Karachi May 5 2022: Dabhoy Cement Industries Limited has not so far removed the cause of suspension of trading in its shares relating to non-compliance of Clauses related to suspended commercial production / business operations in its principle line of business.
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 discharges its financial liabilities in ordinary course of business. During the year ended June 30, 2018, the company had also disposed off all of its operating assets and settled its bank outstanding bank loans and other obligations.
However, 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
The Company having accumulated losses as at reporting date amounting to Rs. 778.03 million (June 30, 2021: Rs 775.50 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 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. 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.
Company has been corresponding with the prospective investors to attract the investment in the Company. 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.
CDS eligibility has been suspended by the CDC, adverse opinion in the audit report and Order has been issued by SECP authorizing the Registrar to present a petition for Winding-up of the company, it has been decided by Pakistan Stock Exchange (PSX) that trading in the shares of the Company shall remain suspended until such time the cause(s) of suspension have been rectified or another period of 60 days effective from May 06, 2022.