Bat file command issue

[admirable]

I have created setup with Reference Folder, and added action on Post Install to Run .bat file to extract .arc data to %AppFolder% but when .bat file process starts it always extract data on %SourceFolder% instead of %AppFolder%. I have added .bat file to archive with setup.exe and .bat file is successfully installed in %AppFolder% but unable to extract in its own directory %AppFolder%.
Can some one suggest any solution?