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SUZUKI MOTORCYCLES PAKISTAN LTD.
Annual Report 1995 (32nd annual report)
Contents	1
Board of Directors	2
Notice of the Annual General Meeting	3
Chairman's Review	4
Directors' Report to the Shareholders	5
Pattern of Shareholdings	6
Auditors' Report to the Members	7
Balance Sheet	8
Profit and Loss Account	10
Cash Flow Statement	11
Notes to the Accounts	12
Form of Proxy	27
BOARD OF DIRECTORS
JAVED BURKI
MASAO TANI
TAKEKAZU KAITO
ITSUO YAMASHITA
AKIHIKO KOBAYASHI
KHALID MAHMUD NAGRA
DANISHMAND
CHAIRMAN
JAVED BURKI
CHIEF EXECUTIVE
DANISHMAND
SECRETARY
MIDHAT A. KIDWAI
AUDITORS
SIDAT HYDER QAMAR MAQBOOL & CO.
Chartered Accountants
BANKERS:
DEUTSCHE BANK
THE BANK OF TOKYO
ALLIED BANK OF PAKISTAN LTD.
MUSLIM COMMERCIAL BANK LTD.
REGISTERED OFFICE:
F/14, S.l.T.E.,
MAURIPUR LINK ROAD,
KARACHI-75730
TELEPHONE NOS:
PABX 2578840 - 43
DIR 2573309 - 25///54 - 2575189
FAX: 2563895
SUZUKI MOTORCYCLES PAKISTAN LTD.
NOTICE OF THE ANNUAL GENERAL MEETING
Notice is hereby given that the 32nd Annual General Meeting of the Company will be held at Beach Luxury Hotel, off
Moulvi Tamizuddin Khan Road, Karachi, on 21st December, 1995 at 10:00 a.m. to transact the following business:
ORDINARY BUSINESS:
1.     To confirm the minutes of the Annual General Meeting held on 20th December, 1994.
2.     To receive, consider and adopt the Audited Accounts of the Company for the year ended 30th June,
1995 together with the Directors' and Auditors' Reports thereon.
3.     To appoint Auditors for the year ending 30th June, 1996 and to fix their remuneration.
4.     To elect seven directors as fixed by the Board and in accordance with the provisions of the Companies
Ordinance 1984, in place of the following retiring directors:
1. Mr. Javed Burki 5. Mr. Akihiko Kobayashi
2. Mr. Masao Tani 6. Mr. Khalid Mahmud Nagra
3. Mr. Takokazu Kaito 7. Mr. Danishmand
4. Mr. Itsuo Yamashita
5.     To transact any other business with the permission of the Chair.
BY THE ORDER OF THE BOARD
MIDHAT A. KIDWAI
( COMPANY SECRETARY )
Dated: 1 st November, 1995
NOTES:
1.    The share transfer books shall remain closed from 14th December, 1995 to 21st December, 1995
(both days inclusive)
2.    A member entitled to attend and vote at the Annual General Meeting is entitled to appoint  another
person as a proxy who is entitled on his/her own behalf to be present and vote at the meeting or he/
she is appointed to act at the meeting as the representative of a corporation.
3.    The instrument appointing a proxy must be received at the Registered Office of the Company not later
than forty eiaht hours before the meeting.
4.    Persons eligible and interested to contest the election of directors should file a notice of intention to
offer themselves for election at the Registered office of the Company not later than 14 days before
the meeting.
CHAIRMAN'S REVIEW
It gives me pleasure to place before you the company's 32nd Annual Report for the year ended 30th June, 1995.
General:
During 1994-95 the value of the Japanese Yen continued to rise sharply against the Pak Rupee. The
Government imposed 15% sales tax on motorcycles. These factors together with general inflation
forced the motorcycle industry to increase prices a number of times. Since most motorcycle buyers
belong to the lower and middle classes, motorcycle prices have reached a level which has curtailed
effective demand. The total market for motorcycles shrank by about 30% during 1994-95 when
compared with the previous year. In these difficult circumstances your company developed some
more parts locally which will give protection from the effect of appreciation of Japanese Yen to some
extent in the future.
Sales and Market share:
Inspite of the adverse market conditions, especially during the first half of the year, the company was
able to increase its sales as well as its market share. Total sales increased by 31 % from Rs. 215.617
million in 1993-94 to Rs. 281.989 in 1994-95. The increase in sales was at least in part due to the
attractive new models offered by your comPanv in January and Mav 1995.
Export:
The company secured export orders from five countries, which would be executed mainly in 1995
96. The orders would form a small pa rt of our business. They attest to the quality and attractive designs
of Suzuki Motorcycles being offered by your company. We take pride in being pioneers of motorcycle
exports from Pakistan.
Exports mean competing in quality as well as price against tough international competition. Without
realistic and supportive Government programs in localization and implementation of rebates and
other fiscal concessions, developing significant export business in the face of competition from other
eager low labour cost countries seems unlikely.
Gross Profit:
I am happy to report that Gross Profit increased from Rs. 7.303 million in 1993-94 to Rs. 51 .732 million
in 1994-95. As a percentage of sales it increased from 3.39% to 18.35% Main reasons for this
improvement were higher level of Production and Sales and support given by Suzuki Motor
Corporation. Another important factor was that we were able to adjust prices upwards, narrowing the
gap between our prices and those of the competing products.
Selling and Administrative Expenses:
Selling and Administrative Expenses stand reduced from Rs. 31.964 million in 1993-94 to Rs. 26.536
million in 1994-95. This was mainly due to the subsidies given to the company by Suzuki Motor
Corporation, Japan, which we acknowledge with thanks.
Financial charges:
Although effective borrowings increased during 1994-95 over the year 1933-94, financial expenses
were contained as the company was successful in raising a large loan at 13%. This compares
favourably against lending rates of various Banks and Financial Institutions in Pakistan which
generally range from 17% to 22%.
Loss after taxation:
During 1994-95 the company incurred a loss of Rs. 11.661 million as compared to the loss of Rs.
60.408 million during 1993-94. This includes turnover tax of Rs. 1.463 million, which is an
extraordinary burden for a company still making a loss. You would recall that the company incurred
a loss of Rs. 16.762 million during the first six months of the financial year. Thus it is a source of
satisfaction that the company earned a profit of Rs. 5.101 million in the period January 1995 to June 1995.
Future Prospects:
There is strong underlying need for motorcycles as a means of convenient transportation for many
individuals and families. Unless the Pak Rupee-depreciates very sharply, motorcycle demand in
Pakistan is likely to keep growing steadily in the near future, and in the medium and long-terms. Your
company's products are now recognized for their high quality and satisfactorily meet the functional
needs of most motorcycle users. The sales, service and spares network has been strengthened
substantially over the last year. The strong co-operation of Suzuki Motor Corporation, Japan is a
source of great help and strength. We expect all round improvement in operations and results.
JAVED BURKI
(CHAIRMAN)
DIRECTORS' REPORT TO THE SHAREHOLDERS.
Your Directors are pleased to present their report and audited accounts for the year ended 30th June, 1995.
Accounts:
Rupees
Loss for year			(10,197,874)
Taxation - Current			(1,463,434)
			-----------
			(11,661,308)
Accumulated Loss Brought Forward			(222,071,012)
			-----------
Accumulated Loss Carried Forward			233,732,320
			============
The main reason for the loss was that sales could not reach the breakeven level. Devaluation of Pak
Rupee against the Japanese Yen durinq 1994-95 also contributed to the loss
Chairman's Review:
The attached Chairman's Review gives the picture of the company's activities and performance
during 1994-95. The directors of the comPanv endorse the contents of the Review
Directors
There was no change in the directors of the company.
Auditors
The present auditors M/s Sidat Hyder Qamar Maqbool & Co., Chartered Accountants retire and being
eligible, offer themselves for reappointment.
Pattern of Shareholding
The pattern of holding of the shares of the companv as on 30th June.1995 is annexed
ON BEHALF OF THE BOARD
DANISHMAND
( CHIEF EXECUTIVE )
1st. November 1995
PATTERN OF SHAREHOLDINGS AS AT 30/06/95
					Number Of
	Size of Holding		Number Of		RS. 10 ShareS
	Of RS. 10 Share		Shareholders		Held
	1	100	2740	Shares	68,561
	101	500	560		155,622
	501	1000	239		198,497
	1001	5000	369		894,233
	5001	10000	64		479,354
	10001	15000	29		368,050
	15001	20000	6		105,573
	20001	25000	8		180,515
	25001	30000	6		168,915
	30001	35000	1		31,500
	35001	40000	4		149,208
	40001	45000	4		167,323
	45001	50000	1		48,000
	50001	55000	1		50,100
	55001	60000	1		58,600
	70001	75000	1		74,200
	140001	145000	1		142,600
	170001	175000	1		170,535
	180001	185000	1		182,400
	1520001	1525000	1		1,520,905
	1715001	1720000	1		1,717,746
	1835001	1840000	1		1,835,304
	20495001	20500000	1		20,498,231
			----------		----------
		Totals :	4041		29,265,972
CATEGORY OF SHARE HOLDING AS AT 30/06/95
Categories of Shareholders	Number	Shares Held	Percentage
Individuals	3989	3,362,155	11.49
Insurance Companies	9	72,932	0.25
Investment Companies	8	58,868	0.20
Financial Institutions/Banks	9	3,255,830	11.12
Suzuki MOtOr COrP. Japan	1	20,498,231	70.04
Pak;StanAUtOmObileCOrPOrat;On Limited	1	1,835,304	6.27
Joint StOCk Companies	18	108,180	0.37
MOdaraba Companies	3	26,000	0.09
Government Organizations	2	11,272	0.04
Co-operative Societies	1	37,200	0.13
	----------	----------	----------
	4041	29,265,972	100.00
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of SUZUKI MOTORCYCLES PAKISTAN
LIMITED as at 30 June 1995 and the related profit and loss account end cash flow statement, together
with the notes forming part thereof, for the year then ended and we state that we have obtained all
the information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit and, after due verification thereof, we report that:
a) in our opinion, proper books of account have been kept by the Company as required
by the Companies Ordinance, 1984;
b) in our opinion:
i) the balance sheet and profit and loss account together with the notes
thereon have been drawn up in conformity with the Companies Ordinance,
1984 and are in agreement with the books of account and are further in
accordance with the accounting policies consistently applied;
ii) the expenditure incurred during the year was for the purpose of the
Company's business; and
iii) the business conducted, investments made and the expenditure incurred
during the year were in accordance with the objects of the Company;
c) in our opinion and to the best of our information and acc ~rding to the explanations given
to us, the balance sheet, profit and loss account and the cash flow statement, together
with the notes thereof, give the information required by the Companies Ordinance,
1984 in the manner so required and respectively give a true and fair view of the state
of the Company's affairs as at 30 June 1995 and of the loss and the cash flow statement
for the year then ended; and
d) in our opinion, no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980.
SIDAT HYDER QAMAR MAOBOOL & CO.
CHARTERED ACCOUNTANTS
KARACHI: 01 NOV. 1995
BALANCE SHEET AS AT 30 JUNE 1995
	NOTE	1995	1994
		Rupees	Rupees
SHARE CAPITAL AND RESERVES
Authorised Capital
6O,OOO,000 (1994: 6O,00O,000)
ordinary shares of Rs. 10/- each		600,000,000	600,000,000
		==========	==========
Issued Capital
29,265,972 (1994: 29,265,972)
ordinary shares of Rs. 10/- each		292,659,720	292,659,720
		==========	==========
Subscribed Capital
29,265,972 (1994: 29,265,972)
ordinary shares of Rs. 10/- each		292,659,720	292,659,720
Paid-up capital	3	292,659,720	292,659,720
Capital reserves	4	5,932,000	5,932,000
Accumulated loss		(233,732,320)	(222,071,012)
		----------	----------
		64,859,400	76,520,708
SURPLUS ON REVALUATION OF	5	35,297,981	35,297,981
FIXED ASSETS
DEFERRED LIABILITIES		612,255	-
CURRENT LIABILITIES
Short-term loan	6	278,811,000	241,245,400
Running finance under mark-up arrangement	7	4,232,165	157,000,000
Creditors, accrued expenses and other
liabilities	8	91,839,253	52,203,842
		----------	----------
		374,882,418	450,449,242
CONTINGENCIES AND COMMITMENTS	9	-	-
		----------	----------
	Rupees	475,652,054	562,267,931
		==========	==========
The annexed notes form an integral part of these accounts.
JAVED BURKI
CHAIRMAN
	NOTE	1995	1994
TANGIBLE FIXED ASSETS		Rupees	Rupees
Operating assets	10	78,078,540	78,985,994
Capital work-in-progress	11	33,783,803	-
LONG-TERM DEPOSITS		304,150	160,050
LONG-TERM LOANS	12	302,449	601,656
		----------	----------
CURRENT ASSETS	13	101,750,131	150,201,234
Stocks	14	168,765,982	115,403,282
Trade debts	15	45,112,014	30,521,386
Loans, advances, deposits, prepayments	16	47,554,985	186,394,329
and other receivables
Cash and bank balancr3c		363,183,112	482,520,231
		----------	----------
	Rupees	475,652,054	562,267,931
		==========	==========
DANISHMAND
CHIEF EXECUTIVE
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 1995
	Note	1995	1994
		Rupees	RuDees
Net sales	17
Motorcycle		251,668,999	202,140,370
Complete built-up units		9,659,239	4,812,260
Spare parts		9,077,511	4,245,426
Generators		10,573,840	3,040,700
Painting Services		1,008,939	1,377,726
Screw jacks		-	800
		----------	----------
		281,988,528	215,617,282
Cost of goods sold	18	230,256,423	208,313,755
		----------	----------
Gross profit		51,732,105	7,303,527
SellinQ and administrative expenses	19	26,535,891	31,964,087
		----------	----------
Operating profit / (loss)		25,196,214	(24,660,560)
		----------	----------
Financial charges	20	(35,501,363)	(346,987,421)
Other income-net	21	107,275	38,308
		----------	----------
Loss before taxation		(35,501,363)	(34,660,434)
Taxation - current	22	(10,197,874)	(59,320,994)
		----------	----------
Loss after taxation		(1,463,434)	(1,087,120)
Accumulated loss brounht forward		(11,661,308)	(60,408,114)
		----------	----------
Accumulated loss carried forward		(222,071,012)	(161,662,898)
		----------	----------
	Rupees	(233,732,320)	(222,071,012)
		==========	==========
The annexed notes form an integral part of these accounts.
JAVED BURKI	DANISHMAND
CHAIRMAN	CHIEF EXECUTWE
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 1995
		1995	1994
		Rupees	Rupees
Loss after taxation		(11,661,308)	(60,408,114)
Adjustment of non-fund items:		----------	----------
Depreciation		6,121,587	6,064,332
Deferred liability - gratuity		612,255	-
(Loss) profit on disposal of fixed assets		(63,734)	407,339
		----------	----------
		6,670,108	6,471,671
		(4,991,200)	(53,936,443)
CASH FLOW FROM OPERATING ACTIVITIES		----------	----------
Stocks		48,451,103	36,604,198
Trade debts		(53,362,700)	(51,191,068)
Loans, advances and deposits		(14,590,628)	(17,544,130)
Short-term loans		37,565,600	159,358,000
Running finance		(152,767,835)	(110,928,533)
Creditors, accured and other liabilities		39,219,485	14,330,585
		----------	----------
		(95,484,975)	150,616,552
		----------	----------
Income tax adjustment		(100,476,175)	96,680,109
		415,926	899,645
		----------	----------
		(100,060,249)	(97,579,754)