FE) oranonp INDUSTRIES LIMITED ANNUAL REPORT 2011 ANNUAL REPORT 2011 FOR THE YEAR ENDED JUNE 30, 2011 CONTENTS Corporate Profile 2 Notice of Annual General Meeting. 3 Directors’ Report to the Members 5 Vision/Mission Statement/Corporate Strateg 9 Statement of Compliance with the Code of Corporate Governance 10 Review Reportto the Members 12 Auditors’ Report to the Members 13 Balance Sheet 1s Profit and Loss Account 17 Statement of Comprehensive Income 18 Statement of Cash Flows 19 Statement of Changes in Equity 21 Notesto the Accounts 22 Operating Highlights 40 Pattern of Shareholding 41 Form of ProxyDIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 CORPORATE PROFILE BOARD OF DIRECTORS: MR. WAQAR A, SHAFFI Chairman/Director MR. SHARIQ IFTIKHAR Chief Executive MR. ABDUL SHAKOOR MR. SOHAIL MALIK, MR. MUHAMMAD SAMEER MR. ZAHOOR AHMED. MR. HASHIM ASLAM BUTT COMPANY SECRETARY: MR. NAZIR AHMED TABUSSUM SALEEM & CO. Chartered Accountants MR. SOHAIL MALIK Chairman, MR. HASHIM ASLAM BUTT MR. MUHAMMAD SAMEER LEGALADVISOR: AK, MINHAS LAW ASSOCIATES BANKERS: ALLIED BANK LIMITED ASKARI COMMERCIAL BANK LTD. BANK ALFALAH LIMITED HABIB METROPOLITAN BANK LIMITED SILKBANK LIMITED STANDARD CHARTERD BANK LIMITED REGISTERED OFFICE: PLOT #2, GADOON AMAZAI INDUSTRIAL ESTATE, SWABI KHYBER PAKHTOONKHWA. TEL: 0938-270696-97 FACTORY: PLOT #25, GADOON AMAZAL INDUSTRIAL ESTATE, SWABI KHYBER PAKHTOONKHWA, TEL: 0938-270597-297 E.mail; scil_gad@ hotmail.com PRINCIPAL OFFICE: 23-KM MULTAN ROAD, MOHLANWAL. LAHORE, TEL: 111-111-666, 37540336-37 FAX: 92-42-37540335 Email: info@diamondfoam.com CORPLINK (PVT) LTD. WINGS ARCADE, 1-K, COMMERCIAL MODEL TOWN, LAHORE. TEL: 92- 182, 35887262 FAX: 92-42-35869037 >DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that Annual General Meeting of Sharcholders of Diamond Industries Limited will beheld on Monday 31% October, 2011 at 2:00 PM. at Company’s Registered Office at Plot No. 25. Gadoon Amazai, Industrial Estate, Swabi, Khyber-Pakhtoonkhwa to transact the following business; Ordinary Busines 1. To confirm minutes of the Extra Ordinary General Meeting held on 31" March, 2011 2. To receive. consider and adopt the Annual Audit ed Accounts of the Company together with the Auditors and Directors Reports thereon for the financial year ended June 30, 2011 3, To appoint Auditors for the financial year ended 30" June, 2012 and to fix their remuneration, Ms Tabussum Saleem & Company Chartered Accountants has consented to continue as the Auditors of the Company for the next year. The Board of Directors has also recommended for the appointment of M/s Tabussum Saleem & Company Chartered Accountants as Auditors of the ‘company for the year ending 30” June, 2012 ‘To consider any other transactions with the permission of the chair. BY ORDER OF THE BOARD NAZIR AHMED. FITM, FICS COMPANY SECRETARY Lahore: 08-10-2011 ‘The share transfer books of the com pany will remain closed from 24" October 2011 to 31" October, 2011 (both days inclusive). The shares received at company’s share registrar office i. Complink (Pvt) Limited by the close of business on 22 October, 2011 will be considered in order for registration in the name of the transferees. 2, Members of the company are requested to immediately notify the change of address, if any, to the Share Registrar M/s Conplink (Pvt) Limited, Wings Arcade, 1 -k Commercial Model Town, Lahore. 3. Amember of the company entitled to attend and vote at this meeting may appoint an other member as his/her proxy to attend and vote instead of him / her. Proxies in order to be effective must be received by the Company at the registered office not less than 48 hours before the meeting 4, The members whose share are maintained on Central Depository System with the Central depository Company of Pakistan Limited should follow the guidelines for attending the General Meeting and appointment of proxies as laid down by th © Securities and Exchange Commission of Pakistan. —__9_______\ “1nA DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Notes: 1 ‘The share transfer books of the company will remain closed from 23” October 2010 to 30" October. 2010 (both day’ inclusive). The shares received at company's share registrar office i.e Corplink (Pvt) Limited by the close of business on 22 October, 2010 will be considered in order forregistration inthe name of the transi 2 Members of the company are requested to immediately notify the change of address, if any, to the Share Registrar M/s Corplink (Pvt) Limited, Wings Arcade, I-K Commercial Model Town, Lahore 3, A member of the company entitled to attend and vote at this meeting may appoint an other member as his/her proxy to attend and vote instead of him /her. Proxies in order to be effective must be received by the Company not less than 48 hours before the meeting, 4, The members whose share are maintained on Central Depository System with the Central depository Company of Pakistan Limited should follow the guidelines for attending the General ‘Meetings and appointment of proxies as laid down by the Securities and Exchange Commission of Pakistan ment Under Section 160(1)(b) of the Companies Ordinance 1984. Material facts to be transacted at the Annual General Meeting ofthe company for special business of Petroleum Products. The management of the company intend to start new business of Petroleum Products of furnace oil & solvent oil and any other products of POL tobe traded in the market and hopefilly be beneficial for the shareholders of the company i) The primary objectives are to diversify the business activities in the bestinterest of the sharcholders ii) These steps will manifest the commitment of the directors towards the affairs of the company toa satisfactory level which will improve and strengthen the shareholders’ equity iii) The special resolutionsare required to be passed by the shareholders ofthe company in order to enlarge the scope of business of the company in the best interest of shareholders,y DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 ee DIRECTORS’ REPORT Dear Shareholders, 1 feel pleasure to present on behalf of the board of directors 22nd Annual Report together with Audited Financial Statements of Diamond Industries Limited to our shareholders for the year ended June 30. 2011 FINANCIAL ‘The financial results of the company are numerated below = Gross Profit(Loss) =Rs, (8,257,076) = Operating Expenses =Rs. (30,303,686) - Operating Profit/(Loss) =Rs, 5,334,440 = Profit/(Loss)beforeTaxation =Rs, (86,145,721) = Taxation =Rs, 4.632.544 - Profit/(Loss)afier Taxation =Rs, (81,513,177) AR IN REVIEW As reported earlier that the industrial activities of foam manufacturing unit in Gadoon Amazai remained suspended since 1997 and the company remained partially operational at its Chemical Unit at Lahore. The company made Other Operating Income amounting to Rs. 5,334,440/-comprising financial and non- financial assets and during the year under consideration, the Gross Profit(Loss) is Rs.(8.257,076/-) comparing to Rs.(47,205/-) of the previous year and Profiv(Loss) After Taxation is Rs. (81,513,177) as compared to Profit/(Loss) after taxation of Rs, (2,223,729)-) of the preceding year. With respect to the disputed issues of the stock exchange crisis of May-June 2000 there has not been any significant change and the matters are still pending before the Honourable Sind High Court and other courts of law. As regard to the disputes between the Allied Bank Ltd. and your company, the matter is pending before the Lahore High Court and details of the changes during the period is reported hereinafter under “Contingencies & Commitments”. Your directors are of the opinion that your company will ultimately succeed Inshallah in these disputes. They have also made a fair attempt to reestablish core business activities of your company RPORATE AND FINANCIALREPORTING FRAMEWORI 1a) The financial statements, prepared by the management of company present its fair & true state of affairs, the result ofits operations, cash flows and changes in equity b)_ Proper books of accountshave been maintained by the company ©) Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. d) The International Accounting Standards as applicable in Pakistan have been followed in preparation of financial statements, e) The system of intemal controls is sound in design and has been effectively implemented and monitored. {) Thereareno doubts upon the company’s ability to continueas a going concem. g) There has been no departure from the best practices of Corporate Governance, as detailed in the listing regulations, h) Key operating and financial data of last six years in summarized form is annexed. 1) The company is regular payer of all Government dues and previous record is quite evident and clearin this regard. 9DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 a VISION AND MISSION: The statement reflecting the Vision and Mission of the Company is annexed to the report EARNING PERSHARE: Earning per share for the year ended 30” June, 2011 is Rs (9.06) as compared to Rs, (0.25) per share for the preceding year. A REHOLDIN Patter of shareholdingis annexed to this report. BOARD MEETINGS: During the year fifleen Board Meetings of the company were held and the attendance by each director in the meetingis as under: S# NAME POSITION BOARD MEETINGSATTENDED 1 Mr. Wagar. Shaffi Chairman 07 2. Mr Shariq Ifitkhar Chief Executive 08 3. Mr Sohail Malik Director 08 4. MrMuhammad Sameer Director 08 5. MrAbdul Shakoor Director 08 6 Mr-HashimAslam Butt Director 08 7. MrZahoor Ahmed Director 08 BOARD COMMITTEES: The Audit Committee and Human Resources Committee are the standing committees of the board of directors, Audit Committee is constituted by Board of which the members are non executive directors. Audit committee is responsible for the reviewing report of the company’s financial results, audit and internal control. The committee recommends to the board of directors for the appointment of the company’s auditors and reviews their procedures for ensuring their independence with respect to their audit performance. The committee held four meetings during theyear ended 30° June, 2011 Human Resources Committee has the responsibility of administering manpower requirements of company; regularize safety measures and environmental stewardship. The committee also ensures all elements of compensation and welfare forall its employees, -ANSFER PRICING: The company has fully complied with the best practices on Transfer Pricing as contained in the Listing Regulations of Stock Exchanges CODE OFCONDUCT Our code of conduct is built on a set of shared values based on principals of honesty, integrity, diligence, truthfulness and honour,“1 DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 a FUTURE OUTLOOK The company could not restart its core business of foam manufacturing in the past which involved considerable banking facilities relating to import of raw materials etc, but were denied to the company by other banks due to the pending litigation/dispute with Allied Bank Limited and adverse effects thereof. So the company intended to embark upon new business of petroleum products and applied for registration with Attock Petroleum Limited Karachi for commencement of supplies of furnace oil & solvent oil or any other products of POL, However on the face of its cumbersome procedure and inordinate delay in registration it has been considered as unfeasible. Also the arrangements of marketing & trading of foam and other products manufactured by sister companies were by & far profitable and at arms length basis but these have been ceased because of certain tax policy changes introduced by the Government in its budgetary measures. In spite of these difficulties & obstacles your company shall utilize all its resources to continue the company as a going concem and directors of the company have cautiously decided in the best interest of shareholders to restart its core business manufacturing activities of foam & foam products for which much of the mechanical & electrical overhauling work and modification of machinery has been completed and the production is expected to start soon, AUDITOR: The present auditors, M/s Tabussum Saleem & Company formerly M.A. Tabussum & Company. Chartered Accountants are retiring at the conclusion of the forthcoming Annual General Meeting of the company. The Audit Committee has recommended the appointment of M/s Tabussum Saleem & Company Chartered Accountants as the statulory auditors of the Company for the year ending June 30, 2012, The Board of Directors has endorsed this recommendation. EPORT: With respect to qualification (1) of the auditors report, the board is of opinion that the auditors have not, appreciated the reality and facts of the issue/ dispute between Allied Bank Ltd. and your company. Itis stated that the amount of Rs, 120,366 million consists of two amounts (Rs. 100.366M and RS.20.0 M). The first amount was deducted from the accounts of the Company without lawful authority and the second amount of Rs. 20.0 M was amount of down payment made to the Bank which obligation arose out of settlement / agreement before the SBP Committee. The Bank for ulterior motives failed to honour its obligations under the agreement and is thus liable to refund the entire amount to the Company with interest as well as the Bank is liable to compensate the Company for the injuries caused, by itand the case filed by the ABL is false. ‘The amount of interest and compensation has not been quantified as yet and the Company prefers to \ait until the final outcome of the case before lodging its claim. The said interest / compensation has not been reflected in the accounts but the Board of Directors is of firm view that it will ultimately be held to be payable by the Bank. The question of making any provisions does not arise because the H'ble High court in its interlocutory order has noticed the agreement before SBP and the interlocutory order is witness of this fact. The stance of the Company further gains strength because of the fact that the CBR has now been directed by the ECC of the Cabinet to refund a sum of RS.200 M to the company as compensation in respect of the illegal encashment which amount has been realized in August 2008. The Board is of firm opinion that the outcome of the case will bein its favour. Lo O_o“1 DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 a With respect to qualification (2) of the auditors report, the board is of opinion that the amount represents cash due to the company but only withheld by the Lahore Stock Exchange because of an illegal order of temporary nature passed by the SEC on 12.6.2000 and thereafter the SECP has simply forgotten of its order. The amount is held by the LSE which is waiting fora final order of SECP. In view of the circumstances the Board is of opinion that there is no need for making any provision in this respect. In the light of information from CDC, accumulated profits of prior years have been restated to theextentof Rs. 24.5 million, With respect to qualification (3) of the auditors report, the board is of opinion that the auditors have not appreciated the fact that firstly the equity of the company shows positive balance of Rs.527.634 M \which transforms into a break-up value of Rs.58.63 per share, Secondly there are substantial current assets as compared to nominal current liability. The Company has sufficient resources to meet all its obligations and these factors perfectly indicate that the company will continue as a going concem. The company has undertaken major repair & maintenance of plant and has imported basic raw material for the production of foam & foam products to restart its operationsin the year 2012, As regard to qualification (4) of the auditors report, the Company is of the view that recoverable amount ofthe plant is more than its carrying value. Further the Company is utilizing all its resources to continue the company as a going concem and directors of the company have cautiously decided in the best interest of shareholders to restart its core business manufacturing activities of foam & foam, products for which much of the mechanical & electrical overhauling work and modification of machinery has been completed and the production is expected to start soon, ACKNOWLEDGEMEN The Board joins me to thank all the staff members and management team for their concerted efforts and contribution. we Forandon behalf of the Board SHARIQIFTIKHAR Lahore 07" October, 2011 Chief ExecutiveDIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Vision/Mission Statement/Corporate Strategy And Statement of Ethics & Business Prac sion To transform the company into a dynamic manufacturing organization to play a ‘meaningful role on sustainable basis in the economy of Pakistan in the best possible manner. Mission To conduct company business through good governance with responsibility to all our stake holders and foster a sound & dynamic team for maintaining professional standards and optimum use of resources while achieving the unique position in the market by meeting the requirements of high quality products for the customers. Corporate strategy To produce and market high quality products, consistently exceeding customer expectations, ensure right usage of company’s resources, create employment opportunities and protect the interest of stakeholders. Statement of Ethics & Business Practices a) The Company's policy is to conduct business with honesty & integrity and be ethical in its business dealings showing respect to all b) The company runs its business in an environment that is sound and sustainable. ©) The company complies with all laws & regulations and expects its employees to familiarize & comply with them as well. 4) The company does not support any political party nor contribute to the funds of any group whose activities promote party interests. €) The company is committed to the quality of its products and satisfies _ customer needs and expectations, £) The company believes in adherence to the principles of reliability and credibility in its, financial reporting and in transparency of business transactions. g) The company is an equal opportunity employer. Its employee recruitment and promotional policies are free of any gender bias and are merit oriented, It believes in maintaining good channels of communications h) The company expects its employees to abide by certain personal ethics whereby company information and assets are not used for any personal advantage or gain. i) The company believes in fair competition and support appropriate competition laws The Board of Directors has constituted the audit committee, to be supportive of compliance>) me DIAMOND INDUSTRIES LIMITED Statement Of Compliance ‘With the Code Of Corporate Governance This statement is being presented to comply with the Code of Corporate Governance contained in the listing regulations of Karachi, Latiore and Islamabad stock exchanges far the purpose of establishing a framewerk of good governance, whereby a listed comp any is managed in compliance with theb ect practice of corporate governance. ‘Theecrnpany has applied the principles centained in thecode inthe followingmanner 1 10. ‘The Board comprises of seven Directors including the Chief Executive The Comp any encourages directots representing mincrity interests on its Board of Directors, At present the majority ofthe Directors on the Board are non-executive Board includes five directors representing minority shareholders and the directors have confirmed thatnone ofthem isserving asa director in more than ten listed companies The resident direclors of the company registered as taxpayers, fas not defaulled in payment of any Ioan to a banking comp eny, DF or NBFI or being armember ofa stock exchangehasbeen declared asa defaulter by thatstook exchange, ‘TheBcard has developed mission and vision staternents All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms & conditions ofemployment of the CEOhaveb centelcen by theBoard, ‘Themeetings ofthe Board were presided aver by the Chairman and, in hisabsence, by a Director elected by the Board for this purpose and the Board met at least once in every quarler ‘Written notices ofthe Boardmeetings along with agenda were circulated at least seven days before the meetings and the cinutes of the meetings were appropriately recorded Officers having postions of CFO, Company Secretary and Head of Intemal Audit appointed afterthe implementation of the Code of Corporate Governance, their terms of appointment including remuneration areapprov ed bythe Board of Directors. The Directors Report for this year has been prepared in compliance with the requirements of the Codean¢ fully describes the salientattercrequisedtobe disclosed ‘The financial statements of the company ware duly endorsed by CEO and CFO before approvaloftheBoard The directors, CEO and executives do not hold any interest in the shares of the company other than that disclosed in the pattem of shareholding ANNUALREPORT 2611 1 ee. “| DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 1. The Company has complied with all the corporate and financial reporting requirements of the Code. 2 The Board has formed an audit cormmitiee and meetings of the audit committee were held at least once every quarter price to approval cf interim and final results of the company and as requirel by the Code The tems and reference of the committee haveb 2en formed andadv ised tothe committee fer cornplianee. 3. The Board has set-up an effective interim audit function who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of lie company anid they are involved inthe internal audil function on a fulltime basis. 4. Thestaiutory auditors of the comp any have confirmed thet they have been given a satisfactory rating under the quality control review programme of the Institite © f Chartered Accountants of Pakistan, thatthey crany ofthe partner ofthe fitm, their spousesand mincrchildren donothold shares of the company and that the firm and all its partners are in compliance with Intemational Federation of Accountants (FAC) guidelines on code of elinics as adopted by Instituie of Chartered Accountents of Pakistan. 5, The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines inthis regard 6. We confirm that all other material principles contained in the Code have been complied with For and on behalf of the Board we SHARIQ IFTIKHAR Chief Executive en ee1 ce DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 me Review Report to the Members on Statement of Compliance with best practices of Code of Corporate Govemance We have reviewed the statement of Compliance with the best practices contained inthe Code of Corporate Governance arepared by the Board of Directars of Diam ond Industries to Comply with the Listing Regulation No. 37 of the Karachi, and Lahore Stock Exchanges (guarantee) Limited where the Campany/slisted Theresponsibiity for campliance with the Code of Corporate Governance isthatof the Board of Directors af the Company. Our resnonsibilty is 0 review, ta the extent where such carpliance can be objectively verified, whether the staternent of Compliance reflects the status af the Company's campiiance with the provisians of Code of Corporate Gavernance and report if it does not A review is lirrited primarily ta inquines of the Company personnel and review of variousdocuments orepared bythe Company to comply with the Code. |As part of aur audit of financial statements we are required to obtain an understanding of the accounting and the internal contral systems sufficient to plan the audit anc develap an effectve audit approach. We are not required to consider whether the Boards' statement an internal cantol covers all risk and controls, ar to farm an oginion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks. Further, Sub-regulation (xii) of Listing Regulation No. 37 notified by The Karachi Stack Exchange (Guarantee) Limited vide circular KSE/.269 dated January 19, 2009 and Chapter X! of the Lahore Stack Exchange (Guarantee) Limited require te Company ta alace before the Board of Directarsfor their consideration and approval, related party transactions distinguishing between transactions cared out on terms equivalent to thase that prevail in arms' length transactions and transactions which are not executed at arm's lencth orice recording praper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the Audit Committee. We are anly required and have ensured compliance of requirement to the extant of Approval of related partytransactions hy the Board of Directors and p/acement of such transactions before tie Audit Committee. We have not Catried out pracecures ta determine whether the related party transactions were undertaken at arm's length price ornot Based on our review, nothing hes come to our attention which causes us to believe that the Statement of Complisnce does not appropriately reflect the Compery’s compliance, in all matenal respects, with the best practices contained in the Code af Corporate Governance as applicable to the Company forthe year ended June 30,2011 ATL wens Dated: October7,2011 TABUSSUM SALEEM & COMPANY. Place’ Lahore, Pakistan Chartered Accountants EngagementPartner Muhammad slam Tabussum(F CA) ee ee1 oe bh DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 Auditors' Report to the Members We have audited the annexed balance sheet of DIAMOND INDUSTRIES LIMITED as at June 20, 2011 and the related Profit and Loss account, statement of comprehensive income, statement ot cash flows and statementof changesin equity tagetherwith the notes forming part tnereot, for the year then ended and we state that we have obtained all the information and explanations wrich, to the best of our knaviledge and belief, were necessary forthe purpose of oureucit Itis the responsibility ofthe company's managementto esteblish and maintain a system of intamel control, and prepare and present the above said statements in conformity with the approved accounting standards anc the requirements of the Companies Orcinance, 1984. Currespansibilityis to exaress an opinion onthese statements based on our audit We conducted our audit in accordance with the auditing standards as applicable in Pakistan, These standards require that we plen and perform the eucitto obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts end disclosures inthe above said statements. An audit also includes assessing the accountng policies and significant estimates made by management, as wall as, evaluating tne overall presertatian ofthe above said statements. We believe that curauditprovides a reasonable basis forour opinion and, efter due verification, we report thel.- 1. As stated in notes 8 and 15 to the financial stetements, the company has not made any provision against balance dus from Allied Bank Limited in sum of Rs. 120.366 million on account of encashment of Bank Guarartee end payments againstrasettiament. The company's defending a sut filed by the Allied Bank Ltd in High Court, Lahore for the recovery af Rs. 253.6 milion ‘The Outcome ofthe case cannoli be determined presently. 2. Asstatedin notes and 16 to the financial statements, the companyhas filed an eppeal before the Honarable Lehore High Court against illo gal freezing of CDC sub account maintained with member Lahore Stock Exchange (Muhammad Tanveer Malik). During the year company received information from CDC regarding shareholding of the company in the light of which company found thet accumulated profits of prior yeers were understated by aramount of Rupees 24,557,848, whichare duly corrected by restatement 3. The company’s foam plantis closed since 1997 resulting into discontinuation of its manufacturing process. As the seid business process has been discontinued with out de-elienating any altemative. Contrary to this situation the financial statements have been prepared on gaing concembasis 4. Company revalued its assets as on April 2005, since then neither the companyrevalued its assets nortested for the impairment en“| DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 (a) In our opinion, proper books of aecounts have been kept by the company as required by the Companies Ordinance, 1984; (pb) [nouropinion, except forthe e fects of matters re ferredto in paragrepns 1 to.4~ 1) The balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and ere further in accordance with accounting policies consistently applied; i) The expenditure incurred curing tne year was for the purpose of the company’s business, and ii) The business conducted, investments made and the expenditure incurred during the yearwere in accordance with the objects ofthe company; (2) In our opinion and to the best of our informetion and according to the explanations given to us, the balance sheet, profit and loss account, statement of cash flows and statement of changes in equity together with the notes forming pert thereof conform with approved accounting standards as apolicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the company's affairs as at June 30, 2011 and of the profit, its cash flows and the changes in equity forthe yeartnen ended; and (b) [In our opinion, no zakat was deductible at source uncer the Zakat and Usher Ordinance, 1980 (XVIII of 1980), a Lahore, OctaberO8, 2010 TABUSSUM SALEEM8,CO. CharteredAccountants Engagement Pertner: Muhammad Aslam Tebussum (FCA) en eer oe A DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 Bae BALANCE SHEET AS AT JUNE 30, 2011 201 2010 EQUITY AND LIABILITIES Note Rupees Rupees Restated SHARE CAPITAL & RESERVES AUTHORIZED CAPITAL 12,000,000 Ordinary shares of Rs.10 each 120,000,000 120,000,000 ISSUED, SUBSCRIBED & PAID UP CAPITAL = 53 90,000,000 90,000,000 Un-appropriated Profit 437,634,642 503,510,731 527,634,642 593,510, 731 SURPLUS ON REVALUATION OF FIXED ASSETS 4 61,904,549 67,042,195 NON CURRENT LIABILITIES Deferred Liabilities 5 1,041, 855 9,005,182 CURRENT LIABILITIES Trade and Cther Payables 6 1,926,227 3,809,961 Provision for Taxation 7 535,171 753,859 2,461,398 4,563,820 Contingencies & Commitments 8 - - TOTAL EQUITY AND LIABILITIES 593,042,445 674,121,929 The annexed notes (1 to 36) form an integral patt of these financial statements_— q DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 Bae ——————————————————————————————— BALANCE SHEET AS AT JUNE 30, 2011 200 2010 ASSETS Note Rupees Rupees Restated NON CURRENT ASSETS Property, Plant and Equipment 9 110,515,998 19, 732,570 Long Term Investmnents 10 238,905,646 202,067,587 Long’Term Deposits un 197,445 107,445 CURRENT ASSETS Stock in Trade 12 22,959,644 - ‘Trade Debts 13 - 41,747,098 Loans and Advances 4 5.986,494 1,523,976 Other Recerables 15 162,410,837 162,410,837 Investment -Available for Sale 16 51,400,559 43,763,126 Cash and Bank Balances iW 655,822 678,092 243,423,356 262,124,329 7,636,833 503,042,445 674,121,929 ‘The annexed notes (1 to 36) form an integral part of these fnandial statements re team Chief Executive Director Lo Os@ DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 Bee PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2011 oon 200 ee ‘Restated sates aie 8 wes asaarors COST OF SALES 19 (8,417,036) (132,219,279), GROSS PROFIT / (LOSS) (8,257,070) (7,205) DISTRIBUTION COST’ 26 @,010)| 522,57)] ADMINISTRATIVE EXPENSES a (29,678,942}| (8,996,566) OTHER OPERATING EXPENSES 2 (364,734) {340,000)] OPERATING Loss OTHER OFERATINNG INCOME / (L039 2 Lsasusao| L_sye2ase Gis) GEG) (G372652) 4005 90) iantce cost ™ Grass Boa; aan aikeial our [com Ormco 6291560, 13mg PROFIT / (LOSS) BEFORE TAXATION (86,143, 721) (2,687,343) {TSKALION oe 2 aH) [aaa] -Shawe of Tax of Associaed Companies [342,470] (296,296] asian, asa PROFIT / (LOSS) AFTER TAXATION, 513,177) (2,233, 72) UNaPPROPRIAT=D PROFIT BROUGHT FORWARD soysw.751__s60,775 421,997,555 400,446,046 TRANSFERRED FROM SURPLUS ON REVALUATION OF FIXED ASSETS 7,908,074 8,651,855 7 460,107,001 UNAPPROPRIATED PROFIT CARRIED FORWARD 425,90, Profit / (Loss) per Share Basic 2% 9.06) 028) ‘The amexed notes (1 to 39) fom an intepsal pact of these financial statements| le DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Ee STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 2011 2010 Rupees Rupees Restated LOSS FOR THE YEAR (81,513,177) (2,223,729) OTHER COMPREHENSIVE INCOME Gain arising on re-measurement of available for sele investment 7,636,833 6,307,783 TOTAL COMPREHENSIVE INCOME FOR THE YEAR (81,513,177, (2,223,729) The annexed notes form an integral part of this financial information, Chief Executive DirectoreS DIAMOND INDUSTRIES LIMITED ANNUALREPORT 2011 STATEMENT CASH FLOWS. FOR THE YEAR ENDED JUNE 30, 2011 ou 2ni0 Rupees Rupees (CASH FLOW FROM OPERATING ACTIVITIES Restated Prof / (Lan before tation (25,280,069) (4pr7 2) “Adjustincat for Non Cash and other items eretiien ozigs2 19,157,386 Finance Cost a7 87 Peovision Foe Gratuity 1.288 sues. Dividend Tneome 63¢440) ago) Unrealized (Gain)/ Loss on Re-measurement of Investment in a = a29806s) TERGued Cin ormeiciawenever mesamctlaaidired meee : sm) Gin on mle 96 Property plat aid pipet : (ora Cash Flow Before Wosking Capita Changes Dw aa485.57) Working Capital Changes (increase) /Decrease in Current Assets Stock in Trade (22,959,644) - Trade Debts 47,747,098 62,699,467 Totnean’ Alvancse Lene 193017000 Other Receivables <__Go75,00 26,924,936 130,571,527 Increase /(Decrease) in Current Liabilities ‘Teade and Other Payables (1,883,735) 27,014,575) Changes in Working Capital 24491 204 93,626,952 Cash Inflow / (Cut Flow) From Operations G3a70 754.378 Ceatuity Paid 190,804) Income Tax Paid (753,389) (226,457) Finance Cost 747) (3347 Net Cash Inflow / (Out Flow) From Operating Activities (GB47510) 78,710,770 Lo OsCASH FLOW FROM INVESTING ACTIVITIES DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Sales Proceeds of property, plant and equipment : 1,192,999 Dividend Received 5,334,440 929,991 Increase in Long Term Deposits - 39,343,200 Increase in Long Term Investment : (141,911,999) Net Cash Flow from Investing Activities 5,334,440 (100,445,809) CASH FLOW FROM FINANCING ACTIVITIES Dividend Paid 7 . Net Cash Flow from Financing Activities - = Net (Decrease) in Cash & Cash Equivalents (12,870) (21,735,040) Cash & Cash Equivalents at Beginning of the ¥ 678,692 22,413,732, Cash & Cash Equivalents at End of the Year (665,822 678,692 ‘The annexed notes (1 to 36) form an integral part of these financial statements Were o Chief Executive Nc DirectorANNUAL REPORT 2011 a uw = = a a = mz - a > a = a z So = = a TORTS ses'nestc uote 18196 ree! Te sscunc'9 wea’) set's sous srcuss'¥ suwtoss'ees (Goode sowaua oy TOR ruottncte setts ssc anna Je THRO, RPE ToT ceeoes'e 18196 ssoreree wre secur (ud) sustoow'sc - 0'oao'06 (adm aoe er Thoz ‘oe ANAL GHQNA UVAA THL YOA ALINODA NI SAONVHO JO LNAWALVLS22 23 DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 a NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2011 STATUS AND NATURE OF BUSINESS The Company was incorporated under the Companies Ordinance, 1984 as « Private Limited Company on jane 18, 1989 by the name of DIAMOND INDUSTRIES (PVT) LIMITED and converted into Public Limited Company on 3rd August 1994 by the name of DIAMOND INDUSTRIES LIMITED. The shares of the company are quoted on Karachi Lahore and Islamabad Stock Exchanges The registered office of the company is situated at Indust Estate Gadoon, Amazi, Swab, Khayber Pakhtoonkliva. The principal installed stvty of the company is to mannacture and sles of foaen, foam products varios industrial chemical / cence hinders used in tet, leather and wood industis SUMMARY 01 SIGNIFICANT AC COUNTING POLICIES Ba of Preparation These financial statementshave hoon prepared tinder the historcslcost convention except for Building Pant & Machinesywhich i stated on seve atncunts and staff retirement benefits which have been recognized at present value determined by the actuary Statement of Compliance These financial statements have been prepared in acconlance with approved accounting standards os applicable in Pakistan and requirements of Companies Ordinance, 1984. Approved accounting standards comprise of such Intemational Accounting Standards a¢ solified under the provisions of the Companies Ordinance, 1984 Wherever, the eguisements of the Companies Ondinance, 1984 oF licetives issued bythe Sees and Exchange Commission of Pakistan differ with the rquirementsof these standard, the requirements ‘of Companies Ordinance, 1988 oF the roguiements of the said directives take the precedence. Significant accounting judgments and The prepatition of financial statementsin conformity with approved accounting standards requises the use of certain cial accounting «states Ie ako requiresmanagement to execieits gent in the process of applying the Company's accountingpolicics. Estimate and judgments ate continullyealuited and axe based on historic experience and other factors, inchiding expectationsof future events tha ate Inlicved to be resonable under the cncumstances Tn the process of applying the Companys accounting polices, management hse made the following estimates and judgments which are significant tothe financial statements, These accounting polices have been consistently appli fr al the years presented unless otherwise stated ‘Staff retirement benefits Cerin actuarial tanptions have been adopted as disclosed in note 51 to the financial statements far valuation of present vue of defined benoit obligations Proper 5 plant and equipment The company reviews the value of asets for possible impairment on an annual basis Any change in the estimates in future years might cifet the remaining amounts of respective items of property, plant and equipments with a corresponding effect om the depreciation charge and impairment. In making the estimatesfor income tases payable by the Company, the management consderscusrent Income Tax law and the decisions cof appellate authorities on certain cases issued in pat. “1NA DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Standards 24 Changes / Amendments in Accounting 24.1 Amendments to published approved standards that are effective in current year and are relevant to the company The following amendments to published approved standasds are mandatory for the company’s accounting periods beginning: on ‘or aftr 01 July 2010; Ameadmes International Accounting Standasd (LAS) ), ‘Presentation of Financial Statements’ (effective for annual periods beginning on or aier 01 January 2010), ‘The amendment provides clarification that the potential settlement of « Habiity by the issue of equity is not rlevant to its classification as current oF non-cursent. By amending the definition of current Kibily, the amendment permits lisbilty to be classed as non-cuctent (povided that the entity has an unconditional ight to defer settlement by transfer of cash or other assets for atleast 12 months after the accounting period) notwithstanding the fact that the entity could be required by the counterparty to settle in shares at any time. The application of the amendment does not affect the results or net assets of the company asi is only concerned with presentation and disclosures, LAS 7 (Amendient), Statement of Cash Flows (effective for anaual periods beginning on or aftr 01 January 2010), The amendment provides claifietion that only expendituec that results in a recognized arset in the balance sheet can be classified as. cashflow from investing activity: The claifiction reslts in an improvement in the alignment of the classification of cash flows from investing activities in the cash flow statement and the prescataion of secognized assets in the balance sheet. The pplication of the amendment does not affect the eauls or net asets of the company as its only concemed with presentation and disclosures 2.4.2 Interpretations and amendments to p company ished approved standards that are effective in current year but not There are other new interpretations and amendments to the published approved standards that are mandatory for accounting, periods heginning on or alter 01 July 2010 but ate considered not to he relevant or do not have any significant impact on the company's financial statements and are therefore not detailed in these financial statements. 2.4.3 Standards and amendments to published approved standards that are not yet effective but relevant to the company Following standards and amendments to existing standards have ben published and ase mandatory forthe compauy's jods beginning on or after 01 July 2011 or later periods IFRS 9 Financial Instruments’ (ffoctive for annual periods begianing on or afte 01 January 2013), This standard is the fr tcp ia the process to replace LAS 39 Financial Instruments: Recognition and Measuiemeat’. LFRS 9 introduces new requirements For classifying and measuring financial astts and is likely 1 aflet the company’s accounting for its financial asses IFRS 7 (Amendment), ‘Financial Instruments: Disclosures fective for anmnal periods beginning on or after 01 July 2011), The new disclosure requirements apply ta transfer of financial assets. An entity transfers financial asset when it transfers the contractual sights to receive cash flows of the asset to another party. These amendments are part of the LASBs comprehensive review of off balance sheet activites. The amendments will promote transparency inthe reporting of transfer transactions and improve user? understanding of the tsk exposures relating to transfers of financial assets and the effect of those sks om an catitys financial postion, partculay those involving securitization of financial asst. The management of the Company is ia the process of evaluating the impacts of the aforesaid amendment on the company’s financial statements IFRS 12 “Disclosure of Interests in Other Entities (effective for annwval period beginning on or after 01 Jansary 2013) IFRS 12 applies to entities that have an interest in subsidiaries, joint arrangements, associates or unconsolidated structured entities IFRS 12 establishes disclose objectives and specifies miaiznum discloaures that an entity aust provide to meet those objectives IFRS 12 requires an entity to disclose information that helpe wser of it Financial statements evaluate the nature of and risks associated with its interests in other entities and the effects of those interests on its financial statements, The suanageiment of the company is in the process of evaluating the impacts of the aforesaid standard on the company’s laancial eS7 DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Pree IFRS 13 Pair Vale Measnrement (fective for annual period beginning on or after OL Janay 2013). IFRS 13 establishes a single Framework for meas cial items measured at fair valve Fair vac is defined asthe price that would be recived to sell an asset or pil to transfer 3 lability in an ordely wanssction berween make paticipants at the measurement date. The management of the company is ia y's financial statements, 12 fr value where tha is requzed by other standards, IFRS 13 applies to both financial and non he process of evaluating the impacts ofthe aforesaid standaed an the cam TAS 1 (Amendments), ‘Presentation of Financial Statements (fective for annual periods beginning on or after Ol July 2012). I lates that an catty will presenta analysis of other comprehensive income foreach component of equity, either in the statement of changes ia equity orn the notes to the financial statements "There ate other amendments resulting from annual improvements project initiated by Intemational Accounting Standards Boast in May 2010, specifically in. TFRS 7 ‘Financial Instrumen ets and TAS 24 "Related Party Disclosures’ that are considered relevant to the company’s financial statements These amendments ace wlikely to have a significant impact oa the compaay’ financial statements and have theeefowe not becn analyzed in detail Disclosures 1AS 1 Presentation of Financial 2.44 Standards, interpretations and amendments to published approved standards that are not yet effective and not considered ‘There are othee standards, amendm accounting pedods begianing on or after Ol July 2011 but are consideyed not to be zelevant or do not havea vents and are therefore nok detailed in these Financial statements 1 o published approved standards and new interpretations that are mandatory for significant impact con the company’s Financial stat 25 Property, Plant and Equipment Property, Plant and Equipment except lor leasehold land ae stated at eost or revalued amounts less accumulated depreciation and Jmpuiement loss if en. Depresationis charged to income applying the reducing balance method adhe rates given in Note 9. Depreciation on ations is charged feom the month in which the ase become avalable for use while on disposal depreciation i charged up tothe month of disp Residual anes ace determined by the managem cavipment if it wore aleady ofthe age and in the condltion expected a the end ofits wef life based on the prevlingmarkst pacesoF similar assets aleady at the cod of thei ul ie s the amount it especsit woul! recive curentiyfoe the tem of property plant and efi fies ae detemined by the management based on expected usage of the ase expected physical wear and tas, tehnicaland commercial obeolescence and other simile factors. Gains or losses on disposal of fsed assets ae eecopnized in income. 26 Investments ‘The investments made by the company are clasifed foe the pupae of measurement into the felling catego: 8) Held © maturity Iavestmentswith fixed maturity thatthe managementhasthe intentand abit hold to matuaky ae casi ae held to mata and ate inal eased atcost and ataubsequent reporting dates ensured a amortized cox sing the effective yield uthod, 1b) _Imestment in associated companies “Long team investments in ssscised companies at valued sing equity eto, ©) Available for sales a fair value through profit or loss Lo O_o“] DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Bred Tvestrens avilable for slesatFairwahethongh profit orloss arent measired at ent, bent she fat walucof considerationgien Ar subsequentepoetng dates, these Investmentsare remeasure at fir valve (quoteelmarks prc). Realized and watealized gaasacl Inssesatising som thechangesinfirvalue ac include the netpeolcor lossforthepesiod in which they aris, lnvestmacrisinterdio beled for lessehaa nvee months fom the bance shove date areincladed i eurentassesall otherinvesunentiaeclisifedas 200 ‘unrentassts Management deerinesthe approprate clssifiarionof its investmentsat thesime of the purchase and rece designation peioical Allpurchassanel solevotinvestmentsaze recognized en dhe tal dae which fs dhedte thie the company conus w> purchaseor sellthe investment, Cov of purchase includes trstaction cet Areach oportiagdate, dhecompany reviews the caryingamouns of thelnvestmenttaassesswhether there is sey indication that such investmentshave sufTered an impatrmentloss. I ny such ndicacnests the recoverable amounts estimatedinoxder to determinethe ‘stentof the impairment loss if any. Impasmen losses rexognied as expense. Where an impaitmers loss subsequentlyreverses, the ‘aryingamount of theiavesimentis incrcaredeo dhetevsed tecovesable amount imitedto theesteatofiatalcost of the investment \ reversal of the impairment lassi ecognized in incor Other Lavestment Ofine incestnnts made in unqote companiog ate receded a ie cox va, 27 Stock-in= ‘Trade "These are valu atlower of cost an net realizable value, Cos is determined ay follows: Raw Maeda Weighted Average Cost Work ia Process and Finished Goods Average Manufacturing Cost aed Not Realize valu Net ealizahlevalue signifiesthe esimare sling prices the ondinay course af businecless ens necesarsto be ineurred inorder 10 make aside 28 Stores, Spares and Loose Tools "Thescere natedat lower of cost and net reizablevalue. The cos of inventory isbased on weighted average cos. Ktemsin transiaze seve t cost accurate to balance sheet dite 29 Financial in Firancialasessand Stancilishiesaze recognized when thecompiny becomes pety to thecceratudl provision of theinstrumems The partes measurements method ape are dsclese in te inva policy stments associated with cach ite, 2.40 Trade debs “Trade debits originated by the company are recognized and cared at origi invoice amount less.an allowance for any uncollecible amount. Aa cainated for doubiful dds is made When collection fllarncuat iso longer probabl. Bal debts are wetten off 35 incuned and become bad in actual sense 21 Cash and cash equivalents Cash and exshecvlents ate ceri nthe lance shee ut cost Ror the purpose oF eash law statemens each and cash equvalents ‘comprise of cash in hund and bank talinces, 242 Taxation Current CCusge for curse asaionis based on taxable income t current ratesafertukingintoaecouneall ax ers and ebatesavalabiit any Incase of fos minimum tax Labiyis provided inheseaecountsbased oa Labiltywosked out underscction 113 or undersectioas 154 and 153 ofthe Incame Tax Ondine, 2001, whichever of chee abit i higher | >. _|“d DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Bred Deferred Deferred tas is aecoumed for using the balance sheet Laila method in espece Fall taable tempornty differences atti from Aiferences between the exteying amount of assets listen the Enanci tatements and the corresponding tax bases used in the ‘ompiraton of thetsable prof, Defered tas labildesare ognized for all stable emporayy diferencesand defered as assesare reengnized tothe exten tha ie the probable that iaable profits wl be availble apne which the deductible temporary dfferescst, used tax loses and tax ees es be ied, Deferred ts iscalculaedatthecates that are expected toapplytotheyear when thediferences evertcbasecl oa the tates thathave Reveniae Recognition Revenue i recognizedon dispueh of goods Dividend incomen equsyinvestmensss ognized asincome when the ightoF receiptis nied Tate iach i oan 6 88 ee properties Ul 2.14 Retirement Benefits “The company operates sn unfunded and unapproved gray scheme for semplenees whichis x defined beactc plan based upoo the Iaeteslarydenvn by anemploree, Presenevalie of defined heaelitabligatin ieedleaated on thebass af acruatalvauaton at the end oF the yea, The valuttna in these acruns is worked out onthe Prgcted Unit Credit Auer Cost method bass Acsuaralvalution of defined lenefescheme was eondaced to caleaitetheaeturi prevent vlue of gratuity oblygation as at Jue 30, 200, The valuationsesproiected uniteredt method and a discouatrae of peeannur. Itasumes thatsalares wlincresseby 11% person, Ackil pu wil Vos ae tuned Ske elie WN. Wie Aba SOGSiNGARde app ne TASAD "eiplapee neti’ 248 Provisions Psi as Sage Rie Spey Ha lp gS cn Tale it ‘outflow of rescurcesembodving economic benefits wil be required to seethe obligation and ae nate 246 Borrowing Cost Borrowing coss ate recognised! as an expense in the peri in which they are incurred, except to the ester that they are dircey arabumblew the cosstuston of a qualiing suet in whieh eae teyavecapiabzed as par of the cont of tha asset, 24 Foreign Cureney Translations All monetary asets and ables in foeci cureencesare translated into runces ax exchange ites peevaling a the balance sheet date Transactions in foreign currencesare tasslted iu rupees atthe rte of exchange approximating these prevaliag on the dates of sevmmtians Eechange pple ued inven ate inred the pend Rove nccount carved 28 Related porty ramsactions All anc with te paitce ast aise ou bythe Cosas at an prices sing he niche panel wade the Compenies Ordinance 1984, 219 Loans, Advances and other Receivables ic kh Sess an aes hy a eat ebicusy UaRNUR at am ea 2.20 Leng Term Loans and Short Tetm Borrowings ‘henna ant borsovingt ar inidallyecorded rhe tie proverds are cece and subieequcnit monieed Gent Fim cerges ne risdand scconneel for oa accrue bic and 1 vther added to the earyingamount of theinsirumentaOt iacued in the creditors ininzunpaid other lbildistotheextentof the amoune rem : change in and losis (any) ansingia TeNpeCtof loan a borrowings in 221 Trade and Other Payables Lidblitcsfor trade andl other amounts payable a carsed at cost which isthe fair value of she consderatinte he pil in the fururefor som and services reece whether orn biel He eon Lo O_or bh DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 222 Impairment The carryingamounts of the company’s asets ae reviewed at each balutce sheetdate to determine whether thereis any indicaionot inpeitmers. I any suchindicaoneniss theassetsrecuverbiearncanti esti and impairmentlossesaececognizedin the profitand 20 2010 3. ISSUED, SUBSCRIBED & PAID UP CAPITAL Rupees Rupees 00,000 (2908: 190900) Ordinary Shares of RS10/- cach fly paid cash 10,000,000 10,000,000 $000,000 C08: 800,008) Onna Shure of "Re10/- each paid at om shaves £0,000,000_ __8,000,000 90,000,000. — 9,000,000 BA 142, 4511 No'S 200% 1,422,45)NO'S) Oxdinary Shares of Rs, 10/~each were held by Assodated Company (Stati Chemica dusts the year ed, a a 4 sous ow neve orem ase ee acy oa 30,909,733) (33,576,160) GLIO4SI9 67,042,196 AA Revalationof Buidlingand Plast & Machinerywas easiedout by M/S. Dimen Associats(Pv) Ld on Nae 01, 205, Revaluacionof Rwalpirel Balding was curied out by Hamil Mallar and Co (Pvt) Lil on Apa These sets were reviled on thebusis of currentreplacemere vahie Revalustionsurphiswis erected t simpson rvalation of Fixed Assets, 5. DEFFERED LIABILITIES Gaatuity- Defined benefit plan Es 703,887 390002 Provision for Deferred Taxation 32 337,960 864,390 081,856, 9,005,182 54 GRATUITY "The amon recognized in the financial statement are deteemined as follows SL 703.887, 5.11 Reconciliation of Amounts resogaized in the balance sheet Present value of untuaded defined benefit obligation 522991 174,080 Acar gain / Qos) changed co curteat profit acd loss 21136 56,7 Bests Payal 150.760 150,760 ‘Liability in the Balance Sheet 703887, 390,02. ‘The amounts recognized inthe profit and loss account seas follows ‘Current servic cot / peewision fo the year 302254 1874 Tnteres cose 2080 am Actunsl gin eecogivd “Total included in salasies benefits Sat estr A DIAMOND INDUSTRIES LIMITED Bred NNUAL REPORT 2011 Movement in lability recognized in the balance sheet Ae the beginning of the yea 174,080 386477 (Cutrent sevice cest 302,234 18374 Liability taser to other yroup Comoany - 94.809) Benefits duc bu 0 pid 5 : Acwaral (gi) /lesseschagged to curren profitand less a abewe 2587 3204) Interest cost fr the year 2.890. 2771 Present value of unfunded defined benedic obligation 322991 174,080, The principal uewarial assumptions usel were as follows Discount rate 1" 12Yoperannum Expected rae of increas in salary Bperannum Al per annum Average expected remaining working ile of employees ‘4years 4 years 52. PROVISION FOR DEFERRED TAXATION Deferred Taxation Liability Comprises oa Followa “Tasable‘Tesaponrydlfrences Accelerated Tux Depreciation Allowance i ‘Darductble Tanproary Ditfasences Provision fir Doubtful Debs moms 398028 Provision fur Ganity 245,560 136,711 321,275 079,739 Total Table Temporary Difference 78,749,964 3,016,950 ec: of Accumulared Tax Losses 18,991,995 21,400,370 33790 8644 580 2011 2010 Rupees Rupees 6 "TRADE AND OTHER PAVABLES Coeds 1oss.267 3204039 Acerved Lisilies 06,816 wa,378 Sales Tax &¢ FED Payable : b Ueland Dividend 452,544 42,544 126227 3,808,961 7 PROVISION FOR TAXATION ‘Opening Balance 753,859 87,407 “Tumovee Tax 1,500 66,866 Tncome’Tis on dividend 533,571 92,998 Adjustment agains: Advance Income Tax 753,359) 437,407 535,71 aE 8 CONTINGENCIES AND COMMITMENTS ; anennnnr eRe DIL Vs Noscer Ahmad ete Citiaa! Oli [No24/2003) & Claim of Rs.477 million (1,033.78 tons) & Mackeup Ihecompany balled a eaimof Rs.477 milion (12033,7Stors) plastagk-up on accountoF one dimeccmpensscnin terms of E.CK besos. The Hoaounble Supreme Couet of Pakistanalio accepted Civil Appeal No. 03/1990 in favour of the corapany vide is Judment cated 05-06-2000, However, theCBR did nor implemen the sai jadgment in tterand spt arc consequereh the Compacy ‘led the apron Contemp Pettonagainstte Members of CBR, The salpetiicn was dismissed for non-prosceutionon 11220 and ow a restorsionapplicationof dhe same spending adjuceationbefore dheHonourable Suprene has valid Chim of Rs1,053,165.00/- aso 17-08-2008 which i pending > ouet of Pakistan. TheCompiny 70N,OKY/-agunst prinipaland RSS16,165.00/ in leu of ma-up)| DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 1 ‘HIGH COURT OF SINDH AT KARACHI a First Capital ABN Amro Equities ete. Vs Iftkhar Shafi ere. (Sait No, 808/200) ‘M/s: Fest Capital ABN Arno Faiien Pakistan) Lad ate; «Suit for Recovery oF RaS62,244,051, agin’ Me. Fike Skat ard five bers including this Company: The suid eas is penning adjudeaton before the High Coute of Sindh at Karachy inwhich theissueskwvebeen famed and nov the pibcendingy of te eiieanent tha ange of dent b, DIL Vs Adf Habits and others, (GuieNo 480/200) "The Company fled a Sut for Dedaraion,Injunctionand Recovery of Damages amounting Rs 10,989,948,199/-aguinst Af Hab and ouhers whichis pending There is ro material change having taken place'in the status of the ease during the year under review ‘&, Aqeel Karim Dhedhi Securities Vs Hlchar Shatf etc (Suit No 607/2003) M/s. Agel Karim Dhedhi SecurtisPat. Ld fled suit for Recon ing this company which is pending. There is no materia chan mounting eR 80,297 282/-agains¢ Me IlkharShai and ethers in the sts of the ease danny the yeat unser review d. Muhammed Hanif Moosa Vs Ifthe Shaff ete, (SuieNo. 845/200) Muhanad Hanif Musa Ex-Member KSEE fled a Suic for’ Declaration, Inaneion and Recovery of Damages amounting RuA47,587,159/. aging Me, Iikbar Shafl an fve othersiacludingehis company: Sut is peading adjudeasion an no material change ina cee in the satus of the Gave caving the year andr rvieas Mm, LAHORE HIGH COURT LAHORE, a, DILVsSECP and Others. (Commercial Appeal No, 13/2002 “The company filed en appeal before the Lahore High Court Lahore agsinstilozlfreezingby SECP of company’s CDC sub Account imainniined with Mr. Taavir Malik (Member IE), The eases stllpencing adjudication before the court and nochange in he statashas ‘occurred b,Dilete, Vs Lahore Stock Exchange ete. (Civil Revision No.1847 of 208) "The Company flee RevsionPebtion ayninstan interim onler of the Cl Judge Lahore pasted in Cail SuitNo. 297/003 whereby CDC Suh AccountNo. 684 of the Company maintainedvith Muhammad Tanveer Malik (Member LSE) was attichedand the company ‘was restninadrom operating the sme, Thescid revsionpetionis sill pending adjudication before the Honoursblel.abnre High Court, Lahos €. ABLVs DiLete. (COS 18/2005) Alice hank Lined filed a Suit for Recovery of Rs, 2536 Nilicm againstthe Company and others,"TheCompany fled an Applicaton for Leave to Appearand Defesd the Suirand made a Counter Cais cothetuneof Rs121,366,528/-from ABL. The honorable Labore High Coure was plemsesto aeceptthe PLA and granted enndtional Leave to app and defend the sitsubject to deponit of R&TRORG, rnllion with the Deputy Regier Judicial of the Lahore HighCourt, Lahore vie Onder dated 17-01-2007, TheCompary was aggrieved by the condo imposed by the Court since it as enseled for an uincecltinal leave to appear and defend the sit; Consequently judyment and decree Was passed against the company which Was challenged inthe following appeal betone the divsion bench of the Lahore High Court. The appeals ill pending ak DiLete, VS ABL (REA31/2007 Phe Company and etherdefendans ba before the Dwvision es preferred a Regular Fist Appeal No, 431/2007 aguinstjudgment/Deeree dated 17-10-2007 hore High Court ny subject to deport of R430.3432 tlion wth the Depury Regivtea (Judea) of Lahore High Count ch of Honorab hore and on 02-07-2008 the HonorurableDmiscn Bench Was pleased stay the Execution Procee Labre, The Company ha albecy depolied the aid amet with Deputy Regltres jutichl ‘The RespondentBank challengethe said order dazed 02-07-20 before the Honourable Supreme Courtof Pakistanthough CPLA 916- 12008, The Company stoaglycontestad the caseand consexuenthythe CPLA Was dismisses by the August Court vide itsorder dated 10-DIAMOND INDUSTRIES LIMITED “The proceedings of RFA are stil pending adjtiation bere the Honourable Division Bench of Labore High Gout, Lahore & DILYS ABLete. (COS. No.9/2009, “The DIL as filed asuic foe Declaration and Cancellation of Forged Documents againstthe Aled Bank Limited beforetheSingleBench ff Honourable Lahore High Cour, Lahore, Thesaid documents Were prepared and used by bank in ease til as "ABIL vs DIL ete” (COS. No. 18/2008), Thebank has fed an Application or Leave to Appear and Defend thesuitand DIL bad also filed a sepbeationio the std appleation, Now the proceedings are pending foe arguments on PLA. £ DILVs Province of Punjab ete (Wis Peston Nos4469/007 Peco! 2001-2002 and 2004 2005, "Th Te lene late lal poecb oF Profeteonal Tax forth ommpary fled an sppeal efore Director(A ppeas) Excite &¢Taation, which wns dismissed ice order dated 6-13-2007, The company chilled the said clismissalorder ind the Honourable Coure was pleased to gran: statusquo onler in favor of the Company. Lateron, the Hi Cour was pleased to dispose ofthe wit postion while directing the espondentdepartment to boll am inquiry and submt a report ro the ueable inwrit petition (Cour: within one month, Tae proceedings ofthe inquiry are under process Vv. (CIVIL. COURT LAHORE, 8, LSE Vs Ifkchar Shath ete, Tae Lahore Stock Exchange (G) Limited fled Suit for recovery of Rs 190,704 373/-aginst Mr. Iftikhar Ahmed Shafi and 5 others includingthisCompuny; The matter isstil peading adjudication before Civil Court, Lahore and thereis-20 changein sttussince thelast sonal eport. 1h. Aslam Matinala Va Lahore Stack Exchange ete Aslam Motivala fled suit No.S61 in 2003 agsingtLahore Stock Exchabgeand to others including /s Diamond Indastses Lid The Jesse (Sil Jodge han Enrned luce is the Stl aad now the procesting the cae ee prodiagal be sige of eee 6. Nacem Anwar Vs Iitkhar Shafi ete, Nacem Anvar fled a Suit or Declaation Damages and Recovery of R&19.9 milion against Me, Ifikhar Shaffi and other defeedanes including dis company: There is no materal change in status of proceedings since the last annual report, Commitments There ls 99 coramitment in respect of oustanding Letters of Cees ANNUAL REPORT 2011 |& & oe S = ig 4 4 Zz 2 Zz z a ‘aoe sont sot simpy TOTES aieery lestass'se fsrrsezo) rwwe rs gsae esco1r ost foeca oz ss son: oz wese ane | OE aH } Meeeniey P39 dar > § | i0%T neq won viowaaad NOIEVATVAaH/ES OD TORFTT [eT peaTTS | TEREOT SHORTT SHRUTI reves |zov'eorz | osster - zomer | vo feces | - savtn'2 suvsto — foss'zr'e | osty : cesar | var feceswo'r | - ea'ao'r somiqy pursing ocestt — ovconmic | eastez - wpe | ve |orvra'e | - rrs0'e sajna] voesers — |zastesz | sors : ssrzo: | var |oowstcer | soesicz | rorwoyy- Gounpeyy pur ira oseonies |rorosies fomer's | secant | ot sseoinest | weed -Somipeiy poe mnt osesszor [oss'aorez [ew'awe | - ustase | vs fooseoces | - costes ue prnane ot oposzs's | - : - ooseso | oon's'9 ‘part pio 26-7 oes 908 | — Te a wo | tor wesvoniy | vere | omaos | swosme [owu | ee aunr sevaTouaval NOrivisawaa@ NOIEVITVAaW/ES OD asc POUR auowdinbsy puy swig Sado 6| DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 2010 Shot Chemical Indastias Lint Autited 326,254,726 111,207647 227,047,079 136,894,935 93,175,958 resaiee Diamond Poymer oe ‘Autited 207,270,114 864,878227 182,501,887 85,280,877 02,288 10.1.3 The reaverble amounofiwestners inequity meted aexoured br assocatedcompariesare ihe tha scaring value ar resutatijnoiepalmortoss hasbeen incrpraain hos inancal statment 2011 2010 Investment at cost Rupees Rupees Diem Bradt rite inital ¥7712,000 17,712,000 885,60 share (29102 °Nit})ontinaey shares of Re 10/- sch Equity hell, 15.25% (2010-'Nil 2 ate: iat 14,400,000 —14,90,000 20,048) shares (210s Ni) ordinary shares of Rs. 1D/- each Exuty hed, 15.25% ( 2010-'Nit ia) Entice ria! intl 72,000,000 72,000,000 1,800,000 shares 2010; Nil) ordinary shares of Re 10/-each Equity hel, 1 10 Ni? dct Prt) Limit 37,800,000 37,800,000 1,890,0 shares (2010: Nil} ordinary Eguty hell, 15.25% (2010-'Nit T9200 14,912,000 i LONG TERM DEPOSITS iy Deposits ays 197,445 12 STOCK IN TRADE, Raw Materials 23,421,192, 461,548 Leis: Peovision for show moving stock $51,548) (461,548) 2,059,644 5 Finished Gocs - Dae 13 TRADE DEBTS ‘Caneel pea a7.013,143 Considered doubeful 34490757 34,499,752 34,4997 61,512,891 Leis: Peovsion for doubt debts 3,499,787) __ (13,765,793) ATT OS Act June 30, 2010. trade debts of Rupees 61,543 milion (lune 30, 2009: Rupees 25.790 milion) were past due but not Impaired exceptto the extent of provision made here above Uptoone month More than sie manths 34,499,757 __ 61,512,801 34,499,757 _ 61,512,891 2011 2010 14 LOANS AND ADVANCES. Rupees Kupees Advances to Employees (considered good) 164,100 18,400 Advances to Suppliers (considered goed) 48224022) 4,940,356 Advance Incomse'Ta 1868037 111 868 Advance Rest ua 200,000 1,400,000, ‘Omer advances 5,516,379 50,382 | o— a )__DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 14.A This represenss advance rent paid to Associated Company - Ciel Foam ladustres (Pvt) Led, aginst the hire of premises, 15 OTHER RECEIVABLES Receivable ftom Mf. Taavees Malik 1,969,309 1,969,309 Aled Banke Limited 151 _ 120,366,528 __ 120,366,528, 122,335,837 122,335,837 Retail Sales Tax - considered doulxfil 125,000 125,000 Les: Provision for doubtful ret sles tax (125,000) (125,000) Pid tv Aled Bark under protest (Lalore High Court Orde) 154 __40,075,000__ 40,075,000 162,410,857 162,410,837 15 Allied Bank Limited "The auuter is pending adjudication as mentioned in note RIM, c,d, nde of dhe fiancial tatemencs 16 _ INVESTMENT: AVALLABLE FOR SALE, uated Name of the Company Marte Yate | Cost Cost No. of Shares | MaststV ee [ Smee stars [Maser vate . Aen ta. Crmpany 2,000 susso | st,an0 2.00 0.760] s1.200 Devas Seat ibe Li 33 86 1,200 8 50] 1.200] esa i 60. ota ane 80 5.06 42 SsuiNonher Gas Ppeti Lad os 13.705 8.75 oss 19,120] at asker Hay Ie Lagos 400 13,000) 150 = 1900 Aart Commerc ik id ratea2 | 9,702,0n9 | 4,584,225, Lat 2sirea53 | 454195 Tis Ive Bk Lal 3 5 z al Hak ik usa] 1,099,106 | 537,500 410.485 Al Hn Limited ats war0] 22,15 26444 Tosa anal So Dae 30 a was Steely Tear oor nee Sal) ewe ar aie TOTALS sor.o64| 51,400,559 | 1,644,518 2.608.302. 35263226] i1s12068 16.1 All the above shares with the exception of shares of the Bank of Punjabare held in CDC Sub-account Maintained with MecTanveer Malik "The CDE Sub-account of Mr. Tanveer Malik has heen frozen by SECP due to the default of member. ‘The company has filed suit, detail of same is disclosed in Note 8.1L, —_| bd DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 amt 2010 17 CASH AND BANK BALANCES Rupees Rupees Cashin hand 120,978 26297 Cash at banks Curent accounts 544,844 652,395, (65,822 678692 aot 2010 18 SALES: Rupees Rupees Sales 187153 146,487,406 Les: Sales Tax 27193 __ (14,315,332) 19 COST OFSALES 159,960 152,172074 Ray material consumed 159,960 124,180,585, Salaries, wages & cer benef 225,520 202.880, Repu neenance 878,796 Fel and wer 59,315 55,450 Miscllanenus expenses 144158 55631 Depreciation 9 6950287 __ 7724763 Cost of goods manufactured ‘8417,036 132,210,279 Finished goods Banos _ 12219270 191. RAW MATERIAL CONSUMED, Opening Stock : : Purchases 23,119,604 __ 124,180,555 2R119,604 124,180,555, Les Closing Stock 22,950.64) 159,960_ 124180555, 20 DISTRIBUTION EXPENSES Salutes, wages othe benefice 9,000 1,689,324 Vehicle Russing ace! Maven 26,200 702,161 Miscellaneous 24,810, 131,002 60,010 2522577 21 ADMINISTRATIVE EXPENSES Salaries, wges 8 ember bench au 337,32 206,982 Legal 8: professional charges 675,000 586.643, Traveling & comveyince 21,825 22,860 Tekphone snd postage 134353 134725 Rens, rates & taxes 202815 1449,99 ls 395,848, 582736 Bad debts 20,733,964 3,000,000 (Charity and donation 80,000 580,000, Depreciation 9 226428 2432625, BI 8,996,566DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 ‘2A. This inchades Rs 61,651/- in respect of staff resrement benefits - Gratuity (200) -$3,315/,) 22 OTHER OPERATING EXPENSES Auditors Remuneration 22a 340,000 340,000 Forcign exchange loss 247M - Unrealized Loss on Re-measurement of - Javestrent in Shaves aalable fer sile SOTO 340,000 221 AUDITORS’ REMUNERATION Audit Fee 300,000 300,000 Half Yer Review 30,000 30,000 ‘Outof Pocket Expenses 10,000, 10,000 340,000 340,000 20nt ano Rupees Rupes 23 OTHER OPERATING INCOME / LOSS Income from Financial Assets Divider Income 534440 929,991 Unrealized Gain om Re-m in Associated Company e “ Income from Non-Financial Assets gh ECC Order : 6.101016 (Loi) / Gain on Sale of Proper 71447 Sasa 7902480 Tncieme Received Then Phataad Equipmnear 24 FINANCE COST Bank Charges 13347 B47 25. TAXATION Turnover 1,600 960,860 “Tax on dividend 533571 92.999 33571 254 ‘Theincome tas assessmentof hhecompany hasbeen finalized upto and includingtas year2009 by deeming provisions of Income"Tax Ordinance 2001 253. RELATIONSHIP BETWEEN TAX EXPENSE AND ACCOUNTING LOSS No seconcilaton is required betweer the accounting protic and tax profitin the cursent yea. 26 PROFIT / (LOSS) PER SHARE BASIC Profit forthe year after tax (Rupees) SIMI) 23,729) Average Ordinary Shares Numbers) 9,000,000 __9,000,000 9.06), (0.25) No figure fr diluted earningper share has heen presertedas the company hse nat isued any insteimentscartyingoptions which have sila oo Satins pertbatdehes cert 27 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES ad Directors (Ni 6) of the company.TEGO STRITT — OT SVL = OT SOTLT ES = zi Tey aig HUET TG H0RE, a LeET a LT V6T ANNUAL REPORT 2011 ERE FETIRIO SE TIOELT Se TIPLE spssy ppovuEy Fanvoq dn yan SAYASOTDSIG GALVIAY SINTWAUISNI TVIONYNI a a = = a a a = - a > a = a = °o = = a| DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 2) CONCENTRATION OF CREDIT RISK di risk represen'sthe accounting loss that would be recognised at the reporting date if 2 ‘counter pasties fled completely to perform gs contmcted, The company does not e siznifcantexposure to any indivual customer. ‘To reduce the exe isk che ‘compuny has developed a formal approval process whereby che exedit limits are applied ta its customers, Tae management also continuowsiv monitors credit espesure toward dhe customer and make provision against those balances considered doubtful for 30 FAIR VALUE OF FINANCIAL INSTRUMENT Pair values theamount for whichan assetcould be exchanged) ora liabilty sted berwoea keovleelgeable willing partes in an arm's length tansaction. "The carrying value of all Gnancial assets and Eaiities reflected in dhe Gnanel satetenss approxiqate tei fr Vales M1 Capiaal Risk Management "The company’s prime object when managing capital is to safeguard it ily © continue asa going concerain order 10 provide adequate wrurns‘or sharcholdersaad benefits for otherstakehollers and to maintainan optimal capital strucnarero reduce the costof capita In order © muaintainor adjust dhe capital strocture,che company may adjust dhe amount of dividends paid to shareholdersissuenew shares or sell assets to reduce debe (Consistencwith othessin theindustry, thecompany monitors capital on the basisof the pearing ratio, The ratio is caleulatedas net debt divided by total capital Net debr is ealeulatedas total borrowings lesseash and bark balances Total captalis calculated as equityas shown inthe balunice sheet plus net de, aout 2010 Rupees Rupees ‘Toral borings Nil Nil ‘Cash and bank balances 565,822 678,692 “Toral equity 589,538,191 __ 660,552,927, Gearing ratio Not Applicable Not Applicable 32. TRANSACTIONS WITH RELATED PARTIES “Transitions with rata parties comps assoraed undertaking an ether related partes thecagh dicetoeship and cose fail members of the directo of the company "Transactions with related parties undertaken during the year were a ann 200 Rupees Rupees Purchases ‘Shaffi Chemical Industries Limited - 21,617,909 Diamond Polymers (Private) Limited = 10,040,953, Capital Iodustrial Enterprises (Private) Limited 188,752 61,600,501 Diamond Home Testiles (Peivate) Limited ~ 20,572,758 Diamond Product (Private) Limited - 24,196,512 | o— a) _@ DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 33 NO. OF EMPLOYEES 201 m0 The number of employees «sat year end were 10 34 3 INSTALLED CAPACITY 2m. 2m10 Tons Tons Capacity Utilized Capacity Wilized Installed Capacity Pee Annum Foam) 12,000 Nil 12,900 Nil Insaalled Capocity Per Annum (PVA) 1,560 Nil 1,560 Nil 341 FOAM PLANT 342 ey The plancis closed in Gadoon Amacai sinceSeprember 1997 duc to withdrawal of sion ofsales tax lower sellingprices anc higher pices of sew mance PVA PLANT The plant lies coved since September 2006 due ta Tew orders From eutmens and increase in the prices of raw materia DATE OF AUTHORIZATION FOR ISSUE These Sauancial Sutements were authorized fir iiue oMetober 7,201 by the board of dieectors of the company GENERAL. Figures have been rounded off to nearest Rupee. hoe Chief Executive Director@ Mee DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 Operating Highlights (Rupees 000) matr 2008-2009 20102011 Key mbieaTors OPERATING GROSS NaRGIN % (ora) @ay 413 00H) 1099 OPERATING NARGIN % (@orst) (iosr8) © 905 4oT ane8s.8) PRE TAX MARGIN, % (11.41) (699.47) 19.34 4.00 (54,179.87) NET MARGIN % (13.62) (356.62) 019 457 (51,266.04) PERFORMANCE RETURN ON ASSETS 2) Gs) 158 oss 1453) ASSETS TURNOVER 14908414897 © 020s FXEDASSETSTURNOVER Times, 003, 7670110000 INVENTORY TURNOVER 763 NANA NANA RETURN ON EQUITY 20) G8) ade A388) RETURN ON CAPITAL EMPLOYED % (0.22) (4.10) 31.75 0.96 (13.83) LEVERAGE DEBT: EQUITY % ont 0.13 0.09 215 0.59 uauiorry CURRENT % 5888 et wae tae © 800 auck % Set 861 Bak izes a7 VALUATION EARNING PER SHARE(PRETAX) RS. - 10s) as7) EARNING PER SHARE (AFTER TAX) RS. (0.10) (1.58) 22.54 067 (9.06) BREAK UP VALUE RS 4263, ««See— 4d Oak SO HISTORICAL TRENDS TRADING RESULTS TURNOVER RS. 6333-3993 gumeae 132.172 159.00 GROSS LOSS RS. (472) 587) 4125447) (257-0) OPERATING Loss RS. (868) tela) 185488 5200 (69080) PROFT(LOSS)BEFORETAK RS (a4) «(27881) T8ReIS S708 (814800 PROFIT/(LOSS) AFTER TAX RS. (862) (14,240) 202,890 6,045 (61,513.00) FINANCIAL POSITION SHAREHOLDERS FUNDS RS. 383,641 347,561 625,355 632.189 589,538.00 PROPERY, PLANT & EQUIPMENT RS. 153,749, 141,421 130,212 119,732 110,516.00 NET CURRENT ASSETS RS. 220087 t7asHa 3260s 228,776 24060200 LONG TERM ASSETS RS 46730 ‘GOOD 85S atz1B ugazt OD LONG TERM LIABILITIES RS. 38029 ano ©1367 8008 1044.00 >? “]@ DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 penta FORM 34 THE COMPANIES ORDINANCE 1984 (Section 236(1) and 464) PATTERN OF SHAREHOLDING 1. Incorporation Number P-00197 2. Name of the Company DIAMOND INDUSTRIES LIMITED 3. Pattem of holding of the shares held by the shareholders as at 30-06-2011 ———Shareholding——-- 4. No. of Shareholders From To Total Shares Held 64 1 100 3,305 142 101 500 46,978 34 501 1000 28,439 30 1001 5000 69,720 5 5001 10000 41,250 3 10001 15000 39,578 2 20001 25000 44,000 1 (25001 30000 28,500 1 120001 125000 121,500 1 145001 150000, 150,000 1 420001 425000 422,450 1 445001 450000 450,000 1 645001 650000 650,000 1 795001 800000 800,000 1 845001 850000 848,130 1 1020001 1025000 1,022,500 1 1065001 1070000 1,070,000 1 1450001 1455000 1,453,650 1 1705001 1710000 1,710,000 292 9,000,000 “]bd DIAMOND INDUSTRIES LIMITED 5. Categories of shareholders 5.1 Directors, Chief Executive Officers. and theit spouse and minor childem 5.2 Assosiated Companies, undertakings and related parties. 5.3 NIT and ICP 5.4 Banks Development Financial Institutions, Non Banking Financial institutions. 55 Insurance Companies 5.6 Modarabas and Mutual Funds 5.7 Share holders holding 10% 5.8 General Public a. Local b. Foreign 5.9 Others (to be specified) Joint Stock Companies Others 6. Signature of Company Secretary 7. Name of Signatory 8. Designation 9. NIC Number 10 Date Share held 1,459,950 422,450 700 848,130, 500 5,256,150 2,854,473 3,412,797 1,000 | ANNUAL REPORT 2011 Percentage 16.2217% 4.6939% 0.0078% 9.4237% 0.0056% 58.4017% 31.7164% 37.9200% 0.0111% yea ise NAZIR AHMED Company Secretary 35202-0733525-5 30 06 2011. | bd DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 CATEGORIES OF SHAREHOLDERS REQUIRED UNDER C.C.G. As on 30th June, 2011 S.No. NAME %AGE HOLDING DIRECTORS, CEO THEIR SPOUSE AND MINOR CHILDREN 1 MR. WAQAR A. SHAFFI (CDC) 0.0422 2 MR. SHARIQIFTIKHAR (CDC) 16.1517 3 MR. SOHAIL MALIK 0.0056 4 MR. ABDUL SHAKOOR 0.0056 5 MR. MUHAMMAD SAMEER 0.0056 6 MR. HASHIMASLAM BUTT 0.0056 7 MR. ZAHOOR AHMAD 0.0056 5 16.2217, ASSOCIATED COMPANIES 1 SHAFFI CHEMICAL INDUSTRIES LTD. (CDC) 4.6939 NIT and ICP 1 LCP. 0.0078 700 FINANCIAL INSTITUTION 1 BANK ALFALAH LIMITED- LAHORE STOCK EXCHANGE (CDC) 9.4237 MUTUAL FUND 1 FIRST CAPITAL MUTUAL FUND LTD. 500 ‘OMPANI 1 JAVED OMER VOHRA & CO. LTD. 0.0056 500 2 (H) WIL SERVICES (PRIVATE) LIMITED. (CDC) 0.0011 100 3 AWJ SECURITIES (SMC-PRIVATE) LIMITED (CDC) 0.0050 450 4 CAPITAL INDUSTRIAL ENTERPRISES (PVT) LTD.(CDC) 11.8889 1,070,000 5 CAPITAL VISION SECURITIES (PVT) LTD, (CDC) 0.0411 3,700 6 DIAMOND PRODUCTS (PVT) LTD 1.6667 150,000 7 DARSON SECURITIES (PVT) LTD. (CDC) 0.0039 347 8 _ EJAZ SPINNING MILLS LTD, (CDC) 0.3167 28.500 9 FIRSTNATIONAL EQUITIES LTD.(CDC), 0.0056 500 10 ILYAS SECURITIES (SMC-PVT)LTD.(CDC) 0.2389 21,500 11 INVEST CAPITAL MARKETS LIMITED.(CDC) O01 1,000 12M R. SECURITIES (SMC-PVT) LIMITED (CDC) 0.0167 1,500| hd DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 13. PRUCENTIAL SECURITIES LTD.(CDC) 0.0022 200 14. SWITCH SECURITIES (PVT) LIMITED (CDC) 11.3611 1,022,500 15 SYMBOL INDUSTRIES (PVT) LIMITED (CDC) 5.0000 450,000 16 M/S CAPITAL INDUSTRIES (CDC) 650,000 17. CAPITAL INDUSTRIES (PVT) LTD. (CDC) 12,000 3,412,797 OTHERS 1 THE KARACHI STOCK EXCHANGE (G) LTD.(CDC) 0.0111 1,000 SHARES HELD BY THE GENERAL PUBLIC 31.7164 TOTAL: 100.0000 __ 9,000,000 SHAREHOLDERS LI 10% OR MORE OF TOTAL CAP! ‘AL, . Name Percentage MR. SHARIQ IFTIKHAR 16.1517 MR. IFTIKHAR A, SHAFFI 19,0000 2. SWITCH SECURITIES (PVT) LIMITED 11.3611 3. CAPITAL INDUSTRIAL ENTERPRISES (PVT) LTD.(CDC) 11,8889 1,070,000 Daring the financial year the trading in shares of the company by the Directors, CEO, CFO, Company Secretary and their spouses and minor children isas follows, NIL —_ >bd DIAMOND INDUSTRIES LIMITED ANNUAL REPORT 2011 FORM OF PROXY of being a member of DIAMOND INDUSTRIES LIMITED, hereby appoint Name] of another member of the Company or failing him/her Name of another member of the Company (being a member of the company) as my/our proxy to attend and vote for and on my/our behalf, at the Annual General Meeting of the Company to be held at its registered office, Plot # 25, Gadoon Amazai Industrial Estate, Swabi Khyber Pakhtoonkhwa on Monday 31° October, 2011 at 2:00 p.m, and any adjournmentthereof, As witnessed given under my/our hands) day of. 2011 1) Witness: ignature Name ignature of Member Address 2) Witness: Signature Shares Held Name Shareholder's Folio No. Address CDC Ave No. CNIC No. Note: 1) Proxies, in order tobeeffective, must be received atthe Company's Registered office, not less than 48 hours before the time for holding the meeting and must be duly stamped, signed and witnessed. CDC shareholders, entitled to attend and vote at this meeting, must bring with them their Computerised National Identity Cards/Passport in original to prove his/her identity, and in case of Proxy, must enclose an attested copy of histher CNIC or Passport. Representatives of comporate members should bring the usual documents required for such purpose >