Atlas Battery : Transmission of Annual Report for the Year Ended June 30, 2023

POWERING

YOUR WORLD, ANYTIME, ANYWHERE

ANNUAL REPORT 2023

ABOUT THE COVER

Empowered by decades of unyielding trust from our customers, Atlas Battery remains resolute to 'Powering Your World, Anytime, Anywhere' empowering individuals and communities to embrace their aspirations confidently through our expansive range of products, an unmatched distribution network, and unparalleled after-sales customer service. At the heart of our endeavors, we place our customers, valuing their needs and preferences above all else.

With a steadfast focus on innovation, Atlas Battery proudly introduces a diverse spectrum of energy storage solutions, including conventional batteries, hybrid batteries, maintenance-free batteries, and deep cycle batteries. These cutting-edge technologies not only meet but exceed the ever-evolving demands of our valued customers.

Together, we embark on this transformative journey, connecting hearts and minds, illuminating possibilities, and energizing a sustainable future. From remote corners to bustling cities, from the ordinary to the extraordinary, Atlas Battery stands with you every step of the way, collectively powering your world, anytime, anywhere.

TABLE OF CONTENTS

CORPORATE INFORMATION

1. Operating Structure, Ownership and Relationship with Group Companies
2. Group Shareholding

1. Vision, Mission and Core Values

08 Quality, Health, Safety and Environment (QHSE) Policy, and ISO Integrated Management System

1. Principle Business Activities, International Certifications and Brands
2. Geographical Presence
3. Organization Chart
4. Company Information

1. Strategic Objectives

1. Business Model

SHAREHOLDER INFORMATION

1. Notice of Annual General Meeting

1. Information for Shareholders

1. Market Capitalization, Share Price and Volume Data
2. Statement of Value Addition
3. Pattern of Shareholding

1. Board of Directors

1. Journey of Success

1. Major Events during the Year
2. Media Gallery

FINANCIAL HIGHLIGHTS

1. Key Financial & Non-Financial Performance Measures
2. Financial Highlights
3. Analysis of Financial Statements

1. Direct Cash Flow Statement
2. Liquidity Management and Cash Flow Strategy
3. Financial Ratios

1. Forward Looking Statement
2. Segmental Review of Business and Seasonality of Business
3. Share Price Sensitivity Analysis

1. DuPont Analysis
2. Quarterly Performance Analysis

CORPORATE GOVERNANCE

1. Chairman's Review

1. Directors' Report

1. Directors' Report (Urdu)

1. Chairman's Review (Urdu)
2. Code of Conduct

1. CEO's Message on Sustainability

82	Sustainability
96	Corporate Governance

1. Factors Effecting External Environment (Risk and Opportunity Report)

1. Environmental Analysis - PESTEL
2. SWOT Analysis

1. Competitive Landscape and Marketing Positioning & Legislative and Regulatory Environment & Political Environment
2. Report of the Audit Committee

116	Statement of Compliance with Listed Companies (Code of Corporate Governance) Regulations, 2019

119 Independent Auditor's Review Report to the Members on the Statement of Compliance with Listed Companies (Code of Corporate Governance) Regulations, 2019

FINANCIAL STATEMENTS

1. Independent Auditors' Report to the Members on the Audit of the Financial Statements

1. Statement of Financial Position

1. Statement of Profit or Loss and Other Comprehensive Income
2. Statement of Changes in Equity
3. Statement of Cash Flows

1. Notes to the Financial Statements

OTHER INFORMATION

1. Glossary of Terms
2. Atlas Group Companies
3. Product Types and their Application

1. Our Valued OEM customers
2. Dividend Mandate Form

1. Proxy Form

1. Ballot Paper

Operating Structure, Ownership & Relationship with Group Companies

ABOUT THE COMPANY

Atlas Battery Limited (the Company) was incorporated as a public limited company on October 19, 1966 and its shares are quoted on Pakistan Stock Exchange Limited. The Company is engaged in manufacturing and sale of automotive, motorcycle and energy storage batteries, and their allied products. The registered office and manufacturing facilities are located at D-181, Central Avenue, S.I.T.E., Karachi with branches at Karachi, Lahore, Multan, Islamabad, Faisalabad, Sahiwal, Peshawar, Sukkur and Rahim Yar Khan. The Company is a constituent entity of Atlas Group.

The Company signed a technical collaboration agreement with Japan Storage Battery Co. Ltd., Japan in 1969 (now known as GS Yuasa Corporation) for production and sale of Japanese quality batteries in Pakistan. The Company started production in 1969 with the genesis of the brand "AGS" - "A" for Atlas and "GS" for Genzo Shimadzu (the founder of Japan Storage Battery Co. Ltd., Japan).

The Company is proud of it's successful journey of development and manufacturing a diversified range of products for more than five decades. The product range varies from conventional batteries to innovative low-maintenance hybrid, maintenance free and deep cycle batteries. Today, AGS is the nation's preferred choice not only for automotives and motorcycles but also for gensets, construction equipment, uninterrupted power supply (UPS) equipment and solar panels. Our extensive battery knowledge, vast experience and state-of-the-art manufacturing facility enable us to consistently meet the customers' demand. The Company's continued focus on HSE, unmatched after sales service and Japanese technology, is the true reflection of its tagline

ABOUT THE GROUP

The foundation of Atlas Group was laid down by our late Chairman, Mr. Yusuf H. Shirazi in 1962 when Shirazi Investments (Private) Limited was formed with a capital of half a million rupees. The Atlas motto coined by him, 'Organization Development through Self-development', has been the mantra of success for Atlas since in ception.

Today Atlas is a diversified group dealing in manufacturing, power generation, trading and financial services. The Group embodies the spirit of development as it endeavors to fuel the growth of Pakistan's economy through it's diversified presence and specifically through 4 companies listed on the Pakistan Stock Exchange Limited. Atlas shareholders' equity stands at over US$ 2 billion, assets at over US$ 2.5 billion and annual sales approaching US$ 3 billion.

Atlas with its focus on development, has firmly established as the technology and knowledge leader in Pakistan. The Group has harmonized professional management and institutionalized the Group shareholding to build businesses that last generation after generation. Atlas is driven by the ambition of making Pakistan self-sufficient and prosperous. Atlas plays a leading role as a responsible corporate citizen promoting professional education, contributing to health facilities, helping law enforcement agencies and improving the standard of life.

Group Shareholding

The following is the details of shareholdings by group companies:

Shirazi Investments (Private) Limited [SIL] was incorporated in 1962 and is the holding company of Atlas Group. SIL holds 58.86% of the shares of Atlas Battery Limited. Besides being holding company of Atlas Group, it is engaged in the businesses of real estate, warehousing and investments in capital markets.

Atlas Foundation was incorporated in 1986 as not for profit organization. The Foundation has played its role in promoting professional education, contributing to health facilities, helping law enforcement agencies and improving the quality of life. Atlas Foundation holds 1.84% shares of Atlas Battery Limited.

Atlas Insurance Limited is engaged in general insurance and takaful business. The company was founded by Sir Muhammad Iqbal in 1934 and was acquired by Atlas Group in 1980. Atlas Insurance holds 1.74% shares of Atlas Battery Limited.

Atlas Battery Limited is engaged in the manufacturing and sale

of automotive and motorcycle and energy storage, batteries and their allied products. The Company has technical collaboration with GS Yuasa Japan.

Atlas Battery Limited |		Annual Report 2023 |
04	05

Vision

A leading innovative organization, manufacturing and marketing superior quality automotive, motorcycle and industrial batteries for domestic and international market.

Mission

Ensuring customer satisfaction through the highest degree of quality and service with innovation and dynamic management while meeting stakeholders' expectations and serving as a model corporate citizen.

Core Values

QUALITYEXCELLENCE

To deliver quality proucts	We continuously pursue
that exceed customer	operational efficiencies and
expectations.	process improvements.
MERITOCRACY	INTEGRITY

To recruit on merit; reward and recognise performance.

TRANSPERENCY

To embrace and promote strong ethical and moral principles.

SAFETY

To promote a culture of openness of communication, coordination and collaboration with internal and external stakeholders.

Committed to providing a safe working environment for our associates.

Atlas Battery Limited |		Annual Report 2023 |
06	07