Karachi, May 22, 2013 (PPI-OT): This is with reference to your letter No. KSE/C-954-2793 dated May 21, 2013 regarding subject matter.
On May 21, 2013, The Board of Directors’ meeting was scheduled to approve the annual audited accounts for the year ended March 31, 2013. This year, the company ended up with first PAT of Rs 244.3 million, after a period of 6 years of loss situation (except Mar-2008 when company earned PAT of Rs 75 million) and no dividend payment to shareholders. During this period, the reserves were completely wiped out and share holder’s equity was also reduced.
The management keeping n view the financial conditions of the company and willingness to pay dividend to shareholders, prepared an initial proposal for 2.5% cash dividend and submitted to the Board. However, during detailed discussion the Board realized that after deduction of Withholding tax and Zakat, distribution to some of the shareholders, especially small individual shareholders, would have become negative.
Keeping in view shareholders concern, a revised proposal @ 3.0% was prepared and submitted to the Board which was duly approved. However, inadvertently, the financial results showing cash dividend @ 2.5% were wrongly dissemination to the Exchanges. The mistake was realized soon after the dissemination; and correct results were communicated.
We would like to submit here that it was a communication error at our which caused miscommunication to the Exchanges. There was no mala fide intention. We strongly realize the importance of price sensitive information and restrictions imposed by relevant laws are strictly communicated to all associates of the company for their adherence and compliance.
Honda Atlas Cars (Pakistan) Limited (HCAR) is a law abiding company and have always been fulfilling corporate and secretarial compliance of Exchanges/SECP or other regulatory bodies.
In this context, we offer our sincere apology and request Exchange to take lenient view of this mistake.
We assure you that we would be more careful in our future correspondence with the Exchanges.
For more information, contact:
Sardar Abid Ali Khan
Vice President (Admin) and Company Secretary
Honda Atlas Cars (Pakistan) Limited
43-Km, Multan Road,
Manga Mandi, Lahore. (Pakistan)
Ph: (042) 35384671-80
Fax: (042) 35384691-92
Web: www.honda.com.pk