Exide Pakistan : Transmission of Half Yearly Report for the Period Ended 2022-09-30

HALF YEARLY REPORT SEPTEMBER 30, 2022

Contents

1. Corporate Profile
2. Chairman's Review

UNCONSOLIDATED FINANCIAL STATEMENTS

1. Auditor's Report To The Members On Review Of Interim Financial Information

1. Condensed Interim Statement Of Financial Position
2. Condensed Interim Profit or Loss and Other Comprehensive Income (Unaudited)
3. Condensed Interim Statement Of Changes In Equity (Unaudited)
4. Condensed Interim Cash Flow Statement (Unaudited)
5. Notes To The Condensed Interim Financial Information (Unaudited)

CONSOLIDATED FINANCIAL STATEMENTS

1. Condensed Interim Statement Of Financial Position
2. Condensed Interim Profit or Loss and Other Comprehensive Income (Unaudited)
3. Condensed Interim Statement Of Changes In Equity (Unaudited)
4. Condensed Interim Cash Flow Statement (Unaudited)
5. Notes To The Condensed Interim Financial Information (Unaudited)

CORPORATE PROFILE

Board Of Directors

Altaf Hashwani - Chairman

Arshad Shehzada - MD/CEO

Arif Hashwani

Hussain Hashwani

Zaver Hashwani

Ayub Hameed

Mrs. Navin Salim Merchant

S. Haider Mehdi

Chief Financial Officer

S. Haider Mehdi

Audit Committee

Ayub Hameed - Chairman

Altaf Hashwani

Zaver Hashwani

Salim Abdul Ali - Secretary

Human Resource and Remuneration Committee

Ayub Hameed - Chairman

Arif Hashwani - Member

Altaf Hashwani - Member

Muhammad Shayan - Secretary

Bankers

Allied Bank Ltd.

Bank Alfalah Limited

BankIslami Pakistan Ltd.

Habib Bank Ltd.

Habib Metropolitan Bank Limited

JS Bank Ltd.

MCB Bank Ltd.

Meezan Bank Limited

Standard Chartered Bank (Pakistan) Ltd.

United Bank Ltd.

Dubai Islamic Bank Pakistan Limited

Auditors

Yousuf Adil

Solicitors

Orr, Dignam & Co.

Registered Office

A-44, Hill Street, Off.

Manghopir Road, S.I.T.E., Karachi- Pakistan.

Website: www.exide.com.pk

E-mail: [e-mail]

3

Chairman's Review

I am pleased to present on behalf of the Board of Directors un-audited condensed interim nancial results of your Company duly reviewed for the half year ended September 30, 2022.

The Economy

Pakistan's economy is facing unprecedented challenges amid global economic downturn and record oods. The global and domestic economic pressures forced Pakistan to revise the growth target to 3.5 percent in the year 2022-23 against 4.5 percent previously projected. In ation is expected to remain high at 18 percent due to potentially strong impact of the rupee depreciation, and consistently high fuel and energy prices. Pakistan's trade de cit decreased by 21.4 percent to US$ 9.21 billion during the rst quarter of current year as compared to US$ 11.72 billion during the same period last year. Exports witnessed a slight jump to US$ 7.13 billion from US$ 7.0 billion last year, a growth of 1.86 percent. Imports decreased by 12.72 percent during the period, from US$ 18.71 billion last year to US$ 16.33 billion during the current year. Owing to balance of payment crises, Pakistan banned import of non-essential luxury goods, which resulted in the substantial decrease in current account de cit by 37 percent during the rst quarter of current scal year. SBP reserves fell to US$ 7.90 billion, barely enough to cover a few weeks of imports. CPI clocked at 23.2 percent in September-2022 and 25.1 per cent in 1st quarter of FY23, highest quarterly in ation ever recorded. Foreign Direct Investment declined by 47.1 percent to US$ 253.4 million against US$ 479.2 million in the same period last year. Home remittances fell by 8.2 percent from USS 8.39 billion to US $ 7.7 billion in the rst quarter of current year compared to the last year. Shortfall in remittances is due to uncertainty and volatility in Exchange market, currency depreciation against US dollar to Rs.221.64 in October 2022 from Rs.140 in September 2021. Challenging economic indicators took a toll on large scale manufacturing which declined by 0.4 percent in the rst quarter of the current scal year.

The Industry

Auto Sales dropped in the rst quarter of current year mainly due to high prices, high nancing costs, steps taken by State Bank of Pakistan such as reduction in auto loan repayment tenor, increase in the minimum down payment and imposition of Rs.3.0 million maximum loan limit. Resultantly, car sales during the quarter under report decreased by 50 percent from 57,539 units to 28,571, whereas sale of LCV, Vans and jeeps decreased by 48 percent to 5,901 units from 11,358 units. Truck and buses sales decreased by 44 percent from 3,281 units to 1,845 units, Farm Tractors sales decreased by 30 percent to 8,379 units from 12,025 and two / three wheelers sales decreased by 34 percent from 450,913 units to 298,368 units.

Auto parts industry is facing challenging times due to the domino effect of dollarization, spiraling in ation, escalating utilities tariff, mounting interest rates and sky rocketing material cost.

Production

Production activities were effectively planned and adjusted to cater to the market demand both in terms of quantity and quality. Stress on quality control at all stages of production process was implemented with great vigor for further strengthening quality standards of the products of your Company.

Sales

Net Sales revenue of the Company during the half year under review increased by 29.1 per cent from Rs.7.894 billion to Rs.10.192 billion on account better sales prices.

4