DBCI | Dadabhoy Cement Industries Limited Transmission of Quarterly Report for the period Ended 2025-03-31

DADABHOY CEMENT INDUSTRIES LIMITED

COMPANY INFORMATION

Mr. Fazal Karim Dadabhoy Chief Executive

Mr. Danish Dadabhoy Mr. Shahban Ali

Mr. Jumma Baig

Mr. Mohammad Zaman Mr. Munir Hussain

Mr. Liaquat Hussain

CHIEF FINANCIAL OFFICER

Mr. Aslam Motan

COMPANY SECRETARY

Mr. Muhammad Rashid.

AUDITORS

M/s. S.M. Suhail Co., Chartered Accountants

LEGAL ADVISOR

Mr. Salim Thepdawala & Company

BANKER

Silk Bank Limited Bank Al Habib Limited

REGISTERED OFFICE

Noor Centre Office No.4, 2nd Floor Plot No. 30-C Ittehad Lane 12 Phase VII D.H.A, Karachi.

Tel : 021-35312007-9

URL : https://www.mhdadabhoy.com

SHARE REGISTRAR

Formerly M/s. Technology Trade (Pvt) Ltd. Dagia House, 241-C, Block 2, P.E.C.H.S. Off Shahrah-e-Quaideen, Karachi.

Telephone No. 43913 16-17, Fax No. 4391318

FACTORY

Nooriabad Deh Kalu Kohar, District Dadu (Sindh)

HUMAN RESOURCE & REMUNERATION COMMITTEE

Mr. Jumma Baig Chairman

Mr. Danish Dadabhoy Member

Mr. Fazal Karim Dadabhoy Member

AUDIT COMMITTEE

Mr. Shahban Ali Chairman

Mr. Danish Dadabhoy Member

Mr. Fazal Karim Dadabhoy Member

‌DIRECTORS' REPORT

‌In the name of Allah, the Most Merciful and the Most Benevolent

The directors of your company are pleased to present the Annual report and the un-audited financial statements for the nine months period ended March 31, 2025.

FINANCIAL POSITION AT A GLANCE

The Comparative financial results of the company are summarized below:

BUSINESS PERFORMANCE HIGHLIGHTS

The Company's performance from a business viewpoint remained status quo this year and the focus was on preparing and developing a strong strategic and financial plan. We are confident that in the coming years, the Company's performance will see an upward growth.

FUTURE OUTLOOK

We are fully determined to move the Company from present situation and give a strong strategic direction to the Company.

In this regard, we have been corresponding with the prospective investors to attract the investment in the Company. Considering the increasing demand and expected growth in cement industries, we are hopeful to achieve its objective.

ACKNOWLEDGEMENT

We are pleased to record their appreciation for the continued dedications, commitment and loyalty of the employees of your company.

We are also thankful to all stakeholders for the loyalty they have shown during our difficult period.

We also appreciate the assistance and continued support of the various Government Departments, Bankers, Customers and Shareholders.

For and on behalf of the Board

The annexed notes from 1 to 12 from an integral part of these financial statements.

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The annexed notes from 1 to 12 from an integral part of these financial statements.

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The annexed notes from 1 to 12 from an integral part of these financial statements.

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March 31, 2025 March 31, 2024

Nine months period ended

Depreciation 786 814

Financial charges - -

Advances and other receivables (324) (413)

The annexed notes from 1 to 12 from an integral part of these financial statements.

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1. STATUS AND NATURE OF BUSINESS

   1. Dadabhoy Cement Industries Limited (DCIL) was incorporated on 09 August 1979 as a public limited company in Pakistan and is listed on Pakistan Stock Exchange Limited - PSX. Company is a subsidiary of Leo (Pvt.) Limited. The Company is engaged in the manufacturing and sale of ordinary portland, slag and sulphate resistant cement. The Company's registered office is situated at Suite # 4, 2nd Floor, Plot no. 28-30 / C, Noor Centre, Khayaban-e-Ittehad, Lane no.12, Phase VII, D.H.A., Karachi.

   2. Going concern assumption

      The Company having accumulated losses as at reporting date amounting to Rs. 775.593 million (June 30, 2024: Rs. 770.281 million). The operations of the Company are closed since financial year 2009 due to which the Company has been facing financial and operational difficulties and was unable to discharge its financial and operational liabilities in due course of business. The Company was reporting nil sales since then and was totally dependent upon the financial support of its Directors and sponsors.

      The management of the Company has prepared these financial statements on going concern basis due to the following reasons:

      1. The management intends to revive the operations of the Company in the cement industry for which the planning is still on the initial stage as on the reporting date.

      2. Considering the increasing demand and expected growth in cement industries, the Company is hopeful to achieve its objective as Government of Pakistan does not allow new companies to undertake cement manufacturing projects thereby only existing companies can engage in cement manufacturing.

      3. To achieve the objective mentioned in para (a) above, the Company has been corresponding with the prospective investors to attract the investment in the Company.

      4. The Company has entered a Memorandum of Understanding (MoU) with Guangzhou China Engineering Limited dated June 10, 2019 to join their capabilities, references and resources for setting up of a new cement plant in Nooriabad with a capacity of 7000 T/D however, no further progress could be made in this regard due to COVID 19 outbreak.

         Management is confident that the Company would be able to revive its operations in the foreseeable future which will result in improving the overall financial and operational outlook of the Company.

   3. The Securities and Exchange Commission of Pakistan (SECP) vide its order dated October 28, 2019 under clause (m) Of Section 301 read with clause (b) of the Section 304 of the Companies Act, 2017 (under clause

      (b) of Section 309 read with clause (c) of Section 305 of the Companies Ordinance, 1984) has ordered that the Company is labile to wound up thereby authorizing the Registrar, the Company Registration Office Karachi, to present a petition for winding up of the Company. Pakistan Stock Exchange (PSX) has also issued notice bearing number PSX/N-1385 dated October 29, 2019 in this respect.

      The Company filed an Appeal under the Securities and Exchange Commission of Pakistan (Appellate Bench Procedure) Rules, 2003 against the Order dated October 28, 2019 in which the Company has challenged the Impugned Order.

      SECP provided hearing opportunity on March 31, 2021 in which it was decided that the Company would submit the revival plan along with board approval to SECP. On April 16, 2021 Company submitted the revival plan to SECP and requested the SECP to withdraw the Impugned Order.

2. BASIS OF PREPARATION

   1. These condensed interim financial statements of the Company for the period ended March 31, 2025 are unaudited and have been prepared in accordance with the requirements of the International Accounting Standard 34 - 'Interim Financial Reporting' and provisions of and directives issued under the Companies Act, 2017 (The Act). In case where requirements differ, the provisions of or directives issued under the Act have been followed.

   2. The figures of condensed interim statement of profit or loss and other comprehensive income for the quarter ended March 31, 2025 have not been reviewed by the auditors of the Company as they have reviewed the cumulative figures for the period ended March 31, 2025. These condensed interim financial statements does not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Company's annual financial statements for the year ended June 30, 2024.

   3. These condensed interim financial statements has been prepared under 'historical cost convention.

   4. These condensed interim financial statements are presented in Pakistani Rupees which is also the functional currency of the Company.

   5. The comparative statement of financial position presented has been extracted from the annual financial statements for the year ended June 30, 2024, whereas the comparative condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows have been extracted from the unaudited condensed interim financial statements for the period ended March 31, 2024.

3. SIGNIFICANT ACCOUNTING POLICIES

   1. The accounting policies, applied in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements of the Company for the year ended June 30, 2024.

   2. Certain standards, amendments and interpretations to the approved accounting standards are effective for accounting periods beginning on or after July 1, 2024 but are considered not to be relevant or have any significant effect on the Company's operation and are therefore not detailed in these condensed interim financial statements.

4. ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT

   1. The preparation of these condensed interim financial statements in conformity with approved accounting standards as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revision to accounting estimates are recognized prospectively commencing from the period of revision.

      ‌DADABHOY CEMENT INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2025 (UN-AUDITED)
5. PROPERTY, PLANT AND EQUIPMENTS Generators Furnitures Motor Vehicles office Equipment Total I--------------------------------------Rupees in thousand I 31-Mar-25
6. ADVANCES AND OTHER RECEIVABLES - Un-secured - considered good Advances

   Net book value as of July 01, 2024	273	596	3,696	559	5,124
   Additions	-	-	-	475	475
   Disposal / write-offs	-	-	-	-	-
   Depreciation charge for the period	38	84	519	145	786
   Closing net book value	235	512	3,178	889	4,813
   As at March 31, 2025 Cost	568	756	6,666	1,386	9,376
   Accumulated depreciation	333	244	3,488	497	4,563
   Net book value as of March 31, 2025	235	512	3,178	889	4,813
   Net book value as of June 30, 2024	273	596	3,696	559	5,124
   Depreciation rate (% per annum)	20%	20%	20%	20%
   				(Un-audited)	(Audited)
   				March 31, 2025	June 30, 2024

   Note (Rupees in thousand)

   Advance tax	8,876	8,045
   Deposits	220	220
   Other receivables
   From Dadabhoy Hydrocarbon (Pvt.) Limited	828	829
   From Dadabhoy Construction (Pvt.) Limited	110	110

   From related parties 6.1 4,095 3,770

   14,129 12,974

   1. This includes receivable from Dadabhoy Sack Limited amounting to Rs. 2.6889 (June 30, 2024: Rs. 2.638) million, Dadabhoy Energy Supply Limited amounting to Rs. 0.838 (June 30, 2024: Rs. 0.838) million, Dadabhoy Uni-Minerals Limited amounting to Rs. 0.020 (June 30, 2024: 0.020) million, Dadabhoy Trading Corporation amounting to Rs. 0.210 (June 30, 2024: 0.210) million and Leo Private Ltd amounting to Rs. 0.063 (June 30, 2024: 0.063) million . This represents the reimbursable expenses incurred on behalf of the related parties and are recoverable on demand. Closing balance represents the maximum aggregate amount outstanding at any time during the year with respect to month end balances.

7. SHORT TERM INVESTMENT Investments in associate Note (Un-audited) (Audited) March 31, 2025 June 30, 2024 (Rupees in thousand)

   Dadabhoy Energy Supply Company Limited 118,264118,264

   7.1.1 Dadabhoy Energy Supply Company Limited (DESCL) was incorporated in Pakistan on May 29, 1994 having its registered office and principal place of business located at Noor Centre, office No.4, 2nd floor, plot no. 30-C, Ittehad Lane No.12, Phase VII, D.H.A., Karachi.

   Management of DESCL had decided to windup the company, therefore, investment in DESCL had been classified as short term as it is likely that the Company will receive its due share of net assets of DESCL within the next financial year.

8. CASH AND BANK BALANCES (Un-audited) (Audited) March 31, 2025 June 30, 2024 (Rupees in thousand) Cash in hand - - Cash at banks

   - in current account		2		2
   - in saving account	8.1	110,285		116,937

   110,287 116,939

   110,287 116,939

   1. It carries markup ranging between 14.5% to 20.50% (2024: 14.5% to 20.50%) per annum.

      ‌DADABHOY CEMENT INDUSTRIES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2025 (UN-AUDITED) (Un-audited) (Audited) March 31, 2025 June 30, 2024 Note (Rupees in thousand)
9. TRADE AND OTHER PAYABLE

   Accrued liabilities	2,508		2,893
   Salaries payable	552		514
   Withholding tax payable	60		60
   SESSI payable	583		583
   EOBI payable	600		600
   Workers' Profit Participation Fund payable	2,484		2,484
   	6,788		7,135

10. COMMITMENTS AND CONTINGENCIES
    1. Commitments

       There are no commitments binding on the Company as on the reporting date (June 30, 2024: nil).

11. GENERAL - Figures have been rounded off to the nearest thousand of Rupees, unless otherwise stated.
12. DATE OF AUTHORIZATION FOR ISSUE

These financial statements have been authorized for issue on 30 April, 2025 by the Board of Directors of the Company.

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