COMPANY PROFILE

Indus Motor
Company
Limited
(IMC)
incorporated
in 199 as a
!oint "enture
company
#et$een t%e
#et$een t%e
&ouse o'
&a#i# (&O&)(
a )oca)
con*)omerate
and +oyota
Motor
Corporation
(+MC) and
+oyota +sus%o
Corporation
(++C) o'
,apan- +%e company manu'actures and mar.ets +oyota and /ai%atsu #rand automo#i)es
'or domestic consumption- +%e main product o''erin*s inc)ude se"era) "ariants o' t%e
')a*s%ip 0Coro))a1 in t%e passen*er cars cate*ory( 0&i)u21 in t%e )i*%t commercia)
"e%ic)es se*ment and 0Fortuner1 in 3port 4ti)ity 5e%ic)e (345) se*ment-
+%e manu'acturin* 'aci)ity and o''ices are )ocated at a 166 acre site in Port 7asim(
8arac%i( $%i)e t%e product is de)i"ered to end customers nation$ide t%rou*% a stron*
net$or. o' 9: independent 93 dea)ers%ips spread across t%e country- In its ;< years
%istory since inception( IMC %as so)d more t%an =66(666 C>4?C8/ "e%ic)es and %as
demonstrated an impressi"e *ro$t%( in terms o' "o)umetric increase 'rom a modes
#e*innin* o' ;6 "e%ic)es per day production in 1999 to ;;6 units dai)y at present t%rou*%
t%e de"e)opment o' %uman ta)ent em#racin* t%e 0+oyota @ay1 o' Aua)ity and )ean
manu'acturin*- O"er t%e years( IMC %as made )ar*e sca)e in"estments in en%ancin* its
o$n capacity and in meetin* customer reAuirements 'or ne$ products- +oday( Coro))a is
t%e )ar*est se))in* automoti"e #rand mode) in Pa.istan and it a)so %as t%e distinction o'
#ein* B1 in +oyotaCs Asian mar.et-
+%e company in"ests %ea"i)y in ;(666 p)us $or.'orce o' team mem#ers and mana*ement
emp)oyees and creatin* a cu)ture o' %i*% per'ormin* empo$ered teams $or.in*
seam)ess)y across processes in searc% o' Aua)ity and continuous impro"ement (.aiDen)-
+%e core "a)ues o' t%e company encoura*e emp)oyees to pursue %i*% standards o'
#usiness et%ics and sa'etyE communicate candid)y #y *i"in* #ad ne$s 'irst and respect 'or
peop)e- +%e #iFannua) +MC mora)e sur"eys s%o$ emp)oyees *i"in* a %i*% positi"e score
to t%e IMC $or. en"ironment and )e"e) o' !o# satis'action-
+%e company %as p)ayed a ma!or ro)e in t%e de"e)opment o' t%e entire "a)ue c%ain o' t%e
)oca) auto industry and is proud to %a"e contri#uted in po"erty a))e"iation at t%e *rass root
)e"e) #y nurturin* )oca)iDation t%at in turn %as direct)y created t%ousands o' !o#
opportunities and trans'erred tec%no)o*y to G6 "endors supp)yin* parts- IMC is a)so a
ma!or ta2 payer and si*ni'icant contri#utor to$ards HOP e2c%eAuer-
5I3ION I MI33ION
5isionJ
0+o #e t%e most respected and success'u) enterprise( de)i*%t customers $it% a $ide ran*e
o' products and so)utions in t%e automo#i)e industry $it% t%e #est peop)e and #est
tec%no)o*y-1
K +%e most respected-
K +%e most success'u)-
K /e)i*%tin* customers-
K @ide ran*e o' products-
K +%e #est peop)e-
K +%e #est tec%no)o*y-
MissionJ
Mission o' +oyota is to pro"ide sa'e I sound !ourney- +oyota is de"e)opin* "arious ne$
tec%no)o*ies 'rom t%e perspecti"e o' ener*y sa"in* and di"ersi'yin* ener*y sources-
En"ironment %as #een 'irst and most important issue in priorities o' +oyota and $or.in*
to$ard creatin* a prosperous society and c)ean $or)d-
3)o*anJ
AC+B1J Actions( Commitment and +eam$or. to #ecome No-1-
MANAHEMEN+ POLICY
Inte*rated Mana*ement 3ystem Po)icy
@e( as a team at Indus Motor Company( are committed to comp)y $it% t%e reAuirements
o' our Inte*rated Mana*ement 3ystem and to endea"or to continuous)y impro"e upon it
in order toJ
Manu'acture %i*% 7ua)ity Products-
Henerate Customer 3atis'action-
Pro"ide 3er"ice to t%e 3ociety-
Maintain Mar.et Leaders%ip-
Identi'y and a"oid?miti*ate t%ose en"ironmenta) aspects $%ic% %a"e ne*ati"e
en"ironmenta) impacts- Comp)y $it% a)) app)ica#)e )e*a)( re*u)atory and ot%er
reAuirements re)ated to En"ironment( &ea)t% and 3a'ety(
Assist society #y ma.in* t%e en"ironment more 'riend)y-
/esi*n and maintain 'aci)ities( esta#)is% systems( pro"ide trainin* and conduct operations
in a manner t%at sa'e*uard peop)e and property-
Identi'y( e"a)uate I miti*ate %ea)t% ris.s re)ated to our operations t%at potentia))y a''ect
our emp)oyees( contractors and t%e pu#)ic-
3AFE+Y POLICY
Indus Motor Company Ltd is committed to pro"ide a sa'e $or.p)ace to a)) o' its
emp)oyees and to ensure( so 'ar as is reasona#)y practica#)e( t%e sa'ety o' its contractors(
supp)iers( "endors and a)) mem#ers o' t%e pu#)ic t%at may #e a''ected #y its #usiness
operations-
+%e company $i)) stri"e to pre"ent a)) accidents and in!uries t%rou*% t%e acti"e
participation o' e"ery emp)oyee as $e)) as t%e commitment to put in continuous e''orts to
identi'y( e)iminate or mana*e sa'ety ris.s associated $it% its actions-
Our P%i)osop%yJ
K 3a'ety is e"eryoneCs responsi#i)ity(
K A)) accidents are pre"enta#)e(
K A)) emp)oyees are empo$ered to stop any unsa'e !o# or act( and
K No tas. is so important t%at ris. o' in!ury to peop)e is !usti'ied-
At Indus Motor Company Ltd-(
03AFE+Y @ILL AL@AY3 +A8E PRECE/ENCE O5ER PRO/4C+ION1
CO/E OF CON/4C+
>ein* a %i*%)y responsi#)e corporate citiDen( Indus Motor Company e2pects its
emp)oyees ? directors to up%o)d and en%ance t%e reputation o' t%e #usiness #yJ
K Maintainin* an unimpeac%a#)e standard o' inte*rity in a)) t%eir #usiness
re)ations%ips #ot% inside and outside t%e company-
K Fosterin* t%e %i*%est standard o' conduct and competence amon*st t%ose 'or
$%om t%ey are responsi#)e-
K ensurin* transparency in #usiness transactions( and re!ectin* any #usiness
practice( $%ic% mi*%t #e deemed to #e improper and
K promotin* 'air #usiness practices and ensurin* comp)iance $it% )e*a) and
re*u)atory reAuirements
In app)yin* t%ese Ru)es( emp)oyees ? directors s%ou)d use t%e 'o))o$in* *uide)inesJ
1) Con')ict o' Interest
1 Any persona) interest( $%ic% may e''ect or mi*%t reasona#)y #e deemed #y ot%ers
to a''ect an emp)oyeeCs imparti#i)ity( s%ou)d #e dec)ared up 'ront in $ritin*-
; +%e company property must not #e used 'or persona) $or. un)ess speci'ic
permission is o#tained-
9 Eac% sta'' mem#er is emp)oyed in t%e company on a 'u)) time #asis and t%ere'ore(
t%ey are not to #e in"o)"ed( direct)y or indirect)y( in any "ocation( #usiness or
commercia) acti"ity- Any departure 'rom t%is can on)y #e made $it% t%e $ritten
permission o' t%e C%ie' E2ecuti"e O''icer-
;) Con'identia)ity and Accuracy o' In'ormation
+%e con'identia)ity o' in'ormation recei"ed in t%e course o' #usiness must #e respected
and ne"er used 'or persona) *ainE in'ormation *i"en in t%e course o' #usiness must #e
%onest and ne"er desi*ned to mis)ead- Furt%er( a)) company a''airs are to #e treated as
con'identia) and s%ou)d not #e discussed $it% t%ird parties durin* ser"ice $it% t%e
Company and a'ter )ea"in* t%e ser"ice-
9) Hi'ts
A)) mem#ers are 'or#idden to accept *i'ts or #orro$ money 'rom anot%er mem#er o' t%e
company or 'rom a /istri#utor( /ea)er( 5endor or a Customer- Persona) *i'ts *i"en or
recei"ed #eyond norms o' #usiness etiAuette( $%ic% are )i.e)y to improper)y in')uence
#usiness decisions( must #e a"oided-
<) Proper Recordin* o' Funds( Assets( Receipts and /is#ursements
A)) 'unds( assets( receipts and dis#ursements s%ou)d #e proper)y recorded in t%e >oo.s
o' t%e Company- In particu)ar( no 'unds or accounts s%ou)d #e esta#)is%ed or maintained
'or purposes t%at are not 'u))y and accurate)y re')ected in t%e >oo.s and records o' t%e
Company-
=) &ea)t% and 3a'ety
E"ery sta'' mem#er s%ou)d ta.e reasona#)e care to ensure t%e %ea)t% and sa'ety o'
%imse)'?%erse)' and ot%ers $%o may #e a''ected #y %is?%er acts at $or.- 3ta'' mem#ers
s%ou)d not tamper $it% or misuse any item pro"ided #y t%e Company to secure t%e sa'ety(
%ea)t% and $e)'are o' its sta'' and 'or t%e protection o' t%e en"ironment-
G) En"ironment
+o preser"e and protect t%e en"ironment( a)) sta'' mem#ers s%ou)d-
K /esi*n and operate t%e CompanyCs 'aci)ities and processes so as to ensure t%e
trust o' ad!oinin* communitiesE
K Promote conser"ation o' resources( $aste minimiDation and t%e minimiDation o'
t%e re)ease o' c%emica)s ? *as into t%e en"ironmentE
K 3tri"e continuous)y to impro"e en"ironment a$areness and protection-
:) @or. P)ace &arassment
+%e sta'' $i)) maintain an en"ironment t%at is 'ree 'rom %arassment and in $%ic% a))
emp)oyees ? directors are eAua))y respected- +%is means any action t%at creates a %osti)e
or o''ensi"e $or. en"ironment and suc% actions inc)ude( #ut are not )imited to( se2ua)
%arassment and any dispara*in* comments #ased on *ender( re)i*ion and race or
et%nicity-
) Company Ima*e
A)) sta'' mem#ers must a"oid participatin* in any po)itica) acti"ity or in suc% persona)
#e%a"ior durin* or a'ter o''ice %ours( $%ic% may #rin* disrepute to t%e Company-
9) Le*a) Proceedin*s
It is essentia) t%at a sta'' mem#er( $%o #ecomes in"o)"ed in )e*a) proceedin*s( $%et%er
ci"i) or crimina)( s%ou)d immediate)y in'orm %is superior in $ritin*-
>OAR/ OF /IREC+OR3
A)i 3- &a#i#
C%airman
A)i 3- &a#i# is t%e C%airman o' Indus Motor Company Limited and is a)so t%e Founder
/irector o' t%e Company- &e a)so ser"es as a Mem#er on t%e >oard o' /irectors o' +%a)
Limited( 3%a##ir +i)es I Ceramics Ltd-( Metro &a#i# Cas% and Carry Pa.istan (P"t-)
Ltd- and &a#i# Metropo)itan >an. Ltd-
A)i 3- &a#i# is a *raduate in Mec%anica) En*ineerin* 'rom t%e 4ni"ersity o' Minnesota(
43A- &e %as attended t%e PM/ Pro*ram at &ar"ard 4ni"ersity and current)y ser"in* as
C%airman o' t%e Pa.istan >usiness Counci)-
8eiic%i Mura.ami
5ice C%airman
8eiic%i Mura.ami $as e)ected as /irector o' Indus Motor Company Ltd and $as
appointed as 5ice C%airman $it% e''ect 'rom ,anuary( ;619- &e %as #een ser"in* at
+oyota Motor Corporation 'or o"er 96 years no$ and %as $or.ed in di''erent capacities
primari)y in t%e areas o' Product P)annin* and Mar.etin* Researc%- &e %as )oo.ed a'ter
+oyotaCs #usiness in Asia( Oceana and Midd)e East $it% "arious +oyota distri#utors-
Mura.ami %ad ser"ed as E2ecuti"e /irector at 4M@+ $%o is t%e +oyota distri#utor in
Ma)aysia-
Par"eD H%ias
C%ie' E2ecuti"e O''icer
Par"eD H%ias is t%e C%ie' E2ecuti"e O''icer o' Indus Motor Company Limited( since
;66=- Prior to !oinin* t%e Company( %e $as t%e 5ice President and CFO at En*ro
C%emica) Pa.istan Limited and a)so ser"ed as a Mem#er o' t%e >oard o' /irectors- &e is
a)so ser"in* on t%e >oards o' 3tandard C%artered >an. Limited and /a$ood &ercu)es
Corporation Ltd-
Par"eD H%ias is a 'e))o$ o' t%e Institute o' C%artered Accountants 'rom En*)and I @a)es
and mem#er o' se"era) 'acu)ties o' t%e Institute and %o)ds a >ac%e)ors /e*ree in
Economics and 3tatistics-
Yos%iyu.i Matsuo
3enior /irector
Mr- Yos%iyu.i Matsuo
%as #een appointed in
p)ace o' Mr- Mitos%i O.imoto $-e-'- 1st ,anuary ;61< as 3enior /irector Manu'acturin*
and t%e >oard mem#er ? /irector o' Indus Motor Company Ltd- &e %as #een $it% t%e
+oyota Hroup since 19G durin* $%ic% %e %as %e)d "arious senior e2ecuti"e positions-
&e %as a "ast e2perience in t%e areas o' Production( Lo*istic( P)ant En*ineerin* and
7ua)ity Contro) at "arious +oyota p)ants in t%e $or)d-
Mr- Yos%iyu.i Matsuo is a *raduate 'rom t%e NanDan 4ni"ersity( ,apan
Far%ad Lu)'icar
/irector
Far%ad Lu)'icar is t%e Founder /irector o' Indus Motor Company Limited- &e $as t%e
'irst Mana*in* /irector o' t%e Company 'rom 199 to ;661 and %as a)so #een a /irector
on "arious )isted and pri"ate companies- &e is current)y t%e 5ice C%airman o' &ouse o'
&a#i# and C%airman o' MA8RO &a#i# Pa.istan Ltd- &e is a Commerce *raduate 'rom
4ni"ersity o' 8arac%i-
Mo%ameda)i R- &a#i#
/irector
Mo%ameda)i R- &a#i# is t%e Founder /irector o' Indus Motor Company Limited-
&e is an E2ecuti"e /irector o' &a#i# Metropo)itan >an. Ltd- since ;66< and a)so ser"es
as a Mem#er on t%e >oard o' +%a) Limited and &a#i# Insurance Company Ltd- &e $as
a)so appointed as ,ointFPresident I /i"ision &ead (Asia) I Mem#er o' Henera)
Mana*ement o' &a#i# >an. AH Luric% in ;611- Mo%ameda)i R- &a#i# is a *raduate in
>usiness Mana*ement M Finance 'rom C)ar. 4ni"ersity( 43A-
8yoic%i +anada
/irector
8yoic%i +anada $as appointed as a /irector o' Indus Motor Company Ltd- in May ;619-
Current)y %e is ser"in* as t%e President o' +oyota Motor +%ai)and- &e is a)so ser"in* as a
Mana*in* O''icer( +oyota Motor Corporation-
8yoic%i +anada is a *raduate in Forei*n studies 'rom +o.yo 4ni"ersity( ,apan
+etsuro &irai
/irector
+etsuro &irai
$as appointed
as /irector o'
Indus Motor
Company Ltd-
in ,u)y;619- &e
%as #een
associated $it%
+oyota Motor
Corporation 'rom 196 to ;669( durin* $%ic% %e %as %e)d "arious senior positions- &e
!oined +oyota +sus%o Corporation in ,anuary ;616 as a mem#er o' Mana*ement team- &e
%o)ds directors%ips o' certain companies o' t%e +oyota Hroup in "arious countries-
+etsuro &irai is a *raduate 'rom Facu)ty o' 3cience and En*ineerin* o' @aseda
4ni"ersity ( ,apan-
RaDa Ansari
/irector
RaDa Ansari $as e)ected as a Mem#er o' t%e >oard in ;611- &e ser"ed t%e Company in
"arious 'unctions and )e't t%e Company as /irector 3a)es I Mar.etin* in /ecem#er
;611- &e is current)y t%e C%ie' Operatin* O'icer o' 3%a##ir +i)es I Ceramics Ltd- RaDa
Ansari is a *raduate in 3cience and >usiness Administration- &e %as attended "arious
Leaders%ip and Mana*ement de"e)opment pro*rams( inc)udin* t%e Ad"anced
Mana*ement Pro*ram 'rom IN3EA/( France-
MANAHEMEN+ +EAM
Mr- A)i 3- &a#i#
C%airman
Mr- 8eiic%i Mura.ami
5ice C%airman
Mr- Par"eD H%ias
C%ie' E2ecuti"e O''icer
INFORMA+ION +EC&NOLOHY
Mr- Adnan 7aDi
C%ie' In'ormation O''icer
FINANCE
Mr- Rayomand H%adia)i
C%ie' Financia) O''icer
Ms- Anam Fatima 8%an
Company 3ecretary

&4MAN RE3O4RCE I A/MINI3+RA+ION
Mr Faisa) Munee# 8%an
3enior Henera) Mana*er
LOHI3+IC3 I COMMERCIAL
Mr- Rayomand H%adia)i
3enior Henera) Mana*er
MAN4FAC+4RINH
Mr- Yos%iyu.i Matsuo
3enior /irector
3ALE3 I MAR8E+INH
Mr- A)i As*%ar ,ama)i
/irector
IN+ERNAL A4/I+
Mr- A%med @aseem 8%an
C%ie' o' Interna) Audit
C43+OMER RELA+ION3
Mr- Adnan 7aDi
&ead o' Customer Re)ations
MAN4FAC+4RINH PROCE33
1- Press I &emmin*
Press 3%op is a computer contro))ed )ine t%at con"erts s%eet meta) to #ody pane)s $it%
%i*% dimensiona) accuracy and consistency- +%e #irt% process o' eac% car starts at t%e
Press 3%op- Lar*e #ody parts are 'ormed %ere( inc)udin* sides( roo'( doors or ')oor parts(
'rom $%ic% t%e car #ody is $e)ded )ater-
;- @e)d 3%op
+%e production process in t%e $e)d s%op starts #y manu'acturin* o' su#*roups M sma))er
car #ody units( suc% as doors( parts o' t%e ')oor or t%e roo'- +%e 'ina) car #ody is de)i"ered
t%rou*% a semi automated )ine $or.in* $it%in one tent% o' a mi))imeter precision-
9- Paint 3%op
It is one o' t%e most modern paint s%ops in Pa.istan $%ic% inc)udes E/ paint )ine
'o))o$ed #y automated reciprocators to paint t%e "e%ic)e as per *)o#a) Aua)ity standards-
<- Assem#)y 3%op
>are painted car #odies arri"e at t%e assem#)y s%op( $%ere a process o' 'ittin* o' "arious
parts and En*ine is carried out resu)tin* in a comp)ete)y assem#)ed car-
+%e 'ina) assem#)y consists o' 'our main production unitsJ
K +RIM (insta))ation o' ca#)in*( t%e das%#oard( %eatin* and t%e processin* unit)(
K C&A33I3 (insta))ation o' t%e en*ine( *ear#o2 and c%assis)(
K FINAL (assem#)y o' ot%er parts( suc% as #umpers( seats( $indo$s( $%ee)s etc)-
K C3 (Aua)ity c%ec.s) and 5PI-
=- 5e%ic)e Per'ormance
Inspection I 7ua)ity Audit 5e%ic)es are tested 'or 'unctiona) per'ormance on drum tester(
#ra.e tester( etc-
G- Lo*istics
Lo*istics department s%ips t%e 'inis%ed "e%ic)e to dea)ers%ips( 'rom $%ere t%e "e%ic)e is
de)i"ered to t%e customer-
:- /ea)ers%ips
Indus Motor Company is pri"i)e*ed to %a"e t%e most modern 93 /ea)ers%ip Net$or. in
t%e country- @e %a"e 9= 93 (3a)es( 3er"ice( and 3pare Parts) dea)ers%ips operatin*
nation$ide- Our dea)ers%ips are eAuipped $it% a)) necessary modern 'aci)ities and are
operated #y pro'essiona))y trained 3er"ice +ec%nicians-
IN5E3+OR RELA+ION
COMPANY INFORMA+ION
COMPANY REHI3+RA+ION N4M>ER
66;6:<;
NA+IONAL +AN N4M>ER (N+N)
6G:G=<GF:
3+A+43 OF +&E COMPANY
Listed on
8arac%i 3toc. E2c%an*e (Huarantee) Ltd
La%ore 3toc. E2c%an*e (Huarantee) Ltd
Is)ama#ad 3toc. E2c%an*e (Huarantee) Ltd
3ym#o)
IN/4
/E+AIL3 OF PERMI33I>LE >43INE33 AC+I5I+IE3
Manu'acturers( assem#)ers( distri#utors and importers o' +oyota and /ai%atsu "e%ic)es(
spare parts and accessories in Pa.istan-
>AN8ER3
As.ari >an. Limited
>an. A)'a)a% Limited
>arc)ays >an. PLC Pa.istan
>an. A)F&a#i# Limited
Citi#an. N-A-
&a#i# >an. Limited
&a#i# Metro >an. Limited
&3>C >an. Midd)e East Limited
MC> >an. Limited
Nationa) >an. o' Pa.istan
NI> >an. Limited
3oneri >an. Limited
3tandard C%artered >an. (Pa.istan) Limited
+%e >an. o' +o.yoFMitsu#is%i 4F,( Limited
4nited >an. Limited
A4/I+OR3
A-F- Fer*uson I Co-
C%artered Accountants
3tate Li'e >ui)din* No- 1FC(
I-I- C%undri*ar Road(
8arac%i-
LEHAL A/5I3OR
A-8- >ro%i I Company
Mansoor A%med 8%an I Co-
Ma%mud I Co-
3ayeed I 3ayeed Co-
3&ARE REHI3+RAR
No#)e Computer 3er"ices (P"t-) Ltd-(
First F)oor( &ouse o' &a#i# >ui)din*(
(3iddiAsons +o$er)( 9 ,inna% Cooperati"e &ousin* 3ociety(
Main 3%a%ra%FeFFaisa)
8arac%iF:=9=6-
PA>NJ (9;F;1) 9<9;=<;F:( Fa2 (9;F;1) 9<9;=<<;
Emai)J ncs)Ono#)eFcomputers-com
A//RE33 OF &EA/ OFFICE ? REHI3+ERE/ OFFICE ? FAC+ORY
P)ot No- N-@-L?1?PF1( Port 7asim Aut%ority(
>in 7asim( 8arac%i-
P%oneJ (PA>N) (9;F;1) 9<:;66<1F<
(4AN) (9;F;1) 111F+OYO+A (G9FG;)
Fa2J (9;F;1) 9<:;66=G
Emai)J customer-re)ationsOtoyotaFindus-com
MEM>ER3&IP3
Pa.istan Automoti"e Manu'acturers Association (PAMA)
+%e O"erseas In"estors C%am#er o' Commerce I Industry (OICCI)
8arac%i C%am#er o' Commerce I Industry (8CCI)
Pa.istan >usiness Counci) (P>C)
A33OCIA+E/ COMPANIE3
+oyota Motor Corporation( ,apan
+oyota +sus%o Corporation( ,apan
+%a) Limited
FREEFFLOA+ 3&ARE3
1:(16G(;:; as on 96t% ,une( ;619

ur 'ourt% annua) sur"ey on #an.in* ris. mana*ement( conducted $it% t%e Institute o'
Internationa) Finance( sees a rene$ed 'ocus on ris. cu)ture M and t%e c%a))en*es c%ie' ris.
o''icers are 'acin* to *et #uyFin 'or suc% an approac% $it% t%eir or*aniDations-
Ris. cu)ture at center sta*e
3ince our 'irst sur"ey in ;669( #an.s %a"e made si*ni'icant pro*ress to$ard c%an*in*
t%eir ris. *o"ernance 'rame$or.s in t%e $a.e o' t%e 'inancia) crisis- >oard ris.
committees are near)y uni"ersa)( and mem#ers %a"e recei"ed appropriate trainin* in ris.
mana*ement- +%e ro)e o' t%e c%ie' ris. o''icer %as #roadened( $%i)e its seniority and
status %a"e #een en%anced-
>ut t%e industry continues to $rest)e $it% t%e process o' em#eddin* ris. cu)ture #eyond
t%e #oardroom and into #usiness units $%i)e ensurin* adeAuate ris. transparency- As a
resu)t( 'inancia) institutions must ensure t%at t%e ris. pendu)um doesnCt s$in* too 'ar t%e
ot%er $ay as t%e mar.ets impro"e-
Ot%er .ey 'indin*s 'rom t%e sur"ey inc)udeJ
K Fi'tyFnine percent o' respondents cited t%e #a)ance #et$een a sa)esFdri"en 'rontF
o''ice cu)ture and a ris.F'ocused cu)ture as t%eir top or*aniDationa) c%a))en*eE 9P
cited a )ac. o' systems and data-
K More t%an %a)' o' senior ris. e2ecuti"es #e)ie"e t%eir or*aniDations need to do
more to insti)) a stron* ris. cu)ture( underscorin* t%e need 'or a sustained e''ort o"er a
)on* period o' time-
K +%e stature and ro)e o' c%ie' ris. o''icers %a"e increased mar.ed)y since t%e crisisE
1P report eit%er to t%e c%ie' e2ecuti"e o''icer or !oint)y to t%e CEO and ris.
committee-
K Ris. appetite continues to #e an essentia) part o' ris. *o"ernance( #ut t%e industry
continues to #e c%a))en*ed to em#ed ris. appetite into #usiness decisions-
Ris. areas $%ere #oard is p)acin* t%e most 'ocusQ
Eac%
respondent
cou)d se)ect
t%ree areas
o' 'ocus
Emp%asis
on
operationa)
ris.
+%e 'inancia) ser"ices industry reco*niDed durin* t%e 'inancia) crisis t%at #oards needed
to c%an*e 'ocus 'rom s%are price and pro'ita#i)ity to t%e ris.s entai)ed in t%eir strate*ies-
A)so( c%ie' ris. o''icers needed to #e empo$ered to create cu)tura) c%an*e $it%in t%eir
or*aniDations-
@it% t%ese s%i'ts $e)) under$ay( senior ris. e2ecuti"es are 'ocused on mo"in* reputation
and operationa) ris. %i*%er up t%e a*enda- &o$e"er( #an.s are sti)) stru**)in* to ensure
t%at speci'ic #usiness decisions are consistent $it% ris. appetite and are puttin* ne$
pro*rams in p)ace to ac%ie"e t%is-
Ris. cu)ture $it%in insurance 'irms
Insurance 'irms 'ace many o' t%e same c%a))en*es as t%e #an.in* industryJ e"o)"in*
re*u)atory demands( economic "o)ati)ity and )iAuidity pressures- E2ecuti"es cited ris.
cu)ture as t%e compass t%at .eeps t%eir 'irms on course-
Ec%oin* t%e #an.ers sur"eyed( insurers say %a"in* adeAuate systems and data in p)ace
and em#eddin* ris. appetite t%rou*% t%e decisionFma.in* process remain ma!or
c%a))en*es-
Fi"e t%emes 'rom t%e sur"ey
1
>an.s are re"ie$in* t%eir cu)tures across )e*a) entities and #usiness units
'o))o$in* se"era) %i*%Fpro'i)e conduct scanda)s-
;
+%ere is a muc% *reater 'ocus in ;619 on reputationa) and operationa) ris.(
inc)udin* t%e issue o' ris. appetite-
9
>an.s are sti)) $or.in* to 'u))y institute t%eir postFcrisis ris. mana*ement
po)icies( $it% most sti)) 'indin* it di''icu)t to em#ed ris. appetite-
<
Ris. transparency is dri"in* 'urt%er en%ancements o' stress testin* and
in"estment in I+ and data-
=
>usiness mode)s are #ein* ret%ou*%t in )i*%t o' re*u)atory c%an*es( $it% #an.s
e2itin* 'rom acti"ities( #usinesses( mar.ets and *eo*rap%ies-
IN/43 Motors Company (IN/4) )aunc%ed t%eir muc% a$aited +oyota Prius eAuipped
$it% a 166cc en*ine and a %y#rid motor- Accordin* to t%e mana*ement( t%is mode) %as
#een customiDed 'or Pa.istan road conditions- +%e retai) price %as #een 'i2ed at
sta**erin* P.R<-<9mn( t%is is inc)usi"e o' 9:-=P customs duty and 1:P (H3+) ma.in*
t%e tota) *o"ernment duties to <9P o' t%e tota) price- +%e mar.et 'or %i*% end "e%ic)es is
dominated $it% +oyota #rands )i.e Camry( &i)u2( &iace( A"anDa "e%ic)es and 345sF
Land Cruiser and Prado- @it% t%e current C>4 port'o)io IN/4 %ad a 99P mar.et s%are
in t%is se*ment in FY19 )eadin* $it% &iace( +erios and A"anDa "e%ic)es- @it% t%e )aunc%
o' Prius( IN/4 %as added a ne$ "ariant to its C>4 port'o)io-
@%ere it a)) started
In t%e #ud*et o' FY19F1< *o"ernment announced t%at &E5s up to 1;66cc $i)) #e e2empt
'rom duties and ot%er ta2es- From 1;61cc to 166cc =6P re)ie' 'rom duties and ot%er
ta2es $i)) #e pro"ided and 'rom 161cc to ;=66cc( ;=P re)ie' is proposed- No re)ie' $i))
#e a"ai)a#)e 'or "e%ic)es #eyond ;=66cc- HOP emp%asiDed on t%e ecoF'riend)y
tec%no)o*y o$in* to increasin* #urden 'rom t%e import o' oi) to meet t%e demand o'
petro)- &o$e"er( up ti)) no$ t%ere is no &y#rid "e%ic)e $it% an en*ine capacity o'
1;66cc- 3ince t%en a)) auto manu'acturers are rus%in* to$ards introducin* t%eir o$n
%y#rid cars to compete $it% t%e imported %y#rid cars-
+oyota Prius M +%e 'irst o''icia) &y#rid "e%ic)e in Pa.istan
In order to capture increasin* demand o' &y#rid "e%ic)e( and to ta.e ad"anta*e o' re)a2ed
*o"ernment duties IN/4 %as )aunc%ed Prius- &o$e"er( used Prius $as a)ready imported
in )ar*e num#ers in Pa.istan $it% price ran*in* 'rom P.R;-;F;-:mn %a"in* en*ine
capacity o' 1=66F166cc en*ine- &ence( t%e price o' Prius )aunc%ed #y IN/4 is G6F:6P
more t%an $%at t%e same mode) o' used imported Prius costs- IN/4 mana*ement
#e)ie"ed it $ou)d easi)y se)) 166F1=6 +oyota Prius in a year $%ic% seems to #e Auite
di''icu)t $it% t%e price attac%ed-
;611 %i*%)i*%ts ;611 pro"ed to #e anot%er tou*% year 'or IMCE it #e*an $it% t%e $orst
')oods in t%e %istory o' Pa.istan disp)acin* mi))ions o' peop)e and e''ectin* t%e socioF
economic en"ironment o' t%e country-
+%e depreciation o' rupee a*ainst yen #y nine percent 'ue))ed t%e in')ationary pressure-
Po$er s%orta*es( increasin* ra$ materia) cost and $ea.enin* )a$ and order situation
esca)ated t%e 'irmRs manu'acturin* cost- @%i)e IMC $as sti)) 'acin* t%ese c%a))en*es(
t%eir *)o#a) supp)y c%ain $as disrupted #y tsunami t%at struc. ,apan- As a conseAuence(
t%e IMC %ad to cut its production-
+%e *o"ernment o' Pa.istanRs decision to )i#era)ise t%e used car import po)icy #y
increasin* its a*e )imit 'rom t%ree to 'i"e years a)so %it t%e )oca) manu'acturers-
/espite t%e di''icu)t #usiness en"ironment( t%e demand 'or tota) cars (passen*er cars and
LC5s) in t%e country *re$ #y t%ree percent to 1<(<9 units out o' $%ic% IMC $as a#)e
to *ra# 99 percent o' t%e mar.et s%are- +%e increase in demand 'or cars o$es to t%e
record %i*% remittances and %i*% a*ricu)ture income due to *ood %i*% support prices
*i"en to t%e 'armers-