Transmission of Annual Report for the Year Ended June 30,2024

Contents

ANNUAL REPORT 2024

Company Information

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Vision

To be the No. 1 automobile company in Pakistan

Mission Statement

To assume leadership role in the technological advancement of the industry and to achieve the highest level of quantitative indigenization.

To offer high value, economical and qualitative solutions to address the commuting needs of a diverse range of customers.

To seek long-term and good relations with our suppliers and dealers with fair, honest and mutually profitable dealings.

To be a totally customer oriented company and to achieve Total Customer Satisfaction.

To create a work environment, which motivates recognizes and rewards achievements at all levels of the organization.

To produce environment friendly vehicles.

To be a contributing corporate citizen for the betterment of society, and to exhibit a socially responsible behavior.

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Notice of Annual General Meeting

Notice is hereby given that 26th Annual General Meeting of Dewan Farooque Motors Limited will be held at Dewan Cement Limited Factory Site, at Deh Dhando, Dhabeji, District Malir, Karachi, Pakistan on Thursday, November 28, 2024 at 2:00 p.m. to transact the following businesses;

1. To confirm the minutes of the preceding Extra Ordinary General Meeting of the Company held on Tuesday, August 27, 2024;
2. To receive, consider, approve and adopt the annual audited financial statements of the Company for the year ended June 30, 2024, together with the Directors' and Auditors' Reports thereon;
3. To confirm the appointment of the Statutory Auditors of the Company for the year ended June 30, 2025, and to fix their remuneration;
4. To consider any other business with the permission of the Chair.

By order of the Board

Karachi

November 04, 2024

Muhammad German

(Director & Company Secretary)

Notes:

1. The share transfer books of the company will remain closed from November 22, 2024 to November 28, 2024 (both days inclusive). Transfers received in order at the share registrar office M/s. BMF Consultants Pakistan (Private) Limited, Located at Anum Estate Building, Room No.310 & 311,3rd Floor,49, Darul Aman Society, Main Shahrah-e-Faisal, adjacent to Baloch Colony Bridge, Karachi, Pakistan.
2. A member entitled to attend and vote at this meeting may appoint another member as his/her proxy to attend the meeting and vote for his/her behalf. proxies in order to be effective must be received at the Shares Registrar Office duly stamped and signed not less than 48 hours (Working days only) before the time of holding of the meeting.
   CDC Account Holder will further have to follow the guidelines as laid down in Circular 1 dated January 26,2000 issued by Securities and Exchange commission of Pakistan for attending the meeting and appointment of proxies.
3. members are requested to promptly communicate the change in their addresses, if any, to the Company's share registrar.

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1. 1. The web address, login details, will be communicated to members via email.
   2. Identity of the members indenting to case vote through E-voting shall be authenticated through authenticated login.
   3. E-Votinglines will start from November 22, 2024 at 10 am and shall close on November 27, 2024 at 5 p.m. Members can cast their votes any time in the period.
2. Postal Ballot
   For voting through Postal Ballot members may exercise their right to vote as per provisions of the Companies (Postal Ballot) Regulations, 2018 subject to the requirement of Section 143 and 144 of the Companies Act, 2017. Further details in this regard will be communicated to the shareholders within the legal time frame as stipulated under these said Regulations, if required.
   The members shall ensure that duly filed and signed ballot paper along with copy of CNIC should reach the Chairman of the meeting through post on the Company's Registered office or email at dfml.corp@yousufdewan.com one day before the Annual General Meeting i.e., November 27, 2024 during the working hours. The signature on the ballot paper shall match with the signature on CNIC or Company records.

j) Particulars of Physical Shareholders:

According to section 119 of the Companies Act, 2017 and Regulation 19 of the Companies (General Provisions and Forms) Regulations, 2018, all physical Shareholders are advised to provide their mandatory information such as CNIC number, address, email address, contact mobile/telephone number, International Bank Account Number (IBAN), etc. to Company's Share Registrar at their address M/s. BMF Consultants Pakistan (Private) Limited, Located at Anum Estate Building, Room No. 310 & 311, 3rd Floor, 49, Darul Aman Society, Main Shahrah-e-Faisal, adjacent to Baloch Colony Bridge, Karachi, email (bmfconsultantspakistan@gmail.com)immediately to avoid any non-compliance of law or any inconvenience in future.

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Chairman's Review

I am pleased to present a report on the overall performance of the Board of Directors and effectiveness of the role played by the board in achieving the company's objectives. The board of directors is responsible for the management of the company, which formulates all significant policies and strategies. The board is governed by relevant laws & regulations and its obligation, rights, responsibilities and duties as specified and prescribed therein.

The Board of Directors comprises of individuals with diversified knowledge who endeavour to contribute towards the aim of the Company with the best of their abilities.

An annual self-evaluation of the Board of Directors of the Company is carried out. The purpose of this evaluation is to ensure that the Board's overall performance and effectiveness is measured and benchmarked against expectations in the context of objectives set for the Company.

During financial year ended June 30, 2024, four board meetings were held. The Board of Directors of the Company received agendas and supporting material in sufficient time prior to the board and its committee meetings. All the directors are equally involved in important decisions. the Board's overall performance and effectiveness for the year under review was satisfactory.

sghar

Chairman Board of Directors

November 05, 2024

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Directors' Report

The Board of Directors of Dewan Farooque Motors Limited is pleased to present its annual report along with the Company's audited Financial Statements for the year ended June 30, 2024 and welcomes you to the 26th Annual General Meeting.

Industry Overview

The automobile industry has experienced a significant downturn, facing challenges driven by various macroeconomic factors. Sales in the PC, SUV, and LCV segments declined by 18%, with 103,827 units sold compared to 126,878 units in the prior year. The first half of the fiscal year was marked by considerable currency fluctuations, influenced by domestic and global economic pressures, which impacted automotive production. In response, the central bank adjusted interest rates to stabilize the supply of currency and focused on enhancing the levels of foreign reserves and managed inflation. While the Pakistani Rupee has shown signs of stabilization, challenges persist.

We recognize the government's initiatives in the Finance Act 2024, which introduced incentives for electric and hybrid technologies. These align closely with our commitment to sustainability and innovation. We remain optimistic that consistent, long-term policies will foster the growth of these technologies.

Industry has a positive outlook for 2024, anticipating progress in IMF negotiations, relaxed import restrictions, and new incentives for auto manufacturers. The industry is also expected to achieve steady growth, supported by lower interest rates, the launch of new hybrid and electric models, and an increasingly stable market environment.

Company's performance

The summary of financial performance for the year, along with the comparative figures is as follows:

By the grace of Almighty ALLAH, despite the continuously changing and challenging business conditions during the year, we are pleased to announce that your Company has successfully resumed the commercial production of the 'Special Purpose KIA Commercial Vehicles,' with the brand name of KIA 'SHEHZORE'. In addition to the standard variant of the past, the Company has introduced two more variants i.e. King Cabin and Double Cabin, which have been officially launched in June 2024. As the manufacturing operations of the Company were commenced in the last month of the financial year, the loss suffered during the year mainly relates to the period for which the operations of the Company remained suspended.

During the year, your Company also signed a toll manufacturing agreement with Eco-Green Motors Limited to manufacture / assemble the Honri-VE electric vehicles (with 200km & 300km range), marking a strategic step into the growing electric vehicle market. The company has equipped with the necessary infrastructure and installation of the relevant jigs for electric vehicle manufacturing, signaling a significant advancement in Pakistan's automotive sector. Production of Honri electric vehicles has also commenced in August 2024 at Company's assembly plant with the approval of the Engineering Development Board.

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