1. Prepared By: Husnain Ashraf ACCA Number: 2387823

2. Application of Tools on Information Gathered ConclusionsRecommendation Information Gathering and Techniques to use Primary and Secondary dataTools and Techiques Topic Selection and Company selection Aims and ObjectivesResearch Questions

3. Primary Sources:  Interview with Mr Ayaz Hafeez. Secondary Sources:  Audited Financial Reports.  Newspapers.  Internet.  Books.

4. Financial Ratio Analysis Competitor Analysis Business SWOT Analysis PEST Analysis

5.  Joint venture between Honda Motors Japan and Atlas Group Pakistan.  Manufacturing cars main activity.  Products are Honda Accord, CR-V, CR-Z, Civic and City.  Listed on three stock exchanges of Lahore, Islamabad and Karachi.

10. HACL only pay Rs 0.3 dividend in 2013.

14. Strengths: Brand Image. Innovation a routine. Dealership Network. Gasoline Engine and Hybrid Technology. Nil Gearing. Weaknesses: Production Capacity. Working Capital and Cost of Production. Dependence on Imported Parts. Profitability and Liquidity. Unimpressive Investor Ratios. Opportunities: Small Cars Segment. Cars Financing Schemes. Can Export if Good Quality. Better Advertisement create Demand. Lead Time Valuable for Customers. Threats: Imported Used Cars. Unscheduled Electric Cut Down. Unstable Government Policies. Indian Automakers and Dump Products. SWOT

15. Political:  Reduction in Age Limit.  10 % Federal Excise Duty.  Rise in GST.  Ban on CNG and Non Euro compliant models. Economical:  High Inflation.  Rise in Fuel prices.  Exchange Rate Movement.  Consumer Financing and Interest Rate.  Rise in Electric Tariff. Social:  Rise in Population.  Rise in Literacy Rate.  Increase Urbanization.  Increase in Purchase Power Parity. Technological:  Emerging Hybrid Technology.  Localization of spare parts in not achieved.

16. Conclusion:  Company finally overcome years of losses.  New models and better sales effects reasons of recent success.  Competitor is way better and stable.  Political and economic instability, inflation and taxes mainly hurt HACL’s strengths.  Hybrid technology and small cars can be HACL’s future.  High cost of production due to imported cars, exchange rate movements and less production capacity are main problems. Recommendation:  Can increase production capacity.  Better advertisement and sales strategy needed.  Can enter in small cars segment.  Better hedging of reserves needed.  More usage of local parts.