Contents:

 Introduction
 Vision Statement
 Mission Statement / Corporate Strategy
 CEO Message
 Ratio Analysis
 Comparison
 Financial Analysis

Assignment / Report on Hinopak Motors Limited

Presented to: Sir Muzammil Hussain

Compiled by: Aamir Ali
Roll No. 01
Class: MBA-III(morning)
Product and Logo of HINOPAK
 (HINOPAK MOTORS LIMITED)

INTRODUCTION.
Hino Motors Japan and Toyota Tsusho Corporation in
collaboration with Al-Futtaim Group of UAE and PACO Pakistan
formed Hinopak Motors Limited in 1986.

In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation

obtained majority shareholding in the company after disinvestments
by the other two founding sponsors. This decision to invest in
Hinopak at a time when the country's economy was passing through
a depression and the sale of commercial vehicles was at an all time
low reflects the confidence our Principals have in our company and
their commitment to the Pakistani market. Hinopak is the trusted
market leader with over 50% share in the Pakistani Truck and Bus
industry. Hinopak a vital contributor in saving of foreign exchange is
also providing jobs and plays a pivotal role for the development of
the local industry through its progressive manufacturing.

By continuing to move forward and staying alert to the ever-

changing market & social needs, Hinopak will continue to be a
successful and respected corporate citizen of Pakistan, reflecting
their commitment and belief in the Hinopak corporate philosophy to
"contribute to the development of a more prosperous and
comfortable society by providing the world with a new set of values".
Vision Statement:
The vision of Hinopak Motors Limited is to provide the society
with safe, economical, comfortable and environment friendly
means of transportation by manufacturing and supplying
commercial vehicles and services.

Mission Statement / Corporate Strategy:

TO PURSUE OUR VISION, WE COMMIT OURSELVES:
 To our individual, institutional and international customers:
to deliver high quality, safe, durable, reliable, comfortable
environment friendly and economical products and services to their
total satisfaction.
 To our employees:
to foster corporate culture of mutual trust, respect for
fundamental rights at work, opportunities for professional growth
and personal welfare so that they are proud of being a member of
the “Hinopak Family”
 To the community and our nation:
to contribute to economic and social development by providing
means of transportation and by progressive localization of the
vehicles.
 To the shareholders:
to act in compliance with the norms expected of a subsidiary of
the Toyota Group of Companies and make a meaningful financial
return to the shareholders.
 CEO Message:
(2014-15)
CEO, TATSUHEI MUTO,
On this historic moment, I congratulate all the members of
Hinopak family, our parents and valued customers and Business
partners in enabling us to achieve this milestone.
Despite strong competition prevailing in the industry and the
advent of new entrants, the Company remained focused on
optimizing shareholders’ return and market share while looking for
new growth horizons. The company has added yet another feather of
success by launching Euro II compliant vehicles and Rear Engine bus
which would not only cater to the needs of the market but also
mitigate the amount of pollutants in the environments.

(2015-16)
CEO, TATSUHEI MUTO,
Yet another thriving year closed.
It has been 30 years and Hinopak has continued to scale new
heights of achievements. On this occasion, I take the pleasure to
congratulate all the members of Hinopak Family, including our valued
customers and business partners without whose incessant efforts. We
would not have been able to achieve a new milestone.
In order to meet market demand, we introduce Euro II vehicles
and Rear Engine but year which proved to be success and played a
vital role in achieving this milestone.
 (2016-17)
CEO, TATSUHEI MUTO,
Throughout the year, Hinopak remained committed to set new
benchmarked of success. I would like to take a moment to reflect on
this year’s accomplishment and acknowledgement the untiring efforts
of the members of Hinopak their continued cooperation and
affiliation which enabled our company to achieve new milestone.
I wish this success leads our company to much greater
achievement in the year to come.

Ratio Analysis:
(2015)
i. Current Ratio = Current assets / Current liabilities
= 6181541 / 4054270 = 1.52% (Better)
ii. Earning per share (EPS) = Net income / Number of shares
= 1073224 / 12400 = 86.55 (Better)
iii. Divided per share (DPS) = Annual dividend / Number of shares
= 466,447 / 12400 = 37.6 (Better)
iv. Total assets turnover = Sales / Total assets
= 12636288 / 8221736 = 1.54x (Better)
v. Fixed assets turnover = Sales / Fixed assets
= 12636288 / 2040195 = 6.19x (Better)
vi. Debts Ratio = Total liability / Total assets
= 4235661 / 8221736 = 0.51% (Better)
vii. Return on total assets (ROA) = Net income / Total assets
= 1073224 / 8221736 = 0.13% (Worse)
viii. Net profit margin = Net income / sales
= 1073224 / 12636288 = 8.49 (Better)
ix. Operating profit margin = EBIT / Sales
= 1,552,589 / 12636288 = 12.28 (Better)

(2016)
i. Current Ratio = Current assets / Current liabilities
= 7436013 / 5134308 = 1.45% (Better)
ii. Earning per share (EPS) = Net income / Number of shares
= 1113375 / 12400 = 89.78 (Better)
iii. Divided per share (DPS) = Annual dividend / Number of shares
= 801,946 / 12400 = 64.67 (Better)
iv. Total assets turnover = Sales / Total assets
= 18086850 / 9664326 = 1.87x (Better)
v. Fixed assets turnover = Sales / Fixed assets
= 18086850 / 2228313 = 8.11x (Better)
vi. Debts Ratio = Total liability / Total assets
= 5376029 / 9664326 = 0.56% (Better)
vii. Return on total assets (ROA) = Net income / Total assets
= 1113375 / 9664326 = 0.12 (Worse)
viii. Net profit margin = Net income / sales
= 1113375 / 18086850 = 6.16 (Better)
ix. Operating profit margin = EBIT / Sales
= 1,727,042 / 18086850 = 9.54 (Better)
(2017)
i. Current Ratio = Current assets / Current liabilities
= 7188418 / 5013905 = 1.43% (Better)
ii. Earning per share (EPS) = Net income / Number of shares
= 1119901 / 12400 = 90.3 (Better)
iii. Divided per share(DPS) = Annual dividend / Number of shares
= 1,110,089 / 12400 = 89.52 (Better)
iv. Total assets turnover = Sales / Total assets
= 22477498 / 10062735 = 2.23 (Better)
v. Fixed assets turnover = Sales / Fixed assets
= 22477498 / 2874317 = 7.82 (Better)
vi. Debts Ratio = Total liability / Total assets
= 5295097 / 10062735 = 0.53% (Better)
vii. Return on total assets (ROA) = Net income / Total assets
= 1113375 / 10062735 = 0.11 (Worse)
viii. Net profit margin = Net income / sales
= 1113375 / 22477498 = 4.95 (Better)
ix. Operating profit margin = EBIT / Sales
= 1696710 / 22477498 = 7.54 (Better)
 Ratio Comparison:

Ratios 2014-15 2015-16 2016-17

Current 1.52% 1.45% 1.43%

Earning per Share 86.55 89.78 90.3
Divided per Share 37.6 64.67 89.52
Total assets turnover 1.54x 1.87x 2.23x
Fixed assets turnover 6.19x 8.11x 7.82x
Debts Ratio 0.51% 0.56% 0.53%
Return on total assets 0.13 0.12 0.11
Net profit margin 8.49 6.16 4.95
Operating profit margin 12.28 9.54 7.54