PAK ELEKTRON LIMITED

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET

AS AT MARCH 31, 2017

Un-Audited Audited Un-Audited Audited

March 31, December 31, March 31, December 31,
2017 2016 2017 2016
Note (Rupees in thousands) Note (Rupees in thousands)

EQUITY AND LIABILITIES ASSETS

SHARE CAPITAL AND RESERVES
NON-CURRENT ASSETS
Authorized Capital 4 6,000,000 6,000,000

Issued, subscribed and paid up capital 5 5,426,392 5,426,392 Property, plant and equipment 11 16,597,435 16,442,378
Reserves 4,279,947 4,279,947 Intangible assets 320,898 323,656
Unappropriated profit 12,290,536 11,134,131 Long-term investments 12 23,838 26,341
21,996,875 20,840,470 Long term advances and deposits 1,266,100 1,275,152

18,208,271 18,067,527
SURPLUS ON REVALUATION 4,617,188 4,670,762

NON-CURRENT LIABILITIES
Redeemable Capital 6 2,969,690 3,151,594
Long-term financing 7 1,776,215 1,406,092 CURRENT ASSETS
Liabilities against assets subject to finance lease 8 42,691 46,383
Deferred taxation 2,386,064 2,326,193
Deferred income 40,246 40,755 Stores, spare parts and loose tools 801,026 812,915
Stock-in-trade 8,982,554 7,845,800
CURRENT LIABILITIES Trade debts 9,625,052 8,433,424
Due against construction work in progress 1,174,539 1,127,996
Advances 937,215 954,881
Trade and other payables 893,236 915,100 Trade deposits and short-term prepayments 1,243,194 1,258,874
Interest/ mark-up accrued on loans and payables 174,158 159,422 Other receivables 461,244 480,244
Short-term borrowings 9 6,016,828 4,981,662 Other financial assets 23,307 23,106
Current Portion of Non Current Liabilities: Income tax refundable 713,506 769,907
Long term loans 1,730,615 1,723,389 Cash and bank balances 524,227 552,210
Liabilities against assets subject finance lease 50,330 65,062 24,485,864 22,259,357
8,865,167 7,844,635
Contingencies and Commitments 10 - -
42,694,135 40,326,884 42,694,135 40,326,884
-
The annexed notes from 1 to 18 form an integral part of this condansed interim consolidated financial information.

M MURAD SAIGOL SYED MANZAR HASSAN

Chief Executive Officer Director
PAK ELEKTRON LIMITED

CONDANSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT /

STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTER ENDED MARCH 31, 2017( Un- Audited )

March 31, March 31,

2017 2016
Note (Rupees in thousand)

Gross Sales 13 11,813,703 7,749,528

Sales Tax and discount 13 2,966,715 1,251,249

Net Sales 8,846,988 6,498,279

Cost of Sales 14 6,117,455 4,746,189

Gross Profit 2,729,533 1,752,090

Other Operating Income 14,085 11,710

2,743,619 1,763,800
Distribution Cost 614,407 353,842
Administrative Cost 277,756 237,962
Other Operating Expenses 69,915 37,602
Finance Cost 386,007 394,300
Share of profit / (loss) of associate 540 (682)

Profit Before Tax 1,396,074 739,412

Provision for Taxation 290,867 207,848

Profit after tax 1,105,206 531,564

Earnings per share - Rupees

Basic & diluted 15 2.20 1.12

The annexed notes from 1 to 18 form an integral part of this condansed interim consolidated financial information.

M MURAD SAIGOL SYED MANZAR HASSAN

Chief Executive Officer Director
PAK ELEKTRON LIMITED

CONDANSED INTERIM CONSOLIDATED CASH FLOW STATEMENT

FOR THE QUARTER ENDED MARCH 31, 2017( Un- Audited )

March 31, March 31,

2017 2016
(Rupees in thousand)

Cash flows from operating activities

Profit before taxation 1,396,074 739,412

Adjustments for non cash and other items 599,544 510,303

Cash generated from operations before working capital changes 1,995,618 1,249,715
Working capital changes (2,328,842) (1,569,309)

Cash generated from operations (333,224) (319,594)

Finance cost paid (369,278) (327,700)

Compensated absence paid (2,881) (2,542)
Dividend (2,502) (873)
Income tax paid (174,595) (176,011)
(549,256) (507,126)

Net cash used in operating activities (882,480) (826,720)

Cash flows from investing activities

Purchase of property, plant and equipment (369,914) (580,515)
Proceeds from disposal of property, plant and equipment 3,172 18,073
(Increase) / decrease in long-term deposits and advances 9,052 (283,040)

Net cash used in investing activities (357,690) (845,482)

Cash flows from financing activities

Increase / (Decrease) in Long Term Financing 195,445 (507,574)
Increase/ (Decrease) in liabilities against finance lease (18,424) (45,116)
Proseeds from issue of ordinary shares - 2,406,200
Increase / (Decrease) in Short Term Borrowing 1,035,166 (97,870)
Net cash from financing activities 1,212,187 1,755,640

Net increase/(decrease) in cash and cash equivalents (27,983) 83,438

Cash and cash equivalents at beginning of the period 552,210 577,687

Cash and cash equivalents at end of the period 524,227 661,125

The annexed notes from 1 to 18 form an integral part of this condansed interim consolidated financial information.

M MURAD SAIGOL SYED MANZAR HASSAN

Chief Executive Officer Director
PAK ELEKTRON LIMITED
CONDANSEd IMTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE QUARTER ENDED MARCH 31, 2017( Un- Audited )

Capital reserves Revenue reserves

Share capital
Premium on Unappropriated Total
issue of shares profit
….……………………………………..…….. (Rupees in thousand) …………………………………………………..….

Balance as at December 31, 2015 4,431,029 1,293,858 7,891,437 13,616,324

Total comprehensive income for the period - - 531,564 531,564

Issue of right ordinary shares 995,363 2,986,089 3,981,452

Incremental depreciation - - 46,550 46,550

Balance as at March 31, 2016 5,426,392 4,279,947 8,469,551 18,175,890

Total comprehensive income for the period - - 3,138,376 3,138,376

Incremental depreciation - - 148,306 148,306

Dividend (622,102) (622,102)

Balance as at December 31, 2016 5,426,392 4,279,947 11,134,131 20,840,470

Total comprehensive income for the period. - - 1,105,206 1,105,206

Issue of right ordinary shares - - -

Incremental depreciation - - 51,199 51,199

Balance as at March 31, 2017 5,426,392 4,279,947 12,290,536 21,996,875

The annexed notes from 1 to 18 form an integral part of this condansed interim consolidated financial information.

M MURAD SAIGOL SYED MANZAR HASSAN

Chief Executive Officer Director
PAK ELEKTRON LIMITED
SELECTED EXPLANATORY NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION (UN-AUDITED)
FOR THE QUARTER ENDED MARCH 31, 2017

1 REPORTING ENTITY

The group comprises of the following companies

Parent Company

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under
the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz
Avenue, Canal Bank, Gulberg - V, Lahore. PEL is currently listed on Pakistan Stock Exchange. The principal activity of PEL is
manufacturing and sale of Electrical Capital Goods and Domestic Appliances.

PEL is currently organized into two main operating divisions - Power Division & Appliances Division. PEL's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of
grid stations and equipment procurement and construction (EPC) business.

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens,
water dispensors and other home appliances.

Subsidiary Company

PEL marketing ( Private ) Limited ( PMPL) was incorporated in Pakistan on August 11, 2011 as a private limited company under the
companies ordinance 1984. Registered office of PMPL is situated at 17 Aziz Avenue, canal bank Gulberg V, Lahore. The principal
activity of PMPL is sale of electrical capital goods and domestic appliances . PMPL is wholly owned subsidiary of PEL.

2 BASIS OF PREPARATION

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all
the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed
interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the
year ended December 31, 2016.

The comparative interim consolidated balance sheet as at December 31, 2016 and the related notes to the condensed interim
consolidated financial information are based on audited financial statements. The comparative interim consolidated profit and loss
account/statement of comprehensive income, interim consolidated cash flow statement, interim consolidated statement of changes
in equity and related notes to the condensed interim consolidated financial information for the three months ended March 31, 2016
are based on unaudited interim financial information.

2.1 Statement of compliance

This condensed interim consolidated financial information has been prepared in accordance with the requirements of International
Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984.
In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been
followed.

2.2 Basis of measurement

This condensed interim consolidated financial information has been prepared under the historical cost convention except for
property, plant and equipment at revalued amounts and certain financial instruments at fair value/amortized cost. In this financial
information, except for the amounts reflected in the statement of cash flows, all transactions have been accounted for on accrual
basis.

2.3 Functional currency

This financial information is prepared in Pak Rupees which is the Group's functional currency.

3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information

are the same as those applied in the preparation of the financial statements for the year ended December 31, 2016.
4 AUTHORIZED CAPITAL

Un-Audited Audited
March 31, December 31, March 31, December 31,
2017 2016 2017 2016
(Numbers) (Rupees in thousand)

500,000,000 500,000,000 Ordinary shares of Rs. 10 each 5,000,000 5,000,000

Preference shares of Rs. 10 each:

62,500,000 62,500,000 Class A preference shares of Rs 10 each 625,000 625,000
37,500,000 37,500,000 Class B preference shares of Rs 10 each 375,000 375,000
100,000,000 100,000,000 1,000,000 1,000,000

600,000,000 600,000,000 6,000,000 6,000,000

5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

Un-Audited Audited
March 31, December 31, March 31, December 31,
2017 2016 2017 2016
(Rupees in thousand)
Number of shares

Ordinary shares of Rs.10 each fully paid:

372,751,051 372,751,051 - In cash 3,727,511 3,727,511
Other than cash:
137,500 137,500 '-against machinery 1,375 1,375
-issued on acquisition of PEL
408,273 408,273 Appliances Limited 4,083 4,083
-issued against conversion of
6,040,820 6,040,820 preference shares 60,408 60,408
118,343,841 118,343,841 -Issued as bonus shares 1,183,439 1,183,439
497,681,485 497,681,485 4,976,816 4,976,816

A class preference shares of Rs 10 each

44,957,592 44,957,592 Issued for cash 449,576 449,576

542,639,077 542,639,077 5,426,392 5,426,392

5.1 Reconciliation of number of ordinary shares of Rs. 10 each:

At beginning of the year 497,681,485 398,145,188

Add: - Issued during the year as Right shares - 99,536,297

At the end of the year 497,681,485 497,681,485

6 REDEEMABLE CAPITAL

As at beginning of the period/ year 3,951,888 4,955,485

Issued during the period -

Paid during the year 181,904 1,003,597

Current Maturity 800,294 800,294

As at end of the period / Year 2,969,690 3,151,594

7 LONG-TERM FINANCING - SECURED

As at beginning of the period/ year 2,329,187 3,017,428

Obtained during the period / year 500,000 58,068

Paid / settled during the period / year 122,651 746,309

Current portion 930,321 923,095

1,776,215 1,406,092

8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present value of minimum lease payments 93,021 111,445

Current maturity 50,330 65,062

42,691 46,383

9 SHORT TERM BORROWING

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These
facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods,
machinery, spare parts, charge over book debts, shares of public companies and other assets of the company.

10 CONTINGENCIES AND COMMITMENTS

There is no material changes in contingencies and commitments as disclosed in the notes to the financial statements for the
year ended December 31, 2016.

11 PROPERTY, PLANT AND EQUIPMENT

Operating assets 11.1 16,448,441 16,309,076

Capital work-in-progress 148,995 133,302
16,597,436 16,442,378
11.1 Operating assets

Written down value at beginning of the period / year 16,309,076 15,446,465

Additions during the period / year 11.1.1 354,222 1,745,391

16,663,298 17,191,856
Written down value of the assets disposed off / adjustments 3,934 47,589
Depreciation charged during the period / year 210,923 835,191

16,448,441 16,309,076
11.1.1 Additions during the period / year

Plant and machinery 347,595 1,610,214

Office equipment and furniture 895 11,558
Computer hardware and allied items 665 12,651
Vehicles 5,067 98,306

354,222 1,745,391
12 LONG-TERM INVESTMENTS

Investment in associate at equity method - 23,838 26,341

Quoted

23,838 26,341

Kohinoor Power Company Limited

Ownership interest 23.10 %

Cost of investment
2,910,600 shares 54,701 54,701
Share of post acquisition profit- net of dividend received (507) (1,047)
54,194 53,654
Less: provision for impairment in value of investment 30,356 27,313
23,838 26,341

Un-audited
#REF!
March 31, March 31,
2017 2016
13 REVENUE (Rupees in thousand)

Contract revenue 535,610 42,091

Sales - local 10,758,890 6,338,817

Sales - export 519,203 1,368,620
11,813,703 7,749,528

Less: - sales tax and excise duty 1,292,387 866,587

- trade discounts 1,674,328 384,662
2,966,715 1,251,249
8,846,988 6,498,279

14 COST OF SALES

Raw material consumed 5,013,148 3,884,766

Direct wages 244,323 183,294
Factory overhead 608,061 522,626
5,865,532 4,590,686

Work-in-process
-at beginning of period 1,033,340 1,143,657
-at end of period (1,054,130) (841,205)
(20,790) 302,452
Cost of goods manufactured 5,844,742 4,893,138

Finished goods
-at beginning of period 1,895,253 1,125,190
-at end of period (2,073,310) (1,305,433)
(178,057) (180,243)
5,666,685 4,712,895

Contract cost 450,769 33,294

Cost of sales 6,117,455 4,746,189
6,117,455 4,746,189
 Un-audited

March 31, March 31,

2017 2016
15 EARNINGS PER SHARE - BASIC AND DILUTED (Rupees in thousand)

Earnings 1,105,206 531,564

Less: dividend on preference shares 10,677 10,677
1,094,529 520,887

Number of shares (Number)

Weighted average number of ordinary shares.
497,681,485 464,457,575

497,681,485 464,457,575

Basic and diluted Profit per share have been calculated through dividing Profit as stated above by weighted average number of
ordinary shares.

Basic Profit per share (Rupees) 2.20 1.12

16 TRANSACTIONS WITH RELATED PARTIES

Related parties from the Group's perspective comprise associated companies, post employment benefit plans and key management
personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The Group in the
normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such
transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length
transaction.

Details of transactions and balances with related parties is as follows:

Un-Audited Un-Audited
March 31, March 31,
2017 2016
Relationship Nature of transaction (Rupees in thousand)

Key Management Personnel Short-term employee benefits 25,882 22,371

Post employment benefits 986 1,292

Other related parties:

Associated companies Services acquired 108,446 77,249

16.1 All transactions with related parties have been carried out on commercial terms and conditions.

17 DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue
on April 00, 2017.

18 OTHERS

There are no other significant activities since December 31, 2016 affecting this condensed interim financial information.

M MURAD SAIGOL SYED MANZAR HASSAN

Chief Executive Officer Director