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CHAIRMAN’S REVIEW:I am pleased to present on behalf of the Board of Directors,un-audited Account of the Company for the 3rd Quarterended December 31, 2016.

The Economy:Pakistan economy maintained its momentum towards a highergrowth trajectory in the year 2015-16, as higher infrastructurespending by the government and decade low interest ratesprovided a boost to domestic demand. Side by side,improvement in energy supply, security situation and progresson CPEC also supported this momentum. Real GDP growthof 4.71 percent during FY 16 was below the target, butnevertheless higher than last year growth of 4.24 percent,All major macro-economic indicators are moving in the rightdirection and primed for high growth in future. Pakistan’sexternal debt stands at US$47 billion in 2013 when country’sforeign exchange reserves were US$6 billion and presentlyexternal debt stands at US$ 57 billion and foreign exchangereserves at US$23 billion. The government envisages a GDPgrowth of 5.7 percent for FY 17.

Trade deficit of the Country surged to US$14.8 billion in thefirst half of the current fiscal year compared to US$13.4billion in the same period of last fiscal year. The Country’scurrent account deficit continued to deteriorate and rosesharply by 92 percent to US$3.6 billion during the first halfof current fiscal year mainly due to higher trade deficit, fallin home remittances and absence of Coalition Support Fund.Foreign Direct Investment rose to US$1.08 billion in July-December, 2016 primarily due to sale of 51 percent of EngroFoods Limited for US$448 million to Netherlands basedDairy Company-one off transaction.

The Industry:Growth of automotive sector in the preceding few years wasinstrumental to better capacity utilization for the batteryindustry. Sale of locally produced cars declined 4 percent to85,901 units in July-Dec 2016 as compared to 89,824 unitssold during corresponding period of last year. Trucks andBusses sales improved by 47 percent. Farm tractors salesimproved by 69 percent to 20,933 units sold in July-Dec2016 against 12,375 units sold in the same period a year ago.Sales of motorcycles and three wheelers improved by 21percent from 651,338 units to 787,879 units.

ProductionProduction activities were effectively planned and adjustedto cater to the market demand, both in terms of quantity andquality. Stress on quality control at all stages of productionprocesses was implemented with great vigour for furtherstrengthening quality standards of the products of yourcompany.

SalesNet Sales revenue of the Company for the Quarter under reviewimproved to Rs.2.759 billion up by 43 percent as comparedwith Rs.1.924 billion during the same period of last year.Cumulative sale for the nine months improved from Rs.8.89billion to Rs.10.10 billion up by 14 percent as compared tocorresponding period of the last year.

ProfitabilityGross profit for the quarter under review improved fromRs.406.0 million to Rs.555.4 million up by 37 percent due toimproved sales.

Selling and distribution expenses of Battery Division increasedby 31 percent as against increase in net sale revenue by 46percent. Operating profit increased by 108 percent to Rs.109.1million from Rs.52.4 million recorded in the correspondingperiod of last year. Financial charges decreased to Rs.7.48million from Rs.42.29 million on account of lower borrowings.

Profit before tax for the nine months under review increasedto Rs.778.2 million form Rs.560.3 million during the sameperiod of last year – up by 39 percent. Earnings per shareincreased to Rs.66.02 as compared to Rs.47.75 recorded in thecorresponding period of last year.

Future ProspectsIt is anticipated that indigenous organized battery industry willface tough competition due to capacity expansion of existingbattery plants and new entrants. Profit margin will also be underpressure on account of increase in raw material prices. Yourmanagement is determined to avail full benefits of theopportunities by continued focus on quality, productivity, costcontrol and after sales service to improve its competitiveness.

ARIF HASHWANIChairmanKarachi - January 30, 2017

ARSHAD SHEHZADAChief Executive

ARSHAD SHEHZADAChief Executive

ARSHAD SHEHZADAChief Executive

CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2016

HUSSAIN HASHWANIDirector

HUSSAIN HASHWANIDirector

HUSSAIN HASHWANIDirector

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ARSHAD SHEHZADAChief Executive

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CORPORATE PROFILE

BOARD OF DIRECTORSArif Hashwani - ChairmanArshad Shehzada - MD/CEOAltaf Hashwani - DirectorHussain Hashwani - DirectorS Haider Mehdi - DirectorS M Faiq - DirectorAyub Hameed - DirectorMuhammad Kamran Shehzad - Director

CHIEF FINANCIAL OFFICER & COMPANY SECRETARYS. Haider Mehdi

AUDIT COMMITTEEAyub Hameed - ChairmanAltaf Hashwani - MemberS M Faiq - MemberSalim Abdul Ali - Secretary

HUMAN RESOURCES AND REMUNERATION COMMITTEEArif Hashwani - ChairmanAltaf Hashwani - MemberAyub Hameed - MemberSyed Zulquarnain Shah - Secretary

BANKERSAllied Bank LimitedBank Al-Falah LimitedBankIslami Pakistan LimitedBank of Tokyo Mitsubishi UFJ, LimitedDubai Islamic Bank Pakistan LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedJS Bank LimitedMCB Bank LimitedMeezan Bank LimitedNIB Bank LimitedStandard Chartered Bank (Pakistan) LimitedUnited Bank Limited

AUDITORSA. F. Ferguson & Co.

SOLICITORSOrr Dignam & Co.

REGISTERED OFFICEA/44, Hill Street, Off: Manghopir Road,S.I.T.E., Karachi-75700, Pakistan.Website : www.exide.com.pkE-mail : exidepk@exide.com.pkHUSSAIN HASHWANI

DirectorHUSSAIN HASHWANI

Director