Diamond Cartel 10-K 11 Aug 21 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Apr. 30, 2021	Aug. 11, 2021	Oct. 31, 2019
Cover [Abstract]
Entity Registrant Name	DIAMOND CARTEL INC
Entity Central Index Key	0001347491
Document Type	10-K
Document Period End Date	Apr. 30, 2021
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Incorporation, State or Country Code	DE
Entity File Number	333-215884
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	true
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		895,750
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021

Balance Sheets

Balance Sheets - USD ($)	Apr. 30, 2021	Apr. 30, 2020
ASSETS
Total Assets	$ 0	$ 0
Current Liabilities
Account payable and accrued liabilities	8,565	7,062
Due to related party	108,411	77,544
Advances payable	42,945	42,336
Total Liabilities	159,921	126,942
Stockholders' Deficit
Preferred stock, value
Common stock, 200,000,000 shares authorized, $0.0001 par value; 895,750 shares issued and outstanding at April 30, 2021 and 2020	90	90
Additional paid-in capital	454,126	454,126
Accumulated deficit	(614,137)	(581,158)
Total Stockholders' Deficit	(159,921)	(126,942)
Total Liabilities and Stockholders' Deficit	0	0
Series A Preferred Stock [Member]
Stockholders' Deficit
Preferred stock, value

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2021	Apr. 30, 2020
Preferred stock, authorized	946,000	946,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, authorized	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, issued	895,750	895,750
Common stock, outstanding	895,750	895,750
Series A Preferred Stock [Member]
Preferred stock, authorized	54,000	54,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued	0.48	0.48
Preferred stock, outstanding	0.48	0.48

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Statement [Abstract]
Revenue
Expenses
General and administrative	32,979	29,674
Net Loss before provision for income tax	(32,979)	(29,674)
Provision for income tax
Net Loss	$ (32,979)	$ (29,674)
Net Loss Per Common Share - Basic and Diluted (in dollars per share)	$ (0.04)	$ (0.03)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted (in shares)	895,750	895,750

Statements of Shareholders' Def

Statements of Shareholders' Deficit - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Apr. 30, 2019		$ 90	$ 454,126	$ (551,484)	$ (97,268)
Balance, shares at Apr. 30, 2019	0.48	895,750
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss for the year				(29,674)	(29,674)
Balance at Apr. 30, 2020		$ 90	454,126	(581,158)	(126,942)
Balance, shares at Apr. 30, 2020	0.48	895,750
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss for the year				(32,979)	(32,979)
Balance at Apr. 30, 2021		$ 90	$ 454,126	$ (614,137)	$ (159,921)
Balance, shares at Apr. 30, 2021	0.48	895,750

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Operating Activities:
Net loss	$ (32,979)	$ (29,674)
Adjustments to reconcile net loss to net cash used in operating activities:
Unrealized foreign currency exchange gain	1,835	268
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities	1,340	(4,700)
Net Cash Used in Operating Activities	(29,804)	(34,106)
Financing Activities:
Proceeds of loan from related party	29,804	34,106
Net Cash Provided by Financing Activities	29,804	34,106
Change in Cash
Cash - Beginning of Year
Cash - End of Year
Supplemental Disclosures:
Interest paid
Income taxes paid

Business Description

Business Description	12 Months Ended
	Apr. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	1. Business Description The Diamond Cartel Inc. (the “Company”) was incorporated in the State of Delaware on August 17, 2005. The Company is a Blank Check Company which plans to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business with one or more businesses. On July 14, 2018 the Company had entered into a Letter of Intent with an unrelated third party. Except for this Letter of Intent, the Company has not identified any business combination target and has not, nor has anyone on its behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.

Going Concern

Going Concern	12 Months Ended
	Apr. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	2. Going Concern These financial statements have been prepared on a going concern basis, which contemplates the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated any revenue since inception. As of April 30, 2021, the Company has a working capital deficiency of $159,921 and has accumulated losses of $614,137 since inception. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company intends to fund its activities through debt and equity financing arrangements. There is no assurance that the Company will obtain the necessary financing to complete its objectives. In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds. Management continues to monitor the situation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Apr. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies a) Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States. b) Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. c) Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. d) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share e) Related Parties The Company follows ASC 850, Related Party Disclosures, f) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented. g) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: ● Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. ● Level 2 inputs consist of quoted prices for similar instruments. ● Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for amounts due to related party approximate their fair market value based on the short-term maturity of these instruments. h) Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Advances Payable

Advances Payable	12 Months Ended
	Apr. 30, 2021
Payables and Accruals [Abstract]
Advances Payable	4. Advances Payable On July 14, 2018, the Company executed a Letter of Intent (the “LOI”) with a Corporation registered in the country of Chile (“Corporation”). Pursuant to the LOI, the Corporation agreed to exchange 100% of its total issued and outstanding shares for 13,056,626 shares of common stock of the Company. In addition, the Corporation agreed to provide funding of $500,000 and to enter into a consulting contract with the President of Company. Of the $500,000 funding, $15,000 was payable to the President of the Company immediately upon acceptance of the LOI. The $15,000 was refundable in the event the terms of the LOI were not met. Of the $500,000 funding, $135,000 was to be deposited to a trust account with the Company’s legal counsel for payment of outstanding payables, closing costs associated with the transaction and costs associated with raising capital for the Company. Once the Company raised a minimum of $4,500,000 after the completion the transaction, the President of the Company was to receive the remaining $350,000. As at April 30, 2021, the Company recorded on its balance sheets advances payable of $42,945 (2020 - $42,336) representing professional fees paid on behalf of the Company.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Apr. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions As at April 30, 2021 and 2020, the Company was indebted to the President of the Company for $108,411 and $77,544, respectively, for expenses incurred on behalf of the Company. These amounts are non-interest bearing, unsecured, and are due on demand.

Income Taxes

Income Taxes	12 Months Ended
	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The reconciliation of income tax benefit at the U.S. statutory rate of 21% for the period ending April 30, 2021 and 2020 to the Company’s effective tax rate is as follows: 2021 2020 US Statutory Rate 21 % 21 % Tax benefit at U.S. statutory rate $ 6,926 $ 6,231 Change in valuation allowance (6,926 ) (6,231 ) Net deferred income tax asset $ – $ – The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at April 30, 2021 and 2020 are as follows: 2021 2020 Net operating loss: 128,969 122,043 Valuation allowance (128,969 ) (122,043 ) $ – $ – Change in valuation allowance: Balance, prior year $ (122,043 ) $ (115,812 ) Effect of change in tax rate – – Increase in valuation allowance (6,926 ) (6,231 ) Balance, current year $ (128,969 ) $ (122,043 ) The Company has approximately $614,137 of net operating losses (“NOL”) carried forward to offset taxable income, if any, in future years of which, $524,201 will expire between fiscal years 2025 and 2038, and $89,936 will be carried forward indefinitely. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized. The Company’s net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and are subject to certain limitations in the event of cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%.

Subsequent Events

Subsequent Events	12 Months Ended
	Apr. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	7. Subsequent Events On July 1, 2021, the Company entered into a stock purchase agreement with an unrelated party to sell approximately 560,000 shares of its common stock. The total share sold represent 62% of the total shares outstanding. On June 10, 2021, the buyer made a $45,000 non-refundable deposit towards the stock purchase, and on July 9, 2021, the buyer made an additional non-refundable deposit of $13,850 towards the stock purchase. The transaction has not closed as of the date of this filing. Management has evaluated subsequent events through the date that these financial statements were issued. Other than the forgoing, there have been no events that would require adjustment to or disclosure in the financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Apr. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	a) Basis of Presentation The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States.
Use of Estimates	b) Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Cash and Cash Equivalents	c) Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
Basic and Diluted Net Income (Loss) Per Share	d) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share
Related Parties	e) Related Parties The Company follows ASC 850, Related Party Disclosures,
Income Taxes	f) Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented.
Fair value	g) Fair value Accounting standards regarding fair value of financial instruments define fair value, establish a three-level hierarchy which prioritizes and defines the types of inputs used to measure fair value, and establish disclosure requirements for assets and liabilities presented at fair value on the balance sheets. Fair value is the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants. A liability is quantified at the price it would take to transfer the liability to a new obligor, not at the amount that would be paid to settle the liability with the creditor. The three-level hierarchy is as follows: ● Level 1 inputs consist of unadjusted quoted prices for identical instruments in active markets. ● Level 2 inputs consist of quoted prices for similar instruments. ● Level 3 valuations are derived from inputs which are significant and unobservable and have the lowest priority. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the balance sheet for amounts due to related party approximate their fair market value based on the short-term maturity of these instruments.
Recent Accounting Pronouncements	h) Recent Accounting Pronouncements The Company has implemented all new pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of reconciliation of income tax benefit	The reconciliation of income tax benefit at the U.S. statutory rate of 21% for the period ending April 30, 2021 and 2020 to the Company’s effective tax rate is as follows: 2021 2020 US Statutory Rate 21 % 21 % Tax benefit at U.S. statutory rate $ 6,926 $ 6,231 Change in valuation allowance (6,926 ) (6,231 ) Net deferred income tax asset $ – $ –
Schedule of deferred tax assets	The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at April 30, 2021 and 2020 are as follows: 2021 2020 Net operating loss: 128,969 122,043 Valuation allowance (128,969 ) (122,043 ) $ – $ – Change in valuation allowance: Balance, prior year $ (122,043 ) $ (115,812 ) Effect of change in tax rate – – Increase in valuation allowance (6,926 ) (6,231 ) Balance, current year $ (128,969 ) $ (122,043 )

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenues
Working capital deficiency	159,921
Accumulated losses	$ (614,137)	$ (581,158)

Advances Payable (Details Narra

Advances Payable (Details Narrative) - USD ($)	Jul. 14, 2018	Apr. 30, 2021	Apr. 30, 2020
Common stock, shares issued		895,750	895,750
Common stock, shares outstanding		895,750	895,750
Funding into consulting contract with President		$ 29,804	$ 34,106
Advances payable (recognized as professional fees)		42,945	42,336
Related Party [Member]
Ownership percentage	100.00%
Common stock, shares issued	13,056,626
Common stock, shares outstanding	13,056,626
Description of consulting contract	The Corporation agreed to provide funding of $500,000 and to enter into a consulting contract with the President of Company. Of the $500,000 funding, $15,000 was payable to the President of the Company immediately upon acceptance of the LOI. The $15,000 was refundable in the event the terms of the LOI were not met. Of the $500,000 funding, $135,000 was to be deposited to a trust account with the Company’s legal counsel for payment of outstanding payables, closing costs associated with the transaction and costs associated with raising capital for the Company. Once the Company raised a minimum of $4,500,000 after the completion the transaction, the President of the Company was to receive the remaining $350,000.
Funding into consulting contract with President	$ 500,000
Amount deposited to trust for payment of outstanding payables	135,000
Amount raised for transaction	4,500,000
Advances payable (recognized as professional fees)		$ 42,945	$ 42,336
Related Party [Member] | President [Member]
Payable after the acceptance of LOI	15,000
Refundable amount	15,000
Receivables based on minimum transaction completion	$ 350,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Apr. 30, 2021	Apr. 30, 2020
Due to related party	$ 108,411	$ 77,544
President [Member] | Related Party [Member]
Due to related party	$ 108,411	$ 77,544

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
US Statutory Rate	21.00%	21.00%
Tax benefit at U.S. statutory rate	$ 6,926	$ 6,231
Change in valuation allowance	(6,926)	(6,231)
Net deferred income tax asset

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Net operating loss:	$ 128,969	$ 122,043
Valuation allowance	(128,969)	(122,043)
Net deferred income tax asset
Change in valuation allowance:
Balance, prior year	(122,043)	(115,812)
Effect of change in tax rate
Increase in valuation allowance	(6,926)	(6,231)
Balance, current year	$ (128,969)	$ (122,043)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefit, statutory rate	21.00%	21.00%
Net operating losses	$ 614,137
Operating loss carryforwards, description	The Company has approximately $614,137 of net operating losses (“NOL”) carried forward to offset taxable income, if any, in future years of which, $524,201 will expire between fiscal years 2025 and 2038
Operating loss carryforwards, expire year	Expire between fiscal years 2025 and 2038
Carried forward indefinitely	$ 89,936

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Stock Purchase Agreement [Member] - Subsequent Event [Member] - USD ($)	Jul. 02, 2021	Jul. 09, 2021	Jun. 10, 2021
Unrelated party to sell	560,000
Interest rate	62.00%
Non-refundable deposit		$ 13,850	$ 45,000