DCM Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2023

2. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as amended (Ind AS), prescribed under Section 133 of the Companies Act, 2013, and other recognized accounting practices and policies to the extent applicable.

3. In view of continued situation of industrial unrest at Engineering Business Undertaking (refer as Engineering Division) of the Company, situated at Village Asron, District Shaheed Bhagat Singh Nagar (Punjab), the management of the Engineering Division has recommended to declare a lockout. The Board of Directors of the Company in their meeting held on October 21, 2019 has accordingly approved the declaration of lockout at its said Business Undertaking w.e.f. October 22, 2019.
The said lockout was opposed by the workmen of said Engineering Division before the Labour Authorities and presently the matter remained sub-judice before the labour authorities. Based on the legal advice received by the Company, the management is of the view that the present lockout is legal and justified. Therefore, the Company has not made any provision for wages pertaining to the lockout period October 22, 2019 to June 30, 2023 aggregating to Rs. 6,144 lakh out of which Rs. 297 lakh pertain to quarter ended on June 30, 2023.

4. The Board of Directors of the Company in its meeting held on November 28, 2019, have approved a composite scheme of arrangement ( referred as said Scheme) for transfer of its “Engineering Business undertaking “to its wholly owned subsidiary namely DCM Engineering Limited (formerly known as DCM Tools and Dies Limited), on a going concern basis with effect from the appointed date of October 01, 2019, and restructuring of outstanding loans, debts and liabilities of said Engineering Business Undertaking. The said Scheme could not be filed with Hon’ble National Company Law Tribunal (NCLT) for seeking their approval under Section 230 – 232 of the Companies Act, 2013 awaiting in principle approval of secured lenders (Banks) due to default in payment of their dues.
Further, pursuant to the payment made by the Company to its creditors including the banks, the section II of the said Scheme relating to restructuring of outstanding loans and liabilities of Engineering Business Undertaking, has become infructuous.
Given the above, the Board of Directors of the Company in their meeting held on May 29, 2023, have decided to withdraw the said Scheme and to make a fresh proposal for restructuring of the engineering business of the Company in consultation with Legal and Tax Consultant after its approval by the Board.

5. Other income includes income from transfer of right in residential flats of amount Rs. Nil for the quarter ended June 30, 2023 ( Quarter ended March 31, 2023 Rs. Nil, Quarter ended June 2022 Rs. 100 lakh) and Liabilities / Provision no longer required written back of amount Rs. 19 lakh for the quarter ended June 30, 2023 (Quarter ended March 31, 2023 Rs. 60 lakh, Quarter ended June 2022 Rs. 44 lakh)

6. Pursuant to repayment of dues to all the banks as well as majority of the claims of other creditors, the recovery suits/ petitions filed by the Banks and/or other creditors have been withdrawn.

7. The Company is in process of developing its 68.35 acres of land situated in the revenue state of Village Bir Hisar, Sector-23, Hisar, Haryana (referred as Hisar land). The Company has signed a joint development agreement in this regard on August 11, 2022 with a party which is subject to fulfilment of certain terms and conditions by the said party as well as receipt of regulatory approvals. In this connection, the Company has received a license no.179 of 2022 in joint development with the said party on November 10, 2022 in respect of 67.275 acres of said Hisar land (referred as Project land) under Regulation of Urban Area Act, 1975 for setting up of affordable residential plotted colony under Deen Dayal Jan Awas Yojana-2016 (referred as Project).
The Director General, Town and Country Planning, Haryana has suspended the said licensee no.179 of 2022 during the month of April 2023 taking a note that an enquiry has been initiated against the Company by Deputy Commissioner in respect of the Company’s land at Hisar.
Under the said suspension order, the licensee is directed not to carry out any development work in the Colony and also not to create another third party rights unless the said suspension is revoked. The Company is taking appropriate action in the matter for the revocation of said suspension order.
As per the legal advice received by the Company, there are merits in the said matter of revocation of suspension of license. The management holds the view that the said suspension order of license no.179 of 2022 is likely to be revoked soon, however, the same remained pending as on date of approval of these unaudited results.

8. Pending revocation of suspension of license no.179 of 2022 by Director General, Town and Country Planning, Haryana (refer note 7 above), the advance of Rs. 5,000 lakh received under JDA has been shown under the current liabilities. Pursuant to above, the current liabilities of the Company including the said advance of Rs. 5,000 lakh under JDA, exceed the current assets by Rs. 5,567 lakh as at June 30, 2023.
The management believes that with the revocation of said suspension order of license no.179 of 2022 and infusion of liquidity by focusing /managing of its real estate operation and/or the Company’s plans of restructuring of its Engineering Business Undertaking as well as other interim measures to improve liquidity, the Company will be able to continue its operation for the foreseeable future.
Accordingly, the financial results of the Company have been prepared on a going concern basis.

9. The Company has reviewed the deferred tax asset/deferred tax liabilities on deductible/taxable temporary differences between tax base of asset and liabilities and their carrying amount for financial reporting purposes at each reporting date. However, due to continue situation of uncertainty of sufficient taxable profit to recover the accumulated losses and unused tax credits taxable profits in future years, deferred tax asset have not been considered in the financial results.

10. The figures for the quarter ended March 31, 2023 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the relevant financial year.

11. The figures for the previous periods have been regrouped / rearranged wherever necessary.

12. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on August 11, 2023. The limited review report of the statutory auditors is being filed with the BSE Ltd and National Stock Exchange of India Ltd. For more details on the standalone results, visit Company’s website www.dcm.in and Financial Results under Corporates section of www.nseindia.com and www.bseindia.com.


For and on behalf of the Board of Directors


Jitendra Tuli
Place: Delhi Managing Director
Date: August 11, 2023 DIN: 00272930