Financial Management

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

Financial Management

TOYOTA INDUS MOTOR COMPANY LIMITED PROJECT REPORT ON FINANACIAL ANALYSIS GROUP MEMBERS AMMARA GUL MAIRA MIRZA RUQKIYA MIRZA SADIQA ALI MANSOORA JAWAD FAHMIDA JAWAD SUBMITTED TO MS. K.DURRANI

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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TOYOTA Indus Motor Company Ltd.

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

Financial Management

LETTER OF TRANSMITTAL

30 June, 2011 The Course lecturer Subject: Term Report Financial Management BUITMS QUETTA Dear Maam We feel immense pleasure in presenting to your good self, the term report as part of our course requirement. We found this report to be truly challenging in many aspects, indeed very interesting in relation to the various interpretational and engrossing exercises. Writing this report itself was truly comprehensive learning experience In this report ,we have tried to provide the financial statement analysis and risk and return analysis of Indus Motor Company for the year 2008-2010. We have tried our level best to complete the report with respect to the desired requirements. However, if any explaining is required, we would be honored to oblige. Kindly accept this humble effort of bringing forward our research and findings on the subject matter.

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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DEDICATION

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

Financial Management

ACKNOWLEDGEMENT

I find no words at my command to express my deepest sense of gratitude to the Almighty ALLAH, the most Gracious, the most Merciful and the most Beneficent, who gives me the talent to complete this task successfully, He is the one who gave me courage to do this. I am much obliged to my loving Parents whose prayers have enabled me to reach this stage. At this occasion I cant forget my parents for their guidance at the crucial moments of my life. Next I owe my bottomless thanks to our esteemed resource person who directed me well and was always available to clear my doubts and misunderstandings through out this project. It is also a matter of immense pleasure for me to express my gratitude to the Faculty of Department of Management Sciences and professional projects evaluation Committee of the University of Education for giving us their precious time and tried their best as helpful as possible. I wish to thanks all my Friends and Classmates who really helped me by giving suggestions and critical review of the manuscript. Obviously this achievement was not possible without all of you

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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EXECUTIVE SUMMARY
Indus Motor Company is one of the Automobile Companies which formed with the help of house of Habib, Toyota Motor Corporation, Toyota TsushoCorporation. It manufactures and imports cars and enjoys a healthy sharein the market. It is competing with the Honda, Nissan, Suzuki and Mitsubishi. To sustain its lead IMC must maintain strategic competitive advantage which is its production strength, ability to produce quality cars with respect to low cost and research and development in hybrid and biofuel cars. But recently company is in stabilization mode trying to improve its functional area, consolidation of resources and maintaining SCA. In my Opinion it is the best move made by IMC to survive the financial holocaust

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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TABLE OF CONTENTS

COMPANY INFORMATION DIRECTORS REVIEW BALANCE SHEET PROFIT &LOSS ACCOUNT STATEMENT OF CHANGES IN EQUITY CASH FLOW STATEMENT CONCLUSION

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

Financial Management

TOYOTA INDUS MOTOR COMPANY LIMITED INTRODUCTION

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990.

VISION AND MISSION

"IMCs Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". The most respected. The most successful. Delighting customers. Wide range of products. The best people. The best technology. Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world

INTEGRATED MANAGEMENT SYSTEM POLICY

We as a team at Indus Motor Company are committed to comply with the requirements of our Integrated Management System and to endeavor to continuously improve upon it in order to: Balochistan University of Information Technology, Engineering & Management Sciences, Quetta. 9

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Manufacture high Quality Products. Generate Customer Satisfaction. Provide Service to the Society. Maintain Market Leadership. Identify and avoid/mitigate those environmental aspects which have negative environmental impacts. Comply with all applicable legal, regulatory and other requirements related to Environment, Health and Safety, Assist society by making the environment more friendly. Design and maintain facilities, establish systems, provide training and conduct operations in a manner that safeguard people and property. Identify, evaluate & mitigate health risks related to our operations that potentially affect our employees, contractors and the public.

ACT#1 Action Commitment Teamwork for becoming # 1 in Pakistan

means a committed team to make Indus # 1 in: Respect and Corporate Image Customer Satisfaction Quantity in Production & Sales Quality Profitability Best Employer

HISTORY
Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan Balochistan University of Information Technology, Engineering & Management Sciences, Quetta. 10

Financial Management since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.

COMPANY INFORMATION
BOARD OF DIRECTORS Mr. Ali S. Habib Chairman Mr. Yutaka Arae Vice Chairman Mr. Parvez Ghias Chief Executive Officer Mr. Farhad Zulficar Director Mr. Ilyas Suri Director Mr. A. Okabe Director Mr. K. Furubayashi Director Mr. Mohammedali R. Habib Director CHIEF FINANCIAL OFFICER Mr. Shahid Mahmood Khan COMPANY SECRETARY Balochistan University of Information Technology, Engineering & Management Sciences, Quetta. 11

Financial Management Mr. Rayomand Ghadiali Auditors: M/s A. F. Ferguson & Co. Chartered Accountants, State Life Building 1-C, I. I. Chundrigar Road, Karachi. Registrar: Noble Computer services (Private) Limited 2nd Floor, Sohni Center, BS 5 & 6, Main Karimabad Block- 4, Federal B. Area, Karachi 75950, Pakistan. Legal advisors: M/s A. K. Brohi & Co. M/s Mansoor Ahmed Khan & Co. M/s Mahmud & Co. M/s Sayeed & Sayeed Co. Factory / Registered Office: Plot No. NWZ/ 1/ P 1, Port Qasim Industrial Estate, Bin Qasim, Karachi Phone : (UAN) (92-21) 111- 869-682 Fax : (92-21) 4720056 Website: www.toyota-indus.com

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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MANAGEMENT TEAM

Mr. Ali S. Habib Chairman Mr. K Hyodo Vice Chairman Mr. Parvez Ghias Chief Executive Officer INFORMATION TECHNOLOGY Mr. Adnan Qazi Chief Information Officer FINANCE Mr. Muhammad Faisal Chief Financial Officer Mr. Mustafa Hasan Lakhani Company Secretary HUMAN RESOURCE Mr. Salim Azhar Director LOGISTICS, ADMINISTRATION & COMMERCIAL Mr. Salim Azhar Director MANUFACTURING Mr. M. Okimoto Director SALES & MARKETING Mr. Raza Ansari Director INTERNAL AUDIT Balochistan University of Information Technology, Engineering & Management Sciences, Quetta. 13

Financial Management Mr. Ahson Tariq Chief of Internal Audit CUSTOMER RELATIONS Mr. Adnan Qazi Head of Customer Relations

COLLABORATION

EQUITY Toyota Motor Corporation

Toyota Tsusho Corporation

House of Habib

BUSINESS TOYOTA GROUP Technology & KD Parts

Materials, Parts & Logistics Support

Technology KD Parts

Hilux Frame & Deck

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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MANUFACTURING FACILITES
Just in Time spirit implies two opposing forces of providing fast and flexible response to customers, yet building efficient mechanisms and systems that are efficient and wastefree. The concept is to provide the right product and information, at the right time, in the right amount, in the right manner, while maintaining high standards of efficiency and cost control. We have to practice this contradictory idea in our daily activities Automobile sector is one of the fastest growing sectors in Pakistan. It contributes towards the nations economy in the form of Technology Transfer, Employment, Investment and much more. Automobile sector contributed over Rs.23 billion to the national exchequer in the year 2003-04.

AUTOMOBILE I SECTOR IN PAKISTAN

As the industry's growing, so are the Automobile companies. Every manufacturer is in the process of increasing production capacity to meet customer demands. Through out the 90's the annual automobile production remained constant around 45,000 but due to consistent policies and positive macro economic conditions the industry boomed to over 120,000 units/annum in just 4 years. For statistic of the Automobile sector please visit Pakistan Automobile Manufactures Association's website: http://www.pama.org.pk

Balochistan University of Information Technology, Engineering & Management Sciences, Quetta.

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