Shareholding
No. of Shareholders Shareholdings ’Slab Total Shares Held No. of Shareholders Shareholdings ’Slab Total Shares Held
3936 1 to 100 93,058 1 155001 to 160000 158,600

1289 101 to 500 386,752 1 180001 to 185000 183,662
567 501 to 1000 461,711 2 195001 to 200000 400,000
542 1001 to 5000 1,237,082 1 325001 to 330000 325,500
75 5001 to 10000 571,009 1 380001 to 385000 383,200
35 10001 to 15000 441,263 1 455001 to 460000 455,800
13 15001 to 20000 232,900 1 535001 to 540000 536,423
10 20001 to 25000 236,806 1 550001 to 555000 554,200
4 25001 to 30000 110,200 1 595001 to 600000 600,000
3 30001 to 35000 93,163 1 705001 to 710000 710,000
4 35001 to 40000 151,239 1 805001 to 810000 805,250
5 40001 to 45000 210,019 1 900001 to 905000 902,860
2 45001 to 50000 97,850 1 920001 to 925000 923,940
3 50001 to 55000 155,450 1 960001 to 965000 964,700
1 60001 to 65000 61,000 1 1160001 to 1165000 1,160,574
2 65001 to 70000 136,330 1 1180001 to 1185000 1,183,800
1 75001 to 80000 75,800 1 1450001 to 1455000 1,451,100
1 80001 to 85000 82,500 1 5220001 to 5225000 5,221,400
1 85001 to 90000 90,000 1 59250001 to 59255000 59,251,231
1 90001 to 95000 92,150 6524 82,299,851
2 100001 to 105000 204,529
1 105001 to 110000 110,000
1 110001 to 115000 115,000
1 120001 to 125000 124,900
1 130001 to 135000 134,000
2 135001 to 140000 276,600
1 145001 to 150000 146,300
Pattern of Shareholding
As at December 31, 2019
Categories of Shareholders Shareholders Shares Held Percentage Categories of Shareholders Shareholders Shares Held Percentage
CDC - TRUSTEE UBL INCOME OPPORTUNITY FUND - MT 1 1,000 0.00
Directors and their spouse(s) and minor children CDC - TRUSTEE ALFALAH GHP ISLAMIC DEDICATED EQUITY FUND 1 86 0.00
MR. MASAFUMI HARANO 1 119 0.00
MOIN M FUDDA 1 500 0.00 General Public
a. Local 6365 5620061 6.83
Associated Companies, undertakings and related parties b. Foreign 8 136101 0.17
M/S. SUZUKI MOTOR CORPORATION 2 60,154,091 73.09
Foreign Companies 19 10921276 13.27
Executives 2 107 0.00 Others 87 1279042 1.55
Totals 6524 82,299,851 100.00
Public Sector Companies and Corporations 11 2038346 2.48
Share holders holding 5% or more Shares Held Percentage

Banks, development finance institutions, non-banking M/S. SUZUKI MOTOR CORPORATION 60,154,091 73.09
finance companies, insurance companies, takaful,
modarabas and pension funds 15 633739 0.77 MATTHEWS EMERGING ASIA FUND [000910600034] 5,221,400 6.34
Mutual Funds
CDC - TRUSTEE ALFALAH GHP VALUE FUND 1 100 0.00
CDC - TRUSTEE AKD INDEX TRACKER FUND 1 5,420 0.01
CDC - TRUSTEE NBP STOCK FUND 1 50 0.00
CDC - TRUSTEE NIT-EQUITY MARKET OPPORTUNITY FUND 1 536,423 0.65
CDC - TRUSTEE NBP MAHANA AMDANI FUND - MT 1 22,100 0.03
MCBFSL - TRUSTEE ABL ISLAMIC STOCK FUND 1 100 0.00
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 1 2,000 0.00
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 1 923,940 1.12
CDC - TRUSTEE NIT ISLAMIC EQUITY FUND 1 10,700 0.01
CDC - TRUSTEE NBP SAVINGS FUND - MT 1 14,000 0.02
MCBFSL TRUSTEE ABL ISLAMIC DEDICATED STOCK FUND 1 550 0.00
Dealer Network
Azad Kashmir Jaranwala 1

Dadyal 1 Jhang 1
Kotli 1 Jhelum 1
Mirpur 1 Kallar Syedan 1
Muzaffarabad 1 Kamonki 1
Kasur 1
Baluchistan Khanewal 1
Gwadar 1 Khanpur 1
Kuchlak 1 Kharian 1
Quetta 2 Khushab 1
Kot Addu 1
Khyber Pakhtun Khwa Lahore 18
Abbottabad 1 Layyah 1
Battagram 1 Lodhran 1
Charsadda 2 Mandi Bahauddin 1
D.I.Khan 1 Mianchannu 1
Dir 1 Mianwali 1
Gilgit 1 Multan 7
Haripur 1 Muzaffargarh 1
Haveliyan 1 Narowal 1
Kohat 1 Pakpattan 1
Mansehra 1 Pasrur 1
Mardan 1 Rahimyar khan 2
Nowshera 1 Rajanpur 1
Peshawar 3 Rawalpindi 6
Shabqadar 1 Sadiqabad 1
Swabi 1 Sarghodha 1
Swat 1 Sheikhupura 1
Shorkot 1
Punjab Sialkot 2
Ahmedpur east 1 Talagang 1
Alipur 1 Taxila 1
Bahawalnagar 1 Toba Tek Singh 1
Bahawalpur 1 Vehari 1
Bara Kahu 2 Wazirabad 1
Bhakkar 1 Zahirpir 1
Bhalwal 1
Burewala 1 Sindh
Chakwal 1 Badin 1
Chichawatni 1 Dadu 1
Chiniot 1 Hyderabad 3
Chishtian 1 Jacobabad 1
Chunian 1 Jamshoro 1
D.G.Khan 1 Karachi 19
Daska 1 Kashmore 1
DG Khan 1 Larkana 1
Dipalpur 1 Makli 1
Doultala 1 Mirpurkhas 1
Faisalabad 5 Moro 1
Gujar khan 1 Nawabshah 1
Gujranwala 2 Sukkur 1
Gujrat 1 Tando Allahyar 1
Hafizabad 1
Islamabad 6 Grand Total
162
151 148
24
50 42
Form of Proxy
I/We______________________________________________________________________________________________
Of _______________________________________________________________________________________________
(Full Address)
being member(s) of Pak Suzuki Motor Co. Limited and holder of__________________shares under Folio
No.______________________and/or CDC participant I.D. No._______________________________and Sub Account
No._____________ hereby appoint____________________________________________________________________
of________________________________________________________________________________________________
(Full Address)
Folio No._________________and/or CDC participant I.D. No.______________________________ and Sub Account
No.________________ as my/our proxy in my/our absence to attend and vote for me/us and on my/our
behalf at the 37th Annual General Meeting of the Company to be held on 20th day of May 2020 at 9:30 am
at registered office of the Company, Karachi and at any adjourment thereof.
As witness my/our hand this _______________________ day _______________________ 2020
Signed by the Said________________________________
Witnesses:
Signature________________________________________ ________________________________________________
Name___________________________________________ ________________________________________________
Address_________________________________________ ________________________________________________
CNIC No./Passport No._____________________________ ________________________________________________
(Signature should agree with the SPECIMEN

signature registered with the Company)
Notes:
1. A member entitled to attend and vote at the annual General Meeting of the Company is entitled to
appoint a proxy to attend and vote instead of him/her
2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his constituted
attorney or if such appointer is a corporation/company either under the common seal of such corporation
company or under the hand of an officer or attorney so authorized.
3. The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
4. Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with
the proxy form.
5. The proxy shall produce his/her original CNIC or original passport at the time of the meeting.
6. The proxy form, duly completed, must be deposited with the Company’s registrar, CDC Share
Regitrar Services Limited, CDC House, 99 - B, Block-B, S.M.C.H.S, Main Shahrah-e-Faisal, Karachi, not less
than 48 hours before the time for holding the meeting.
162 Annual Report 2019

Electronic Dividend Mandate Form
AFFIX
CORRECT
POSTAGE Pak Suzuki Motor Company Limited
In accordance with the provisions of section 242 of the Companies Act, 2017 and Companies (Distribution
Company Secretary: of Dividend) Regulations, 2017, it is mandatory that dividend payable in cash shall only be paid through
PAK SUZUKI MOTOR CO. LTD. electronic mode directly into the bank account designated by the entitled shareholder.
DSU-13, Pakistan Steel Industrial Estate,
Bin Qasim, Karachi.
Shareholders are requested to send the attached Form duly filled and signed, along with attested copy of
their CNIC to the Company’s Share Registrar M/s. Central Depository Company of Pakistan Limited (CDC), CDC
House, 99-B, Block-B, SMCHS, Main Shahrah-e-Faisal, Karachi. Shareholders who hold shares with Participants
/ CDC are advised to provide the Dividend Mandate and attested copy of CNIC, directly to their concerned
Broker (Participants) / CDC.
_________________________________________________________________________________________________
My Bank account details for credit of dividend are as below:
Name of shareholder : _________________________________________________________________
Folio Number/CDC Account No. : _________________________ of Pak Suzuki Motor Company Limited.
Mobile number of shareholder : _________________________________________________________________
E-mail id of shareholder : _________________________________________________________________
Title of Account (*) : _________________________________________________________________
Account Number: : _________________________________________________________________
IBAN Number (**) : _________________________________________________________________
Name of Bank : _________________________________________________________________
Bank branch & Code : _________________________________________________________________
Mailing Address of Branch : _________________________________________________________________
CNIC No. (attach copy) : _________________________________________________________________
NTN (in case of corporate entity) : _________________________________________________________________
It is stated that the above particulars given by me are correct and to the best of my knowledge; I shall keep
Share Registrar / Participant informed in case of any change in the said particulars in future.
________________________________ ______________________
Shareholder’s Signature Date
NOTES:
* Joint account holders shall specify complete Title of Account, including shareholders name.
** Please provide complete IBAN Number (24 digits), after checking with your concerned Bank branch to
enable electronic credit directly into your bank account.
164 Annual Report 2019

DSU-13, Pakistan Steel Industrial Estate, Bin Qasim, Karachi.
Tel: 021-34723551-58 Fax: 021-34723521-2
Website: www.paksuzuki.com.pk

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ANNUAL REPORT 2019

02 Our Vision & Mission 64 Notice of Meeting

2 Annual Report 2019 Pak Suzuki Motor Company Limited 3

4 Annual Report 2019 Pak Suzuki Motor Company Limited 5

Board of Directors Bankers

6 Annual Report 2019 Pak Suzuki Motor Company Limited 7

8 Annual Report 2019 Pak Suzuki Motor Company Limited 9

Location performed in early 1989 by the Prime Minister then

10 Annual Report 2019 Pak Suzuki Motor Company Limited 11

(1) Realization of products and services of superior

14 Annual Report 2019 Pak Suzuki Motor Company Limited 15

1996 1995 1994

certification from AIB- VINCOTTE International Vitara.

incorporated. Industrial Collaboration Agreement

2015 2014 2013

16 Annual Report 2019 Pak Suzuki Motor Company Limited 17

18 Annual Report 2019 Pak Suzuki Motor Company Limited 19

Sales Revenue Breakup - 2019

Sales Revenue Breakup - 2018

20 Annual Report 2019 Pak Suzuki Motor Company Limited 21

Reversal/ (provision) of impairment on 1,000 5587 - - 21,588 16,798 22,588

22 Annual Report 2019 Pak Suzuki Motor Company Limited 23

------------------------------------ (Rupees in ’000) ------------------------------------

Fixed Assets 15,685,850 15,654,827 8,800,002 6,672,057 4,510,789 4,790,506

24 Annual Report 2019 Pak Suzuki Motor Company Limited 25

------------------------------------------------- (Rupees in Millions) ------------------------------------------------- ------------------------------------------------- (Rupees in Millions) -------------------------------------------------

Long-term investments 326 (0.9) 329 58.2 208.00 - 0 - 0 - 0 (100.0)

Long-term deposits, prepayments

Share capital 823 - 823 - 823 - 823 - 823 - 823 -

Accrued mark-up 0 - 0 - 0 - 0 - 0 (100.0) 9 -

Unclaimed dividend 19 (13.6) 22 57.1 14 - - - -

Provision for custom duties and

26 Annual Report 2019 Pak Suzuki Motor Company Limited 27

------------------------------------------------- (Rupees in Millions) ------------------------------------------------- ------------------------------------------------- (Rupees in Millions) -------------------------------------------------

EQUITY AND LIABILITIES -

28 Annual Report 2019 Pak Suzuki Motor Company Limited 29

Wealth distribution to stakeholders

24,482,541 100.00 28,278,488 100.00

30 Annual Report 2019 Pak Suzuki Motor Company Limited 31

32 Annual Report 2019 Pak Suzuki Motor Company Limited 33

Pakistan Auto Parts Show 2019

All-new Suzuki Alto Launch

34 Annual Report 2019 Pak Suzuki Motor Company Limited 35

Collector of Customs Training and Development:

Consul General Thailand Visit

36 Annual Report 2019 Pak Suzuki Motor Company Limited 37

Sports and Social Events:

Suzuki Jacobabad Motors Suzuki Bhalwal Motors

Suzuki Shorkot Motors Suzuki Barakahu Motors

Suzuki Khushab Motors Suzuki Malir Cantt Motors

Suzuki Moro Motors Suzuki Kashmore Motors

38 Annual Report 2019 Pak Suzuki Motor Company Limited 39

40 Annual Report 2019 Pak Suzuki Motor Company Limited 41

42 Annual Report 2019 Pak Suzuki Motor Company Limited 43

44 Annual Report 2019 Pak Suzuki Motor Company Limited 45

46 Annual Report 2019 Pak Suzuki Motor Company Limited 47

48 Annual Report 2019 Pak Suzuki Motor Company Limited 49

Exchange Rates Movement

Yen - Rs. PARITY