Karachi: Dewan Automotive Engineering Limited disclosed its financial results for the year ended June 30, 2024, revealing a continuation of significant losses. The company's meeting, held on October 1, 2024, saw the Board of Directors deciding against issuing any cash dividends, bonus shares, right shares, or any other entitlements, reflecting the company's strained financial situation.

In the fiscal year 2024, Dewan Automotive reported no net sales, and cost of sales resulted in a gross loss of PKR 13.93 million, compared to PKR 15.51 million in 2023. Administrative expenses added another PKR 2.82 million to the operating losses, which totaled PKR 16.75 million. Other income slightly offset these losses by PKR 7.64 million. The finance cost remained high at PKR 60.44 million, leading to a pre-tax loss of PKR 69.55 million. After accounting for a modest net taxation credit of PKR 1.64 million, the company reported a net loss of PKR 67.91 million for the year, translating to a loss per share of PKR 3.18.

According to information available from the Pakistan Stock Exchange (PSX), the auditors of Dewan Automotive have expressed an adverse opinion regarding the ongoing concern assumption, which raises doubts about the company's ability to continue as a going concern. This opinion stems from issues related to the non-revaluation of property, plant, and equipment, and may impact investor confidence.

The Annual General Meeting is scheduled for October 24, 2024, in Karachi. The Share Transfer Books will be closed from October 17 to October 24, 2024, to facilitate the preparations. Further details and scanned copies of the financial statements will be distributed in accordance with PSX regulations before the meeting.