Diamond Industries : Transmission of Quarterly Report for the Period Ended 2023-12-31

Half Yearly Report 31 December, 2023

.............................................................................................................	3
Review Report	4

,12

Mr. Nazir Ahmad

Mrs. Seema Iftikhar

Zahid Jamil and Co.

Office No.702, 7th Floor, Eden Heights, Main Gulberg,

Jail Road, Lahore.

DIRECTORS' REPORT

Dear Shareholders,

On behalf of the Board of Directors of Diamond Industries Ltd., I feel pleasure to present before you half yearly un-audited accounts for the period July 2023 to December 2023 along with independent review report of company's auditors.

BRIEF REVIEW OF OPERATIONS:

As already reported in Directors' Report of the latest annual financial statements, that due to adverse / uncertain economic conditions / situations and non-availability of raw materials and high production cost, the company has suspended its commercial / manufacturing operations from January 10, 2023 thus no sale and gross profit thereon. However, during the quarter under review, the company has incurred certain operating expenses resulting in Profit / (Loss) after taxation of Rs. (22.697) million comparing to Rs. (20.137) million of the corresponding quarter ended December 31, 2022.

As regards disputed matters under litigation with Customs Authorities, FBR, SECP, Stock Exchanges & others, reported in annual financial statements of our company under the head of "Contingencies & Commitments", are being contested vigorously at its proper forums and there is no change in the status of these matters.

FUTURE OUTLOOK:

The management was contemplating to expand its business operation by market penetration strategy , however, country's current economic situation have pose serious threats to the entire business community. Management has been continuously monitoring this situation and will try it best to resume its core business activities.

EARNING PER SHARE:

The earnings per share of the company for the period under review are Rs. (2.52) as compared to Rs. (2.24) in the last corresponding half year ended December 31, 2022.

ACKNOWLEDGEMENT:

The Board of Directors deeply expresses its appreciation to the staff, workers and all other stakeholders for their continued support in achieving the reported level of performance.

For and on behalf of Board

IFTIKHAR SHAFFI	IMRAN KABIR
Chief Executive	Director
Lahore: 27th February, 2024

^g7giI]Ze

Independent Auditor's Review Report to the

Members of Diamond Industries Limited

Report on Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim stat ement of financial position of Diamond Industries Limited as at December 31, 2023 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows, and notes to the financial statements for the six -month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of this interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review. The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for three month period ended December 31, 2023 and 2022 have not been reviewed, as we are required to review only the cumulative figures for the six month period ended December 31, 2023.

`

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements for the six months period ended December 31, 2023 is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the audit resulting in this independent auditor's report is Adeel Anwar (ACA).

Chartered Accountants

Place: Lahore

Date: February 28, 2024

UDIN: RR202310366anzlItQJP

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DIAMOND INDUSTRIES LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As At December 31, 2023

Note

Dec 2023

June 2023

Authorized share capital		400,000,000	400,000,000
40,000,000 Ordinary shares of Rs. 10/- each
Issued, subscribed and Paid Up Capital	7	90,000,000	90,000,000
Surplus on revaluation of fixed assets		105,158,224	107,587,220
Reserves		48,186,294	33,897,792
Share Holders' Equity
	243,344,519	231,485,012
NON CURRENT LIABILITIES
Due to related parties and others	8	137,297,971	137,297,971
Deferred liabilities		42,133,175	24,853,377
CURRENT LIABILITIES		179,431,146	162,151,348
Trade and other payables		72,601,326	64,078,601
Provision for taxation		35,483,768	35,483,767
		108,085,094	99,562,368
TOTAL EQUITY & LIABILITIES
	530,860,759	493,198,728
Contingencies & Commitments	9
-	-
ASSETS
NON CURRENT ASSETS
Property Plant And Equipments	10	147,121,023	151,343,762
Long Term Deposits	11	330,885	330,885
Investments Under equity Method	66,611,496	66,611,496
Investments available for sale		102,122,878	61,467,504
CURRENT ASSETS		316,186,282	279,753,647
Stock in trade	12	167,014,540	167,006,610
Loan and Advances		45,516,347	44,662,417
Cash and bank balances		2,143,590	1,776,054
		214,674,477	213,445,081
TOTAL ASSETS
	530,860,759	493,198,728

The annexed notes form an integral part of these condensed interim financial statements.

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DIAMOND INDUSTRIES LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

For The Half Year Ended December 31, 2023 (Un-Audited)

	Half Year Ended	Quarter Ended
Note	December 31, 2023	December 31, 2022	December 31, 2023	December 31, 2022
	Rupees	Rupees	Rupees	Rupees

Sales - net

-

898,985,876

• 525,783,476

Cost of sales

13

Gross profit / (loss)

Distribuon expenses

Administrave expenses

Other Operang income

Profit / (loss) from Operaons

Finance Cost

Share of profit/(loss) of associated companies Profit / (loss) before Taxaon

TAXATION

• Current
• Deferred Tax

-

-

-

(11,516,068)

(11,516,068)

(11,516,068)

-

(11,516,068)

-

-

(11,516,068)

-

(11,181,492)

(11,181,492)

(862,528,054)

36,457,822

(9,081,827)

(36,843,381)

(45,925,208)

(9,467,386)

3,026,561

(6,440,825)

(8,500)

-

(6,449,325)

(11,691,308)

(1,996,459)

(13,687,767)

-

-

-

(6,294,448)

(6,294,448)

(6,294,448)

-

(6,294,448)

-

-

(6,294,448)

-

(11,181,492)

(11,181,492)

(528,999,064)

(3,215,588)

(4,193,920)

(16,598,767)

(20,792,687)

(24,008,275)

3,026,561

(20,981,714)

(8,500)

(2,761,375)

(23,751,589)

(7,026,278)

(1,996,459)

(9,022,737)

Profit / (Loss) aer Taxaon		(22,697,560)	(20,137,092)	(17,475,940)	(32,774,326)
Earning per Share	14	(2.52)	(2.24)	(1.94)	(3.64)
The annexed notes form an integral part of these condensed interim financial statements

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DIAMOND INDUSTRIES LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For The Half Year Ended December 31, 2023 (Un-Audited)

	December 31,		December 31,	December 31,		December 31,
	2023	2022	2023	2022
	Rupees		Rupees	Rupees		Rupees
Profit / (Loss) for The Period	(22,697,560)	(20,137,092)	(17,475,940)	(32,774,326)
Other Comprehensive Income
Unrealized gain / (loss) arising on remeasurement
of available for sale investments -Net of deffered tax	34,557,067	2,254,520	30,220,721	2,890,914
Total Comprehensive Income for The Period	11,859,507		(17,882,572)	12,744,781		(29,883,412)

The annexed notes form an integral part of these condensed interim financial statements

7

DIAMOND INDUSTRIES LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS

For The Half Year Ended December 31, 2023 (Un-Audited)

	Dec 31,
	2023
	Rupees
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation	(11,516,068)
Adjustment for Non Cash and other items:
Depreciation on property, plant and equipment	4,222,740
Finance cost	-
Dividend Income	-
Cash Flow Before Working Capital Changes	(7,293,328)
Working Capital Changes
(Increase)/Decrease in Current Assets
Stock in Trade	(7,930)
Trade Debts	-
Loans and Advances	(853,930)
	(861,860)
Increase/(Decrease) in Current Liabilities
Trade and Other Payables	8,522,725
Cash Inflow / (Outflow) From Operations	367,537
Income tax (paid)/Refund	11
Finance cost paid	-
Gratuity paid / adjusted	-
Net Cash Inflow / (Outflow) From Operating Activities	367,548
CASH FLOW FROM INVESTING ACTIVITIES
Dividend Income	-
Purchase of fixed assets	-
Net Cash Generated from /(used in) Investing Activities	-
CASH FLOW FROM FINANCING ACTIVITIES
Due to Related Parties and others	-
Net Cash Flow from Financing Activities
-
Net (Decrease) in Cash & Cash Equivalents	367,536
Cash & Cash Equivalents at Beginning of the Period	1,776,054
Cash & Cash Equivalents at End of the Period	2,143,590

The annexed notes form an integral part of these condensed interim financial statements

8

Dec 31,

2022

Rupees

(6,449,325)

4,546,408

8,500

(3,026,561)

(4,920,978)

16,105,869

(28,112,257)

6,077,655

(5,928,733)

18,834,022

7,984,311

(458,648)

(8,500)

(10,656,403)

(3,139,240)

3,026,561

-

3,026,561

-

-

(112,691)

1,720,412

1,607,721