DCM Financial Services Ltd.

==> picture [84 x 86] intentionally omitted <==

Date: 30/11/2021

The Head- Listing Compliance The Head- Listing Compliance BSE Limited, National Stock Exchange of Phiroze Jeejeebhoy Towers, India Ltd. Dalal Street, Exchange Plaza, FortMumbai- 400001 Plot no. C/1, G Block, Bandra-Kurla Complex Mumbai - 400 051 Security Code: 511611 Stock Code: DCMFINSERV

The Manager The Calcutta Stock Exchange Ltd. 7, Lyons Range, Murgighata, BBD Bagh, Kolkata, West Bengal700001

Sub: Submission of Annual Report as per Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Ma’am,

Please find attached herewith Annual Report for the Financial Year 2020-2021 as per Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Submitted for your information and records.

Yours Sincerely,

For DCM Financial Services Limited

KAUSHAL Digitally signed by KAUSHAL KASHYAP KASHYAP Date: 2021.11.30 17:19:38 +05'30'

Kaushal Kashyap DIN: 07683753 Director

Place: New Delhi

DCM FINANCIAL SERVICES LIMITED

CIN:L65921DL1991PLC043087

Regd. Office: D 7/3, Okhla Industrial Area-II, New Delhi-110020 Tel-011-26387750 email ID: [email protected] Website: www.dfslonline.in

D C M FINANCIAL SERVICES LTD.

30[th] ANNUAL REPORT 2020-2021

DCM FINANCIAL SERVICES LTD.

BOARD OF DIRECTORS

Mr. Shantanu Deveshwar Ms. Daman PreetKaur Ms. Rajni Gupta Ms. RichaKalra Mr. Kaushal Kashyap

Mr. Sanjay Sahni

Whole-time Director Independent Director Independent Director Independent Director Director Appointed w.e.f. 01.09.2020 & Regularized w.e.f. 18.12.2020 Independent Director Appointed w.e.f. 01.09.2020& Regularized w.e.f. 18.12.2020

KEY MANAGERIAL PERSONNEL

Mr. Shantanu Deveshwar Ms. Somali Tiwari

Whole-time Director Company Secretary & Chief Financial Officer

SECRETARIAL AUDITOR

Ojha& Associates

Company Secretaries

Add: 473, Patel Nagar, P.O. Harjinder Nagar, Kanpur- 208007

STATUTORY AUDITOR

Mukesh Aggarwal & Co., Chartered Accountants

102-103, IJS Palace, X-320, Delhi Gate Bazar, Asaf Ali Road, New Delhi- 110002

REGISTRAR & SHARE TRANSFER AGENT

MCS Share Transfer Agent Limited

Add: F-65, 1st Floor, Okhla Industrial Area, Phase-1, New Delhi-110020 Tel.: 011-41406149 E-mail: [email protected]

CIN

L65921DL1991PLC043087

CORPORATE OFFICE &REGISTERED OFFICE

D-7/3, Okhla Industrial Area, Phase-2, New Delhi-110020

SHARES LISTED AT

NATIONAL STOCK EXCHANGE OF INDIA LTD.

Exchange Plaza, Plot No. C/1, G Block, Bandra- Kurla Complex Mumbai - 400 051

BSE LIMITED

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001

CALCUTTA STOCK EXCHANGE LIMITED

7, Lyons Range, Dalhousie, Kolkata-700001

E-MAIL

[email protected]

WEBSITE

www.dfslonline.in

Notice Board’s Report Management Discussion & Analysis Report Compliance with code of conduct CEO/CFO Certifcation Compliance Certifcate on Corporate Governance Corporate Governance Report Standalone Auditor’s Report Balance Sheet Proft and Loss Account Cash Flow Statement Notes Consolidated: Auditor’s Report Balance Sheet Proft and Loss Account Cash Flow Statement Notes	03 10 20 41 41 42 43 58 70 71 72 74 117 126 127 128 130

DCM FINANCIAL SERVICES LTD.

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the 30thAnnual General Meeting of the members of DCM Financial Services Limited (“ DCM ” or “ the Company ”) will be held on Thursday, 23rd December, 2021 at 1.00 P.M. through video conferencing(VC) or Other Audio Visual Means (OAVM) to transact the following business (es):-

ORDINARY BUSINESS:

1. Ordinary Resolution to receive, consider and adopt Standalone & Consolidated Audited Financial Statements of the Company for the financial year ended on 31stMarch, 2021 together with the reports of the Auditor’s and Directors’ thereon

2. Re-appointment of Director

To appoint Mr. Kaushal Kashyap (DIN: 07683753) who retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for Re-appointment.

3. To ratify appointment of M/s.Mukesh Aggarwal & Co., Chartered Accountant, (Firm Registration No. 000393N) as the Statutory Auditors of the Company to hold office from the conclusion of ensuing Annual General meeting till the conclusion of the next Annual General Meeting of the company and to fix their remuneration.

In this regard, if thought fit, the members will pass with or without modification(s), the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 139(2)and 142(1)of the Companies Act, 2013 and the rules made there under, as amended from time to time, pursuant to the recommendations of the audit committee, appointment of the Statutory Auditors of company M/s Mukesh Aggarwal & Co., Chartered Accountant, (Firm Registration No. 011393N), be and is hereby ratified by the members of the company for the financial year 2020-21 at such remuneration as may be determined by the Board of Directors the Company in consultation with the auditor.”

By order of the Board of Directors For DCM Financial Services Limited

(Shantanu Deveshwar) Whole Time Director (DIN: 08268523)

Date: 18.11.2021 Place: Delhi

NOTES:

1. In view of the continuing COVID-19 pandemic, the Ministry of Corporate Affairs (‘MCA’) has vide its circular dated 13 January 2021 read with circular dated 5 May 2020, 8 April 2020 and 13 April 2020 (collectively referred to as ‘MCA Circulars’) and SEBI circular dated 15 January 2021 read with circular dated 12 May 2020 permitted holding of the annual general meeting (‘AGM’) through VC/OAVM facility, without the physical presence of the members at a common venue. In compliance with the provisions of the Companies Act, 2013 (the ‘Act’), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘SEBI Listing Regulations’) and MCA Circulars, the AGM of the Company is being conducted through VC hereinafter called as ‘AGM’.

2. The deemed venue for 30thAGM shall be the Registered Office of the Company situated at D-7/3, Okhla Industrial Area, Phase-2, New-Delhi-110020.

3. The Company has appointed Beetel Financial Computer Services Pvt. Ltd. as “Facilitator of VC” to facilitate the conduct of AGM through VC.

4. Institutional/Corporate shareholders (i.e. other than individuals/HUF, NRI, etc.) are required to send a scanned copy (pdf/jpg format) of its board or governing body’s resolution/authorization, etc., authorising their representative to attend the AGM on its behalf and to vote through remote e-voting. The said resolution/authorisation shall be sent to the scrutinizer by email through its registered email address to [email protected] with a copy marked to Company info@ dfslonline.in&[email protected]

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

5. Statement pursuant to section 102 of the Act shallnot form a part of this Notice since no special
business shall be transacted at the 30thAGM.
6. Brief details of the director, who are eligible to be re-appointed in 30th AGM, are annexed hereto
as per requirements of regulation 36(3) of “the SEBI Listing Regulations” and as per provisions
of the Act.
7. The facility of joining the AGM through VC/OAVM will be opened 15 minutes before and will be
open upto 15 minutes after the scheduled start time of the e-AGM, i.e., from 12:45 P.M. to 01:15
P.M. and will be available for 1,000 members on a first come first-served basis. This rule would
however not apply to participation of shareholders holding 2% or more shareholding, promoters,
institutional investors, directors, key and senior managerial personnel, auditors, etc.
8. Institutional investors, who are members of the Company are encouraged to attend and vote at
the 30thAGM of the Company.
9. SEBI has mandated the submission of Permanent Account Number (PAN) by every person
dealing in securities market. Members holding shares in electronic form are, therefore,
requested to submit the PAN to their depository participants with whom they are maintaining
their demat accounts. Members holding shares in physical form can submit their PAN details to
the Company or its RTA.
10. In terms of sections 101 and 136 of the Act, read with the rules made thereunder, the listed
companies may send the notice of AGM and the annual report, including financial statements,
boards’ report, etc. by electronic mode. Pursuant to the said provisions of the Act read with
MCA Circulars, SEBI Circular dated 15 January 2021, Notice of 30thAGM along with the Annual
Report for FY 2021 is being sent only through electronic mode to those members whose email
addresses are registered with the Company/depositories. Members may note that the Notice
and Annual Report for FY 2021 will also be available on the Company’s website at https://
www.dfslonline.in; website of the stock exchanges i.e., BSE Limited at www.bseindia.com
and National Stock Exchange of India Limited at www.nseindia.com and on the website of
Facilitators of VC/OAVM at http://www.beetalfnancial.com/
11. To receive communications through electronic means, including Annual Reports and Notices,
members are requested to kindly register/update their email address with their respective
depository participant, where shares are held in electronic form. In case of shares held in
physical form, members are advised to register their e-mail address & Mobile No. by writing to
our RTA, MCS Share Transfer Agent Ltd., Add: F-65, 1st floor, Okhla Industrial Area, Phase-I,
NewDelhi-110020, or with Skyline Financial Services Pvt. Ltd. (“Facilitators of VC/OAVM”) by
sending email to the company at [email protected] Members are requested to register their
email id and support the green initiative efforts of the Company.
12. Further, those members who have not registered their email addresses and in consequence
could not be served the Annual Report for FY 2021 and Notice of AGM may temporarily get
themselves registered with the company by sending email at [email protected] for receiving
the same. Members are requested to support our commitment to environment protection by
choosing to receive the Company’s communication through email going forward.
13. With a view to enable the Company to serve the members better, members who hold shares in
identical names and in the same order of names in more than one folio are requested to write to
the Company to consolidate their holdings in one folio.
14. SEBI vide its notification (SEBI/LADNRO/GN/2018/24) dated 8 June 2018 as amended on
30 November 2018 and notifications & circulars issued thereafter, has stipulated that w.e.f.
1 April 2019, the transfer of securities (except transmission or transposition of shares) shall
not be processed, unless the securities are held in the dematerialised form. The Company
has complied with the necessary requirements as applicable, including sending of letters
to shareholders holding shares in physical form and requesting them to dematerialise their
physical holdings.
15. Members who still hold share certificates in physical form are advised to dematerialize their
shareholding to also avail of numerous benefits of dematerialisation, which include easy
liquidity, ease of trading and transfer, savings in stamp duty and elimination of any possibility of
loss of documents and bad deliveries.
16. In case of joint holders, the member whose name appears as the first holder in the order of
names as per the Register of Members of the Company will be entitled to vote at the AGM.
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

17. The Company has been maintaining, inter alia, the following statutory registers at its registered office at D-7/3, Okhla Industrial Area-II, New Delhi-110020. a) Register of contracts or arrangements in which directors are interested under section 189 of the Act.

b) Register of directors and key managerial personnel and their shareholding under section 170 of the Act.

18. In accordance with the MCA Circulars, the said registers will be made accessible for inspection through electronic/Physical mode and shall remain open and be accessible to any member during the continuance of the meeting.

19. The Register of Members and Share Transfer Books will remain closed from Friday, 17th December, 2021 to Thursday, 23rd December, 2021 (both days inclusive) .

20. Pursuant to section 72 of the Act, members holding shares in physical form are advised to file nomination in the prescribed Form SH-13 (a copy of which is available on the Company’s website at www.dfslonline.in In respect of shares held in electronic/demat form, the members may please contact their respective depository participant.

21. Since the meeting will be conducted through VC/OAVM facility, the route map is not annexed to this Notice.

22. For more details on shareholders’ matters, please refer to the section on ‘General Shareholder Information’, included in the Annual Report.

23. In case a person becomes a member of the Company after dispatch of AGM Notice, and is a member as on the cut-off date for e-voting, i.e., Thursday, 16th December, 2021, such person may obtain the user id and password from by email request on [email protected].

24. Alternatively, member may send signed copy of the request letter providing the email address, mobile number and self-attested PAN copy along with client master copy (in case of electronic folio)/copy of share certificate (in case of physical folio) via email to [email protected] for obtaining the Annual Report and Notice of AGM.

25. The attendance of the Members attending the AGM through VC will be counted for the purpose of ascertaining the quorum under Section 103 of the Companies Act, 2013.

26. Instructions for remote e-voting and joining the e-AGM are as follows: THE INTRUCTIONS FOR SHAREHOLDRES FOR REMOTE E-VOTING ARE AS UNDER: i. The Board of Directors of the company has appointed M/s. Ojha& Associates, Company Secretaries, as Scrutinizer for conducting the e-voting process for the Annual General Meeting in a fair and transparent manner.

ii. The voting period begins on and ends on . During this period shareholders’ of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date (record date) of Thursday 16th December, 2021 may cast their vote electronically. The e-voting module shall be disabled by CDSL or voting thereafter.

iii. Shareholders who have already voted prior to the meeting date would not be entitled to vote at the meeting venue.

iv. The shareholders should log on to the e-voting website www.evotingindia.com

v. Click on “Shareholders” module. vi. Now enter your User ID a. For CDSL: 16 digits beneficiary ID, b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID, c. Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
- OR
- Alternatively, if you are registered for CDSL’s EASI/EASIEST e-services, you can log-in at https://www.cdslindia.com from Login – Myeasiusing your login credentials. Once you successfully log-in to CDSL’s EASI/EASIEST e-services, click on e-Voting option and proceed directly to cast your vote electronically.

DCM FINANCIAL SERVICES LTD.

vii. Next enter the Image Verification as displayed and Click on Login. viii. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier e-voting of any company, then your existing password is to be used. ix. If you are a first time user follow the steps given below:

For Shareholders holding shares in Demat Form and Physical Form

==> picture [295 x 444] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|PAN|Enter your 10 digit alpha-numeric *PAN issued by Income Tax|
|Department (Applicable for both demat shareholders as well as|
|physical shareholders)|
|•|Shareholders who have not updated their PAN with the|
|Company/Depository Participant are requested to use the|
|sequence number sent by Company/RTA or contact Company/|
|RTA.|
|Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy|
|format) as recorded in your demat account or in the company|
|records in order to login.|
|Dividend Bank Details|•|If both the details are not recorded with the depository or|
|OR|company please enter the member id / folio number in the|
|Date of Birth (DOB)|Dividend Bank details field as mentioned in instruction (v).|
|x.|After entering these details appropriately, click on “SUBMIT” tab.|
|xi.|Shareholders holding shares in physical form will then directly reach the Company selection|
|screen. However, shareholders holding shares in demat form will now reach ‘Password|
|Creation’ menu wherein they are required to mandatorily enter their login password in the|
|new password field. Kindly note that this password is to be also used by the demat holders|
|for voting for resolutions of any other company on which they are eligible to vote, provided|
|that company opts for e-voting through CDSL platform. It is strongly recommended not to|
|share your password with any other person and take utmost care to keep your password|
|confidential.|
|xii.|For shareholders holding shares in physical form, the details can be used only for e-voting|
|on the resolutions contained in this Notice.|
|xiii. Click on the EVSN for the relevant Company Name on which you choose to vote.|
|xiv. On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same|
|the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES|
|implies that you assent to the Resolution and option NO implies that you dissent to the|
|Resolution.|
|xv.|Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.|
|xvi. After selecting the resolution you have decided to vote on, click on “SUBMIT”. A|
|confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to|
|change your vote, click on “CANCEL” and accordingly modify your vote.|
|xvii. Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your|
|vote.|
|xviii. You can also take a print of the votes cast by clicking on “Click here to print” option on the|
|Voting page.|
|xix. If a demat account holder has forgotten the login password then Enter the User ID and the|
|image verification code and click on Forgot Password & enter the details as prompted by|
|the system.|
|xx.|Shareholders can also cast their vote using CDSL’s mobile app “m-Voting”. The m-Voting|
|app can be downloaded from respective Store. Please follow the instructions as prompted|
|by the mobile app while Remote Voting on your mobile.|

----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL ADDRESSES ARE NOT REGISTERED WITH THE DEPOSITORIES FOR OBTAINING LOGIN CREDENTIALS FOR E-VOTING FOR THE RESOLUTIONS PROPOSED IN THIS NOTICE:

For Physical shareholders- please provide necessary details like Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to [email protected] (Company Email id) or [email protected]
For Demat shareholders -, please provide Demat account details (CDSL-16 digit beneficiary ID or NSDL-16 digit DPID + CLID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) [email protected] (Company Email id) or helpdesk.evoting@cdslindia. com.

INSTRUCTIONS FOR SHAREHOLDERSATTENDING THE AGM THROUGH VC ARE AS UNDER:

Shareholder will be provided with a facility to attend the AGM through VC through the CDSL e-Voting system. Shareholders may access the same at https://www.evotingindia.com under shareholders/members login by using the remote e-voting credentials. The link for VC will be available in shareholder/members login where the EVSN of Company will be displayed.
Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience.
Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
Shareholders who would like to express their views/ask questions during the meeting may register themselves as a speaker by sending their request in advance at least 15 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at (company email id). The shareholders who do not wish to speak during the AGM but have queries may send their queries in advance 10 days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at (company email id). These queries will be replied to by the company suitably by email.
Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.

INSTRUCTIONS FOR SHAREHOLDERS FOR E-VOTING DURING THE AGM ARE AS UNDER:-

The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for Remote e-voting.
Only those shareholders, who are present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM.
If any Votes are cast by the shareholders through the e-voting available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility , then the votes cast by such shareholders shall be considered invalid as the facility of e-voting during the meeting is available only to the shareholders attending the meeting.
Shareholders who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM.
xxi. Note for Non – Individual Shareholders and Custodians
Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the “Corporates” module.
A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected].
After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.

DCM FINANCIAL SERVICES LTD.

The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia. com and on approval of the accounts they would be able to cast their vote.
A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.
Alternatively Non Individual shareholders are required to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address viz; [email protected](designated email address by company), if they have voted from individual tab & not uploaded same in the CDSL e-voting system for the scrutinizer to verify the same.

If you have any queries or issues regarding attending AGM & e-Voting from the e-Voting System, you may refer the Frequently Asked Questions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or write an email to helpdesk.evoting@cdslindia. com or contact Mr. Nitin Kunder (022-23058738) or Mr. Mehboob Lakhani (022-23058543) or Mr. Rakesh Dalvi (022-23058542).

All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to [email protected] or call on 022-23058542/43.

i. To address issues/grievances of shareholders relating to the ensuing AGM, including e-voting, the following official has been designated:

Name of Offcial	Ms. Somali Tiwari
Designation	Company Secretary & Compliance Offcer
Address	D-7/3 Okhla Industrial Area, Phase-2, New Delhi-110020
Contact	011-26387750
E-mail	[email protected]

PURSUANT TO REGULATION 36 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECRETARIAL STANDARD 2 ISSUED BY ICSI, INFORMATION ABOUT THE DIRECTOR PROPOSED TO BE REAPPOINTED IS FURNISHED BELOW:

BELOW:
Name	Mr. Kaushal Kashyap
Director Identifcation Number(DIN)	07683753
Date of Birth	23/12/1991
Date of Appointment in the Board	01/09/2020
Qualifcation	Graduate
Nature of Expertise	Experience in Administration and Management
Shareholdingin the Company	NIL
List of Directorship held in other companies	1. Accuvant Advisory Services Limited 2. Galore Prints Industries Limited 3. Candid E-Solutions Private Limited
Names of Listed Entities in which the person holds membershipof Committees of the Board	Accuvant Advisory Services Limited
Shareholding inthe company including shareholdingas a benefcial owner	NIL
Relationshipbetween Directors Inter-se	None

DCM FINANCIAL SERVICES LTD.

==> picture [34 x 33] intentionally omitted <==

----- Start of picture text -----

D C M
FINANCIAL
SERVICES LTD.
----- End of picture text -----

CIN : L65921DL1991PLC043087

Name of the Company : DCM Financial Services Limited Registered & Corporate Office : DCM Financial Services Limited Regd Office: D 7/3, Okhla Industrial Area- II, New Delhi 110020, TEL : 011 26387750, Fax: 91- 11-26385996 email ID : [email protected], Website : www.dfslonline.in

GREEN INITIATIVE IN CORPORATE GOVERNANCE

E-COMMUNICATION REGISTRATION FORM

(In terms of Section 20 of the Companies Act, 2013)

Folio No. / DP ID & Client ID Name of 1st Registered Holder Name(s) of Joint Holder(s) Registered Address Email ID (to be registered)

I/We shareholder(s) of DCM Financial Services Limited agree to receive communication from the Company in electronic mode under relevant provisions of the Companies Act, 2013. Please register my above e-mail in your records for sending communication through mail.

Signature:-_____

(First Holder) ________

*Note: Shareholder(s) are requested to keep the Company informed as and when there is any change in the e-mail address.

DCM FINANCIAL SERVICES LTD.

DIRECTOR’S REPORT

To

The Shareholders of the Company,

Your Directors are pleased to present this 30thAnnual Report together with the Audited Annual Financial Statementsfor the year ended March 31, 2021.

COVID-19 PANDEMIC

The COVID-19 pandemic has caused a huge disruption creating an unprecedented impact on the financial well-being of nations, corporations and individuals. A detailed discussion on impact of COVID-19 on the business and operations of the Company is covered in the ‘ Management Discussion and Analysis Report .’

CIRCULATION OF ANNUAL REPORTS IN ELECTRONIC FORM

In view of the prevailing COVID-19 situation and consequent lockdown across the country, the Ministry of Corporate Affairs (MCA) has exempted companies from circulation of physical copies of Annual Report for FY2021.

Accordingly, the Annual Report of the Company for FY2021 is being sent only by email to the members, and all other persons/entities entitled to receive the same.

This Annual Report, along with other documents, is also available on the Company’s website at https:// www.dfslonline.in

FINANCIAL HIGHLIGHTS- AT A GLANCE

Overall Performance of your Company

The Financial Year 2020-21 had been a little volatile for the Company as your Company has shown an improved performance during the year under review. The net Loss of your Company had gone down from Rs. (3,208,547) in the Financial Year 2019-20 to Rs. (1,246,925) in the Financial Year 2020-21.

The financial summary, performance highlights operations/state of affair of yourCompany for the years are summarized below::

(Amount in Rupees)

PARTICULARS	Standalone	Standalone	Consolidated	Consolidated
	2020-21	2019-20	2020-21	2019-20
Income from Business Operations	-	-	-	-
Other Income	20,245,906	25,418,452	20,351,369	25,508,700
Total Income	20,245,906	25,418,452	20,351,369	25,508,700
Less: Expenditure except Depreciation	13,947,330	30,340,497	14,016,701	30,226,029
Proft/Loss before Depreciation and Tax	6,298,576	(4,922,045)	6,334,668	(4,717,329)
Less: Depreciation	3,267,960	2,862,475	3,345,120	2,941,782
Proft/Loss before Tax	3,030,616	(7,784,520)	2,989,548	(7,659,111)
Less: Tax Expense	7,80,000	-	7,80,000	-
Add: Deferred Tax Asset	2,89,487	7,402,780	2,85,956	(7,365,128)
Add: MAT Credit Entitlement	-	2,851,906	-	2,851,906
Less: Prior Period Taxes	3,217,897	-	3,217,897	-
Net Proft/Loss after tax	(1,256,769)	(3,233,645)	(1,294,305)	(3,145,889)
Add: Other Comprehensive Income	9,843	25,098	9,843	25,098
Net Proft/Loss for the period	(1,246,925)	(3,208,547)	(1,284,461)	(3,120,791)
Earnings per share:
Basic	(0.06)	(0.15)	(0.06)	(0.14)
Diluted	(0.06)	(0.15)	(0.06)	(0.14)

DCM FINANCIAL SERVICES LTD.

DIVIDEND

No Dividend was declared for the current financial year due to losses in the Company.

RESERVES

The Board proposes no amount to transfer to the reserves and no amount is proposed to be retained in surplus.

SHARE CAPITAL

There was no change under the Share Capital during the year under review as the Company has not issued any shares including Equity Shares, Shares with Differential Voting Rights, Stock Options, Sweat Equity, etc. The Company has not bought back any equity shares during the year 2020-21.

As on 31st March, 2021, paid-up share capital of the Company stood at Rs. 221,250,540/- consisting of 22,125,054Equity Share of Rs. 10/- each.

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

Since there was no unpaid/unclaimed Dividend declared or paid by the Company, the provisions of Section 125 of the Companies Act, 2013 do not apply.

DEPOSITS

During the year under review, the Company has not accepted any deposits in terms of section 73 of the Companies Act, 2013.However, as on 31.03.2021, there are outstanding fixed deposits aggregating to Rs. 48,76,48,064/- are payable and the Court has appointed the committee of Justice Anil Kumar, former Judge of Delhi High Court and whohas invited claims from Depositors for the verification and payment as per report/scheme. Once this exercise is complete and report is submitted to the Court, the numbers and the value of un-claimed deposits will be known.

SUBSIDIARY / ASSOCIATE/ JOINT VENTURES COMPANIES OF THE COMPANY

The Company has One Subsidiary Company named as ‘Global IT options Limited’.During the year under review, there were no associate and joint ventures of the Company. A statement about SubsidiaryCompany is mentioned in Form AOC-1 marked as “Annexure-A” with this report.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section of this Annual Report.

CHANGE IN DIRECTORS /KEY MANAGERIAL PERSONNEL DURING THE YEAR

The details about the changes in Directors or Key Managerial Personnel by way of Appointment, Re – designation, Resignation, Death,Dis-qualification, variation made or withdrawn etc. are as follows:

S.No.	Name	Designation	Appointment	Cessation
1.	Mr. SanjaySahni	Additional Director	01.09.2020	-
2.	Mr. Sanjay Sahni	Independent Director	18.12.2020 (Regularized at AGM)
3.	Mr. Kaushal Kashyap	Additional Director	01.09.2020	-
4.	Mr. Kaushal Kashyap	Director	18.12.2020 (Regularized at AGM)	-

Mr. Kaushal Kashyap (DIN:07683753),Director will be retiring by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. The Board recommends his re-appointment to the Board of the Company at the ensuing Annual General Meeting.

STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SECTION 149(6) OF COMPANIES ACT, 2013

All Independent Directors have given declarations under section 149(7)that they meet the criteria of Independence as laid down under section 149(6) of the Companies Act, 2013 and Rules made thereunder to be read with SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.

EXTRACT OF ANNUAL RETURN

The details forming part of extract of Annual Return under sub section 3 of Section 92 of the Companies Act, 2013 in FormMGT-9 is annexed herewith as “Annexure C.”. It can be accessed on the website of the company atwww.dfslonline.in.

DCM FINANCIAL SERVICES LTD.

NUMBER OF MEETINGS OF THE BOARD& COMMITTEES

During the year under review Board Meetings,Audit Committee Meetings, Nomination & Remuneration Committee Meetings, Stakeholders’ Relationship Committee Meetings and other CommitteeMeetings were convened. The dates on which the Board meetings were held are 02/06/2020, 03/07/2020, 01/09/2020, 11/09/2020, 11/11/2020, 11/02/2021, 05/03/2021. The maximum interval between any two meetings didn’t exceed 120 days, as prescribed in the Companies Act, 2013.

AUDIT COMMITTEE

The Audit Committee of the Company is constituted in line with the provisions of section 177 of the Companies Act, 2013 to be read with Regulation 18 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.The Composition of Audit Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

NOMINATION & REMUNERATION COMMITTEE

The Nomination & Remuneration Committee of the Company is constituted in line with the provisions of section 178 of the Companies Act, 2013 to be read with Regulation 19 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.The Composition of the Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

STAKEHOLDERS’ RELATIONSHIP COMMITTEE

The Stakeholders’ Relationship Committee of the Company is constituted in line with the provisions of section 178 of the Companies Act, 2013 to be read with Regulation 20 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.The Composition of the Committee is given in the Corporate Governance Report which forms the integral part of this Annual Report.

VIGIL MECHANISM COMMITTEE

The Vigil Mechanism Committee of the Company is constituted in line with the provisions of section 177 of the Companies Act, 2013 to be read with Regulation 22 of the SEBI (Listing Obligation & Disclosure Requirement) Regulation, 2015.

BOARD ANNUAL EVALUATION

The provisionsofsection 134(3)(p) of the Companies Act, 2013 read with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 mandate that a Formal Annual Evaluation is to be made by Board of its own performance and that of its Committee and individual Directors. Schedule IV of the Companies Act, 2013 states that performance evaluation of the Independent Director shall be done by Directors excluding the Director being evaluated. The Board carried out a formal annual performance evaluation as per the criteria/framework laid down by the Nomination & Remuneration Committee of the company and adopted by the Board. The evaluation was carried out through a structured evaluation process to judge the performance of individual Directors including the Chairman of the Board. They were evaluated on parameters such as their education, knowledge, experience, expertise, skills, behavior, leadership qualities, level of engagement & contribution, independence of judgment, decision making ability for safeguarding the interest of the Company, stakeholders and its shareholders.

The performance evaluation of the Independent Directors was carried out by the entire Board except the participation of concerned Independent Director whose evaluation was to be done. The performance evaluation of the Chairman and the Non Independent Directors was carried out by the Independent Directors. The Board was satisfied with the evaluation process and approved the evaluation results thereof.

STATUTORY AUDITOR& SECRETARIAL AUDITORWITH THEIR QUALIFICATION, RESERVATION ORADVERSE REMARKS ALONG WITH THE EXPLANATION OR COMMENTS BY THE DIRECTORS

A. STATUTORY AUDITOR

The members at the Annual General Meeting held on 30th November 2017, appointed M/s. Mukesh Aggarwal& Co., Chartered Accountants (Firm Registration No. 000393N) as Statutory Auditors of the Company for a period of Five yearsto hold office till the conclusion of 31stAnnual General Meeting of the Company subject to ratification at every AGM. But, the requirement to place the matter relating to appointment of Auditors for ratification by members at every Annual General Meeting is done away by Companies Amendment Act, 2017 vide notification dated May 7, 2018 issued by Ministry of Corporate Affairs, New Delhi. Thus,M/s. MukeshAggarwal& Co., Chartered Accountants shall continue to act as Statutory Auditor.

DCM FINANCIAL SERVICES LTD.

Qualifcation(s) and Directors’ comments on the report of Statutory Auditor:

1 Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one-man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one-man committee enumerated in the report. Under Scheme of One-Man Committee, Interest of Rs 235 Lacs are payable to Debenture Holders and Rs 1,448 Lacs are payable to Fixed Depositors under Phase-2 of Schedule of Payments laid down by One Man Committee. Presently the said committee has waived any further payment of Interest to Fixed Depositors, Debenture-holders and other lenders, however on complete liquidation of properties and investments, if any surplus remains after payment to all stakeholder creditors, then further payment of Interest would be decided. All stakeholders’ creditors which are covered under scheme has given its consent to the scheme. No provision of Rs. 1,683 Lacs as laid down under the scheme towards Interest on Debentures and Fixed Deposits, have been provided in the financial statements on the outstanding amount of Debentures and Fixed Deposits.

Had interest of Rs. 1,683 Lacs been provided for in the financial statements of year ending 31st March 2018 on outstanding amount of Debentures and Fixed Deposits, the Net Profit before tax would have been lowered by Rs. 1,683 Lacs and Net Profit after tax would have been lowered by Rs. 1,340 Lacs as at 31st March, 2018. The cumulative net loss as well as Current Liabilities as at 31st March, 2021 would have been higher by Rs 1,340 Lacs. The same has been explained in Note 17.2 and Note 17.3

Director’s Comment

Provision of interest on certain liabilities covered under Para i and under notes 17.2. & 173 is in accordance with the Scheme of restructuring filed by the Company before the Hon’ble Delhi High Court, which provides for waiver and cancellation of interest and the same is pending before the Hon’ble Court. Further, the quantum of interest, if any will be decided by the High Court of Delhi upon completion of phase II payments and sale of assets. Since, Management contends that no interest will be payable as per restructuring scheme no provision of interest is required to be made

2 For redemption of ‘B’ series debentures of Rs. 2014.98 Lacs debenture redemption reserve is required to be created. Debenture redemption reserve of Rs. 2014.98 Lacs has not been created due to insufficient profits. The same has been explained in Note 17.2 .

Director’s Comment

Non-creation of debenture redemption reserve. The same cannot be created due to insufficient profits in the past against the redemption of debenture. This has no impact on financial results of the company as redemption reserve is to be created out of Reserve and Surplus available with the company. Company has commenced repayments in the earlier years as well as in the current Year as per directions of the Hon’ble High Court of Delhi vide order dated 10th Aug,2017 and recommendations of One Man Committee. Company is still not creating Debenture redemption Reserve for the same reason that it has no sufficient profits to do so.
3 The value of assets charged as security in favor of banks, debenture-holders & financial institutions have been depleted over a period of time. The depletion has not yet been ascertained by the Company. To the extent of shortfall, if any, the liability is unsecured, whereas the same has been shown as secured. The same has been explained in 17.2 .

Director’s Comment

==> picture [312 x 79] intentionally omitted <==

----- Start of picture text -----

|||
|---|---|
|It relates to ascertainment of Security against Debentures and Bank Loan, which could not be|
|ascertained since the Company has litigation with various Lease and Hire Purchase customers|
|and the matters are sub-judice, hence confirmations and acknowledgments are not feasible.|
|4|Balance confirmation of bills receivable and payable, advances recoverable in cash or in|
|kind, receivables and payables relating to lease and hire purchase, lease security deposit of|
|which party wise details are not available. Balance confirmation of inter-corporate deposits,|
|FD balances with Bank, interest on FD from banks, balance of ex-employees, margin against|
|L/C, loans from institutions, banks, no dues certificate on payment of loans from bank and|
|other receivables and payables have not been received from the parties/persons concerned.|

----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

In the absence of balance confirmation, the closing balances as per books of accounts have been incorporated in the final accounts and have been shown, unless otherwise stated by the management about its recoverability in the financials including considering the NPA Provisions, are good for recovery/payment. Time barred debts under the Limitations Act have not been separately ascertained and written off or provided for. In the absence of such confirmation & corresponding reconciliation, it is not feasible for us to determine financial impact on the financials and the amount referred as payable in the financials can differ. Please refer Note No38

Director’s Comment

Balance Confirmation of Bills Receivable and Payable, advances recoverable in cash or in kind, receivables and payables relating to lease and hire purchase and lease security deposit- Note 38 -In view of litigation with creditors mentioned in the Note 38, it’s not possible to obtain the balance confirmations.

5. Contingent liabilities and Other Commitments

5(a) During the year ended 30th June, 2011 the company’s tenant had filed a claim of Rs.10,000,000 against the company due to damages suffered by the tenant which is still pending under arbitration proceedings as on 31st March, 2021

Director’s Comment

There are certain disputes with the tenant and the claim of tenant is contested.

5(b) There is an award passed by the arbitrator against the company in the matter of MS Shoes East Limited on May 28, 2012 for Rs. 5,128,320 i.e. the claim amount, along with Rs. 30,680,848 towards interest cost for an underwriting given by the company in the year 1995 for the public issue of M/s MS Shoes East Ltd. Furthermore, an incidental cost which includes arbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had been awarded to the company. The total financial impact comes to Rs. 36,358,448 which has been contested by Company before Hon’ble Delhi High Court

Director’s Comment

Company has preferred an appeal/objections before Hon’ble High Court of Delhi in the MS Shoes East Limited matter against the arbitration order and the same pending adjudication.

5(c ) Due to dispute with the builder namely M/s NBCC Ltd. from which the company had purchased an office premises in the year 1995, regarding a claim of Rs. 28,829,634 on account of increase in super area and certain other expenditure which the builder i.e. M/s NBCC Ltd. had incurred and the same is pending in arbitration. Breakup of the amount of Rs. 28,829,634 mentioned supra is as follows:

S. No.	Description	Amount(In Lacs)
1.	Difference in super area Vs.provisional area	22,928,254/-
2.	Claim ofpropertytax	319,100/-
3.	Claim ofground rent	2,167,190/-
4.	Allied charges	782,210/-
5.	Augmentation of Electric sub station	132,880/-
6.	Loss ofproft	2,000,000/-
7.	Arbitration cost	500,000/-
TOTAL		28,829,634/-

In current year, the award was given in respect of dispute that has arisen between NBCC Ltd. (Claimant) and DCM Financial Services Limited (Respondent) in relation to sale of Commercial Space-Upper Ground Floor NBCC Place, Pragati Vihar, New Delhi by the Claimant to the respondent.

DCM FINANCIAL SERVICES LTD.

The summary position of award is as under:

Party	Amount Claimed (in Rs.)	Awarded (in Rs.)
NBCC Ltd.- Claimant	4,34,95,374/-	41,05,656/-
DCM Financial Services Limited - Counter Claimant/Respondent	32,69,49,945/-	78,97,424/-

In addition to the above, Interest @ 10% is payable by both the parties on their respective amounts.

That whereas NBCC has filed objections to the award in Delhi High Court in December 2020 and the same appears to be lying in objections.

That DCM has also filed objection in Delhi High Court and the same has not being listed so far

Director’s Comment

Company has received a favorable award but the same has been challenged by both parties in High Court, so no provision of liability is made in this regard is made.

All the observations are self-explanatory and do not call for any further comment

B. SECRETARIAL AUDITOR

Pursuant to provision of Section 204 of the Companies act, 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rule, 2014, the Company has appointed M/s. Ojha & Associates, Company Secretaries to undertake Secretarial Audit of the Company for the Financial Year 2020-21.

The Secretarial Audit was conducted by Mr. Tanay Ojha, Company Secretary , and the report thereon is annexed herewith as “ Annexure- D .”.

Qualification(s) and Directors’ comments on the report of Secretarial Auditor:

Observations in the report are on the basis of facts and are self explanatory.

Annual Secretarial Compliance Report

The provisions of Regulation 24A of the SEBI (Listing Obligations and Disclosure) Regulations, 2015 are applicable on the Company. Therefore, the Company has obtained a certificate from a Practicing Company Secretary and has been attached with this Annual Report.

C. INTERNAL AUDITOR

The Company had appointed M/s. STVG & Co., Chartered Accountants as Internal Auditor of the Company to carry out the Internal Audit Functions. The Internal Auditor submits a “Quarterly Report” to the Audit Committee for its review.

REPORTING OF FRAUDS

There was no instance of fraud during the year underreview, which required the Statutory Auditors to reportto the Audit Committee and / or Board under Section143(12) of Act and Rules framed thereunder.

PARTICULAR OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not given any loan(s) or guarantee(s) and has not made any investment covered under the provision of the Section 186 of the Companies Act, 2013 during the year under review.

All investments made during the year were within the stipulated limits of law.

PARTICULAR OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES UNDER SECTION 188 OF THE COMPAIES ACT, 2013

In the financial year 2020-21, company did not enter into any contracts or arrangements with any related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. Form AOC-2 is attached as “ Annexure B ”.

MATERIAL CHANGES AND COMMITMENTS, IF ANY,AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There were no material changes and commitments affecting the financial position of the Company occurred between the end of the financial year of the Company to which this financial statement relate and on the date of this report.

DCM FINANCIAL SERVICES LTD.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE

To the best of the Management’s knowledge, there has been no material order passed by any regulator or Court or Tribunal impacting the Going Concern status of the Company’s operations.

An Arbitration Award passed by Mr. S.K. Kaul, Ex-Senior Executive Director (ENGG), NBCC (I) Ltd. in the matter between M/s. NBCC ltd. & M/s. DCM Financial Services Ltd. (“the Company” on 17/08/2020.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUT-GO

The requisite information with regard to conservation of energy,technology absorption and foreign exchange earnings and outgo,in terms of the Section 134(3)(m) of the Companies Act, 2013, readwith Companies (Accounts) Rules, 2014 is given below:

	Conservation of energy
1.	the steps taken or impact on conservation of energy	Nil
2.	the steps taken by the company for utilizing alternate sources of energy	Nil
3.	the capital investment on energy conservation equipment	Nil

	Technology absorption
1.	the efforts made towards technology absorption	Nil
2.	the benefts derived like product improvement, cost reduction, product development or import substitution	Nil
3.	in case of imported technology (imported during the last three years reckoned from the beginning of the fnancial year)	Nil
4.	the details of technology imported	Nil
5.	the year of import	Nil
6.	whether the technology been fully absorbed	Nil.
7.	if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and	Nil
8.	the expenditure incurred on Research and Development	Nil
	Foreign exchange earnings and Outgo
1.	The Foreign Exchange earned in terms of actual infows during the year	Nil
2.	The Foreign Exchange outgo during the year in terms of actual outfows	Nil

Further, there were no foreign exchange earnings and outgo during the year under review.

RISK MANAGEMENT

The provisions of SEBI Regulations for formation of Risk Management Committee are not applicable to the Company. However, as per section 134 (3) (n) of Companies Act 2013, the company regularly maintains a proper check in normal course of its business regarding risk management. Currently, the company does not identify any element of risk which may threaten the existence of the company.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The company does not fall under the criteria of net worth, turnover or profit for applicability of Corporate Social Responsibility (CSR) provisions as per Section 135 of the Companies Act, 2013, hence the same are not applicable to the company for the period under review.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

As per Regulation 22 of the SEBI Regulations, 2015, in order to ensure that the activities of the Company & its employees are conducted in a fair & transparent manner by adoption of highest

DCM FINANCIAL SERVICES LTD.

standards of professionalism, honesty, integrity and ethical behavior, the company has adopted a vigil mechanism policy. The whistle blower policy is uploaded on the website of the Company and can be accessed athttp://dfslonline.in/policy/5.pdf

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

As per the requirement of “The Sexual Harassment of Women at Workplace (Prevention, Prohibition &Redressal) Act, 2013” and Rules made thereunder, your Company has constituted Internal Complaints Committee (ICC) at its workplaces. During the year, no complaints were filed with the Company.

Number of complaints received	Number of complaints disposed of	Number of complaints pending more than ninety days	Number of workshops or awareness programme against sexual harassment
NIL	NIL	NIL	NIL

CORPORATE GOVERNANCE REPORT

As per Reg. 34 of SEBI Regulation, 2015 to be read with Part A of Schedule V of the said regulations, a separate section on corporate governance practices followed by the company, together with the certificate from the Practicing Company Secretary confirming compliance forms an integral part of this Report.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a robust and comprehensive Internal FinancialControl system commensurate with the size, scale and complexityof its operation. The system encompasses the major processes toensure reliability of financial reporting, compliance with policies,procedures, laws, and regulations, safeguarding of assets andeconomical and efficient use of resources.

The Company has performed an evaluation and made anassessment of the adequacy and the effectiveness of the Company’sInternal Financial Control System. The Statutory Auditors of the Company have also reviewed the Internal Financial Control systemimplemented by the Company on the financial reporting and intheir opinion, the Company has, in all material respects, adequateInternal Financial Control system over Financial Reporting and suchControls over Financial Reporting were operatingeffectively as on 31stMarch, 2021 based on the internal control over financial reporting criteria established by the Company.

The policies and procedures adopted by the Company ensuresthe orderly and efficient conduct of its business and adherenceto the company’s policies, prevention and detection of frauds and errors, accuracy & completeness of the records and the timelypreparation of reliable financial information.

The Internal auditors continuously monitor the efficacy of internal controls with the objective of providing to the Audit Committee and the Board, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organization’s risk management with regard to the internal control framework.

Audit committee meets regularly to review reports submitted by the Internal Auditors. The Audit Committee also meet the Company’s Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system and compliance to accounting policies and procedures followed by the Company.

PERSONNEL RELATIONS

Your Directors hereby place on record their appreciation for the services rendered by executives, staff and other workers of the Company for their hard work, dedication and commitment. During the year under review, relations between the Employees and the Management continued to remain cordial.

PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule, 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company is as follows:

The company has One Executive Director and the remuneration paid to him is disclosed in Form MGT-9.

The particulars of the employees who are covered by the provisions contained in Rule 5(2) and rule 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are:

DCM FINANCIAL SERVICES LTD.

a) Employed throughout the year “Annexure F”

b) Employed for part of the year “Annexure F”

The remuneration paid to all Key Managerial Personnel was in accordance with the remuneration policy as adopted by the company.

REMUNERATION POLICY OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board on the recommendation of Nomination &Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management Personnel and fixation of their remuneration thereof. The Policy contains, inter-alia, directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a Director, etc.

FAMILIARIZATION POLICY

Pursuant to the provisions of Regulation 25(7) of Listing Regulations, 2015, the Board has framed a policy to familiarize Independent Directors about the Company.

LISTING AGREEMENT

The shares of the Company are presently listed at BSE Limited, National Stock Exchange of India Limited and the Calcutta Stock Exchange Limited.

All statutory dues including Annual Listing Fees for the Financial Year 2021-22 has been paid by the Company.

CODE OF CONDUCT AS PER SEBI (LODR) REGULATIONS, 2015

The Board of Directors has laid down the code of conduct for all Board Members and members of the Senior Management of the Company at their meeting held on 05th March, 2021. Additionally, all Independent Directors of the company shall be bound by duties of Independent Directors as set out in Companies Act, 2013 to be read with SEBI Listing Regulations, 2015.

CODE OF CONDUCT AS PER SEBI (PREVENTION OF INSIDER TRADING) REGULATIONS, 2015

The Board of Directors has laid down the Code of Practices and Procedures for Fair Disclosures ofUnpublished Price Sensitive Information as per Regulation 8(1) of SEBI (Prevention of Insider Trading) Regulations, 2015&Code of Conduct to Regulate, Monitor and Report trading by the Designated Persons as per Regulation 9(1) of SEBI (Prevention of Insider Trading) Regulations, 2015 at their meeting held on 05th March, 2021.

All Board Members, Key Managerial Personnel and Senior Management Personnel have affirmed compliance with the Code of Conduct.

DISCLOSURE OF STATEMENT OF DEVIATION(S) OR VARIATION(S) UNDER REGULATION 32 OF SEBI(LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS), REGULATIONS, 2015

With reference to Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the disclosure of Statement of Deviation(s) or Variation(s) as per the said regulation is not applicable to the Company.

DIRECTOR’S RESPONSIBILITY STATEMENT

In terms of Section 134(3) of the Companies Act 2013, the Directors, would like to state as follows:

(a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) the Directors had selected such accounting policies and applied them consistently and made judgments & estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the company at the end of the financial year and of the profit & loss of the Company for that period ;

DCM FINANCIAL SERVICES LTD.

(c) The Directors had taken proper & sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the company and for preventing & detecting fraud & other irregularities;
(d) The Directors had prepared the Annual Accounts on a going concern basis;
(e) The Directors had laid down Internal Financial Controls to be followed by the Company and such controls are adequate and are operating effectively;
(f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENT

Your Directors would like to express their sincere appreciation for assistance and co-operation received from the various stake holders including Financial Institutions,Banks, Governmental authorities and other business associates who have extended their valuable support and encouragement during the year under review.

Your Directors take the opportunity to place on record their deep appreciation of the committed services rendered by the employees at all levels of the Company, who have contributed significantly towards Company’s performance and for enhancing its inherent strength. Your Directors also acknowledge with gratitude the encouragement and support extended by our valued stakeholders.

For and on behalf of the Board For DCM Financial Services Limited Shantanu Deveshwar Chairperson & Whole Time Director DIN:08268523

Date: 18.11.2021 Place: Delhi

DCM FINANCIAL SERVICES LTD.

MANAGEMENT DISCUSSION AND ANALYSIS

We submit herewith the “Management Discussion and Analysis Report” on the business of the Company as applicable to the extent relevant.

THE COVID-19 PANDEMIC AND LOCKDOWN

We are amidst unprecedented times. The COVID-19 pandemic which was declared as a pandemic by WHO on 11th March, 2020 has eventually spread across the world — leading to well around 198,234,951confirmed infections, over 4,227,359 deaths as per COVID-19 Situation Report of World Health Organisation (WHO) dated 02nd August, 2021, enormous human suffering and a full stop on virtually all commercial and economic activities. Even India, apparently relatively fortunate up to now, has had 31,695,958 confirmed cases and 424,773 deaths as per COVID-19 Situation Report–120 of World Health Organisation (WHO) dated 2nd August, 2021. With lockdowns spreading across countries accounting for over 50% of the world’s gross domestic product (GDP), COVID-19 has caused disruptions on an unimaginable scale. Nobody really knows how long the pandemic will last; and what will be its final toll on lives and livelihood. With the impact of this pandemic still to play out, the scenario of eerily empty high streets, shut factories and stores, and literally millions being rendered unemployed together point to a single outcome — extreme stress for the global economy of the kind not seen since the Great Depression.

In response, Governments across the world have unleashed massive fiscal measures to protecteconomic activity and dramatically strengthen health services and testing. Central banks, too,have initiated multiple monetary and regulatory measures.

India, too, has initiated relief measures. The Government of India announced a slew ofwide-ranging reforms across varied sectors amidst a comprehensive package aggregating Rs. 20 lakh crore — or approximately 10% of nominal GDP — which covered among others (i) directcash transfers and food security for vulnerable sections of society, (ii) collateral free loans andconcessional credit to farmers and street vendors, (iii) enhancement of systemic liquidity by theReserve Bank of India (RBI), (iv) special liquidity and partial credit guarantee scheme to provideliquidity to NBFCs, HFCs, MFIs and mutual funds, (v) 100% credit guarantee scheme for aggregate Rs. 3 lakh crore of emergency credit lines by banks and NBFCs to their MSME borrowers and(vi) subordinated debt and equity support to MSMEs. The Government has also initiatedcompliance relief measures across various regulatory requirements. The RBI has also initiatedseveral measures like reduction in policy rates, monetary transmission, credit flows to theeconomy and providing relief on debt servicing.

INDUSTRY STRUCTURE AND DEVELOPMENT

GDP growth for India shrank 7.3% to Rs.135.13 trillion in 2020-21.

Industry Overview

play an important role in nation building and financial inclusion by complementing the banking sector in reaching out credit to the unbanked segments of society, especially to the micro, small and medium enterprises (MSMEs), which form the cradle of entrepreneurship and innovation. NBFCs’ groundlevel understanding of their customers’ profile and their credit needs give them an edge, as does their ability to innovate and customize products as per their clients’ needs. This makes them the perfect conduit for delivering credit to the unbanked and SMEs. However, NBFCs operate under certain regulatory constraints, which put them at a disadvantage position vis-à-vis banks. While there has been a regulatory convergence between banks and NBFCs on the asset side, on the liability side, NBFCs still do not enjoy a level playing field. This needs to be addressed to help NBFCs realize their full potential and thereby perform their duties with greater efficiency.

DCM FINANCIAL SERVICES LTD.

During 2019-20 and the first half of 2020-21, scheduled commercial banks (SCBs) consolidated the gains achieved after the turnaround in 2018-19.

Scheduled Commercial Bank’s (SCBs) gross non-performing assets (GNPA) ratio declined from 9.1 percent at end-March 2019 to 8.2 percent at end-March 2020 and further to 7.5 percent at endSeptember 2020.

Net profits of SCBs turned around in 2019-20 after losses in the previous two years; in H1:2020-21, their financial performance was shored up by the moratorium, standstill in asset classification, and plowing back of dividends.

The consolidated balance sheet of NBFCs decelerated in 2019-20 due to near stagnant growth in loans and advances although some improvement became visible in H1:2020-21; notwithstanding a marginal deterioration in asset quality, the NBFC sector remains resilient with strong capital buffers. Data published by the RBI in its Financial Stability Report dated 29 December 2020show that NBFCs have outperformed SCBs on asset quality.

To strengthen theasset-liability profile of the sector, RBI introduced a liquidity coverage ratio (LCR) requirement forall NBFCs with AUM of H 5,000 crore and above. The LCR regulation mandates NBFCs to maintaina minimum level of high-quality liquid assets to cover expected net cash outflows in a stressedscenario. The regulation also stipulates that NBFCs should attain LCR of 100% in a phased mannerover a period of four years starting December 2020. It is a welcome regulatory change andwill significantly strengthen ALM profile of the NBFC sector.The RBI’s moratorium measuresfor customers are likely to put additional stress on many NBFCs. There is an asymmetry. On onehand, NBFCs have to offer such moratoriums to their customers; while on the other, their marketborrowings must be repaid on due dates.

OPPORTUNITIES, CHALLENGES AND OUTLOOK

Opportunities

NBFCs have served the unbanked customers by pioneering into retail asset-backed lending, lending against securities and microfinance. Following variables in the external environment may be seen as opportunities for the Company:

The Government of India announced a slew of wide-ranging reforms across varied sectors amidst a comprehensive package aggregating Rs. 20 lakh crore — or approximately 10% of nominal (vi) subordinated debt and equity support to MSMEs.
NBFCs aspire to emerge as a one-stop shop for all financial services.
The sector has witnessed moderate consolidation activities in recent years, a trend expected to continue in the near future.
New banking license-related guidelines issued by RBI place NBFCs ahead in competition for licenses owing largely to their rural network.
New RBI guidelines on NBFCs with regard to capital requirements, provisioning norms & enhanced disclosure requirements are expected to benefit the sector in the long run.

Challenges

Competitive rivalry between big players is intense in the industry

Global recession due to COVID-19 pandemic.
Working Capital and Liquidity Stress in the market.
Low demand in the market.
Financial services companies often compete on the basis of offering lower financing rates, higher deposit rates and investment services;
Stringent regulatory norms prevent new entrants;
Customers prefer to invest their money with a reputed financial services company offering a wide range of services;
Medium bargaining power of customers. Although customers do not have much bargaining power, they can easily switch to another company based on the terms and quality of services provided.

DCM FINANCIAL SERVICES LTD.

Outlook

Although slowdown in all business sector including NBFC and trade tensions between the US and China were among the many factors that softened the economic outlook for 2019, the year did begin on a firm footing. The projected global economic growth, albeit downgraded, was 2.9%.Despite the economic and financial headwinds, growth in developing Asia is projected to grow by 7.3% in 2021 (Asian Development Outlook, Update, September 2020). However, in 2020-21, the Indian economy grew by 7.3% against 4.2% expansion in 2019-20. Due to the COVID-19 pandemic, the International Monetary Fund has projected a sharp contraction of the global economy to a status much worse than what resulted from the 2008-09 financial crisis.

DISSCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Accounts and other financial statements forming part of this annual report.

INTERNAL CONTROL SYSTEM

Given the magnitude and nature of its business, the Company has maintained sound and commercial practice with an effective internal control system. The system ensures that all transactions are authorized, recorded and reported correctly to safeguard the assets of the Company and protect them from any loss due to unauthorized use or disposition. The adequate internal information system is in place to ensure proper information flow for the decision- making process. The Company also has well-established processes and clearly defined roles and responsibilities for people at various levels. The control mechanism also involves well documented policies, authorization guidelines commensurate with the level of responsibility and standard operating procedures specific to the respective businesses, adherence to which is strictly ensured. Internal audit is carried out frequently to create awareness and to take corrective actions on the respective units or areas, which need rectification. These reports are then reviewed by the “Management Team” and the “Audit Committee” for follow-up action.

HUMAN RESOURCE DEVELOPMENT

The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation.

Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.

CAUTIONARY STATEMENT

The management discussion and analysis report containing your Company’s objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operation include raw material availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

On behalf of the Board of Directors For DCM Financial Services Limited

Date: 18.11.2021 Place: New Delhi

Shantanu Deveshwar Whole-time Director DIN: 08268523

DCM FINANCIAL SERVICES LTD.

==> picture [40 x 6] intentionally omitted <==

----- Start of picture text -----

Annexure-A
----- End of picture text -----

Form AOC-I (Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the financial statement of Subsidiaries/Associate Companies/Joint Ventures Part “A”: Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in Rupees)

S. No.	Particulars	Details	Details
1	Name of the subsidiary	Global IT Options Limited
2	Reporting period for the subsidiary concerned, if different from the holding company’s reporting period	NA
3	Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreignsubsidiaries	NA
4	Share capital	1,00,00,200
5	Reserves & surplus	(77,52,697)
6	Total assets	23,24,643
7	Total Liabilities	23,24,643
8	Investments	49,877
9	Turnover	NIL
10	Proft before taxation	(41,065)
11	Provision for taxation	(3,528)
12	Proft after taxation	(37,536)
13	Proposed Dividend	NIL
14	% of shareholding	90% approx.

1	Names of subsidiaries which are yet to commence operations		NIL
2	Names of subsidiaries which have been liquidated or sold during the year		NIL
Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

==> picture [310 x 190] intentionally omitted <==

----- Start of picture text -----

Name of Associate/Joint Venture
1. Latest audited Balance Sheet Date NA
2. Shares of Associate/Joint Venture held by the company on the year end NA
No. NA
Amount of Investment in Associate/Joint Venture NA
Extend of Holding% NA
3. Description of how there is signifcant infuence NA
4. Reason why the associate/joint venture is not consolidated NA
5. Net worth attributable to shareholding as per latest audited Balance Sheet NA
6. Proft/Loss for the year NA
Considered in Consolidation NA
Not Considered in Consolidation NA
1 Names of Associate Companies/Joint Ventures which are yet to commence operations NIL
2 Names of Associate Companies/Joint Ventures which have been liquidated or sold during NIL
the year
On behalf of the Board of Directors
For DCM Financial Services Limited
Shantanu Deveshwar
Date: 18.11.2021 Chairperson Whole-time Director
Place: New Delhi DIN: 08268523
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Annexure-B
Form AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the
Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company
with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013
including certain arms length transactions under third proviso thereto
Details of contracts or arrangements or transactions not at Arm’s
Length basis
1 a) Name(s) of the related party and nature of relationship Nil
b) Nature of contracts/arrangements/ transactions Nil
c) Duration of the contracts/ arrangements/ transactions Nil
d) Salient terms of the contracts or arrangements or Nil
transactions including the value, if any
e) Justification for entering into such contracts or Nil
arrangements or transactions.
f) Date(s) of approval by the Board Nil
g) Amount paid as advances, if any Nil
h) Date on which the special resolution was passed in General Nil
Meeting as required under first proviso to section 188.
Detail of material contracts or arrangement or transactions at -
Arm’s Length basis
2 a) Name(s) of the related party and nature of relationship
b) Nature of contracts/arrangements /transactions
c) Duration of the contracts/arrangements/ transactions
d) Salient terms of the contracts or arrangements or As Per Annexure-1
transactions including the value, if any:
e) Date(s) of approval by the Board, if any
f) Amount paid as advances, if any
On behalf of the Board of Directors
For DCM Financial Services Limited
Shantanu Deveshwar
Date: 18.11.2021 Chairperson Whole-time Director
Place: New Delhi DIN: 08268523
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

List of Related Parties:	List of Related Parties:	List of Related Parties:	Annexure-I	Annexure-I	Annexure-I	Annexure-I
S r . No.	Description of Relationship		Name of Party
1.	SubsidiaryCompany		Global IT Option Ltd.
2.	Signifcant Infuence		1.	DCM Services Ltd
			2.	DCM International Ltd
			3.	DCM Anubhavi MarketingPvt. Ltd.
3.	Key Management Personnel		1.	Shantanu Deveshwar(Whole-time Director)
			2.	Ms. Somali Tiwari (CS & CFO) (appointed w.e.f. 18/07/2019)
			3.	Ms. Priya Sharma (CS & CFO) (resigned w.e.f. 10/06/2019)
Transactions with related parties during			the year (Rs.)

Sr.	Particulars				For the year ending 31.03.2021	For the year ending 31.03.2020
1	Remuneration				3,75,648	4,81,131
2	Repayment of Loan				NIL
	i.	DCM Services Ltd				66,99,000
	ii.	DCM Anubhavi MarketingPvt.	Ltd.			1,73,09,902
	iii.	Global IT Option Ltd.				22,84,425
3	Interest Expenses				NIL
	i.	DCM Services Ltd				67,37,930
	ii.	DCM International Ltd				25,66,399
	iii.	DCM Anubhavi MarketingPvt.	Ltd.			2,90,242
	iv.	Global IT Option Ltd.				2,08,217
4	Interest Income				NIL
	i.	DCM Services Ltd				49,15,886
	ii.	DCM International Ltd				21,40,068
	iii.	DCM Anubhavi MarketingPvt.	Ltd.			2,42,077
	iv.	Global IT Option Ltd.				1,73,708
Balance Outstanding (Rs.)
1.	DCM Services Ltd.			73,924,220		73,924,220
2.	DCM International Ltd.			28,156,876		28,156,876
3.	DCM Anubhavi Marketing Pvt. Ltd.			3,184,349		3,184,349
4.	Global IT Option Ltd.			NIL		NIL
5.	Remuneration payable			NIL		28,829

DCM FINANCIAL SERVICES LTD.

==> picture [40 x 6] intentionally omitted <==

----- Start of picture text -----

Annexure-C
----- End of picture text -----

==> picture [312 x 318] intentionally omitted <==

----- Start of picture text -----

Form No. MGT-9
EXTRACT OF ANNUAL RETURN
DCM FINANCIAL SERVICES LIMITED
As on financial year ended on 31.03.2021
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management & Administration) Rules, 2014
I. REGISTRATION AND OTHER DETAILS:
(i) CIN : L65921DL1991PLC043087
(ii) Registration Date : 13-Feb-91
(iii) Name of the Company : DCM FINANCIAL SERVICES LIMITED
(iv) Category of the Company : Company Limited by shares
(v) Sub-category of the Company : Indian Non-Government Company
(vi) Address of the Registered office & : D-7/3 Okhla Industrial Area,
contact details : Phase-2, New Delhi-110020
Phone No.: 91-11-26387750
(vii) Whether listed company : Yes
(viii) Name, Address & contact details of the : Name: MCS Share Transfer Agent Ltd.
Registrar & Transfer Agent, if any. : Add: F-65, Ist Floor, Okhla Industrial
Area, Phase-I, New Delhi- 110020
Ph.: 011-4140 6149, Fax. 011-4170 9881
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
(All the business activities contributing 10 % or more of the total turnover of the company shall
be stated)
S. Name and Description of main products / NIC Code of the Product/
No. services service
1 NA NA
----- End of picture text -----

III.	PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:	PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:	PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:	PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:	PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
	Sl. No.	Name and address of the Company	CIN/GLN	Holding/ Subsidiary/ Associate	Share holding
	1	Global IT Options Limited (Formerly Known as DFS Securities Limited)	U67110DL- 1995PLC069223	Subsidiary	90%

DCM FINANCIAL SERVICES LTD.

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) i) Category-wise Share Holding

SI. No.	Category of Shareholders	No. of Shares held at the beginning of the year [As on 31-March-2020]	No. of Shares held at the beginning of the year [As on 31-March-2020]	No. of Shares held at the beginning of the year [As on 31-March-2020]	No. of Shares held at the beginning of the year [As on 31-March-2020]	No. of Shares held at the end of the year [As on 31-March-2021]	No. of Shares held at the end of the year [As on 31-March-2021]	No. of Shares held at the end of the year [As on 31-March-2021]	No. of Shares held at the end of the year [As on 31-March-2021]	% Change during the year
		Demat	Physical	Total	% of Total Shares	Demat	Physical	Total	% of Total Shares
A.	A. Promoters
(1)	(1) Indian
a)	Individual/ HUF	15	-	15	0.00%	15	-	15	0.00%	0.00%
b)	Central Govt	-	-	-	-	-	-	-	-	-
c)	State Govt(s)	-	-	-	-	-	-	-	-	-
d)	Bodies Corp.	8,739,937	-	8,739,937	39.50%	8,739,937	-	8,739,937	39.50%	0.00%
e)	Banks / FI	-	-	-	-	-	-	-	-	-
f)	Anyother	-	-	-	-	-	-	-	-	-
	Sub Total(A) (1)	8,739,952	-	8,739,952	39.50%	8,739,952	-	8,739,952	39.50%	-
(2)	Foreign
a)	NRI Individuals	-	-	-	-	-	-	-	-	-
b)	Other Individuals	-	-	-	-	-	-	-	-	-
c)	Bodies Corp.	-	-	-	-	-	-	-	-	-
d)	Anyother	-	-	-	-	-	-	-	-	-
	Sub Total(A) (2)	-	-	-	-	-	-	-	-	-
	TOTAL(A)	8,739,952	-	8,739,952	39.50%	8,739,952	-	8,739,952	39.50%	0.00%
B.	PublicShareholding
1.	*Institutions*
a)	Mutual Funds	-	33,700	33,700	0.15%	-	33,700	33,700	0.15%	0.00%
b)	Banks / FI	-	1,352,700	1,352,700	6.11%	-	1,352,700	1,352,700	6.11%	0.00%
c)	Central Govt	-	-	-	-	-	-	-	-	-
d)	State Govt(s)	-	-	-	-	-	-	-	-	-
e)	Venture Capital Funds	-	-	-	-	-	-	-	-	-
f)	Insurance Companies
g)	FIIs	-	-	-	-	-	-	-	-	-
h)	Foreign Venture Capital Funds	-	-	-	-	-	-	-	-	-
i)	Others(specify)	-	-	-	-	-	-	-	-	-
	Sub-total(B)(1):-	-	1,386,400	1,386,400	6.27%	-	1,386,400	1,386,400	6.27%	0.00%
		-	-	-	-	-	-	-	-	-
2.	*Non-Institutions*
a)	Bodies Corp.
i)	Indian	975,451	67,817	1,043,268	4.71%	893,672	67,817	961,489	4.34%	-0.37%
ii)	Overseas	-	-	-	-
b)	Individuals
i)	Individual shareholders holding nominal share capital upto Rs. 1 lakh	5,753,395	1,731,667	7,485,062	33.83%	5,972,456	1,728,467	7,700,923	34.80%	0.97%
ii)	Individual shareholders holding nominal share capital in excess of Rs 1 lakh	2,828,412	98,300	2,926,712	13.22%	2,706,137	68,300	2,774,437	12.53%	-0.69%
c)	Others(specify)
	Non Resident Indians	94,060	449,600	543,660	2.46%	114,053	447,800	561,853	2.56%	0.10%
	Overseas Corporate Bodies	-	-	-	-	-	-	-	-	-
	Foreign Nationals	-	-	-	-	-	-	-	-	-
	ClearingMembers	-	-	-	-	-	-	-	-	-
	Trusts	-	-	-	-	-	-	-	-	-
	Foreign Bodies - D R	-	-	-	-	-	-	-	-	-
Sub-total (B)(2):-		9,643,411	2,355,291	11,998,702	54.23%	9,686,318	2,312,384	11,998,702	54.23%	-
Total Public(B)		9,643,411	3,741,691	13,385,102	60.50%	9,686,318	3,698,784	13,385,102	60.50%	-
C. Shares held by Custodian for GDRs & AZZDRs		-	-	-	-	-	-	-	-	-
Grand Total(A+B+C)		18,383,363	3,741,691	22,125,054	100.00%	18,426,270	3,698,784	22,125,054	100.00%	1.07%

DCM FINANCIAL SERVICES LTD.

(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters	(ii) Shareholding of Promoters
Sl. No.	Shareholder’s Name	Shareholding at the beginning of the year [As on 31-March-2020]			“Shareholding at the end of the year [As on 31-March-2021]”			% change in share holding during the year
		No. of Shares	% of total Shares of the company	% of Shares Pledged/ encum- bered to total shares	No. of Shares	% of total Shares of the company	% of Shares Pledged / encum- bered to total shares
1.	Mr. Vivek Bharat Ram	15	0.00%	0	15	0.00%	0	0
2	DCM Services Limited	6,352,487	28.71%	0	6,352,487	28.71%	0	0
3	Shriram Global Enterprises Ltd.	312,450	1.41%	0	312,450	1.41%	0	0
4	Intellect Capital Services Private Ltd.	2,075,000	9.38%	0	2,075,000	9.38%	0	0
	Total	8,739,952	39.50%	0	8,739,952	39.50%	0	0

*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***	*(iii) Change in Promoters’ Shareholding(please specify, if there is no change)***
Sl. No.	Particulars		Date		Reason	Shareholding at the begin- ning of the year				Cumulative Sharehold- ing during the year
						No. of shares		% of total shares		No. of shares		% of total shares
	At the beginning of theyear					8,739,952		39.50%		8,739,952		39.50%
	“Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase / decrease (e.g. allotment /transfer /bonus/ sweat equityetc)”					No Change during the year
	At the end of the year					8,739,952		39.50%		8,739,952		39.50%
(iv) Shareholding Pattern of top ten *Holders of GDR’s and ADR’s)*				*Shareholders(Other than Directors, Promoters and***
Sl. No.		Name of Share holders		Shareholding at the beginning of the year					Cumulative Shareholding during the year
				No. of shares			% of total shares		No. of shares		% of total shares
1		PUNJAB & SIND BANK
		At the beginningof theyear		1,319,900			5.96%		1,319,900		5.96%
		Change During theyear		No changes duringtheyear
		At the end of theyear							1,319,900		5.96%
2		CENTENNIAL CORPORATION PRIVATE LT		D
		At the beginningof theyear		599,690			2.71%		599,690		2.71%
		Change During the year: Sale of Shares”		-			0.00%		310		0.00%
		At the end of theyear							599,690		2.71%
3		KOKILABEN BHARATKUMAR PARIKH
		At the beginningof theyear		275,391			1.24%		275,391		1.24%
		“Change During theyear:		No changes duringtheyear
		At the end of theyear							275,391		1.24%
4		BHARATKUMAR HARIKRISHNA PARIKH
		At the beginningof theyear		240,270			1.09%		240,270		1.09%
		Change During theyear:		No changes duringtheyear
		At the end of theyear							240,270		1.09%
5		AMAZING CAPITAL SERVICES PRIVATE L		TD.
		At the beginningof theyear		176,602			0.80%		176,602		0.80%
		Change During theyear:		No changes duringtheyear
		At the end of the year							176,602		0.80%

DCM FINANCIAL SERVICES LTD.

6	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA	AJAY GUPTA
	At the beginningof theyear		138,162		0.62%		138,162			0.62%
	Change During the year: Purchase		-		-		33,936			0.16%
	At the end of the year						172098			0.78%
7	PRADEEP KUMAR SHARMA
	At the beginningof theyear		123,200		0.56%		123,200			0.56%
	Change During theyear:		No changes duringtheyear
	At the end of the year						123,200			0.56%
8	PURSHOTTAM AGARWAL
	At the beginningof theyear		3,683		0.02%		3,683			0.02%
	Change During the year:		-		-		114227			0.51%
	At the end of theyear		-		-		117,910			0.53%
9	SUSHILA DEVI AGARWAL
	At the beginningof theyear		7,992		0.04%		7,992			0.04%
	Change During the year: Purchase		-		-		69,021			0.29%
	At the end of theyear						77,013			0.33%
10	SOHAG V. NANAVATI
	At the beginning of the year		61,100		0.28%		61,100			0.28%
	Change During the year:		-		-		440			0.00%
	At the end of the year						61,540			0.28%
*(v)* *Shareholding of Directors and Key Managerial Personnel:*
S. No.		Shareholding of each Directors and Key Managerial Personnel		“Shareholding at the beginning of the year				“Cumulative Shareholding during the year
				No. of shares		% of total shares		No. of shares	% of total shares
		At the beginning of theyear		NIL
1.		RAJNI GUPTA						-
2.		DAMAN PREET KAUR						-
3		RICHA KALRA						-
		SOMALI TIWARI
		SANJAY SAHNI*
4.		KAUSHAL KASHYAP*						-
5.		SHANTANU DEVESHWAR						-
		At the end of theyear		NIL

* Appointed w.e.f. 01.09.2020

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment (Amount In Rs.)

	Particulars	Secured Loans excluding deposits	Unsecured Loans	Deposits	Total Indebted- ness
Indebtedness at the beginning of the fnancial year
i)	Principal Amount	184,867,923	126,035,445	493,482,803	804,386,171
ii)	Interest due but not paid	-	-	-	-
iii)	Interest accrued but not due	-	-	-	-
Total (i+ii+iii)		184,867,923	126,035,445	493,482,803	804,386,171
Change in Indebtedness during the fnancial year
•	Addition	-	-	-	-
•	Reduction	42,531,952	16,490,539	5,834,739	-
Net Change		(42,531,952)	(16,490,539)	5,834,739	-
Indebtedness at the end of the fnancial year

DCM FINANCIAL SERVICES LTD.

i)	Principal Amount	184,867,923	126,035,445	487,648,064
ii)	Interest due but not paid	-	-	-	-
iii)	Interest accrued but not due	-	-	-	-
Total (i+ii+iii)		184,867,923	126,035,445	487,648,064	798,551,432

Note: Element of interest as is dependent on sanction of scheme by the Honble High Court of Delhi, hence could not be ascertained and shown above

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

S. No.	Particulars of Remuneration	Particulars of Remuneration	Name of MD/WTD/ Manager	Total Amount (Rupees)
	Name		Shantanu Deveshwar
	Designation		Whole-time Director
1	Gross salary		375648	375648
	(a)	Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961	-	0
	(b)	Value of perquisites u/s 17(2) Income-tax Act, 1961	-	0
	(c)	Profts in lieu of salary under sec- tion 17(3)Income- tax Act, 1961	-	0
2	Stock Option		-	0
3	Sweat Equity		-	0
4	Commission		-	0
	- as % ofproft		-	0
	- others, specify		-	0
5	Others,please specify		-	0
	Total(A)		375648	375648
	Ceiling asper the Act		-	-

B. Remuneration to other Directors

S. No.	Particulars of Remuneration	Name of Directors	Name of Directors	Name of Directors	Name of Directors
1	Independent Directors	Ms. Rajni Gupta	Ms. Richa Kalra	Ms. Daman Pree Kaur	Mr. Sanjay Sahni (Appointed w.e.f. 01.09.2020)	Mr. Kaushal Kashyap (Appointed w.e.f. 01.09.2020)
	Fee for attending board committee meetings	-	-	-	-
	Commission	-	-	-	-
	Others, please specify	-	-	-	-
	Total (1)	-	-	-	-
2	Other Non-Executive Directors	-	-	-	-
	Fee for attending board committee meetings
	Commission	-	-	-	-
	Others, please specify	-	-	-	-
	Total (2)	-	-	-	-
	Total (B)=(1+2)	-	-	-	-
	Total Managerial Remuneration	-	-	-	-
	Overall Ceilingasper the Act

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD
S. No. Particulars of Remuneration Name of Key Managerial
Personnel
Total Amount
Designation CFO & CS (Rupees)
Name Ms. Somali Tiwari
1 Gross salary 448,800 448,800
(a) Salary as per provisions contained in section 17(1) of
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-
tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- as % of profit
- others, specify
5 Others, please specify
Total 448,800 448,800
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Section of the Brief Details of Authority Appeal
Companies Act Description Penalty / [RD/ made,
Punishment/ NCLT if any
Compounding / (give
fees imposed COURT] Details)
A. COMPANY
Penalty Nil
Punishment Nil
B. DIRECTORS
Penalty Nil
Punishment Nil
C. OTHER OFFICERS IN DEFAULT
Penalty Nil
Punishment Nil
“For and on Behalf of the Board of Directors
For DCM Financial Services Limited”
Shantanu Deveshwar Richa Kalra
Whole Time Director Director
DIN:08268523 DIN:07632571
Date: 18.11.2021
Place: Delhi
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

ANNEXURE-D

FORM NO. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2021

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]To

To, The Members,

DCM FINANCIAL SERVICES LIMITED

ADD: D-7/3, Okhla Industrial Area, Phase-2, New Delhi-110020

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by DCM FINANCIAL SERVICES LIMITED (hereinafter called the company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the DCM FINANCIAL SERVICES LIMITED books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, We hereby report that in our opinion, the company has, during the audit period covering the financial year ended on 31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March, 2021 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings-
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015
(b) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(c) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
(d) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; Not applicable during the period under review.
(e) The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 - Not applicable during the period under review.
(f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008- Not applicable during the period under review.
(g) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
(h) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009- Not applicable during the period under review.

DCM FINANCIAL SERVICES LTD.

(i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998- Not applicable during the period under review.
(j) The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.
(vi) The Environment (Protection) Act, 1986
(vii) The EPF & Misc. Provisions Act, 1952;

(viii) Industrial and Labour Laws;

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards (SS-1 & SS-2) issued by The Institute of Company Secretaries of India; During the year under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

We further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors and Key Managerial personnel of the Company that took place duringthe year under review were carried out in compliance with the provision of the Act.
As per the management’s representation, adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
As per the management’s representation, majority decision is carried through while the dissenting members’ views are captured and recorded as part of the minutes.

We further report that there is one case pending with Hon’ble Delhi High Court against the company the noting of the same is given below.

It is imperative to mention here that the R.B.I. had filed a petition for winding up of the Company being CP No 296/2004. The petition for winding up was heard on 6th March, 2006 and the Hon’ble Court directed that the Company shall not operate its bank accounts without the permission of the court. It is further pertinent to mention that the order is still in operation.
The Company had issued non- convertible debentures in the year 1995- 96 on private placement basis, wherein the Central Bank of India had been appointed as their Debenture Trustee. Further, at the time when redemption of the said debentures got due, the Company was ordered by Reserve Bank of India to make re-payment to the deposit holders in priority to any other “Creditor” including the Redemption of these Debentures. However, due to serious financial and cash flow constraints being faced by the Company, the Company could not make payment to any party.

Thereafter, the matter went to the Hon’ble High Court in the form of a scheme which got approvedon 10th August, 2017.

Further, as required under the approved scheme, the Company has duly initiated the process of making repayment to the Deposit Holders.

We further report thatbased onreview of compliance mechanism established by the Company, we are of the opinion that there are adequate systems and processes in place in the company commensurate with the size and operations of thecompany to monitor and ensure compliance with applicable laws, rules, regulations and guidelines:-

As informed, the Company has responded appropriatelyto notices received from various statutory/ regulatory authorities including initiating actions for corrective measures, wherever found necessary.
As informed, the Company has been imposed a penalty by National Stock Exchange of India Limited(NSEIL) of Rs. 9,02,700/- on the occurrence of default in compliance of Regulation

DCM FINANCIAL SERVICES LTD.

17 of SEBI (LODR) Regulation, 2015 read with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018.However the Company made an application to the NSEIL for Waiver of Fine imposed by the Exchange.
The Company has been imposed a penalty by BSE Limited & National Stock Exchange of India Limited of Rs. 2,12,400/- each on the occurrence of default in compliance of Regulation 23(9) of SEBI (LODR) Regulation, 2015 read with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018 for half year ended on 30th September, 2020. However the Company made an application for Waiver of Fine imposed by the Exchanges which was duly approved by the Exchanges.

==> picture [311 x 65] intentionally omitted <==

----- Start of picture text -----

For Ojha & Associates,
Company Secretaries
TanayOjha
Date: 26.08.2021 Company Secretary
Place: Kanpur Membership No.: A29658
UDIN: A029658C000835518 C P No.: 10790
----- End of picture text -----

This report is to be read with our letter of even date which is annexed as’ Annexure 1’ and forms an integral part of this report.

==> picture [39 x 6] intentionally omitted <==

----- Start of picture text -----

Annexure 1
----- End of picture text -----

[Annexure to the Secretarial Audit Report for the Financial Year ended 31st March, 2021] Our report of even date is to be read along with this letter.

Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
The Secretarial Audit report is neither an assurance as to future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

For Ojha & Associates, Company Secretaries Tanay Ojha Date: 26.08.2021 Company Secretary Place: Kanpur Membership No.: A29658 UDIN: A029658C000835518 C P No.: 10790

DCM FINANCIAL SERVICES LTD.

Annexure-E
Secretarial Compliance Report of DCM Financial Services Limitedfor the year ended March 31, 2021
We, Ojha & Associates , have examined: (a) all the documents and records made available to us and explanation provided by DCM Financial Services Limited (“the listed entity”),
(b) the filings/ submissions made by the listed entity to the stock exchanges, (c) website of the listed entity, (d) any other document/ filing, as may be relevant, which has been relied upon to make this certification,
for the year ended March 31, 2021 (“Review Period”) in respect of compliance with the provisions of : (a) the Securities and Exchange Board of India Act, 1992 (“ SEBI Act ”) and the Regulations, circulars, guidelines issued thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (“ SCRA ”), rules made thereunder and the Regulations, circulars, guidelines issued thereunder by the Securities and Exchange Board of India (“ SEBI ”);
The Specific Regulations, whose provisions and the circulars/ guidelines issued thereunder, have been examined, include:(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
(b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; Not Applicable for the said review period
(e) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; Not Applicable for the said review period
(f) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; Not Applicable for the said review period
(g) Securities and Exchange Board of India(Issue and Listing of Non- Convertible and Redeemable Preference Shares) Regulations,2013; Not Applicable for the said review period
(h) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; (i) Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 and Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 as applicable; and circulars/ guidelines issued thereunder; and based on the above examination, We hereby report that, during the Review Period:
(a) The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder, except in respect of matters specified below:-

DCM FINANCIAL SERVICES LTD.

S. No	Compliance Requirement (Regulations/ circulars/ guidelines including specifc clause)	Deviations	Observations/ Remarks of the Practicing Company Secretary
1.	Regulation 17(1)(c) of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015- The board of directors of the top 1000 listed entities (with effect from April 1, 2019) and the top 2000 listed entities (with effect from April 1, 2020) shall comprise of not less than six directors.	The Composition of the Board of Directors of the Company was not as per the requirement of the Regulation for quarter ended 30th June 2020 & 30th September 2020	The company had appointed Mr. Sanjay Sahni (Non-Executive Independent Director) & Mr. Kaushal Kashyap (Non-Executive Director) w.e.f. 01st September, 2020 to comply with the said requirement.
	Regulation 23(9) of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015- [The listed entity shall submit within 30 days from the date of publication of its standalone and consolidated fnancial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specifed in the relevant accounting standards for annual results to the stock exchanges and publish the same on its website.]	The Company had not submitted disclosures of related party transactions on a consolidated basiswithin 30 days from the date of publication of its standalone and consolidated fnancial results for the half year ended 30th September, 2020	The Company had submitted the said disclosure on 20.01.2021& made the compliance good

(b) The listed entity has maintained proper records under the provisions of the above Regulations and circulars/ guidelines issued thereunder insofar as it appears from my/our examination of those records.
(c) The following are the details of actions taken against the listed entity/ its promoters/ directors/ material subsidiaries either by SEBI or by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through various circulars) under the aforesaid Acts/ Regulations and circulars/ guidelines issued thereunder:

DCM FINANCIAL SERVICES LTD.

S. No.	Action taken by	Details of violation	Details of action taken E.g. fnes, warning letter, debarment, etc.	Observations/ remarks of the Practicing Company Secretary, if any.
1	National Stock Exchange of India Limited (NSE)	Regulation 17(1)(c) of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015- Board of Directors	Imposing the Penalty of Rs. 9,02,700/-	The Compliance was made good and keeping in view the unprecedented and extraordinary circumstances for non compliances of the Regulations, the Company has made an application for Waiver of Penalty imposed by the Exchange vide its letter dated September 03, 2020 (for quarter ended June 2020) & November 24, 2020 (for quarter ended September, 2020) which was rejected by the exchange vide their letter dated April 13, 2021. The Company has made a fresh application on May 10, 2021 for reconsideration of Waiver of Penalty of Penalty.
2	BSE	Regulation 23(9)of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015– Related Party Transactions	Imposing the penalty of Rs. 2,12,400/-	The Compliance was made good and the Company has made an application vide its letter dated January 29, 2021 for Waiver of Penalty imposed by the Exchange.
3	National Stock Exchange of India Limited (NSE)	Regulation 23(9)of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015– Related Party Transactions	Imposing the penalty of Rs. 2,12,400/-	The Compliance was made good and the Company vide its letter dated January 29, 2021has made an application for Waiver of Penalty imposed by the Exchange. The Exchange vide its letter dated May 20, 2021 have considered the request for waiver of fne as favourable and Waived off the Fine levied on the Company.

(d) The listed entity has taken the following actions to comply with the observations made in previous reports:

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

S. Observations of Observations Actions taken Comments of
No. the Practicing made in the by the listed the Practicing
Company secretarial entity, if any Company
Secretary in compliance Secretary on the
the previous report for the actions taken by
reports year ended the listed entity
March 31, 2020
1. Regulation 33 The company The company The
of has not has submitted Company
SEBI(Listing submitted financial has paid the
Obligations financial results for the penalty
and results for the quarter ended after
Disclosure quarter ended 30th June, making the
Requirements) 30th June, 2019 as per compliance
Regulations, 2019 as per due date but good.
2015-The due date the Company
company has is having a
not submitted subsidiary and
financial as per SEBI
results for the (LODR)
quarter ended (Amendment)
30th June, Regulation,
2019 as per 2018 the
due date Company have
to submit
consolidated
result for June
Quarter also.
The Company
filed again its
Quarterly
Financial
Result after
due date.
For Ojha & Associates,
Company Secretaries
Tanay Ojha
Date: 11.06.2021 Company Secretary
Place: Kanpur Membership No.: A29658
UDIN: A029658C000449517 C P No.: 10790
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

No No No No No No
Annexure-F whether any such employee is a relative of any director or manager of the com- pany and if so, name of such director or manager
the per- centage of equity shares held by the employee in the company within the meaning of clause (iii) of sub-rule (2) above Nil 100 Nil Nil 100 Nil
the last employment held by such em- ployee before joining the company Trio Mobiles Usha International Ltd. First Employment First Employment Cure Fast Remedies Ltd First Employment
52 63 40 30 48 51
the age of such employee
date of com- mencement of employment 1.12.2018 23.6.1998 25-08-2006 18-7-2019 05-01-98 07-01-95
B.A ACS B.A 4th
B.Com B.Com
qualifications and experi- ence of the employee
nature of employ- ment, whether contractual or otherwise Contractual Regular Regular Regular Regular Regular
3.61 25.16 5.67 4.49 3.56 2.74
Remu- neration received Rs in Lacs
Designation of the employee Whole Time Director Vice Presi- dent- Opera- tions Executive Accounts Company Secretary Assistant Peon
Devesh-
ees
Name of Employ-
Shantanu war Vikram Dogra Ajit Kumar Somali Tiwari Rajender Prasad Hari Bahadur
S. No. 1 2 3 4 5 6
and Remuneration of Managerial personnel) Rules 2014 Employees who have worked for a full year have been shown in this statementt No employee of the Company has drawn remuneration aggregating to Rs. 1.02 Cr per annuam or Rs. 8.50 per month during the year under report
A Statement showing details of top ten employees in terms of remunration drawn as required under Rule 5(2) and Rule 5(3) of the Companies (Appointment B.
----- End of picture text -----*

DCM FINANCIAL SERVICES LTD.

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

The Members

DCM Financial Services Limited

Add: D-7/3 Okhla Industrial Area, Phase-2 New Delhi -110020

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of DCM Financial Services Limited (CIN:L65921DL1991PLC043087) and having registered office at D-7/3 Okhla Industrial Area,Phase-2 New Delhi -110020(hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2021 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

S. No.	Name	DIN	Date of Appointment
1.	Ms. Rajni Gupta	07242992	12/02/2018
2.	Ms. Daman Preetkaur	07475919	11/08/2017
3.	Ms. RichaKalra	07632571	06/10/2016
4.	Mr. ShantanuDeveshwar	08268523	22/10/2018
5.	Mr. Kaushal Kashyap*	07683753	01/09/2020
6.	Mr. SanjaySahni*	08364951	01/09/2020

Note: *Mr. Kaushal Kashyap& Mr. Sanjay Sahni have been appointed w.e.f. 01.09.2020 as Directors of the Company.

Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Ojha & Associates, Company Secretaries

Date: 26.08.2021 Place: Kanpur UDIN: A029658C000835573

Tanay Ojha Company Secretary Membership No.: A29658 C P No.: 10790

DCM FINANCIAL SERVICES LTD.

DECLARATION FOR COMPLIANCE OF CODE OF CONDUCT

I, Shantanu Deveshwar, being Whole Time Director of the Company do herebydeclare that all the Directors and Senior Management Personnel have affirmed compliance with the code of the conduct of the company for the financial year ended on March 31, 2021.

Shantanu Deveshwar Date: 18.11.2021 Chairperson & Whole Time Director Place: New Delhi DIN:08268523

CEO/CFO CERTIFICATION

I, Somali Tiwari, being Chief Financial Officer, of DCM Financial Services Limiteddo hereby confirm and certify that:
I have reviewed the financial statements and the cash flow statement for the financial year and that to the best of my knowledge and belief:
a. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
b. these statements together present a true and fair view of the listed entity‘s affairs and are in compliance with existing accounting standards, applicable laws and regulations.
there are, to the best of my knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal or violate the listed entity‘s code of conduct.
I accept responsibility for establishing and maintaining internal control for financial reporting and have evaluated the effectiveness of internal control system of the listed entity pertaining to financial reporting and have disclosed to the auditor along with the audit committee, deficiencies in the design or operation of such internal control(s), if any, of which I am aware and the steps I have taken or proposed to take to rectify these deficiencies.
during the year under reference:
a. there were no significant changes in internal control system over financial reporting;
b. there were no significant changes in accounting policies and that the same have been disclosed in the notes to the financial statements; and
c. there were no instance(s) of significant fraud involved therein, if any, of which the management or an employee having a significant role in the listed entity‘s internal control system over financial reporting.

For DCM Financial Services Limited

Date: 18.11.2021 Somali Tiwari Place: Delhi Chief Financial Officer

DCM FINANCIAL SERVICES LTD.

COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

(In terms of Regulation 34(3) and Schedule V (E) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members,

DCM FINANCIAL SERVICES LIMITED

We have examined the report of Corporate Governance presented by the Board of Directors of DCM FINANCIAL SERVICES LIMITED for the year ended 31st March, 2021 as stipulated in Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule V of the same.

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to the procedures and implementation thereof, adopted by the company for ensuring compliance of the conditions of the corporate governance. It is neither an audit nor an expression of opinion on the Financial Statements of the Company.

In our opinion and according to the information and explanation given to us, the Company has taken required steps to comply with the conditions of corporate governance, to the extent applicable and as stipulated in the aforesaid SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time.

We state that no investor grievance is pending for the period exceeding one month against the Company as per records maintained by the Stakeholders’ Relationship Committee together with the status of Investor Grievance as on SEBI SCORES Portal.

We further state that such compliance is neither any assurance as to future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the company.

For Ojha& Associates Company Secretaries

TanayOjha Partner C. P. No. 10790 M. No.A29658

UDIN:A029658C000835606 Date:26.08.2021 Place: Kanpur

DCM FINANCIAL SERVICES LTD.

CORPORATE GOVERNANCE REPORT

Corporate Governance is about promoting fairness, transparency, accountability, commitment to values, ethical business conduct and about considering all stakeholders’ interest while conducting business. In accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments thereto, (the ‘SEBI Listing Regulations’), given below are the corporate governance policies and practices of DCM Financial Services Limited (the ‘Company’ or ‘DCM’) for FY2021.

This Report states compliance with requirements of the Companies Act, 2013, as amended (the ‘Act’), the SEBI Listing Regulations, as applicable to the Company. As will be seen, the Company’s corporate governance practices and disclosures have gone well beyond complying with the statutory and regulatory requirements stipulated in the applicable laws. I. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE Your Company is committed to practice good Corporate Governance in all its activities and processes. The Directors’ endeavor is to create an environment of fairness, equity and transparency with the underlying objective of securing long-term shareholder value, while, at the same time, respecting the rights of all stakeholders.

The Company adheres to the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (hereinafter referred to as SEBI (LODR) Regulations, 2015 or SEBI Regulations) and your management is taking all possible steps to fulfill its commitment in a judicious, fair and transparent manner. II. BOARD OF DIRECTORS

Keeping with the commitment to the principle of integrity and transparency in business operations for good corporate governance, the Company’s policy is to have an appropriate blend of independent and non-independent directors to maintain the independence of the Board and to separate the Board functions of governance and management.

A. Composition & Category of the Board of Directors and attendance of each director at the meeting of the board of directors and the last annual general meeting
As on 31st March 2021, there were Six Directors comprising One Whole Time Director, One Non-Executive Director and Four Non-Executive Independent Directors.

The Board consists of eminent persons with considerable professional experience in business, industry, finance, audit and law. None of the Director is a member of more than ten committees and Chairman of more than five Committees across all the Companies in which they are Directors. All the members have made disclosures regarding their directorship and memberships in various committees.

As on 31st March, 2021, the composition of Board of Directors is in conformity with Regulation 17 of SEBI Regulations, 2015 and the provisions of Companies Act, 2013.

Category and attendance of each of the Directors at the Board Meetings held during 2020-21 and the last Annual General Meeting is given below:

Name	Category	Number of Board Meetings held during the year 2020-21	Number of Board Meetings held during the year 2020-21	Whether at- tended last AGM for FY 2019-20	No. of Membership/ Chairpersonship in manda- tory Committees	No. of Membership/ Chairpersonship in manda- tory Committees
					Chairper- sonship	Membership
		Held	Attended
1 Ms. Daman Preet Kaur	Independent Director	7	6	No	0	2
2. Ms. Richa Kalra	Independent Director	7	7	Yes	3	0
3. Ms. Rajni Gupta	Independent Director	7	2	No	0	2
4. Mr. Shantanu Deveshwar	Whole-time Director	7	7	Yes	0	2
5. Mr. Sanjay Sahni*	Independent Director	4	3	Yes	0	0
6. Mr. Kaushal Kashyap*	Director	4	3	Yes	0	0

DCM FINANCIAL SERVICES LTD.

Note : Mr. Sanjay Sahni, Non-Executive Independent Director and Mr. Kaushal Kashyap, NonExecutiveDirector has been appointed on 01.09.2020 on the Board.
Number of other Board of Directors or Committees in which a Director is a Member or Chairperson as on 31.03.2021 (including the Company)

Sr. No.	Name	Directorships	Directorships	Directorships	Committee positions in listed and unlisted public limited com- panies	Committee positions in listed and unlisted public limited com- panies
		In equity listed companies	In unlisted public limited companies	In private limited compa- nies	As member (including as chairperson)	As chairperson
1	Ms. Daman PreetKaur	1	Nil	1	2	Nil
2.	Ms. RichaKalra	1	Nil	Nil	3	3
3.	Ms. Rajni Gupta	1	1	1	2	Nil
4.	Mr. Shantanu Deveshwar	1	1	Nil	2	Nil
5.	Mr. SanjaySahni*	3	Nil	1	8	1
6.	Mr. Kaushal Kashyap*	2	1	1	1	1

*Note: Mr. Sanjay Sahni, Non-Executive Independent Director and Mr. Kaushal Kashyap, NonExecutiveDirector has been appointed on 01.09.2020 on the Board.
I) None of the director holds office as a director, including as an alternate director, in more than twenty companies at the same time. None of them has directorships in more than ten public companies. For reckoning the limit of public companies, directorships of private companies that are either holding or subsidiary company of a public company are included and directorships in dormant companies are excluded. For the purpose of reckoning the directorships in listed companies, only equity listed companies have been considered.
II) As per declarations received, none of the directors serve as an independent director in more than seven equity listed companies or in more than three equity listed companies in case he/she is a whole-time director in any listed company.
III) None of the directors was a member in more than ten committees, nor a chairperson in more than five committees across all public companies in which he/she was a director.
Directorship in equity listed companies and Name of equity listed entities where directors of the Company held directorships as on 31st March 2020 (including the Company)

Sr. No.	Name of Directors	Listed Entity	Category
1.	Ms. Daman PreetKaur	DCM Financial Services Limited	Independent Director
2.	Ms. RichaKalra	DCM Financial Services Limited	Independent Director
3.	Ms. Rajni Gupta	DCM Financial Services Limited	Independent Director
4.	Mr. ShantanuDeveshwar	DCM Financial Services Limited	Whole time Director
5.	Mr. Kaushal Kashyap	1. DCM Financial Services Limited 2. Accuvant Advisory Services Limited	Director Independent Director
6.	Mr. Sanjay Sahni	1. DCM Financial Services Limited 2. Sueryaa Knitwear Limited 3. GargAcrylics Limited	Independent Director Independent Director Independent Director

Note: Mr. Sanjay Sahni, Non-Executive Independent Director and Mr. Kaushal Kashyap, NonExecutive Director has been appointed on 01.09.2020 on the Board of Directors.

Disclosure of relationships between Directors inter-se

NNone of the present Directors are “Relative” of each other as defined in Section 2 (77) of Companies Act, 2013 and Rule 4 of the companies (Specification of definitions details) Rules, 2014.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Number of meetings of the Board of Directors held and dates on which held
During the period, the Board of Directors of your Company met 7 times. The dates on which
the meetings were held are 02/06/2020, 03/07/2020, 01/09/2020, 11/09/2020, 11/11/2020,
11/02/2021, 05/03/2021 and the gap requirement of 120 days between two meetings have been
complied with. The necessary quorum was present for all the meetings.
Orderly succession to Board and Senior Management
The framework of succession planning for appointment of Board/Management is passed by the
Board. In addition, changes in the Senior Management and their responsibilities are updated to
the Board from time to time.e.
Letters of appointment of Independent Directors & policy to familiarize
The company issued formal letters of appointment to Independent Directors in the manner as
provided in the Companies Act, 2013.
The company has also formulated a policy to familiarize the Independent Directors with the
company, their roles, rights, responsibilities in the company, nature of the industry in which the
company operates, business model of the company, etc., through various programmes.
B. Non-Executive Directors Compensation and Disclosures
The Company does not have any pecuniary relationship with any Non-Executive Directors. No
remuneration was given to any of the Non-ExecutiveDirector during the financial year 2020-21.
C. Familiarization Program for Directors
The Company has Familiarization Program Module (“the Program”) for Independent Directors
(“ID”) of the Company. As per the requirement regulation 25(7) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 the company is required to familiarize the
Independent Directors with the company, their roles, rights, responsibilities in the company,
nature of the industry in which the company operates, business model of the company, etc.,
through this programme.
D. Skill/Expertise/Competence of the Board of Directors
The Board of Directors along with Nomination& Remuneration Committee (NRC) identifies
the right candidate with right qualities, skills and practical expertise/ competencies required
for the effective functioning of individual member to possess and also the Board as a whole.
The Committee focuses on the qualification and expertise of the person, the positive attributes,
standard of integrity, ethical behavior, independent judgment of the person in selecting a new
Board member. In addition to the above, in case of independent directors, the Committee shall
satisfy itself with regard to the independence of the directors to enable the Board to discharge its
functions and duties effectively. The same are in line with the relevant provisions of the Listing
Regulations. The NRC has identified the following core skills, expertise and competencies for
the effective functioning of the Company which is currently available with the Board:
a) Expertise in Legal, Finance & Accountancy
b) Human Resource.
c) Risk Management
d) Knowledge of the Industry
e) Leadership
f) Board Services & Corporate Governance
g) Diversity
h) Personal Values
i) Functional & Managerial Experience
Given below is a list of core skills, expertise and competencies of the individual Directors:
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

Name of Director	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies	Skills/Expertise/Competencies
	Exper- tise in Legal, fnance & Ac- count- ancy	Hu- man Re- source	Risk Man- age- ment	Knowl- edge of the Indus- try	Lead- er- ship	Board Services & Cor- porate Govern- ance	Di- ver- sity	Per- sonal Val- ues	Func- tional & Mana- gerial Experi- ence
Mr. Shantanu Deveshwar			-						
Ms. RichaKalra		-							-
Ms. Rajni Gupta	-								
Ms. DamanPreet Kaur		-							
Mr. Sanjay Sahni		-							
Mr. Kaushal Kashyap	-	-							

E. The company is engaged to carry on the business, as per its memorandum of Association of the company ofnon banking and financial company.
F. In the opinion of the Board the independent directors fulfill the conditions specified in the SEBI (Listing Obligations and Disclosure Requirements), 2015 and are independent of the management.
G. During the year, none of the Independent Director has resigned from the post of directorship pursuant to Regulation 17 (1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

III. COMMITTEES OF THE BOARD

The terms of reference of Board Committees are determined by the Board from time to time. Presently the Company has Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, Internal Compliant Committee and Vigil Mechanism Committee. All the decisions pertaining to the constitution of the Committees, appointment of members, and fixing of terms of reference for committee members are taken by the Board of Directors. Details on the role and composition of these committees, including the number of meetings held during the financial year and the related attendance, are provided below:

A. Audit Committee

i. The Audit Committee of the Company is constituted in line with the provisions of Regulation 18 ofSEBI Regulations, 2015 read with Section 177 of Companies Act, 2013.

ii. The term of reference of the Audit Committee is as per Part C of Schedule II of the SEBI (LODR) Regulations, 2015 and provisions of Companies Act 2013.

iii. The Audit Committee invites such of the executives, as it considers appropriate (particularly the headof the finance function), representatives of the statutory auditors and representatives of the internalauditors to be present at its meetings.

iv. The previous Annual General Meeting (AGM) of the Company was held on 18th December, 2020 andwas attended by Ms. RichaKalra, Chairperson of the Audit Committee.
The composition of the Audit Committee and the details of meetings attended by its members aregivenbelow

S. No.	Name	Category	No. of Committee Meetings held	No. of Committee Meetings Attended
1.	Ms. Richa Kalra	Chairperson	5	5
2.	Ms. Rajni Gupta*	Member	5	2
3.	Mr. Shantanu Deveshwar	Member	5	5

DCM FINANCIAL SERVICES LTD.

*Ms. Rajni Gupta resigned from the membership of the Committee w.e.f. 14.08.2021& Mr. Sanjay Sahni had been appointed as the member of the Committee w.e.f. 14.08.2021.
vi. FiveAudit Committee meetings were held during the year 2020-21 on 02/06/2020, 03/07/2020, 11/09/2020, 11/11/2020& 11/02/2021.
vii. The necessary quorum was present for all the meetings.

viii. The role of the audit committee includes the following:

Oversight of the listed entity‘s financial reporting process and the disclosure of its financial information to ensure that the financial statementsare correct, sufficient and credible;
Recommendation for appointment, remuneration and terms of appointment of auditors of the listed entity;
Approval of payment to statutory auditors for any other services rendered by the statutory auditor;
Reviewing, with the management, the annual financial statements and auditor’s report thereon before submission to the board for approval, with particular reference to: a. matters required to be included in the director‘s responsibility statement to be included in the board‘s report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013;
b. changes, if any, in accounting policies and practices and reasons for the same; c. major accounting entries involving estimates based on the exercise ofjudgment by management;
d. significant adjustments made in the financial statements arising out of auditfindings; e. compliance with listing and other legal requirements relating to financial statements; f. disclosure of any related party transactions; g. modified opinion(s) in the draft audit report;
1. Reviewing, with the management, the quarterly financial statements beforesubmission to the board for approval;
Reviewing, with the management, the statement of uses / application of fundsraised through an issue (public issue, rights issue, preferential issue, etc.), thestatement of funds utilized for purposes other than those stated in the offerdocument / prospectus / notice and the report submitted by the monitoringagency, monitoring the utilization of proceeds of a public or rights issue, andmaking appropriaterecommendations to the board to take up steps in this matter;
Reviewing and monitoring the auditor‘s independence & performance, andeffectiveness of audit process;
Approval or any subsequent modification of transactions of the listed entity withrelated parties;
Scrutiny of inter-corporate loans and investments; 10. Valuation of undertakings or assets of the listed entity, wherever it is necessary; 11. Evaluation of internal financial controls and risk management systems; 12. Reviewing, with the management, performance of statutory and internal auditors,adequacy of the internal control systems;
Reviewing the adequacy of internal audit function, if any, including the structureof the internal audit department, staffing and seniority of the official heading thedepartment, reporting structure coverage and frequency of internal audit;
Discussion with internal auditors of any significant findings and follow up thereon; 15. Reviewing the findings of any internal investigation by the internal auditors intomatters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;
Discussion with statutory auditors before the audit commences, about the natureand scope of audit as well as post-audit discussion to ascertain any area ofconcern;

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

17. To look into the reasons for substantial defaults in the payment to the depositors,debenture
holders, shareholders (in case of non-payment of declared dividends)and creditors;
18. To review the functioning of the whistle blower mechanism;
19. Approval of appointment of chief financial officer after assessing thequalification,
experience and background, etc. of the candidate;
20. Carrying out any other function as is mentioned in the terms of reference of theaudit
committee.
ix. The audit committee shall mandatorily review the following information:
1. Management discussion and analysis of financial condition and results ofoperations;
2. Statement of significant related party transactions (as defined by the auditcommittee),
submitted by the management;
3. Management letters / letters of internal control weaknesses issued by thestatutory
auditors;
4. Internal audit reports relating to internal control weaknesses; and
5. The appointment, removal and terms of remuneration of the chief internal auditorshall
be subject to review by the audit committee.
6. Statement of deviations:
a) Quarterly statement of deviation(s) including report of monitoring agency, if
applicable, submitted to stock exchange(s) in terms of Regulation 32(1).
b) Annual statement of funds utilized for purposes other than those stated in
theoffer document/prospectus/notice in terms of Regulation 32(7).
x. Audit & other duties
1. Discussion with statutory auditors before the audit commences, about the nature and
scope of audit as well as post-audit discussion to ascertain any area of concern.
2. Discussion with internal auditors of any significant findings and follow up there on.
3. Review and recommend to the Board the appointment/re-appointment of the
Statutory Auditors and Internal Auditors considering their independence and
effectiveness and their replacement and removal.
4. To recommend to the Board the remuneration of the Statutory Auditors and internal
auditors.
5. To grant approval for related party transactions which are in the ordinary course
of business and on an arm’s length pricing basis and to review and approve such
transactions subject to the approval of the Board.
B. Stakeholders Relationship Committee (erstwhile Shareholders’ Grievance
Committee)
i. Pursuant to the provisions of Section 178 of the Companies Act, 2013 andRegulation
20 of the SEBI LODR Regulations, 2015, the Board has constituted Stakeholders’
Relationship Committee to specifically look into the mechanism of redressal of
grievances of shareholders and other security holders.Headed by Ms. RichaKalra,
the Non-Executive Independent Director.
ii. The composition of the Stakeholders’ Relationship Committee and the details of
meetings attended by its members are given below:
S. Name of the Member Category No. of No. of
No. Committee Committee
Meetings held Meetings
Attended
1. Ms. Richa Kalra Chairperson 5 5
2. Ms. Daman Preet Kaur Member 5 4
3. Mr. Shantanu Deveshwar Member 5 5
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

xi. Five Stakeholders’ Relationship Committeemeetings were held during the year 2020-21 on 02/06/2020, 03/07/2020, 11/09/2020, 11/11/2020 & 11/02/2021. The necessary quorum was present for all the meetings.

iii. Functions and Terms of Reference: The Committee considers and resolves the grievances of the security holders of the listed entity including complaints related to transfer of shares, non-receipt of annual report and non-receipt of declared dividends.

The functioning and broad terms of reference of the Stakeholders’ Relationship Committee of the Company are as under:

a) To consider and resolve the grievance of security holders of the Company. b) To review important circulars issued by SEBI /Stock Exchanges c) To take note of compliance of Corporate Governance during the quarter/year. d) To approve request for share transfer and transmissions. e) To approve request pertaining to demat of shares/sub-division/consolidation/issue of renewed/duplicate share certificate etc.
i v. Name, designation and address of Compliance Officer:

Name	Somali Tiwari
Designation	CompanySecretary& Compliance offcer
Address	D 7/3, Okhla Industrial Estate Area,Phase-2, New Delhi-110020

v. Details of investor complaints received and redressed during the year 2019-20 are as follows:

No. of Complaints pending as on 01.04.2020	No. of Complaints received during the year 2020-21	No. of Complaints resolved during the year	No. of Complaints not resolved during the year to the satisfaction of shareholders	No. of Complaints pending as on 31.03.2021
NIL	1	1	NIL	NIL

C. Nomination & Remuneration Committee
i. Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 19 of the SEBI (LODR) Regulations, 2015, the Board has duly constituted the Nomination & Remuneration Committee, with all members being Non-Executive Directors and Independent Director as Chairperson. The composition of Nomination & Remuneration Committee is as follows:

S. No.	Name	Category	No. of Committee Meetings held	No. of Committee Meetings Attended
1.	Ms. RichaKalra	Chairperson	2	2
2.	Ms. Daman PreetKaur	Member	2	1
3.	Ms. Rajni Gupta*	Member	2	2

*Ms. Rajni Gupta resigned from the membership of the Committee w.e.f. 14.08.2021& Mr. Sanjay Sahni had been appointed as the member of the Committee w.e.f. 14.08.2021.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

The committee meetings were held on01/09/2020 and 11/11/2020.
ii. The terms of reference of the committee are as follows:
a) Formulation of the criteria for determining qualification, positive attributes and
independence of a director and to recommend to the board of directors a policy
relating to, the remuneration of the directors, key managerial personnel and other
employees;
b) Formulation of criteria for evaluation of performance of independent directors and
the board of directors;
c) Devising a policy on diversity of board of directors;
d) Identifying persons who are qualified to become directors and who may be appointed
in senior management in accordance with the criteria laid down, and recommend to
the board of directors their appointment and removal.
e) Whether to extend or continue the term of appointment of the independent director,
on the basis of the report of performance evaluation of independent directors.
f) The remuneration policy as adopted by the company envisages the payment of
remuneration according to qualification, experience and performance at different
levels of the organization. The workers at the factory as well as those rendering
clerical, administrative and professional services are suitably remunerated according
to the industry norms.
iii. Performance Evaluation Criteria For Independent Directors:
Performance Evaluation Criteria of Board members including Independent Directors as
approved by the Board provides:
a) Each of the director(s) are required to assign the rating on different parameters for
the evaluation of board, independent director(s) and committees of the Board of
Directors andhas to submit the same to the Nomination & Remuneration Committee.
b) The rating is to be assigned on a scale of five for the purpose of evaluation of
performance as under:
Rating Scale Scale Performance
5 Exceptionally Good
4 Good
3 Satisfactory
2 Needs Improvement
1 Unacceptable
c) The Nomination & Remuneration Committee shall receive the Evaluation Forms
in sealed cover and summarize the results. The Chairperson of the Nomination
& Remuneration Committee may have discussions with individual director where
clarification or interpretation is required.
d) The Chairperson of the NRC shall develop a report on the basis of evaluation rating
received. The Committee shall review the result and submit its recommendation for
the consideration of Board.
e) The Board shall review the recommendations of the Nomination & Remuneration
Committee and issue necessary directions.
iv. Remuneration of Directors
The remuneration payable to all Directors including Managing Director, if any is decided
by the shareholders in the General Meeting. As per the Companies Act, 2013, the Board
of Directors of the Company is empowered to determine the sitting fee payable to
Independent Directors within the ceiling prescribed under the Companies Act, 2013.
None of the Independent Directors were paid any sitting fees during the financial year
2020-21.
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

|(Amount inRs)|(Amount inRs)|(Amount inRs)|(Amount inRs)|(Amount inRs)|(Amount inRs)|(Amount in`Rs)|
|---|---|---|---|---|---|---|
|S.
No.|Name of
Director|Designation|Salary|Benefts|Performance
Related Pay
(PRP) for the
year 2020-21|Total
Paid for
2019-20|
|1.|Shantanu
Deveshwar|Whole-time
Director|3,60,912|----|----|3,60,912|

The Company had not given any stock options during the year 2020-21.

Except as mentioned above, there was no pecuniary relationship or transaction with NonExecutive Directors vis-a-vis theCompany during the financial year 2020-21.

Criteria of making payment to non-executive directors is available on the website of thecompany.

V. GENERAL BODY MEETING

a) Annual General Meeting

The details of last three Annual General Meetings (AGM) of shareholders held were as under:

Financial Year	Date	Venue	Time	Whether any Special Resolution passed
2017-18	30th November, 2018	Executive Club, 439, Village Shahoorpur, P.O. FatehpurBeri, New Delhi 110030	11:00 AM	01
2018-19	30th September, 2019	Executive Club, 439, Village Shahoorpur, P.O. FatehpurBeri, New Delhi 110030	11:00 AM	01
2019-20	18th December, 2020	Through Video Conferencing or Other Audio Visual Means	11:00 AM	02

b) NoExtraordinary General Meeting of Members was held during the year under review.

c) NoPostal Ballot was conducted during the year under review.

VI. MEANS OF COMMUNICATION

Quarterly/ Half Yearly/ Annual Financial Results notice, advertisement and other official news are published both in vernacularlanguage newspapers and English National newspapersregularly. The said results are also displayed/uploaded on the Company’s website i.e. www.dfslonline.in

VII. GENERAL SHAREHOLDER INFORMATION

S. No.	Particulars	Information
1.	Annual General Meeting:	30th
	Day	23rd December, 2021
	Date& Time	Thursday, 01:00 P.M.
	Deemed Venue	D-7/3, Okhla Industrial Area, Phase-2, New- Delhi-110020
2.	Financialyear	April 1, 2020 to March 31, 2021

DCM FINANCIAL SERVICES LTD.

3.	Financial Calendar 2021-22 Results for quarter/ year ending : (a) 30th June, 2021 (Tentative Schedule) (b) 30th September, 2021 (c) 31st December, 2021 (d)31st March, 2022	On 14th day of August, 2021 On or before 14th day of November, 2021 On or before 14th day of February, 2022 On or Before 30th day of May, 2022
4.	Book Closure	September 25, 2021 to September 28, 2021
5.	Listed on	NSE, BSE& CSE
6.	Dividend payment date	The Company has not recommended or paid any dividend duringthe fnancialyear under review.
7.	Stock Exchange Code	BSE Security Code: 511611 NSE Stock Code: DCMFINSERV CSE: 014032

VIII. NOMINATION

Individual shareholders holding shares singly or jointly in physical form can nominate a person in whose name the shares shall be transferred in the case of death of the registered shareholder(s). The prescribed nomination form (SH-13) will be sent by the Company upon such request and is also available on the Company’s website at www.dfslonline.in

Nomination facility for shares held in electronic form is also available with depository participants.

IX. AGM THROUGH VC

Pursuant to MCA Circulars, the Company will provide video conferencing facility to the members for participating in the 30th AGM. Please refer the Notice of the 30th AGM for more details, which is hosted on the website of CDSL at https://www.evotingindia.com/noticeResults.jsp and on website of the company at https://www.dfslonline.in .

X. VOTING THROUGH ELECTRONIC MEANS

Pursuant to section 108 of Act and the Rules made thereunder and provisions under SEBI Listing Regulations, every listed company is required to provide its members the facility to exercise their right to vote at general meetings by electronic means.

The Company has entered into an arrangement with CDSL, the authorised agency for this purpose, to facilitate such e-voting for its members.

The shareholders would therefore be able to exercise their voting rights on the items put up in the Notice of AGM through such e-voting method. The Company will also provide facility to members attending the AGM through VC or OAVM to vote at the meeting in accordance with the Companies (Management and Administration) Rules, 2014 and MCA circulars for conducting AGM through VC or OVAM.

Shareholders who are attending the meeting through VC or OAVM and who have not already cast their votes by remote e-voting shall be able to exercise their right of voting at the meeting. Cut-off date, as per the said Rules, is 24th September, 2021 and the remote e-voting shall be open for a period of 3 (three) days, from Friday, 17th December, 2021 (9.00 a.m.) from Monday, 20th December, 2021 (9.00 a.m. till Wednesday 2nd December (5.00 p.m.).

The Board has appointed M/s. Ojha & Associates , practicing company secretary, as Scrutinizer for the e-voting process.
Detailed procedure is given in the Notice of the 30th AGM and is also placed on the Company’s website at www.dfslonline.in
Shareholders may get in touch with the Company Secretary at [email protected] further assistance.

DCM FINANCIAL SERVICES LTD.

XI. DISCLOSURE

a) There have been no materially significant related party transactions which may have potential conflict with the interests of the Company at large.
Accordingly, the disclosure of Related Party Transactions as required under section 134(3) (h) of the Companies Act, 2013 in Form AOC-2 is attached with the Directors’ Report.
b) During last three year under review, the company has complied with all the mandatory requirements of the SEBI (LODR) Regulations, 2015, except the following:

S. No.	Relevant Regulation	Particulars of Non- compliance	Amount involved	Remarks
1.	Regulation 33 – Submission of Financial Results	The Company had not submitted consolidated Financial Statement for the quarter ended 30th June, 2019,	Rs. 88,500/- imposed by BSE and Rs. 41,300/- imposed byNSE	The Said non- compliance is complied with at the later stage.
	Regulation 17(1) (c) of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015	The Composition of the Board of Directors of the Company was not as per the requirement of the Regulation for quarter ended 30th June 2020 & 30th September 2020	9,02,700/-	The company Hadappointed Mr. Sanjay Sahni (Non-Executive Independent Director) & Mr. Kaushal Kashyap (Non-Executive Director) w.e.f. 01st September, 2020 to comply with the said requirement and has submitted request letter with NSE for waiver of fne.
	Regulation 23(9) of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015	The Company had not submitted disclosures of related party transactions on a consolidated basiswithin 30 days from the date of publication ofts standalone and consolidated fnancial results for the half year ended 30th September, 2020	2,12,400/- each by NSE & BSE	The Company had submitted the said disclosure on 20.01.2021& made the compliance good& said penalty has been waived off by the respective exchanges (NSE & BSE).

c) The Company has in place vigil mechanism and whistle blower policy under which employees can report any violation of applicable laws and regulations and the Code of Conduct of the Company. Vigil Mechanism of the Company provides adequate safeguards against victimization of persons who use such mechanism and no personnel have been denied access to the Audit Committee.

d) The Company has complied with all the mandatory requirements of Listing Regulations.

e) Global IT Options Limited is the subsidiary of our Company. The Company has in place

DCM FINANCIAL SERVICES LTD.

policy for determining ‘material’ subsidiaries and the same is also placed on Company’s website i.e.www.dfslonline.in and web-link of the same is http://dfslonline.in/policy/8.pdf
f) The Company has in place Policy for Related Party Transaction and the same is also placed on Company’s website i.e. www.dfslonline.in and web-link of the same is http:// dfslonline.in/policy/7.pdf
g) Information pertaining to the disclosure of commodity price risks and commodity hedging activities is not applicable to the Company.
h) The Company has not raised any funds through preferential allotment or qualified institutions placement as specified under Regulation 32 (7A).
i) A certificate from M/s.Ojha& Associates, Company Secretary in practice that none of the Directors on the Board of the company have been debarred or disqualified from being appointed or continuing as directors of companies by the Board, Ministry of Corporate Affairs or any such statutory authority, forms part of this report.
j) There were no instances where the Board has not accepted any recommendation of any committee of the board which was mandatorily required during the financial year in concern.
k) Total fees for all services paid by the listed entity to the statutory auditor and all entities in the network of the statutory auditor is Rs. 4,36,600/-.
l) A Practicing Company Secretary has carried out Reconciliation of Share Capital Audit to reconcile the total admitted capital with National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd (CDSL) and the total issued and listed capital. The said Audit Report confirms that the total issued/paid up capital is in agreement with the total number of shares in physical form and the total number of dematerialized shares held with NSDL and CDSL.

XII. The Company has duly complied with all the Corporate Governance requirements as specified in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

XIII. NON-COMPLIANCE OF ANY REQUIREMENT OF CORPORATE GOVERNANCE REPORT OF SUB-PARAS (2) TO (10) It is to confirm that the Company has not incurred any non-compliance of any information contained in this Corporate Governance Report except the following: The Company received the Notice and had been levied the penalty for delay in filing the disclosure of related party transactions on consolidated basis for the half year ended on September 30, 2020 by BSE & NSE. However, the penalty has been waived off by the Exchanges on submission of Waiver application made by the company to the respective exchanges.

The Company received the Notice and had been levied the penalty for Non Compliance of Regulation 17(1) of SEBI (LODR) Regulations, 2015 by NSE. However, the Company has made an application for Waiver of the fine levied by the NSE for such non Compliance.

XIV. INFORMATION REQUIRED UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

Your Company has constituted Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and also has a policy and framework for employees to report sexual harassment cases at workplace. The Company’s process ensures complete anonymity and confidentiality of information.The below table provides details of complaints received/disposed during the financial year 2020-21:

No. of Complaints Filed No. of Complaints Disposed off No. of Complaints Pending NIL

XV. DISCLOSURE REGARDING SHARES IN SUSPENSE ACCOUNT

(a) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year: NIL
(b) Number of shareholders who approached issuer for transfer of shares from suspense account during the year: NIL
(c) Number of shareholders towhom shares were transferred from suspense account during the year: NIL

DCM FINANCIAL SERVICES LTD.

(d) aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year: NIL
(e) that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares: NIL

XVI. RISK MANAGEMENT

As per Regulation 21 of SEBI Regulations, 2015, the Company is not required to constitute Risk Management Committee.
XVII. INDEPENDENT DIRECTORS
The Board of the Company has been duly constituted with an optimum combination of Executive Directors, Non-Executive and Independent Directors. All the members are financially literate and possess sound knowledge of accounts, audit, finance, law, etc. Presently, the Board of the Company comprises of following 4 (Four) Independent Directors: i) Ms. RichaKalra ii) Ms. Rajni Gupta iii) Ms. Daman PreetKaur iv) Mr. Sanjay Sahni

==> picture [295 x 62] intentionally omitted <==

----- Start of picture text -----

Meeting of Independent Directors
As required by the Code of Independent Directors under the Companies Act, 2013 and the
Listing Regulations, a meeting of the Independent Directors of the Company was convened
during the year to oversee and review the performance of Non-Independent Directors and of
the Board as a whole.The meeting of Independent Directors was held on 14th August, 2021.
The independent directors present elected Ms. RichaKalra as Chairperson for the meeting. All
independent directors were present at the meeting.
----- End of picture text -----

==> picture [312 x 152] intentionally omitted <==

----- Start of picture text -----

XVIII. MANAGEMENT DISCUSSION AND ANALYSIS
A separate chapter on Management Discussion and Analysis is given in this Annual Report.
XIX. CEO/CFO CERTIFICATION
The Chief Financial Officer of the Company has furnished a certificate relating to financial
statements and internal control systems as per the format prescribed under Regulation 17(8) of
the SEBI (LODR) Regulations, 2015 and the Board took the same on record.
XX. COMPLIANCE CERTIFICATION
Compliance Certificate for Corporate Governance obtained from M/s. Ojha& Associates,
Company Secretaries is annexed herewith..
XXI. CODE OF CONDUCTS
Details of various policies and codes required to be framed under the Companies Act, 2013
and SEBI (LODR) Regulations, 2015 are given under the head “Investors” on the website of the
company i.e. www.dfslonline.com
XXII. Market price data- high, low during each month of the financial year 2020-21:
The Market price data is given in the table mentioned below:
----- End of picture text -----

BSE Limited:

BSE Limited:
Month	High(Rs.)	Low(Rs.)	Closing(Rs.)
April‘20	0.68	0.62	0.65
May‘20	0.65	0.59	0.59
June‘20	0.59	0.57	0.59
July‘20	1.47	0.61	1.47
August‘20	1.54	1.18	1.35
Sep‘20	1.38	1.26	1.26
Oct‘20	1.30	1.01	1.10
Nov‘20	1.05	0.83	0.85
Dec‘20	1.39	0.89	1.39
Jan‘21	2.10	1.45	1.76
Feb‘21	1.83	1.23	1.23
March‘21	1.59	1.19	1.25

DCM FINANCIAL SERVICES LTD.

NSE Limited:	NSE Limited:	NSE Limited:	NSE Limited:
Month	High(Rs.)	Low(Rs.)	Closing(Rs.)
April‘20	0.60	0.40	0.60
May‘20	0.70	0.55	0.65
June‘20	0.95	0.65	0.95
July‘20	1.70	1.00	1.55
August‘20	1.60	1.15	1.30
Sep‘20	1.35	1.00	1.10
Oct‘20	1.20	0.90	1.10
Nov‘20	1.15	0.90	1.00
Dec‘20	1.75	0.95	1.75
Jan‘21	2.30	1.70	1.85
Feb‘21	1.80	1.55	1.55
March‘21	1.70	1.25	1.25
Calcutta Stock Exchange

There is no trading on Calcutta Stock Exchange in shares of the Company. Therefore, market price data is not available for the financial year 2020-21..

XXIII. DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2021:

Shareholding of Nominal value of Rs. 10/-	Shareholding of Nominal value of Rs. 10/-	No. of Shareholders	% of Shares	No. of Shares held	% of Share Holders	% of Share Holders
1-500		19074	12.7877	2829278	86.2960
501-1000		1541	6.0328	1334764	6.9719
1001-2000		730	5.3108	1175016	3.3027
2001-3000		255	3.0229	668816	1.1537
3001-4000		124	2.0574	455209	0.5610
4001-5000		117	2.5615	566724	0.5293
5001-10000		145	4.8101	1064246	0.6560
10001-50000		101	9.6145	2127218	0.4570
50001-100000		5	1.3136	290631	0.0226
And Above		11	52.4887	11613152	0.0498
Total		22103	100	22125054	100
Categories of Equity Shareholders as on March 31, 2021
	Category			No. of Shares		% of Holding
1.	Promoters Holding
	Promoters
	Indian Promoters			8,739,952		39.50%
	Foreign Promoters			-		-
	Persons acting in concert			-		-
	Sub Total			8,739,952		39.50%
2.	Non Promoters Holding
	Institutional Investor			-		-
	Mutual Fund and UTI			33,700		0.15%
	Banks, Financial Institutions, Insurance Companies (Central/ State Govt. Institutions/ Non Govt. Institutions)			1,352,700		6.11%
	FII’s			-		-
	Sub Total			1,386,400		6.27%
3.	Others
	Corporate Bodies			1,043,268		4.72%
	Indian Public			10,411,774		47.05%
	NRI’s/OCB’s			5,43,660		2.46%
	Any Other (HUF/Firm/Foreign Companies) Clearing Member			-		-
	Sub Total			11,998,702		54.23%
	Grand Total			2,21,25,054		100%

DCM FINANCIAL SERVICES LTD.

XXIV. DEMATERIALIZATION OF SHARES AND LIQUIDITY

The shares of the Company are in the compulsory dematerialized segment and are available for trading with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).

The Share Capital Audit Report regarding reconciliation of the total issued, listed and capital held by depositories in a dematerialized form with respect to the Equity Share Capital of the Company was obtained from the Practicing Company Secretary for each quarter during the year and submitted to the Stock Exchanges within the stipulated time.

Number of shares held in dematerialized and physical mode as on 31st March 2021.

Particulars	Total Shares	% to Equity
Shares in dematerialized form with NSDL	15,294,382	69.13
Shares in dematerialized form with CDSL	3,130,988	14.15
Physical	3,699,684	16.72
Total	22,125,054	100
ISIN of the Company : INE891B01012

The names and addresses of the depositories are as under:

1. National Securities Depository Limited

Trade World, A-Wing, 4th & 5th Floors,
Kamala Mills Compound,
SenapatiBapatMarg,

Lower Parel, Mumbai - 400 013

2. Central Depository Services (India) Limited Marathon Futurex, A-Wing, 25th floor,

NM Joshi Marg, Lower Parel, Mumbai 400013

XXV. Company Details:

Company Details:
Registered Offce	D-7/3, Okhla Industrial Area, Phase-2, New Delhi-110020
Plant Location	Same as Above
Addressfor communication	Same as Above
The phone numbers and e-mail addresses for communication are given below:
Particulars		Telephone Number	Fax No.
Registered Offce:
D-7/3 Okhla Industrial Area,Phase-2 New Delhi DL 110020		011-41077750
Corporate Offce:
D-7/3 Okhla Industrial Area,Phase-2 New Delhi DL 110020		011-41077750

As per Circular of the Securities & Exchange Board of India dated 22.01.2007, exclusive e-mail address for redressal ofInvestor Complaints is [email protected]

On behalf of Board of Directors For DCM Financial Services Limited Date: 18.11.2021 Shantanu Deveshwar Place: New Delhi Chairperson & Whole-Time Director DIN: 08268523

DCM FINANCIAL SERVICES LTD.

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF DCM FINANCIAL SERVICES LIMITED

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying financial statements of DCM FINANCIAL SERVICES LIMITED (“the Company”), which comprise the Balance Sheet as at 31st March, 2021, and the Statement of Profit and Loss, Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph , the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,

(a) In the case of the Balance Sheet, of the State of Affairs of the Company as at March 31, 2021; and
(b) In the case of Statement of Profit and Loss account, of the loss for the year ended on date March 31, 2021.
(c) In the case of Cash Flow Statement for the year ended on date March 31, 2021.
(d) In the case of Statement of changes in equity for the year ended on date March 31, 2021.

Basis for Qualified Opinion

(i) Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one-man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one-man committee enumerated in the report. Under Scheme of One-Man Committee, Interest of Rs 235 Lacs are payable to Debenture Holders and Rs 1,448 Lacs are payable to Fixed Depositors under Phase-2 of Schedule of Payments laid down by One Man Committee. Presently the said committee has waived any further payment of Interest to Fixed Depositors, Debenture-holders and other lenders, however on complete liquidation of properties and investments, if any surplus remains after payment to all stakeholder creditors, then further payment of Interest would be decided. All stakeholders’ creditors which are covered under scheme has given its consent to the scheme. No provision of Rs. 1,683 Lacs as laid down under the scheme towards Interest on Debentures and Fixed Deposits, have been provided in the financial statements on the outstanding amount of Debentures and Fixed Deposits.

(ii) For redemption of ‘B’ series debentures of Rs. 2014.98 Lacs debenture redemption reserve is required to be created. Debenture redemption reserve of Rs. 2014.98 Lacs has not been created due to insufficient profits. The same has been explained in Note 17.2.
(iii) The value of assets charged as security in favor of banks, debenture-holders & financial institutions have been depleted over a period of time. The depletion has not yet been ascertained by the Company. To the extent of shortfall, if any, the liability is unsecured, whereas the same has been shown as secured. The same has been explained in Note 17.2.
(iv) Balance confirmation of bills receivable and payable, advances recoverable in cash or in kind, receivables and payables relating to lease and hire purchase, lease security deposit of which party wise details are not available. Balance confirmation of inter-corporate deposits, FD balances with Bank, interest on FD from banks, balance of ex-employees, margin against

DCM FINANCIAL SERVICES LTD.

L/C, loans from institutions, banks, no dues certificate on payment of loans from bank and other receivables and payables have not been received from the parties/persons concerned. In the absence of balance confirmation, the closing balances as per books of accounts have been incorporated in the final accounts and have been shown, unless otherwise stated by the management about its recoverability in the financials including considering the NPA Provisions, are good for recovery/payment. Time barred debts under the Limitations Act have not been separately ascertained and written off or provided for. In the absence of such confirmation & corresponding reconciliation, it is not feasible for us to determine financial impact on the financials and the amount referred as payable in the financials can differ. Please refer Note No-38

(v) Contingent liabilities and Other Commitments

vi (a) During the year ended 30th June, 2011 the company’s tenant had filed a claim of Rs. 10,000,000 against the company due to damages suffered by the tenant which is still pending under arbitration proceedings as on 31st March, 2021.
vi (b) There is an award passed by the arbitrator against the company in the matter of MS Shoes East Limited on May 28, 2012 for Rs. 5,128,320 i.e. the claim amount, along with Rs. 30,680,848 towards interest cost for an underwriting given by the company in the year 1995 for the public issue of M/s MS Shoes East Ltd. Furthermore, an incidental cost which includes arbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had been awarded to the company. The total financial impact comes to Rs. 36,358,448 which has been contested by Company before Hon’ble Delhi High Court.
vi (c) Due to dispute with the builder namely M/s NBCC Ltd. from which the company had purchased an office premises in the year 1995, regarding a claim of Rs. 28,829,634 on account of increase in super area and certain other expenditure which the builder i.e. M/s NBCC Ltd. had incurred and the same is pending in arbitration. Breakup of the amount of Rs. 28,829,634 mentioned supra is as follows:

S. No.	Description	Amount
1.	Difference in super area Vs.provisional area	22,928,254/-
2.	Claim ofpropertytax	319,100/-
3.	Claim ofground rent	2,167,190/-
4.	Allied charges	782,210/-
5.	Augmentation of Electric sub station	132,880/-
6.	Loss ofproft	2,000,000/-
7.	Arbitration cost	500,000/-
TOTAL		28,829,634/-

The summary position of award is as under:

Party	Amount Claimed(in Rs.)	Awarded(in Rs.)
NBCC Ltd.- Claimant	4,34,95,374/-	41,05,656/-
DCM Financial Services Limited - Counter Claimant/Respondent	32,69,49,945/-	78,97,424/-

In addition to the above, Interest @ 10% is payable by both the parties on their respective amounts.

That whereas NBCC has filed objections to the award in Delhi High Court in Dec 2020 and the same appears to be lying in objections.

That DCM has also filed objection in Delhi High Court and the same has not being listed so far.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the

DCM FINANCIAL SERVICES LTD.

context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report: -

(i) We draw attention to Note 36 in the financial statements, which indicates that the Company incurred a net loss of Rs. 12,46,925 during the year ended March 31, 2021 and, as of that date, the Company’s current liabilities exceeded its total assets by Rs. 41,44,90,516. The accumulated loss as on 31st March, 2021 stands to Rs. 85,86,42,383/-(Previous year Rs. 85,73,95,457/-). As on 31st March, 2021, the Company’s total liabilities exceeded to its total assets by Rs. 43,64,20,657/- (Previous year Rs. 43,51,73,731/-). As stated in Note 36, these events or conditions, along with other matters as set forth in Note 36 which are as under:-
The Company is not carrying on any business as to comply with the directives of the Reserve Bank of India, the company ceased to accept deposits from September 1997 and the company’s application to RBI for certificate of registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The Company contends that the Scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme such issuance of equity to SBI Home Finance Limited and Pressman Leasing would be approved/decided upon by the Hon’ble Delhi High Court and accordingly the decision on revival of Company would be taken by Hon’ble Delhi High Court. It indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
(ii) We draw attention to Note 26 in the financial statements regarding successful implementation of scheme of One Man Committee on which continuity and revival of the Company is completely dependent which not only includes successful implementation of Schedule of payments described under Phase-I and Phase-II, but also realisability of funds from the disposal of Fixed Assets especially Building which is under dispute with Tenant as well as NBCC.
(iii) We draw attention to Note 32 in the financial statements on the deposit Rs. 195,000,000 with the Hon’ble Delhi High Court. DCM Services Ltd, as a promoter had committed to bring in Rs. 195,000,000 as a promoter contribution upon sanction of their restructuring scheme under erstwhile Section 391 of the Indian Companies Act, 1956 which is under implementation by One Man Committee appointed with the direction of Hon’ble Delhi High Court. The Court vide order dated 06.05.2008 has asked DCM Services Limited to deposit Rs. 195,000,000 with the Court and pursuant to the court order DCM Services Limited deposited Rs 50,000,000 on 16.07.2010, Rs 67,000,000 on 18.11.2010, Rs. 39,000,000 on 21.04.2011 &Rs. 39,000,000 on 27.04.2012 aggregating to Rs. 195,000,000 on behalf of the promoters with the Registrar, Hon’ble Delhi High Court. All the funds are with Delhi High Court along-with accrued interest thereon. No financial impact of this has been recorded in the financials of the company till 31st March, 2021 as there is no clarity provided by Hon’ble High Court of Delhi on whether Company would have to issue any shares against such contribution as per SEBI guidelines or such amount would be refundable to DCM Services Limited by company or there would be no liability on the Company to either to pay the said amount or issue any shares in lieu of that. Till Company gets any clarity on this matter, no financial entry has been recorded in the books of accounts.

Other Matter

We draw attention to Note 40 to the financial statements, regarding management’s assessment of Covid-19 impact on the future performance of the company. Our report is not modified in respect of the matter.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Director’s Report, Report on Corporate Governance and General Shareholders Information, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

DCM FINANCIAL SERVICES LTD.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

DCM FINANCIAL SERVICES LTD.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure ‘A’ statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143 (3) of the Companies Act, 2013, we report that:
a. Except for the matters described in the Basis for Qualified Opinion and Key Audit Matters paragraph, we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. Except for the matters described in the Basis for Qualified Opinion and Key Audit Matters paragraph, in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.;
d. Except for the matters described in the Basis for Qualified Opinion and Key Audit Matters paragraph, in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with rule 7of the Companies (Accounts) Rules,2014;
e. The matter described in the Basis for Qualified Opinion and Key Audit Matters paragraph above, in our opinion, may have a qualified effect on the functioning of the Company.
f. On the basis of the representations received from the directors as on 31st March 2021 taken on the record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ‘B’ ; and

DCM FINANCIAL SERVICES LTD.

==> picture [295 x 464] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|h.|with respect to the other matters to be included in the Auditor’s Report in accordance with|
|the requirements of section 197(16) of the Act, as amended: In our opinion and to the best|
|of our information and according to the explanations given to us, the remuneration paid by|
|the Company to its directors during the year is in accordance with the provisions of section|
|197 of the Act.|
|i.|with respect to the other matters to be included in the Auditor’s Report in accordance with|
|Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best|
|of our information and according to the explanations given to us:|
|i.|The Company has disclosed the impact of pending litigations on its financial position|
|in its financial statements –|Refer Note 28|to the financial statements;|
|ii.|The Company has made necessary provision in its financial statements under the|
|applicable law or Indian accounting standards, wherever required;|
|iii.|The company moved an application before the Hon’ble Company Law Board, New|
|Delhi on 22nd July 2004 under Regulation 44 of the Company Law Regulations 1991|
|proposing a fresh repayment schedule for fixed depositors, debenture-holders and|
|other creditors of the Company. The company filed a Fresh Scheme of Arrangement|
|for the reorganization of the share capital of the company and for compromise|
|with the secured and unsecured creditors of the company, hereinafter referred to|
|as the “Fresh Restructuring Scheme” before the Hon’ble Delhi High Court on 24th|
|September 2004 mentioning therein repayment schedule.|
|Justice Anil Kumar as one-man committee was appointed vide order dated: - 3rd|
|September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors|
|and other claimants and to take steps enumerated hereinafter with the view to resolve|
|at-least some of the disputes. The one-man committee submitted its report on to|
|Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report,|
|Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of|
|one-man committee enumerated in the report. One Man Committee observed that|
|that it already has sufficient funds, ready cash, to repay about 70% of the deposits to|
|all the depositors having deposits of more than Rs 5,000 including secured creditors|
|in the first stage. Under Phase -1, 70% of the principal amount be paid to the|
|creditors having deposits of more than 5,000 and full amount be paid to those who|
|have deposits of Rs. or less than Rs.5,000 in the first instance to fixed depositors,|
|Debenture-holders and banks. In the second phase, which should also commence|
|with phase 1 simultaneously, properties and shares and all the assets be liquidated|
|by selling and the realized amount is recommended to be utilized for the repayment|
|of balance 30% of principal amount and the maturity interest component only on the|
|fixed deposits and debentures. Other creditors such as banks, financial institutions,|
|ICD Holders shall also be paid 30% of the Principal Amount except to SBI Home|
|Finance Limited and Pressman Leasing which will be issued equity shares in Second|
|Phase. Depending upon the availability of surplus amount from disposal of assets|
|with the Company, the Hon’ble High Court of Delhi may decide whether some|
|additional amount of interest can be paid to depositors or other creditors. During the|
|year ended 31st March, 2018, Company started paying the amount as per Phase-I|
|and the company is still in continuation of making payments as per Phase I for the|
|year ended 31st March 2021. Also the company has started making payments as per|
|Phase II simultaneously during the current financial year.|

----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

them. Also company has also started paying balance 30% to creditors to whom 70% has already been paid previously. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

The matter regarding payment to fixed depositors, debenture-holders and other sums are already covered under Phase-I and Phase-II schedule of payment decided by One Man Committee duly appointed by Hon’ble Delhi High Court.

All the unpaid matured Public Fixed Deposits of Rs 4849.31 Lacs Unpaid Matured Debentures of Rs. 1841.74 Lacs which was more than seven year old. Accordingly except the matter stated above, there has been no delay in transferring amounts or there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. Refer Note No 17.2 and 17.3.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Place : Delhi Dated : 29th June 2021 UDIN : 21521860AAAABG9568

Rishi Mittal Partner M.No. 521860

DCM FINANCIAL SERVICES LTD.

Annexure ‘A’ To Independent Auditors’ Report Referred to in Paragraph 1 under the heading of “report on other legal and regulatory requirements” of our report of even date

(a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. In accordance with such program, the management has physically verified its fixed assets during the year and no material discrepancies were noticed by them.

The company does not hold any inventory as on 31st March 2021 3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act 2013. Consequently, sub-clauses 3 (a), (b) & (c) of this clause are not applicable.
The Company has not made any transaction in respect of loans covered under section 185 of the Companies Act 2013. In respect of loans, investments, guarantees and security covered under section 186 of the Companies Act, 2013, the provisions of the said section 186 have been duly complied except a case mentioned in our Basis of Opinion Para(v).
The Company has not accepted any deposits from the public during the year. The directives issued by the Reserve Bank of India and the provision of section 73 to 76 or any other relevant provision of the Companies Act 2013 are not applicable on all the unpaid matured public Fixed Deposits of Rs 4849.31 Lacs. Unpaid Matured Debentures of Rs. 1841.74 Lacs standing as at 31st March, 2021 which were accepted in prior periods in view of filing of Fresh Restructuring Scheme filed with Hon’ble Delhi High Court on 25th September, 2004. Justice Anil Kumar as one-man committee was appointed vide order dated: - 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one-man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one-man committee enumerated in the report. One Man Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. Under Phase -1, 70% of the principal amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. or less than Rs.5,000 in the first instance to fixed depositors, Debenture-holders and banks. In the second phase, which should also commence with phase 1 simultaneously, properties and shares and all the assets be liquidated by selling and the realized amount is recommended to be utilized for the repayment of balance 30% of principal amount and the maturity interest component only on the fixed deposits and debentures. Other creditors such as banks, financial institutions, ICD Holders shall also be paid 30% of the Principal Amount except to SBI Home Finance Limited and Pressman Leasing which will be issued equity shares in Second Phase. Depending upon the availability of surplus amount from disposal of assets with the Company, the Hon’ble High Court of Delhi may decide whether some additional amount of interest can be paid to depositors or other creditors. During the year ended 31st March, 2021, Company is in continuation of paying the amount as per Phase-I and company has started making payments as per Phase II simultaneously during the current financial year. The matter regarding payment to fixed depositors, debenture-holders and other sums are already covered under Phase-I and Phase-II schedule of payment decided by One Man Committee duly appointed by Hon’ble Delhi High Court. The company contends that the aforesaid Public Deposits and payment to Debenture-holders shall be settled as per schedule laid down by the implementation of One-Man Committee outcome of Fresh Restructuring Scheme.
In accordance with the information given by the management the maintenance of cost records has not been prescribed by the Central Government under section 148 (1) of the Companies Act, 2013.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

7. (a) According to the information and explanations given to us and on the basis of our
examination of the books of account, the company is regular in depositing the undisputed
statutory dues including provident fund, employees’ state insurance, income tax, GST,
duty of customs, cess and any other statutory dues as applicable with the appropriate
authorities.
(b) According to the information and explanations given to us, there was no undisputed
amounts payable in respect of the above dues which were outstanding as at 31st March,
2021 for a period of more than six months from the date of their becoming payable.
(c) According to the information and explanations given to us and the records of company
produced before us, there was no disputed Statutory Dues pending before appropriate
authorities.
8. The company had defaulted in the repayment of dues to financial institutions, banks and
debenture holders.
Although the company is continuing its default in the repayment of dues to debenture holders as
explained in Note No-17.2 of Notes to Accounts.
The matter is sub-judice with Hon’ble Delhi High Court as the company had filed a Fresh
Scheme of Arrangement for the reorganization of the share capital of the company and for
compromise with the secured and unsecured creditors of the company, before the Hon’ble Delhi
High Court at New Delhi on 24th September 2004.
Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September,
2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and
to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The
one man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016.
Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted
the recommendation of one man committee enumerated in the report. One Man Committee
observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits
to all the depositors having deposits of more than Rs 5,000 including secured creditors in the
first stage. Under Phase -1, 70% of the principal amount be paid to the creditors having deposits
of more than 5,000 and full amount be paid to those who have deposits of Rs. 5000 or less than
Rs.5,000 in the first instance to fixed depositors, Debenture-holders and banks. In the second
phase, which should also commence with phase 1 simultaneously, properties and shares and
all the assets be liquidated by selling and the realized amount is recommended to be utilized
for the repayment of balance 30% of principal amount and the maturity interest component only
on the fixed deposits and debentures. Other creditors such as banks, financial institutions, ICD
Holders shall also be paid 30% of the Principal Amount except to SBI Home Finance Limited
and Pressman Leasing which will be issued equity shares in Second Phase. Depending upon
the availability of surplus amount from disposal of assets with the Company, the Hon’ble High
Court of Delhi may decide whether some additional amount of interest can be paid to depositors
or other creditors. During the year ended 31st March, 2021, Company is paying the amount as
per Phase-I and has simultaneously started making payments under Phase-II during the current
financial year.
The matter regarding payment to aforesaid Financial Institution Parties are already covered
under Phase-I and Phase-II schedule of payment decided by One Man Committee duly
appointed by Hon’ble Delhi High Court. The company contends that the payment to aforesaid
Financial Institution Parties shall be settled as per schedule laid down by the implementation of
One Man Committee outcome of Fresh Restructuring Scheme.
9. According to the information and explanations given to us, during the year the Company has
not raised money by way of initial public offer and term loans.
10. According to the information and explanations given to us, no fraud by the company or no fraud
on the Company by its officers or employees has been noticed or reported during the year.
11. The company has paid managerial remuneration as per provisions of section 197 read with
Schedule V to the Companies Act, 2013 and on the basis of approval received from Central
Government on 1st May, 2017 which contains payment of managerial remuneration of not more
than Rs 3.99 Lac per annum. No further order has been passed. However, the company has
made payment of Rs. 3,75,648 during the current financial year.
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

The company is not a Nidhi Company and hence clause 3 (xii) is not applicable.
The transactions with the related parties made by the Company are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements, as required by the applicable Indian Accounting Standards.
The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause 3 (xiv) is not applicable.
During the year, the company has not entered into any non- cash transactions with directors or persons connected with him and hence provision of section 192 of Companies Act 2013 is not applicable.
Initially the company was NBFC. However, renewal of application for registration has been rejected by RBI in 2004. In view of rejection of NBFC license, Section 45-IA of Reserve Bank of India Act, 1934 is not applicable on this company.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Place : Delhi Dated : 29th June 2021

Rishi Mittal Partner M.No. 521860

DCM FINANCIAL SERVICES LTD.

ANNEXURE-“B” TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in Paragraph 2 (f) under the heading of “report on other legal and regulatory requirements” of our report of even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of DCM FINANCIAL SERVICES LIMITED (“the Company”) as of March 31, 2021 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on internal policies & procedures, accounting records and essential components on the internal control over financial reporting criteria established by the Company as per Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

DCM FINANCIAL SERVICES LTD.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

According to the information and explanation given to us, the Company has not established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2021.

We have considered the disclaimer reported above in determining the nature, volume of transactions, materiality, timing, and extent of audit test applied in our audit of the standalone financial statement of the company and the disclaimer does not affect our opinion on the standalone financial statements of the company.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Place : Delhi Dated : 29th June 2021

Rishi Mittal Partner M.No. 521860

DCM FINANCIAL SERVICES LTD.

BALANCE SHEET AS AT 31ST MARCH 2021

BALANCE SHEET AS AT 31ST MARCH 2021
	(Amount in Rupees)
Particulars Note No.	As at 31.03.2021	As at 31.03.2020
I. ASSETS Non-current assets (a) Property, Plant and Equipment 1 116,513,425 119,371,719 (b) Right to use asset 1.1 810,014 - (c) Financial Assets (i) Investments 2 - - (ii) Other Financial Assets 3 175,300,000 171,275,950 (d) Deferred Tax Assets (Net) Including MAT 4 37,038,951 37,331,897 (e) Other Non-Current Assets 5 17,582,077 22,079,934 2 Current assets (a) Financial Assets (i) Investments 6 8,111,658 6,406,027 (ii) Trade Receivable 7 - - (iii) Cash and cash equivalents 8 2,746,586 1,130,865 (iv) Other Bank Balance 9 29,600,408 27,881,916 (v) Other Financial Assets 10 1,517,606 11,260,735 (b) Other Current Assets 11 108,500 - TOTAL ASSETS 389,329,225 396,739,042 II EQUITY AND LIABILITIES Equity (a) Equity Share Capital 12 221,250,540 221,250,540 (b) Other Equity 13 (657,671,197) (656,424,271) 2 Liabilities Non-current liabilities (a) Financial Liabilities (i) Borrowings 14 20,770,000 20,770,000 (ii) Lease Liability 15 440,367 - (b) Provisions 16 719,774 572,336 Current liabilities (a) Financial Liabilities (i) Lease Liability 17 404,006 - (ii) Other Financial Liabilities 17 802,208,985 808,065,524 (b) Other current liabilities 18 1,091,408 2,453,518 (c) Provisions 19 115,341 51,396 TOTAL EQUITY AND LIABILITIES 389,329,225 396,739,042 For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N Rishi Mittal Partner M.No. 521860 Shantanu Deveshwar Director DIN: 08268523 Richa Kalra Director DIN: 07632571 Somali Tiwari Company Secretary M.No. A-47631 Place : Delhi Dated : 29th June, 2021	116,513,425 810,014 - 175,300,000 37,038,951 17,582,077 8,111,658 - 2,746,586 29,600,408 1,517,606 108,500	119,371,719 - - 171,275,950 37,331,897 22,079,934 6,406,027 - 1,130,865 27,881,916 11,260,735 -
	389,329,225	396,739,042
	221,250,540 (657,671,197) 20,770,000 440,367 719,774 404,006 802,208,985 1,091,408 115,341	221,250,540 (656,424,271) 20,770,000 - 572,336 - 808,065,524 2,453,518 51,396
	389,329,225	396,739,042

DCM FINANCIAL SERVICES LTD.

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 31ST MARCH 2021

	(Amount in Rupees)	(Amount in Rupees)
Particular Note No.	For the year ended 31.03.2021	For the year ended 31.03.2020
I. Revenue From Operations II. Other income 20 III. Total Revenue (I + II) IV. Expenses: Employee benefts expense 21 Finance costs 22 Depreciation and amortization expense 1 Other expenses 23 Total expenses V. Proft before exceptional items and tax (III-IV) VI. Exceptional Item VII. Proft before tax (V - VI) VIII. Tax expense: 24 (1) Current tax (2) Deferred tax (3) MAT Credit Entitlement (4) Prior Period Taxes IX Proft (Loss) for the period from continuing operations (VII-VIII) X Proft (Loss) for the period XI Other Comprehensive income A (i) Items that will not be reclassifed to proft or loss (ii) Income tax relating to items that will not be reclassifed to proft or loss B (i) Items that will be reclassifed to proft or loss (ii) Income tax relating to items that will be reclassifed to proft or loss XII Total Comprehensive Income for the period (X+XI) (Comprising proft (loss) and other Comprehensive Income for the period) XIII Earnings per equity share (for continuing operation): - Basic - Diluted	- 20,245,906 20,245,906 4,759,363 109,492 3,267,960 9,078,475 17,215,291 3,030,616	- 25,418,452
		25,418,452
		3,910,419 9,803,256 2,862,475 16,626,822
		33,202,972
		(7,784,520)
	3,030,616 780,000 289,487 - 3,217,897 (1,256,769) (1,256,769) 13,302 (3,459) - - (1,246,925) (0.06) (0.06)	(7,784,520) - (7,402,780) 2,851,906 -
		(3,233,645)
		(3,233,645)
		33,916 (8,818) - -
		(3,208,547)
		(0.15) (0.15)
For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N Rishi Mittal Partner M.No. 521860 Shantanu Deveshwar Director DIN: 08268523 Richa Kalra Director DIN: 07632571 Somali Tiwari Company Secretary M.No. A-47631 Place : Delhi Dated : 29th June, 2021

DCM FINANCIAL SERVICES LTD.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2021

	(Amount in Rupees)	(Amount in Rupees)
Particulars	31.03.2021	31.03.2020
(A) Cash fow from Operating Activities Proft Before Tax Add: Depreciation Interest on lease liability Interest Paid Provision for Impairment of Investment Less: Remeasurement of post employment defned beneft plans Lease rent paid Interest on Fixed Deposits Deferred Income Dividend Income Proft on sale of Investments Interest on Income tax refund Reversal of Provision, no longer required Unrealised gain on account of fair valuation of Investments Operating Profts before working Capital changes Adjustment for: Change in Other Non Current Assets Change in Other Financial Current Assets Change in Current Liabilities Change in Other Current Financial Liabilities Change in Other Non Current Financial Liabilities Change in Provisions Change in Other Current Assets Cash generation from Operating Activities Less: Income Tax paid (B) Cash Flow from Investing Activities Interest Income Dividend Income Redemption/(Purchase) of FD Sale of Investments Purchase / Sale of Fixed Assets (C) Cash Flow from Financing Activities Repayment to Debenture Holders Repayment to SIDBI Reapyment of Bank Loan - PSB Repayment of Loan to Fixed Depositors Repayment of Loan to Related Parties Net increase decrease in cash & cash equivalents Cash and Cash equivalents (Opening Balance) Cash and Cash equivalents (Closing Balance) Notes forming part of Financial Statements This is the Cash Flow Statement referred to in our report of even date.	3,030,616 3,267,960 - - - 13,302 (480,000) (16,181,161) - (25,142) (1,812,534) (94,980) (4,387) (2,091,002) (14,377,328) - 9,743,129 (1,362,110) 671,245 - 211,383 (108,500)	(7,784,520) 2,862,475 9,802,788 4,680 33,916 (18,072,623) (7,297,981) (45,024) - 5,205,700 (15,290,588) - (9,512,205) (609,936) 1,956,581 - (1,926,821)
	(5,222,180) (594,940)	(25,382,969) 1,805,148
	(4,627,240) 16,276,141 25,142 (5,742,542) 2,216,660 (4,658)	(27,188,117) 18,072,623 45,024 109,291,965 473,177 -
	12,770,743 (693,045) - - (5,834,739) -	127,882,789 (17,340,829) (1,088,982) (24,102,141) (32,980,662) (26,293,328)
	(6,527,784) 1,615,719 1,130,865	(101,805,941) (1,111,270) 2,242,135
	2,746,586	1,130,865

As per our report annexed, For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N Rishi Mittal Partner M.No. 521860 Shantanu Deveshwar Director DIN: 08268523 Richa Kalra Director DIN: 07632571 Somali Tiwari Company Secretary M.No. A-47631 Place : Delhi Dated : 29th June, 2021

DCM FINANCIAL SERVICES LTD.

STATEMENT OF CHANGES IN EQUITY

A. Equity Share Capital

STATEMENT OF CHANGES IN EQUITY A. Equity Share Capital
Particulars	As at 31st March 2021	As at 31st March 2020
Balance at the beginningof the reporting period;	221,250,540	221,250,540
Changes in equityshare capital duringtheyear;	-	-
Balance at the end of the reporting period	221,250,540	221,250,540
B. Other Equity Other equity consist of following:

B. Other Equity Other equity consist of	following:	following:	following:	following:	following:
Particualrs	Reserves and Surplus					Total
	Capital Reserve	Securities Premium	Debenture Redemption Reserve	Special Reserve	Retained Earnings
Balance at the end of the 1.04.2019	19,386,846	165,086,340	875,000	15,623,000	(854,186,910)	(653,215,724)
Proft/(loss) for the year Other comprehensive income/ (loss) for the year Dividends (including corporate dividend tax) Transfer to General Reserve Transfer to Capital Reserve Issue of Equity Share Capital	- - - - - -	- - - - - -	- - - - - -	- - - - - -	(3,233,645) 25,098 - - - -	(3,233,645) 25,098 - - - -
Balance at the end of the 31.03.2020	19,386,846	165,086,340	875,000	15,623,000	(857,395,457)	(656,424,271)
Proft/(loss) for the year Other comprehensive income/ (loss) for the year Dividends (including corporate dividend tax) Transfer to General Reserve Transfer to Capital Reserve Issue of Equity Share Capital	- - - - - -	- - - - - -	- - - - - -	- - - - - -	(1,256,769) 9,843 - - - -	(1,256,769) 9,843 - - - -
Balance at the end of the 30.03.2021	19,386,846	165,086,340	875,000	15,623,000	(858,642,383)	(657,671,197)

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Total 131,555,879 4,658 - 131,560,537 12,184,159 2,862,953 - 15,047,112 116,513,425 1,215,021 - 1,215,021 405,007 405,007 810,014
- - - -
Right to Use Assets
Office Equipment & Appliances 31,730 31,730 24,712 24,712 7,018
Furniture & Fixtures 780,910 - - 780,910 709,545 - - 709,545 71,365
- - - - - - - - -
Buildings Vehicles - - 11,449,902 2,862,476 - 14,312,378
- - 477 - 477
2,769 130,434,470 4,658 7,427 130,434,470 6,950 116,122,092
Plant & Machinery
Land 306,000 - - 306,000 - - - - 306,000
Property, Plant and Equipment Property, plant and equipment consist of the following :
1 Particulars Year ended 31 March 2021 Opening Gross Carrying Amount Additions Disposals Closing Gross Carrying Amount as at March 31, 2021 Opening Accumulated Depreciation Depreciation charged during the year 2020-2021 Depreciation on Disposals Closing Accumulated Depreciation as at March 31, 2021 Net Carrying Amount as at March 31, 2021 Note 1.1 Right to use asset Opening Gross Carrying Amount Additions Disposals Closing Gross Carrying Amount as at March 31, 2021 Opening Accumulated Depreciation Depreciation charged during the year 2020-2021 Depreciation on Disposals Closing Accumulated Depreciation as at March 31, 2021 Net Carrying Amount as at March 31, 2021
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

9,000,000 (9,000,000) -
As at 31st
March, 2020
(Amount in Rs.)
9,000,000 (9,000,000) -
As at 31st March, 2021
Fully paid
Partly Paid / Fully Paid Fully Paid
Quoted / Unquoted
UnQuoted
900,000 UnQuoted 900,000
As at 31 st March, 2020
As at - -
900,000 900,000
No. of Shares / Units
31st March, 2020 Amount in Rs. As at 31 st March, 2021
As at - -
Others
Subsidiary /
Associate / JV/ Subsidiary Subsidiary
31st March, 2021 Amount in Rs.
Particulars
Investments in Equity Shares Non -Trade Investments Global IT Options Ltd Less: Provision for Impairment TOTAL (a)
Particulars Details of non current investment -Investments in Equity Shares Total
NON CURRENT INVESTMENTS
Sr. No. (a) 1
2 2(A) Details of non-current investment consist of following:
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [312 x 322] intentionally omitted <==

----- Start of picture text -----

Note 3: Other Financial Assets (Non-current)
Other Financial Assets consist of the following :
Particulars As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Bank Deposits 175,300,000 171,275,950
(Deposits having original maturity more
than 12 months)
Total 175,300,000 171,275,950
These are restricted bank deposits and cannot be operated without getting prior approval
of Hon’ble Delhi High Court.
Note 4: Deferred Tax Assets (Net)
Major Components of the deferred tax balances
Deffered Tax Libilities As at 31 st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Depreciation and amortisation 29,435,284 30,116,352
Related Parties - -
Total (a) 29,435,284 30,116,352
Deffered Tax Assets As at 31st As at 31st
March, 2021 March, 2020
Post Employement Defined Benefit Plans 204,853 162,170
Provision for Doubtful Debts 62,931,679 62,941,813
Unrealised gain on securities carried at fair 3,328,769 4,344,266
value through statement of profit and loss
Lease 8,933
Total (b) 66,474,235 67,448,249
Net Deferred Tax (Liabilities)/ Assets (b-a) 37,038,951 37,331,897
Add: Minimum Alternative Tax (MAT) credit - -
entitlement
Net Deffered Tax Asset 37,038,951 37,331,897
----- End of picture text -----

Movement in Deferred Tax Assets/(Liabilities)

Particulars	Property, Plant and Equipment	Post Employ- ment Defned Beneft Plans	Provision for Doubtful Debts	Remeasure- ment of Investment through Proft and Loss	Lease	Related Parties	Total
At 31st March, 2018	(31,126,586)	431,378	67,869,815	(1,697,831)		(1,285,719)	34,191,056
(Charged)/ credited
– to Statement of Proft and Loss	380,758	319,593	(4,943,524)	(556,592)		634,470	(4,165,295)
– to Other Comprehensive Income	-	(87,827)	-	-		-	(87,827)
At 31st March, 2019	(30,745,828)	663,144	62,926,291	(2,254,423)		(651,249)	29,937,934
(Charged)/ credited
– to Statement of Proft and Loss	629,476	(492,155)	15,522	6,598,689		651,249	7,402,780
– to Other Comprehensive Income		(8,818)					(8,818)
At 31st March, 2020	(30,116,352)	162,170	62,941,813	4,344,266	-	(0)	37,331,897
(Charged)/ credited
– to Statement of Proft and Loss	681,069	46,141	(10,134)	(1,015,497)	8,933	0	(289,487)
– to Other Comprehensive Income		(3,459)					(3,459)
At 31st March, 2021	(29,435,284)	204,853	62,931,679	3,328,769	8,933	-	37,038,951

DCM FINANCIAL SERVICES LTD.

5 OTHER NON CURRENT ASSETS

Other non current assets consist of the following : Particulars Advances other than capital advances: Security Deposits Tax Recoverable (Net of Provisions) (Refer Note 5A) Unsecured , Doubtful - Employee Advances - Others Less: Provision towards doubtful advances/ECL Total 5A Details of Tax Recoverable Particulars Advance Tax and TDS Less : Provision for Tax TDS On Dividend Net	As at 31st March, 2021 Amount in Rs. 655,944 655,944 16,926,133 16,926,133 1,022,936 (1,022,936) -	As at 31st March, 2020 Amount in Rs. 655,944 655,944 21,423,990 21,423,990 1,022,936 (1,022,936) -
	17,582,077	22,079,934
	As at 31 st March, 2021 21,606,595 4,680,462 -	(Amount in Rs.) As at 31 st March, 2020 28,176,358 6,752,368
	16,926,133	21,423,990

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

As at 6,406,027 - 6,406,027 - -
As at 31 st March, 2020
31st March, 2020
17,150 17,150
As at 31 st March, 2021
Amount in Rs.
Fully paid
As at Partly Paid / Fully Paid
31st March, 2021 8,094,508 17,150 8,111,658
Quoted / Unquoted
49 Unquoted
Amount in Rs. As at 31 st March, 2020
49
No. of NCD / Units
As at 31 st March, 2021
Subsidiary / Associate / JV/ Others Others
Particulars
Details of current investment consist of following:
Investments in Non Convertible Debentures At Amortised Cost Nayara Energy Ltd (NCD) Amalgamation of Vadinar oil terminal Ltd with Nayara Energy Ltd (Non Convertible Debentures issued for Shares) Total (a)
Particulars Details of current investment --Investments in Equity Shares --Investments in NCD Total
CURRENT INVESTMENTS
6 6 (A) Sr. No. (a) 1
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

619,676 (619,675) 66 (65) 1,200 (1,199) 2,600 (2,599) 5,000 (4,999) 723 (722) 300 (299) 26,398 (26,397) 55,358 (55,357) 30 (29) 400 (399)
As at 31 st March, 2020
(Amount in Rs.)
619,676 (619,675) 66 (65) 1,200 (1,199) 2,600 (2,599) 5,000 (4,999) 723 (722) 300 (299) 24,790 (24,789) 55,358 (55,357) 30 (29) 400 (399)
As at 31 st March, 2021
Fully paid
Partly Paid / Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
Quoted / Unquoted
3 Unquoted
10 Quoted
300 Quoted 500 Quoted 300 Quoted 100 Quoted 200 Unquoted
98,050 Quoted 1,300 Quoted 13,400 Quoted 8,250 Unquoted
As at 31 st March, 2020
98,050 10 300 1,300 500 300 100 13,400 8,250 3 200
No. of Shares / Units
As at 31 st March, 2021
Subsidiary / Associate / JV/ Others Others Others Others Others Others Others Others Others Others Others Others
Particulars
Investments in Equity Shares At Fair Value Through Profit & Loss Clutch Auto Limited Less: Provision for impairment Health fore Technologies (Religare Technologies Ltd) Less: Provision for impairment Indo Biotech Foods Ltd Less: Provision for impairment Sujana Steel Ltd Less: Provision for impairment Padmini Technology Ltd Less: Provision for impairment Radhika Spinning Mills Ltd Less: Provision for impairment Uniworth Textiles Ltd. Less: Provision for impairment Virtualsoft System Limited Less: Provision for impairment Daewoo Motors India Ltd Less: Provision for impairment ESSAR Ports Ltd. Less: Provision for impairment Galaxy Indo Fab Ltd (Shri Laksmi Cotsyn Ltd) Less: Provision for impairment
Sr. No. (a) 1 2 3 4 5 6 7 8 9 10 11
6(B) Details of current investment consist of following:
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

90 (89) 2,060 (2,059) 250,000 (249,999) 10,000 (9,999) 11,953,000 (11,952,999) 30 (29) 443 (442) 3,240 40 1,792 13,341 840 1 97 412,055 4,325 604,679 1 170,000 165 74 7,351 1 1
90 (89) 2,060 (2,059) 250,000 (249,999) 10,000 (9,999) 11,953,000 (11,952,999) 30 (29) 443 (442) 5,467 40 1,092 20,303 840 1 350 579,965 1 1,948,593 1 296,000 330 316 9,932 1 1
Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
9 Unquoted 3 Unquoted 8 Quoted
200 Unquoted 100 Unquoted 110 Quoted 40 Quoted 800 Quoted 65 Quoted 200 Quoted 100 Quoted 100 Quoted 500 Quoted 200 Quoted 100 Quoted
1,000 Unquoted 8,255 Quoted 1,100 Quoted 3,100 Quoted
25,000 Unquoted 19,300 Quoted 30,000 Quoted
437,500 Unquoted 200,000 Quoted
9 200 25,000 1,000 437,500 3 100 110 40 700 65 200 100 100 19,300 500 8,255 30,000 200,000 1,100 200 8 3,100 100
Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others
Hazira Cargo Terminals Ltd Less: Provision for impairment Haryana Sheet Glass Ltd Less: Provision for impairment Profin Money Market Ltd Less: Provision for impairment Tulip Finance Ltd Less: Provision for impairment World Tex Ltd Less: Provision for impairment Salaya Bulk Terminals Ltd Less: Provision for impairment Skypack Courier Ltd Less: Provision for impairment Banaras Beads Ltd Doin Global Solutions Ltd (Religare Technova) Gagan Polycot Ltd GE Shipping Ltd Gujarat Meditech Ltd Kinetic Trust Ltd. Mid India Industries Ltd Profin Capital Services Ltd Shree Rajasthan Syntex Ltd Sree Rayalaseema Hi Strength Hypo Ltd Cepham Milk Specialities Ltd. Punj Llyod Ltd Sujana Universal Industries Ltd Svam Software Ltd United Breweies Limited Sunstar Lubricants Ltd Jaimata Rolled Glass Ltd
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35 36
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

1 1 1 1 1 1 1 1 1 1 1 404,126 4,690,150 57,278 23,044 13,354 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 - 5,204,100 1 13,750 13,354 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
1 Quoted
80 Quoted 50 Unquoted
100 Quoted 400 Quoted 600 Quoted 100 Quoted 200 Quoted 300 Quoted 100 Unquoted 700 Unquoted 100 Unquoted 400 Unquoted 300 Unquoted 250 Unquoted 200 Unquoted 200 Unquoted 825 Unquoted 500 Unquoted 100 Unquoted
5,000 Quoted 9,600 Quoted 3,900 Unquoted 2,800 Unquoted 1,700 Unquoted 1,000 Unquoted 4,100 Unquoted
220,000 Unquoted 30,000 Unquoted 30,000 Unquoted 25,000 Unquoted 127,000 Unquoted
80 100 400 5,000 1 600 100 200 300 9,600 100 - 30,000 30,000 25,000 700 100 400 300 50 250 3,900 2,800 1,700 1,000 200 200 825 500 4,100 100 127,000
Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others
Jsw Ispat Steel Ltd Modern Threads Ltd Tribology India Ltd HPM Industries Ltd Mardia Samyoung Capillary Tube Grand Foundry Ltd Goldwon Textiles Ltd Good Value Marketing Ltd Krishna Engineering Works Ltd Superforging & Steels Ltd Bharati Telecom Ltd RFB Latex Ltd Rajasthan Antibiotics Ltd. Cebon India Ltd. Krishna Cold Rolled Ltd(Rs.2.50 pd) Valplus Biotech Ltd Adhunik Synthetics Ltd Bhiwani Synthetics Ltd BLB Mutual Services Ltd BLB Share & Financial Services Ltd Cepham Organics Ltd Chirau Finance Invest. & Leasing City Lifts Ltd Crest Paper Mills Ltd Datapro Information Technology Ltd Decora Tubes Ltd East India Syntex Ltd Electrolux Kelvinator (Intron) Garg Forgings & Castings Ltd Girnar Fibres Ltd Gorden Herbert india Ltd Greenfield Corporation Ltd(Rs.5.00 pd)
37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	490	6,406,027	6,406,027
1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1		8,094,508	8,111,658
Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid	Fully Paid
Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted	Unquoted
21,050	1,200	100	400	1,700	50	100	200	20	400	5,400	4,500	4	5,000	100	19,400	3,500	100	200	13,400	200	2,500	500	1,600	9,700	49	1,407,182
21,050	1,200	100	400	1,700	50	100	200	20	400	5,400	4,500	4	5,000	100	19,400	3,500	100	200	13,400	200	2,500	500	1,600	9,700		1,187,033
Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others	Others
Hindustan Development Corpn. Ltd	Jainpur Straw Products Ltd	Jay Vinyls Ltd	Jiwan Flora Ltd	Karishma Floriculture Ltd	Kashipur Holdings Ltd(Bonus)	Kitti Steels Ltd	Makan Agro Ltd	Minerva Holdings Ltd	Moon Beam Industries Ltd	Pan Asia Industries Ltd	Rasik Plast Ltd	S.M. Dychem Ltd	S.V. Electricals Ltd	Sajjan Textiles Ltd	Shree Pommani Metals & Alloys Ltd	Siddarth Spinfab Ltd	Starspin & Twist Ltd	Sturdy Polymers Ltd	Suryachakra Seafoods Ltd	Swarnima Oils Ltd	Transpower Engineering Ltd	U.P. Lime Chem Limited	Vikram Projects Ltd	Vishal Lakco Ltd	Vadinar Oil Terminal Limited*	Total (b)	Total (a+b)
69	70	71	72	73	74	75	76	77	78	79	80	81	82	83	84	85	86	87	88	89	90	91	92	93	94

DCM FINANCIAL SERVICES LTD.

7 TRADE RECEIVABLES

Trade receivables consist of the following:

Particulars Unsecured, considered doubtful Less: Provision for doubtful debts Total	As at 31 st March, 2021 Amount in Rs. 169,467,432 (169,467,432) -	As at 31 st March, 2020 Amount in Rs. 169,467,432 (169,467,432) -

8 Cash and Cash Equivalent

Cash and cash equivalents consist of the following at amortised cost:

Particulars (a) Balances with Bank -Restricted Bank Balance(Refer Note 8A) Less: Provision for impairment(Refer Note 8B & 8C) (b) Cash in hand Total 8A Restricted Bank Balances Includes : Particulars Canara Bank IDBI Bank Limited Axis Bank UTI Bank Kotak Mahindra IDFC Total	As at 31 st March, 2021 Amount in Rs. 3,521,226 (774,640) 2,746,586 - 2,746,586 As at 31 st March, 2021 748,745 24,812 694,665 25,895 232,190 1,794,919 3,521,226	As at 31 st March, 2020 Amount in Rs. 1,905,505 (774,640)
		1,130,865 -
		1,130,865 As at 31 st March, 2020 748,745 281,693 625,084 25,895 222,519 1,569 1,905,505

8B During the year ended 31st March, 2018, the provision for impairment of Rs. 7,74,640 had been provided for the banks balances which are not in operation from past years and confirmations to their balances are not made available. These balances are subject to confirmation as on 31.3.2021 and are still not operative.

Particulars Canara Bank Total	As at 31 st March, 2021 748,745	As at 31 st March, 2020 748,745
	774,640	774,640

8C These are restricted bank balance and cannot be operated without getting prior approval of Hon’ble Delhi High Court.

DCM FINANCIAL SERVICES LTD.

9 Other Bank Balances
Other Bank Balances consist of the following at amortised cost:

Particulars As at 31st March, 2021 As at 31st March, 2020 Amount in Rs. Amount in Rs. Bank Deposits 29,600,408 27,881,916 (deposits with original maturity of more than 3 months having remaining maturity less than 12 months) Total 29,600,408 27,881,916 9A These are restricted bank deposits and cannot be operated without getting prior approval of Hon’ble Delhi High Court. 10 Other Current Financial Assets	As at 31st March, 2021 Amount in Rs. 29,600,408	As at 31st March, 2020 Amount in Rs. 27,881,916
	29,600,408	27,881,916

Other Current Assets consist of the following at amortised cost: Particulars As at 31st March, 2021 Amount in Rs. Interest accrued but not due on Fixed Deposits 1,517,605 (A) 1,517,605 Unsecured, Doubtful - Inter Corporate Deposit 7,957,994 - Bills Receivable 10,717,132 - Rent Receivable 51,846,552 Less: Provision towards Doubtful Debts/ECL (70,521,678) (B) - Total (A) + (B) 1,517,605 11 Other Current Assets (Non-Financial) Other Current Assets consist of the following:-: Particulars As at 31st March, 2021 Amount in Rs. Employee Advances 12,447 Other Advances 354,285 366,732 Less: Provision NPA (258,233) Total 108,500	Other Current Assets consist of the following at amortised cost: Particulars As at 31st March, 2021 Amount in Rs. Interest accrued but not due on Fixed Deposits 1,517,605 (A) 1,517,605 Unsecured, Doubtful - Inter Corporate Deposit 7,957,994 - Bills Receivable 10,717,132 - Rent Receivable 51,846,552 Less: Provision towards Doubtful Debts/ECL (70,521,678) (B) - Total (A) + (B) 1,517,605 11 Other Current Assets (Non-Financial) Other Current Assets consist of the following:-: Particulars As at 31st March, 2021 Amount in Rs. Employee Advances 12,447 Other Advances 354,285 366,732 Less: Provision NPA (258,233) Total 108,500	As at 31st March, 2020 Amount in Rs. 11,260,735
	1,517,605	11,260,735
	7,957,994 10,717,132 51,846,552 (70,521,678) -	7,957,994 10,717,132 51,846,552 (70,521,678) -
	1,517,605	11,260,735
	As at 31st March, 2021 Amount in Rs. 12,447 354,285	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 12,447 284,763
	366,732 (258,233)	297,210 (297,210)
	108,500	-

12 SHARE CAPITAL

The Authorised,Issued,Subscribed and fully Paid up Share Capital of Equity Shares having a par value of Rs.10/- each as follows:

Share Capital	As at 31st March, 2021	As at 31st March, 2021	As at 31st March, 2020	As at 31st March, 2020
	Number	Amount in Rs.	Number	Amount in Rs.
Authorised Equity Shares of Rs. 10/- each 6,50,00,000 Equity Shares of Rs.10 each Issued 2,21,25,054 Equity Shares of Rs.10 each Fully paid up	65,000,000	65,000,000	65,000,000	650,000,000
	65,000,000	65,000,000	65,000,000	650,000,000
	22,125,054	221,250,540	22,125,054	221,250,540
Total	22,125,054	221,250,540	22,125,054	221,250,540

DCM FINANCIAL SERVICES LTD.

12A Reconciliation of number of shares

Particulars	Equity Shares	Equity Shares	Equity Shares	Equity Shares
	As at 31st March, 2021		As at 31st March, 2020
	Number	Amount inRs.	Number	Amount in Rs.
Shares outstanding at the beginning of the year	22,125,054	221,250,540	22,125,054	221,250,540
Shares Issued during the year	-	-	-	-
Shares bought back during the year	-	-	-	-
Any other movement (please specify)	-	-	-	-
Shares outstanding at the end of the year	22,125,054	221,250,540	22,125,054	221,250,540

12B Details of shares held by shareholders holding more than 5% of aggregate shares in the company

Particulars	Equity Shares	Equity Shares	Equity Shares	Equity Shares
	As at 31st March, 2021		As at 31st March, 2020
	No. of Shares held	% of Holding	No. of Shares held	% of Holding
DCM Services Ltd	6,352,487	28.71%	6,352,487	28.71%
Intellect Capital Services Ltd	2,075,000	9.38%	2,075,000	9.38%
Punjab & Sind Bank	1,319,900	5.97%	1,319,900	5.97%
Total	9,747,387	44.06%	9,747,387	44.06%

13 OTHER EQUITY

Other equity consist of following :

Other Equity	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Retained Earnings	Total
	Capital Reserve	Securities Premium	Debenture Redemption Reserve	Special Reserve
Balance at 1.04.2019	19,386,846	165,086,340	875,000	15,623,000	(854,186,910)	(653,215,724)
a. Balance at the beginning of the reporing period	19,386,846	165,086,340	875,000	15,623,000	(854,186,910)	(653,215,724)
b. Changes in accounting policy or priorperiod errors	-	-	-	-	-	-
c. Restated balance at the beginning of the reporting period	-	-	-	-	-	-
d. Totalproft for theyear	-	-	-	-	(3,233,645)	(3,233,645)
e. Dividends	-	-	-	-	-	-
f. Transfer to retained earnings	-	-	-	-	-	-
g. Total other comprehensive income for theyear	-	-	-	-	25,098	25,098
Balance at the end of the 31.03.2020	19,386,846	165,086,340	875,000	15,623,000	(857,395,457)	(656,424,271)
a. Balance at the beginning of the reporing period	19,386,846	165,086,340	875,000	15,623,000	(857,395,457)	(656,424,271)
b. Changes in accounting policy or priorperiod errors	-	-	-	-	-	-
c. Restated balance at the beginning of the reporting period	-	-	-	-	-	-
d. Totalproft for theyear	-	-	-	-	(1,256,769)	(1,256,769)
e. Dividends	-	-	-	-	-	-
f. Transfer to retained earnings	-	-	-	-	-	-
g. Total other comprehensive income for theyear	-	-	-	-	9,843	9,843
Balance at the end of the 31.03.2021	19,386,846	165,086,340	875,000	15,623,000	(858,642,383)	(657,671,197)

DCM FINANCIAL SERVICES LTD.

14 Long Term Borrowing Long term borrowings consist of following : Particulars A. Secured (i) Term Loan from SBI HF (Refer Note 14.1) (ii) Payable to Related Party - DCM Services Ltd (Refer Note 14.2) Total	As at 31st March, 2021 2,500,000 18,270,000	(Amount in Rs.) As at 31st March, 2020 2,500,000 18,270,000
	20,770,000	20,770,000
	20,770,000	20,770,000

14.1 SBI HOME FINANCE LIMITED

(a) Status till 31-March-2017 and as on 31-March 2021 - The company has already paid Rs. 29,000,000 under the Old Scheme and proposes to allot shares worth Rs. 2,500,000 for the balance as per the Fresh Restructuring Scheme in the first year from the effective date (Effective date means the date of filing of the certified copy of the order sanctioning the scheme of the Hon’ble High Court of Delhi at New Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF has removed a charge on its assets and therefore the loan is now categorized as unsecured loan.

The Company has to allot fully paid up shares of Rs. 25 Lacs of the Company at Rs. 30/- per share (share value Rs. 10/- plus premium Rs. 20/- per shares) or as per SEBI guidelines to SBI Home Finance Ltd. as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme as per applicable SEBI guidelines.

(a) DECISION OF ONE MAN COMMITTEE As per Report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi Court as on 10th August, 2017, the debt settlement will be as follows:

(i) Amount due to SBI Home Finanace as at 31-Dec-2015

==> picture [295 x 188] intentionally omitted <==

----- Start of picture text -----

Particulars Amount (In Lacs)
I. Principal Outstanding 25.00
II. Maturity Interest -
Total 25.00
(ii) `Payment Schedule by issuing in shares
(In Lacs)
Particulars Phase-I
To be discharged by issuance of Equity shares of the Company of the 25.00
face value of Rs. 10/- at a premium of Rs. 20/- per share or as per
applicable SEBI guidelines
The Company proposes to allot shares worth Rs. 25.00 Lacs to SBI
Home Finance Ltd. as per the Decree awarded by the’ Hon ‘ble High
Court of Delhi at New Delhi, within two’ years from the effective date of
the scheme as per applicable SEBI guidelines
Total 25.00
Since, the number of shares to be allotted are not clear, presently the amount of Rs. 25
Lacs is shown in Liabilities and not under other equity. The same shall be reclassified
depending upon whether Company has to issue variable number of equity shares or
fixed number of equity shares.
----- End of picture text -----

14.2 PRESSMAN LEASING

(b) DECISION OF ONE MAN COMMITTEE
The amount due to M/s, Pressman Leasing has been quantified at the lump sum of Rs 4.10 Cr and such amount would be paid 55% (Rs. 2.26 Crore) in cash and 45% (Rs. 1.84 Crore) in shares and details are under:-

DCM FINANCIAL SERVICES LTD.

Payment Schedule Amount (In Cr)	Payment Schedule Amount (In Cr)	Payment Schedule Amount (In Cr)
Particulars	Phase-I	Phase-II
I. 70% of totalprincipal amount	1.58	-
II. 30% of total amount	-	0.68
Total	1.58	0.68

(b) The Company has to allot fully paid up shares of the Company (45% of 4.10 crores i.e. 1.84 Crore) as per SEBI guidelines to Pressman Leasing as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme. Since, the number of shares to be allotted are variable, the amount is shown in Liabilities and not equity.

(c) The Interest dues were waived and cancelled.

(d) The Loan of Pressman Leasing (55% of 4.10 crore i.e. 2.26 Crore) was acquired by DCM Services Limited. The company pursuant to scheme of One Man Committee, has paid 70% i.e. Rs. 1.56 Crore of the principal amount to DCM Services Limited under Phase-I during the year ended 31-March-2018, being assignee of said loan of Pressman Leasing. The balance 30% amount which was outstanding as on 01st April 2019 and was included in the Payment to Related Party has been released in FY 19-20 as per Phase-II as per Schedule. The closing balance after payment as per phase II of Rs. 0.68 lacs to Pressman Leasing is NIL as on 31st March 2021.

15 Lease Liability

Other Non Current Liabilities consist of the following :-

Particulars Lease Liability Total 16 Provisions (Non-Current) Provisions consist of the following : Particulars (a) Provision for Employee Benefts Leave Encashment Gratuity Total 17 Current Financial Liabilities	As at 31st March, 2021 Amount in Rs. 440,367
	440,367
	As at 31st March, 2021 Amount in Rs. 61,845 657,929
	719,774

Other Financial Liabilities consist of the following at amortised cost:-

a.	Particulars Lease Liability Current Maturities of Long Term Debt Payable to Related Party - Inter Corporate Deposits (Refer Note 17.1)	As at 31st March, 2021 Amount in Rs. 404,006 404,006 105,265,445	As at 31st March, 2020 Amount in Rs. - - 105,265,445
		105,265,445	105,265,445

DCM FINANCIAL SERVICES LTD.

b. Secured Debentures (Refer Note 17.2) 184,174,878 184,867,923 184,867,923 227,399,875 c. Unsecured Fixed Deposit from Public (Refer Note 17.3) 484,931,457 490,766,196 Inter - Corporate Deposits (Refer Note 17.4) 2,716,607 2,716,607 487,648,064 493,482,803 (d) Rent Payable - - (e) Security Deposits 625,000 625,000 (f) Payable to Punjab & Haryana High Court 10,000,000 10,000,000 (Refer Note 17.5) (g) Expenses Payable 9,060,747 8,607,299 (h) Other Payable 5,434,851 5,217,054 Total 802,208,985 808,065,524 17.1 Payable to Related Parties The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modifed by the committee on 18th May 2019 and accordingly it has been decided to pay creditors who have claimed amount as per procedure set by the committee and whose documents have been verifed. As per the claims made by the creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verifcation. Payable to Related Party Include the following: 31.03.2021 31.03.2020 - DCM International Limited 28,156,876 28,156,876 - DCM Services Limited 73,924,220 73,924,220 - DCM Anubhavi Market Private Limited 3,184,349 3,184,349 105,265,445 105,265,445 17.2 DEBENTURES (a) Debentures As at 31st March, 2021 As at 31st March, 2020 "A" Series Debenture 210,000 210,000 "B" Series Debenture - 19.5% Regular 78,687,989 78,951,189 - 19.5% Cumulative 79,970,237 80,310,237 - Deep Discount Bonds 25,306,652 25,396,497 184,174,878 184,867,923 (b) Scheme ‘’A’’ Series	184,174,878	184,867,923
	184,867,923	227,399,875
	484,931,457 2,716,607	490,766,196 2,716,607
	487,648,064	493,482,803
	- 625,000 10,000,000 9,060,747 5,434,851	- 625,000 10,000,000 8,607,299 5,217,054
	802,208,985	808,065,524

The company had allotted the Debenture ‘A’ series on 28th February, 1996 and 23rd September, 1996 respectively. These debentures are secured against mortgage/hypo-thecation/charge on assets financed out of the proceeds of these debentures. The outstanding debentures of Rs. 710,000 were overdue as on March 31,2019 out of which Rs 5,00,000 have been repaid during the year 2019-2020 and 2020-2021. The remaining overdue balance are to be paid as per report of One Man Committee under Fresh Restructuring Scheme.

DCM FINANCIAL SERVICES LTD.

(c) Scheme ‘’B’’ Series
Debenture ‘B’ Series were allotted on 5th November, 1996 and are secured against hypothecation/charge on land and premises situated at Mouje Pirangut, Taluka Mulshi, Distt Pune in the State of Maharashtra alongwith all buildings, structures thereon and all plant and machinery, spares, tools, accessories and other movables of the Company, both present and future, whether installed or not. The total amount of debentures allotted were Rs 281,804,100 which matured for redemption on 5th May, 1998. Out of total debentures allotted amounting to Rs 281,804,100, debentures of Rs. 9,78,39,222 have been redeemed till March 31st, 2021. The remaining debentures as at March 31, 2021 in the ‘’B’’ series amounting to Rs 18,39,64,878 consist of the following:-

==> picture [282 x 50] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Particulars|Amount in Rs.|Amount in Rs.|
|19.5% Regular|78687989|78951189|
|19.5% Cumulative|79,970,237|80,310,237|
|Deep Discount Bonds|25,306,652|25,396,497|
|Total|183,964,878|184,657,923|

----- End of picture text -----

(d) The value of assets charged in favor of debentures has been depleted over a period of time but the depletion has not been ascertained. To the extent of shortfall, if any, the liability is unsecured.

(e) A supplementary trust deed for giving effect to the proposed repayment plans as provided in Clause 44 of the Trust deed has not been prepared by the trustees so far.
(f) Status till 31-March-2017 and till 31st March 2021 - Provision of interest on debentures up to 31st March, 2017 from the date of renewal offer letter of 1998 is calculated @ 10% p.a. of simple interest on 19.5% Debenture “B” Series and regular interest on Debenture “A” Series amounting to approximately Rs. 482,230,034 has not been provided since a Fresh Restructuring Scheme that is subject to the approval of the Hon’ble High Court of Delhi has been submitted which does not envisage payment of any interest. The rate of 10% per annum issued for Dentureholders is based on the order of Company Law Board (CLB) which was pronounced for Fixed Depositors. Though Fresh Scheme does not envisage payment of any interest, it has been considered prudent to provide Interest of 10% per annum on 19.5% Debenture “B” Series and regular interest on Debenture “A” Series since date of renewal offer letter in 1998 by following principles of prudence.
However, since the Restructuring Scheme proposed by One Man Committee has been approved Hon’ble Delhi High Court, the maturity interest amount is restricted to Rs 2.35 Crores which is scheduled to be shall be to be paid in Phase-2, although decision regarding payment of interest after maturity will be taken at a future date by Hon’ble Delhi Court.
(g) Status till 31-March-2017 - The Central Bank of India, Bombay, Trustees for the NonConvertible Debentures B-Series have filed a suit for recovery of Rs. 442,178,385 on 14th October, 1999 before the Hon’ble Bombay High Court. It includes interest of Rs. 155,361,443 and Rs. 286,796,000 towards principal. No provision has been made in the books of accounts for such interest.

The Hon’ble Bombay High Court vide its interim order dated 24th December, 1999 has passed an order that all receipts from hypothecated assets shall be deposited with the trustees in a separate bank account except for amounts utilized as per orders of The Reserve Bank of India and the Company Law Board.

The suit filed by the Central Bank of India before the Hon’ble Bombay High Court has been stayed by Hon’ble High Court of Delhi vide order dated September 14th, 2005 on application made by the company and there is no change in the status as at 31st March, 2020.

However, some of the debentures holders have already been paid by the Central Bank of India. The amount which has been already been paid to the Debenture Holders by the Central Bank of India be paid to the Bank. The Central Bank of India has also claimed some amount in a suit filed before the Hon’ble Bombay High Court. No claim has however, been filed by the Central Bank of India before the One Man Committee despite opportunity granted to the Bank. While computing the amount payable in phases to other creditors, this amount claimed by the Bank will be not disbursed till the bank is able to establish its claim in the appropriate proceedings before the Court/One Man Committee.

DCM FINANCIAL SERVICES LTD.

(h) DECISION OF ONE MAN COMMITTEE

==> picture [296 x 420] intentionally omitted <==

----- Start of picture text -----

As per report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi
Court as on 10th August, 2017, repayment of Debentureholders of “A” Series as well as “B”
Series is to be made in two phases. In the first phase of scheme of repayment, debentureholders
are to be paid 70% the balance principal amount. The Debentureholders having balance of
Rs 5,000 or less will be paid their 100% principal amount in the First Phase. In the second
phase maturity interest on debentures is to be paid along with remaining 30%. The schedule of
payment to Debentureholders to settle debt will be as under :-
(i) Amount due to Debenture-holders
Particulars Amount (In Cr.)
I. Principal Outstanding 25.53
II. Maturity Interest 2.35
Total 27.88
(ii) Payment Schedule
(In Crores)
Particulars Phase-I Phase-II
I. 70% of total principal amount 17.87 -
II. Less than Rs 5,000 1.69 -
III. 30% of total amount - 5.97
IV. Maturity Interest - 2.35
Total 19.56 8.32
(i) Statement on Reconciliation of Debentures:
Principal Outstanding as per the Scheme of One Man Committee 255,285,689
Less: Redemption made during the year with the approval of High Court of Delhi 264,845
Balance as on 1st April 2017 255,020,844
Less: Redemption made during the year ended 31-March-2018 as per the 17,616,779
scheme of one man committee
Balance as on 31st March 2018 237,404,065
Less: Redemption made during the year ended 31-March-2019 as per the 35,195,313
scheme of one man committee
Balance as on 31st March 2019 202,208,752
Less: Redemption made during the year ended 31-March-2020 as per the 17,340,829
scheme of one man committee
Balance as on 31st March 2020 184,867,923
Less: Redemption made during the year ended 31-March-2021 as per the 693,045
scheme of one man committee
Balance as on 31st March 2021 184,174,878
Total Debt was scheduled to be paid in Two phases. First phase of debt settlement as per
Report of One Committee pursuant to order dated 3.9.2015 has already commenced in the FY
17-18 and payments to debentureholders amounting of Rs.7,08,45,966 has already been made
till March 31, 2021. Remaining debt includes balance 30% and unclaimed original principal
amount invested of Rs 5000 or less. Since KYC norms are still under process and payments
are to be made in coming periods, the entire debt balance of Rs 18,41,74,878 is shown as Other
Current Financial Liability.
----- End of picture text -----

The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modified by the committee on 18th May 2019 and accordingly it has been decided to pay creditors who have claimed amount as per procedure set by the committee and whose documents have been verified. As per the claims made by the creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also been started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

DCM FINANCIAL SERVICES LTD.

17.3 FIXED DEPOSITORS

(a) Status till 31-March-2017 - n respect of repayment of outstanding deposits with interest vide order dated 17.07.98, the Company Law Board had ordered payment of interest at contracted rates up to the date of maturity and at 10% thereafter. Due to liquidity problems, the company has not fully followed the schedule of repayment ordered by the Company Law Board. However, a Fresh Restructuring Scheme of arrangement for re-organization of the share capital of the company and for compromise with its creditors including fixed depositors filed with Hon’ble Delhi High Court in 2004 does not envisage payment of interest accordingly provision of interest payable amounting to Rs. 82,706,000 recorded earlier has been written back in earlier years.
STATUS AS AT -31-MARCH-2017 - Provision for interest on fixed deposits up to March 31, 2017 calculated at simple interest @ 10% p.a. in accordance with the order of The Hon’ble Company Law Board amounting to approx. Rs. 1,158,866,417 (including Rs. 1,102,721,307 for the earlier years) has not been made, in view of the “Fresh Restructuring Scheme” pending before the Hon’ble Delhi High Court wherein the company does not envisage payment of any interest. To the extent of non-provision of interest @10% as per the previous CLB order, the cumulative Interest of Rs.1,147,419,074 were not provided for. The difference between the contracted rate of interest and rate of interest @ 10% has also not been ascertained and provided for.
(b) Liability on account of Fixed Deposits received contain certain deposits which appear primafacie to be suspect due to either lack of identification of depositors or no claim or confirmation having been received by the company. Payment of those deposits that are under a suspicious category will be made under the schee of One Man Committee only after the evidence of receipt of money is established.

(c) DECISION OF ONE MAN COMMITTEE As per Report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi Court as on 10th August, 2017, repayment to Fixed Depositors is to be made in two phases. In the first phase of scheme of repayment are to be paid 70% the balance principal amount. The Depositors having balance of Rs 5000 or less will be paid their 100% principal amount in the first phase. In the second phase maturity interest is to be paid along with remaining 30%. In the circumstances the debt settlement will be as follows:

(i) Amount due to Fixed Depositors as at 31-Dec-2015	(i) Amount due to Fixed Depositors as at 31-Dec-2015	(i) Amount due to Fixed Depositors as at 31-Dec-2015	(i) Amount due to Fixed Depositors as at 31-Dec-2015
Particulars		Amount(In Lac)
I. Principal Outstanding		56.31
II. MaturityInterest		14.48
Total		70.79
Particulars	Phase-I		Phase-II
I. 70% of totalprincipal amount	36.15		-
II. Less than Rs 5,000	4.67		-
III. 30% of total amount	-		15.59
IV. MaturityInterest	-		14.48
Total	40.82		30.07
Statement on Reconciliation of Loan:
Particulars Amount in Rs
Balance as on 1st April 2018 544,992,529
Less: Redemption made during the year with the approval of High Court of Delhi 21,245,671
Balance as on 31st March 2019 523,746,858
Less: Redemption made during the year as per the scheme of one man committee 32,980,662
Balance as on 31st March 2020 490,766,196

DCM FINANCIAL SERVICES LTD.

However, since the Fresh Restructuring Scheme has been approved by One Man Committee, the maturity interest amount is decided to be 14.48 Crores payable in II Phase. Although the same is not recorded in Books of Accounts. Also the decision regarding payment of interest after maturity will be taken at a future date by Hon’ble Delhi Court.

Total Debt was scheduled to be paid in Two phases. First phase of debt settlement as per Report of One Committee pursuant to order dated 3.9.2015 has already begun in the FY 17-18 and payments to depositors of Rs.3,91,56,922 has already made till 31st March 2019.During the financial year 2019-20 further payment to depositors to the tune of Rs. 3,29,80,662/- has been made. Remaining debt includes balance 30% and unclaimed original principal amount invested of Rs 5000 or less. Since KYC norms are still under process and payments are to be made in coming periods, the entire debt balance of Rs 49,07,16,196 is shown as Other Current Financial Liability.

The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modified by the committee on 18th May 2019 and accordingly it has been decided to pay creditors who have claimed amount as per procedure set by the committee and whose documents have been verified. As per the claims made by the creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

17.4 INTER CORPORATE DEPOSITS

(a) Status as at 31-March-2017- The value of inter corporate deposits is Rs 27,16,607. Considering the the order of The Hon’ble Company Law Board for Fixed Deposits which states to charge interest @10% p.a. which should also be considered for Inter Corporate Deposits on prudence basis. Considering the interest rate of 10% p.a. the total interest lability comes to be approximately Rs. 5,433,213 which includes approximately Rs. 5,161,553 for the earlier years, has not been made in view of the “Fresh Restructuring Scheme” pending before the Hon’ble High Court of Delhi wherein the company does not envisage payment of any interest. The interest is not provided in the books of accounts

(b) DECISION OF ONE MAN COMMITTEE

ICD Lenders will be paid principal due to them as on 30th June 2004. Interest dues are waived and cancelled. The payment of principal to the ICD lenders will be made as follows:

(i) Amount due to ICD Lenders as at 31-Dec-2015

(i) Amount due to ICD Lenders as at 31-Dec-2015	(i) Amount due to ICD Lenders as at 31-Dec-2015
Particulars		Amount(In Lacs)
I. Principal Outstanding		27.17
II. MaturityInterest		-
Total		27.17
(ii) Payment Schedule (In Crores)
Particulars	Phase-I	Phase-II
I. 70% of totalprincipal amount	19.02	-
II. 30% of total amount	-	-
III. MaturityInterest	-	8.15
Total	19.02	8.15

However, after approval of Scheme of One Man Committee, the settlement has been decided at Rs 27.17 Lacs. Interest Dues are waived and cancelled.

No payment has been made till date to ICD Lenders. However, scheme has been already approved, so the amount is to be paid in coming periods as per Phase-1 and Phase-2. Hence, the amount of ICD is classified as Other Current Financial Liability.

During the year 1999, the company had received Rs. 10,000,000 from one of its debtors i.e. Pure Drinks New Delhi Ltd. where the winding up petition proceedings was already initiated. Upon receipt of payment, the Company reduced the recoverable amount accordingly. Subsequently, the Hon’ble Punjab and Haryana Court deemed that payment is out of turn/preferential payment made by Pure Drinks New Delhi Ltd where winding up petition proceedings was already initiated and asked the company to deposit back the said amount with Hon’ble Punjab and Haryana Court. The company had filed a SLP with the Hon’ble Supreme Court of India which has been dismissed by them. Therefore the company is liable to deposit the amount mentioned above which is yet to be deposited.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

18 Other Current Liabilities (Non-Financial)
Other current libilities consist of the following:- (Amount in Rs.)
Particulars As at 31st As at 1st
March, 2021 April, 2020
Amount in Rs. Amount in Rs.
Statutory Liabilities 338,279 363,885
Payable to Employees/Employee Advances 753,130 2,089,633
Total 1,091,409 2,453,518
19 Provision (Current)
Provisions consist of the following : (Amount in Rs.)
Particulars As at 31st As at 1st
March, 2021 April, 2020
Amount in Rs. Amount in Rs.
(a) Provision for employee benefits
- Leave Encashment 101,337 40,502
- Gratuity 14,004 10,894
Total 115,341 51,396
20 Other Income
Other income (net) consist of the following: (Amount In Rs.)
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
Interest on Fixed Deposits 16,181,161 18,072,623
Deferred Income 7,297,981
Dividend Income 25,142 45,024
Profit on sale of Investment 1,812,534 2,825
Miscellaneous Income 12 -
Reversal of Provision, no longer required 41,075 -
Interest on Income Tax Refund 94,980 -
Gain or Loss on Fair Value of Investment 2,091,002
Total 20,245,906 25,418,452
21 Employee Benefit Expense
Employee benefits expenses consist of the following: (Amount In Rs.)
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
(a) Salaries, Wages & Bonus 4,151,844 3,401,874
(b) Contributions to Provident Fund and other funds 607,519 508,032
(c) Staff Welfare expenses - 513
Total 4,759,363 3,910,419
22 Fianance Cost
Finance costs consist of the following: (Amount In Rs.)
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
Interest on late deposit of TDS 140 468
Interest Expense on financial liability - 9,802,788
Interest Expense on Lease liability 109352
Total 109,492 9,803,256
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

23 Other Expenses

Other expenses consist of the following Particulars Travelling & Conveyance Repairs - Building - Others Electricity & Water Legal & Consultancy Charges Postage and Telegram Auditors Remuneration: - Statutory/Tax Audit - Other Rent Telephone Expenses Advertisement & Publicity Printing and Stationery Bank Charges Provision for Diminuation of Investments Provision for NPA Unrealised loss on account of fair valuation of Investments Share Transfer Expenses AGM Expenses Internal Audit Fees Lisiting Fees Rates and Taxes Excess Accrued Interest written off Property Tax Penalty on late deposit of EPF challan Loss on sale of Investments Fine/Penalty Other Expenses TOTAL 24 Income tax expenses Particulars A. Amount Recognized in Proft or Loss Current tax Income tax for the year Current tax Adjustments/(credits) related to previous years - Net Total current tax Deferred tax Deferred tax for the year Adjustments/(credits) related to previous years - Net Total deferred tax TOTAL B Amount recognised in other comprehensive income The tax (charge)/credit arising on income and expenses recognised in other comprehensive income is as follows: Deferred tax On items that will not be reclassifed to proft or loss - Remeasurement gains/(losses) on defned beneft plans TOTAL		For the year ended 31.03.2021 Amount in Rs. 123,721 27,500 20,401 78,488 5,764,620 1,805 383,500 53,100 86,402 32,738 96,553 13,114 3,263 219,640 1,002,910 20,000 784,236 338,237 28,248	(Amount In Rs.) For the year ended 31.03.2020 Amount in Rs. 202,914 30,950 381,314 103,735 6,423,057 6,009 383,500 - 532,704 48,307 596,701 21,794 2,242 4,680 59,702 5,205,700 150,000 1,027,421 20,000 783,717 13,400 157,460 284,409 944 42,879 129,800 13,483
		9,078,475	16,626,822
		For the year ended 31.03.2021 780,000 3,217,897 3,997,897 289,487 - 289,487 4,287,384 3,459	(Amount In Rs.) For the year ended 31.03.2020 - - - (7,402,780) - (7,402,780) (7,402,780) 8,818 8,818
		3,459

DCM FINANCIAL SERVICES LTD.

==> picture [312 x 384] intentionally omitted <==

----- Start of picture text -----

25) Significant Accounting Policies
A. Statement of Compliancewith Ind AS
These financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013. The financial
statements have also been prepared in accordance with the relevant presentation requirements
of the Companies Act, 2013. The Company adopted Ind AS from 1st April, 2018.
Up to the year ended 31st March, 2017, the Company prepared its financial statements in
accordance with the requirements of previous Generally Accepted Accounting Principles
(GAAP), which includes Standards notified under the Companies (Accounting Standards)
Rules, 2006.
B. Basis of Preparation
The financial statements are prepared in accordance with the historical cost convention, except
for certain items that are measured at fair values, as explained in the accounting policies.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the following fair value hierarchy based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
Fair value for measurement and / or disclosure purposes in these financial statements is
determined on such a basis, except for share-based payment transactions that are within the
scope of Ind AS 102 – Share-based Payment, leasing transactions that are within the scope of
Ind AS 116 – Leases, and measurements that have some similarities to fair value but are not
fair value, such as net realizable value in IndAS 2 – Inventories or value in use in Ind AS 36 –
Impairment of Assets.
All the amounts included in the financial statements are reported in Indian Rupees (‘Rupees’ or
‘Rs.’), except per share data and unless stated otherwise and rounded off to nearest Rupees.
C. Basis of classification of Current and Non-Current
The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.
An asset is classified as current when it is:
----- End of picture text -----

a) Expected to be realized or intended to be sold or consumed in normal operating cycle
b) Held primarily for the purpose of trading
c) Expected to be realized within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is classified as current when:
a) It is expected to be settled in normal operating cycle
b) It is held primarily for the purpose of trading
c) It is due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are classified as non-current.

DCM FINANCIAL SERVICES LTD.

D. Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 – Presentation of Financial Statements.

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

E. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period; they are recognized in the period of the revision and future periods if the revision affects both current and future periods.

F. Property, Plant and Equipment – Tangible Assets

Property, plant and equipment are stated at cost ofacquisition or construction less accumulated depreciationand impairment, if any. For this purpose, cost includesdeemed cost which represents the carrying value of property, plant and equipment recognized as at 1st April, 2016measured as per the previous GAAP.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits areexpected to arise from the continued use of asset. Any gainor loss arising on the disposal or retirement of an item ofproperty, plant and equipment is determined as the differencebetween the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

Depreciation of these assets commences when the assetsare ready for their intended use which is generally oncommissioning. Items of property, plant and equipment are depreciated in a manner that amortizes the cost (or otheramount substituted for cost) of the assets after commissioning, less its residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013 on a straight-line basis. Land is not depreciated.

The estimated useful lives of property, plant and equipment of the Company are as follows:

Asset	Life of Asset
Buildings	30 Years
Furniture and Fixtures	10 Years
Vehicles	8 Years
Offce Equipment	5 Years
Plant & Machinery	15years

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. Property, plant and equipment’s residual values and useful lives are reviewed at each Balance Sheet date and changes, if any, are treated as changes in accounting estimate.

G. Impairment of Assets

Impairment loss, if any, is provided to the extent, the carrying amount of assets or cash generating units exceed their recoverable amount.

Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life.

DCM FINANCIAL SERVICES LTD.

H. Financial Assets

Recognition: Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and cash equivalents. Such assets are initially recognized at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss. Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.
Financial assets are classified as those measured at:
a) Amortized cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.
b) Fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognised in other comprehensive income.
c) Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognized in the Statement of Profit and Loss in the period in which they arise. Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at amortized cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.

Impairment: The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortized cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognized if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Reclassification : When and only when the business model is changed, the Company shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortized cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognized gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

De-recognition : Financial assets are de-recognized when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred substantially all of the risks and rewards of ownership. Concomitantly, if the asset is one that is measured at:

a) Amortized cost, the gain or loss is recognized in the Statement of Profit and Loss;
b) Fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Income Recognition : Interest income is recognized in the Statement of Profit and Loss using the effective interest method. Dividend income is recognized in the Statement of Profit and Loss when the right to receive dividend is established.

I. Financial Liabilities

Borrowings, trade payables and other financial liabilitiesare initially recognised at the value of the respectivecontractual obligations. They are subsequently measuredatamortised cost. Any discount or premium onredemption/ settlement is recognised in the Statement of Profit andLoss as finance cost over the life of the liability using theeffective interest method and adjusted to the liability figuredisclosed in theBalanceSheet.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Financial liabilities are de-recognised when the liability isextinguished, that is, when the
contractual obligation isdischarged, cancelled and on expiry.
J. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.
K. Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amountis included in the Balance Sheet
where there is a legallyenforceable right to offset the recognized amounts andthere is an
intention to settle on a net basis or realizetheasset and settle the liability simultaneously.
L. Equity Instruments
Equity instruments are recognised at the value of theproceeds, net of direct costs of the capital
issue.
M. Revenue
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
• Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the
Company; and
a) Interest income :Incomefrom a financial asset is recognised when it is probable
that the economic benefits will flow to Company and the amount of income can be
measured reliably. Interest income is accrued on time basis, by reference to the
principal outstanding and at the interest rate as applicable.
b) Dividend income : dividend is recognised when the right to receive the payment is
established (generally on shareholder’s approval by the reporting date).
c) Other revenues: are recognised on accrual basis, except where there are
uncertainties in realisation / determination of income and in such case income is
recognised on realisation / certainty.
N. Employee Benefits
a) Retirement benefit costs and termination benefits :
Payments to defined contribution retirement benefit plans are recognised as an expense
when employees have rendered service entitling them to the contributions.
Contribution towards Provident Fund is paid as per the statutory provisions. These benefits
are charged to the Statement of profit and loss of the year when they become due. For
defined benefit retirement benefit plans, the cost of providing benefits is determined using
the projectedunit credit method, with actuarial valuations being carried out at the end of
each annual reporting period.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the
return on plan assets(excluding net interest), is reflected immediately in the balance sheet
with a charge or credit recognised in othercomprehensive income in the period in which
they occur. Re-measurement recognised in other comprehensive income is reflected
immediately in retained earnings and is not reclassified to the statement of profit and loss.
Pastservice cost is recognised in the statement of profit and loss in the period of a plan
amendment. Net interest iscalculated by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and
losses on curtailments and settlements);
----- End of picture text -----

DCM FINANCIAL SERVICES LTD.

net interest expense or income; and
re-measurement.

b) Short-term and other long-term employee benefits: A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Leave availment / encashment benefit is provided as per Company Scheme. Employee‘s are entitled to accumulate leaves subject to certain limit as per Company scheme. Liabilities for compensated absence that are not expected to be settled wholly within 12 months after the end of the period in which the employees rendered the related service, are measured at the present value of expected future payment to be made in respect of service provided by employees up to the end of reporting period using the projected unit credit method. The benefitsare discounted using the market yields at the end of reporting period. Re-measurement as a result of experience adjustments and change in actuarial assumptions are recognised in the statement of profit and loss. The liability is determined through actuarial valuation using projected unit credit method.

O. Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset/s and the arrangement conveys a right to use the asset/s, even if that right is not explicitly specified in an arrangement. At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

P. Taxes on Income Income tax expense represents the sum of the tax currently payable and deferred taxation. a) Current Tax Current tax in the Statement of Profit and Loss isprovided as the amount of tax payable in respect of taxableincome for the period using tax rates and tax laws enactedduring the period, together with any adjustment to tax payable in respect of previous years. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

b) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for
all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax isrecognised in the statement of profit and loss, except when they relate to
items that are recognised in other comprehensive income or directly in equity, in which
case, the deferred tax is also recognised in other comprehensive income or directly in
equity respectively.
c) Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered
as an asset if there is convincing evidence that the Group will pay normal income tax.
Accordingly, MAT is recognized as an asset in the Balance Sheet when it is highly probable
that future economic benefit associated with it will flow to the Group. Current and deferred
tax are recognised in the statement of profit and loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively. The carrying amount of deferred tax assets is reviewed at the end of
each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.
Q. Claims
Claims against the Company not acknowledged as debts are disclosed after a careful evaluation
of the facts and legal aspects of the matter involved.
R. Provisions
Provisions are recognised when, as a result of a past event, the Company has a legal or
constructive obligation; it is probable that an outflow of resources will be required to settle
the obligation; and the amount can be reliably estimated. The amount so recognised is a best
estimate of the consideration required to settle the obligation at the reporting date, taking into
account the risks and uncertainties surrounding the obligation.
In an event when the time value of money is material, the provision is carried at the present
value of the cash flows estimated to settle the obligation.
S. Operating Segment
The Company is engaged in a single segment i.e. Financing Operations viz., inter corporate
deposits and investments. Presently Company is not carrying on any operation except realizing
all debts or maintaining existing assets.The operating results are regularly reviewed and
performance is assessed by its Chief Operating Decision Maker (CODM). All the company’s
resources are dedicated to this single segment and all the discrete financial information is
available for this segment.
T. Earnings per share
Basic earnings per share is calculated by dividing profit or loss attributable to the owners of
the company by weighted average number of equity shares outstanding during the financial
year. The weighted average number of equity shares outstanding during the year is adjusted
for events of bonus issue, share split and any new equity issue. For the purpose of calculating
diluted earnings per share, profit or loss attributable to the owners of the Company and the
weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
----- End of picture text -----

100

DCM FINANCIAL SERVICES LTD.

U. Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood on outflow of resources is remote, no provision or disclosure is made.

V. Financial and Management Information Systems

The Company’s Accounting System is designed to unify the Financial Records and also to comply with the relevant provisions of the Companies Act, 2013, to provide financial and cost information appropriate to the businesses and facilitate Internal Control.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

Additional Notes to Accounts

26) RESTRUCTURING SCHEME

Preamble

The management for a structured debt repayment had prepared two schemes of arrangement for reorganization of share capital of the company and for compromise with its secured and unsecured creditors. Both the schemes of arrangement envisage a viable, just & equitable settlement with its secured and unsecured creditors while simultaneously increasing the risk and stake of the promoters and their shareholding through fresh infusion of funds by the promoter company.

The company moved an application before the Hon’ble Company Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the Company Law Regulations, 1991 proposing a fresh repayment schedule to fixed depositors of the Company. The same repayment schedule included in the “ Fresh Restructuring Scheme ” filed before the Hon’ble High Court of Delhi at New Delhi on 24th September 2004.

The implementation of the schemes is subject to the fulfillment of all the conditions of erstwhile section 391 to section 394 of the Companies Act, 1956 and approval/orders of the Hon’ble Delhi High Court. The Hon’ble Delhi High Court did not approve the company’s first scheme filed in May 2000, though approved by the secured and unsecured creditors in their respective meetings convened pursuant to the orders of the Hon’ble Court, yet the Hon’ble Court did not accord sanction to the scheme on technical grounds. An application for review had been filed before the Hon’ble Delhi High Court on 30th May 2003, which is not yet to be listed for hearing and which is hereinafter, wherever applicable, referred to as the “ Old scheme under review ”. The company intends not to pursue the review application filed for the old scheme under review before the Hon’ble Delhi High Court and it is proposed to be withdrawn at an appropriate stage of the proceedings for the sanction of the “ Fresh Restructuring Scheme ”.

The company filed a fresh Scheme of Arrangement for the reorganization of the share capital of the company and for compromise with the secured and unsecured creditors of the company, hereinafter referred to as the “Fresh Restructuring Scheme” before the Hon’ble Delhi High Court at New Delhi on 24th September 2004.

101

DCM FINANCIAL SERVICES LTD.

other secured creditors (banks/ institutions) was held on 17thSeptember 2005 and has also approved the scheme by the requisite majority after considering some modifications proposed by the Punjab & Sind Bank.

The promoter company has undertaken, subject to sanction of the scheme by the Hon’ble Delhi High Court, to contribute to Rs. 195,000,000 of which Rs. 156,000,000 were deposited with the Registrar of the Hon’ble Delhi High Court Registrar, as per court order by the promoter group, and the balance amount of Rs 39,000,000 had been deposited with the Registrar of the Hon’ble Delhi High Court Registrar on 27th April, 2012.

The restructured debts of the company for each category of debt is on the basis of outstanding as envisaged in the fresh restructuring scheme filed in the year 2004 excluding interest not provided for and all liquidated damages/penal charges and interest on unpaid interest. The “ Fresh Scheme of Arrangement ” is drawn on the basis of acceptance of waiver of payment of past and future interest, penal charges, liquidated damages, and any other charges, costs and claims etc. except as provided and for values contained therein which is subject to the approval of the Hon’ble Delhi High Court.
Over the years and till 31st March, 2017, the accounts of the company have been drawn on the assumption that the “ fresh restructuring scheme ” will be accepted and implemented. If it is not accepted and cannot be implemented for any reason the total liability before the proposed restructuring scheme including those for which no provision has been made and has been quantified under appropriate heads, shall become payable. Developments during the fnancial year ended 31st March 2021 Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The Hon’ble High Court of Delhi entrusted the following functions to said One Man Committee :-
(i) To scrutinize and finalize the list of depositors/ claimants so as to assess the genuineness of the depositors and their claim and to weed out any duplicate) benami, fictitious and doubtful claims.
(ii) To categorize the claimants/ depositors into groups, on the basis of various parameters. For instance, depositors could be segregated into (a) individuals (b) corporate (c) institutions (Banks and Finance Companies), etc. Similarly, very small depositors wherein, the amount due is only uptoRs. 5,000 could be segregated as a separate category.
(iii) At the same time it would also be open to the Central Bank of India which was constituted a debenture trustee by the company, to put up any claims that they may have before the said committee.
(iv) To take stock of the entire assets of the company, whether in the form of fixed assets or bank accounts and fixed deposits, etc.
(v) To assess the value of the fixed assets of the company and for the purpose, If need be, take the help of a professional valuer. Also, to get from the company its brief statement of accounts which shall include all income and expenditures, so as to enable a proper review of the assets and liabilities of the company.
(vi) To suggest modalities for the disposal of ‘fixed assets, so that the money realized could be used for disbursal of principal amounts as well as interest (over the delayed period), if possible, amongst the depositors.
(vii) To make suggestions on the modalities of payment, which would obviously depend upon the amounts finally realized after disposing off/ liquefying all assets of the company.
The one man committee submitted its report on to Hon’ble High Court of Delhi on 22ndApril, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one man committee enumerated in the report. Hon’ble High Court of Delhi also noted that none of the parties had any objection on the implementation of the report. The task of implementing the report was also assigned to Justice Anil Kumar. Hon’ble High Court of Delhi held that the issue of revival of the company will be decided once all payments are made in the manner as suggested in the report. The report of one committee has laid the schedule of payments to parties covered under the scheme as under:-
(i) Before starting repayment of amount, the genuineness of the all the depositors and their claims shall be assessed to weed out any benami, fictitious and doubtful claims. Notices to all the depositors/ claimants shall be sent and consideration of their pleas and contentions

102

DCM FINANCIAL SERVICES LTD.

will be necessary. From the data it has also been observed that some of the individuals and companies have invested sums by depositing multiple small amounts. Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. It is recommended in the circumstances that 70% a part of the amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. 5,000 or less than Rs.5,000 in the first instance.

(ii) In order to realise the maximum value of the immovable asset of the Company, the premises/property in the building of NBCC, it is the recommendation of the committee that the same be sold by the auction by the Hon’ble Company Court. The company has estimated its value around Rs.41 Cr., whereas the creditors are of the view that its value will not be less than Rs 80 crores. It has been noticed that the disputes are pending between NBCC and the Petitioner Company with regard to the said property which is’ pending adjudication before Shri S.K. Kaul, Sole Arbitrator appointed by NBCC in terms of Agreement dated 9th Dec, 1995 and is now fixed for final arguments. The claim of NBCC is for an amount of Rs.2.88 Cr. It is also noticed that such other and several disputes are pending with regard to this NBCC property, which make it unfeasible for anyone to sell it easily or to get a realistic value of the property on the basis of valuation report and then to decide on such valuation as to how much total amount is to be paid to the creditors. Valuation of such a property will also be more of distress sale value and will not be realistic. In the circumstances an efficacious way will be to pay a part of the amount from the liquid assets available with the company and in the meantime also to sell the fixed assets of the Company by auction by the Hon’ble Company Court. This will result in a part payment to all the genuine creditors and to realize the actual value of the immoveable assets of the Company. This will also facilitate the Hon’ble Company Court to determine whether some interest should be paid to the creditors considering all the other factors including that the endeavor is not to wind up the Company but to revive the Company if sufficient surplus is available with the Company after selling all its immoveable assets. Therefore, it is recommended” that the” immovable and fixed assets of the company be sold by auction by Hon’ble Company Court in the manner adopting the modalities which are followed while selling the fixed assets and the immovable properties of the companies which are under liquidation with the help from Official Liquidator or a Consultant, though the sale of the properties is not for the purpose of winding up the Petitioner Company.

(iii) Tentative realizable value of the following assets of the Company will be :-

properties is not for the purpose of winding up the Petitioner Company. (iii) Tentative realizable value of the following assets of the Company will be :-	properties is not for the purpose of winding up the Petitioner Company. (iii) Tentative realizable value of the following assets of the Company will be :-	properties is not for the purpose of winding up the Petitioner Company. (iii) Tentative realizable value of the following assets of the Company will be :-
1. Value of Assets/Sources of Funds As on 31.12.15
S.N.	Source	Amount Rs in Cr.
1	Sale of Immoveable assets	42.00
	Receivables	8.50
	Investments in shares	1.00
	Fixed Deposits with Banks	47.50
	Promoter Contribution-Deposits with High Court	29.50
	Total	128.50
Less	Scheme Repayment Cost	1.00
	StatutoryDues & Taxation	1.43
	Legal Cost	0.50
	To be deposited with P& H High Court	1.00
	Due to Employees	0.50
	Claim of MS Shoes arbitration award	5.13
	Claim of NBCC-pendingarbitration	2.88
	Income Tax on Interest for Deposit with Delhi High Court	3.00
	Total	15.44
	Net Available	113.06

As on 31.12.2015, the details of creditors for repayment are as follows however after weeding out the claims of fictitious, doubtful claims and benami, the amount payable to creditors may decrease and my not increase.

103

DCM FINANCIAL SERVICES LTD.

Details of Creditors for repayment under Scheme:

Details of Creditors for repayment under Scheme:	Details of Creditors for repayment under Scheme:	Details of Creditors for repayment under Scheme:
(As on 31.12.15)
S.N.	Source	Amount Rs in Cr.
I	Fixed Deposit holders	56.31
II	Debentures	25.53
III	ICD & BRD lenders	0.27
IV	Punjab & Sind Bank	8.03
V	Indusind Bank	5.77
VI	Pressman Limited	4.10
VII	SBI Homes Finance Ltd (To bepaid in shares)	0.25
VIII	SIDBI	0.36
IX	MaturityInterest on Fixed Deposits	14.48
X	Maturityinterest on Debentures	2.35
	Total	117.45

Taking these figures and facts and circumstances it is recommended that repayment be made in two phases, as detailed below:

Phase 1:

S.N.	Particulars	Source of Utilization
I	Repayment to the extent of 70% of the principal amount of Fixed Deposits, Debentures and Banks having deposits of more than Rs.5,000/	Available Cash in Bank, Fixed Deposits and Promoter’s Deposits with Court
II	Full amount be paid to Fixed Deposits, Debentures and Banks having deposit of Rs. 5,000 / - and less	Available Cash in Bank, Fixed Deposits and Promoter’s Deposits with Court

Phase 2

In the second phase, which should also commence. with phase 1 simultaneously, properties and shares and all the assets be liquidated by selling and the realized amount is recommended to be utilized for the repayment of balance 30% of principal and the maturity value on the fixed deposits, debentures and banks. If the amount is still available to the Company, the Hon’ble Company Court may decide whether some amount - be paid as interest as has also been recommended by the Reserve Bank of India. Certain steps of the Phase 2 which can commence with phase 1i.e. sale of the properties of the Company by the Hon’ble Company Court and/ or such steps which will be required to sell the assets of the Company in order to realize the value of the assets to meet the liabilities of the fixed deposits and debentures creditors. In the circumstances, the Debt Settlement is under:-

DEBENTURES

(A) Amount due to Debenture-holdersas decided by one man committee as at 31st December, 2015

S.N.	Particulars	Amount	Amount
I	Principal Outstanding	Rs 25.53 Cr
II	MaturityInterest	Rs 2.35Cr
	TOTAL	Rs 27.88Cr
Payment Schedule (Rs. in Cr.)
S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	17.87 Cr.	-
II	Less than Rs 5,000	1.69	-
III	30% of total amount	-	5.97
IV	MaturityInterest	-	2.35
	Total	Rs 19.56 Cr.	Rs 8.32 Cr.

104

DCM FINANCIAL SERVICES LTD.

Some of the debentures holders have already been paid by the Central Bank of India. The amount which has been already been paid to the Debenture Holders by the Central Bank of India be paid to the Bank. The Central Bank of India has also claimed some amount in a suit filed before the Hon’ble Bombay High Court. No claim has however, been filed by the Central Bank of India before the Committee despite opportunity granted to the Bank. While computing the amount payable in phases to other creditors, this amount claimed by the Bank will be not disbursed till the bank is able to establish its claim in the appropriate proceedings before the Court.

Payment to debenture holders are being made as per the recommendation of One Man Committee during the Financial Year 2017-18, 2018-19, 2019-20 and 2020-21 refer note 17.2 for details regarding repayments made to debentureholders

FIXED DEPOSITS

(A) Amount due to Fixed Depositors as decided one man committee as at 31st December, 2015

2015
S.N.	Particulars	Amount in Rupees
I	Principal Outstanding	Rs 56.31 Cr
II	MaturityInterest	Rs 14.48 Cr
	TOTAL	Rs 70.79 Cr

(B) Payment Schedule
(Rs. in Cr.)

S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	Rs 36.15Cr.	-
II	Less than Rs 5,000	Rs 4.67 Cr.	-
III	30% of total amount	-	Rs 15.49 Cr
IV	MaturityInterest	-	Rs 14.48 Cr
	Total	Rs 40.82 Cr.	Rs 29.97 Cr.

Payment to Fixed Deposit holders are being made as per the recommendation of One Man Committee during the Financial Year 2017-18, 2018-19, 2019-20 and 2020-21 refer note 17.3 for details regarding repayments made to Fixed deposit holders.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

(A) Amount due to SIDBI as decided by one man committee as at 31st December, 2015

S.N.	Particulars	Amount in Lac
I	Principal Outstanding	Rs 36.30Lac
II	Interest	--
	TOTAL	Rs 36.30 Lac

(B) Payment Schedule

(Rs. in lacs)

S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	Rs 25.41 Lac	-
II	Less than Rs 5,000	-	-
III	30% of total amount	-	Rs 10.89 Lac
	Total	Rs 25.41 Lac	Rs 10.89 Lac

Payment to SIDBI are being made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

PUNJAB & SIND BANK (PSB)

Background

105

DCM FINANCIAL SERVICES LTD.

with PSB, and it has been agreed that amount payable as on Sept,1997 will be taken as principal and interest from Sept 1997 to March, 2000 will be added @ 10% quarterly compounded. Thus the amount payable became Rs 9.51 Cr. It was admitted and justified by the said bank that this settlement was as per RBI guidelines. Reliance for this can be placed on an internal note dated 12th Sept, 2000 of the bank and a letter dated 20th Oct,2000 from the counsel of PSB. As per terms of settlement Rs 50.00 Lacs were paid to PSB in the year 2000. Though the part payment has been made to the Bank pursuant to settlement and scheme, however, due to modifications made in scheme for, PSB by Company in the creditors meeting. The scheme was, will be paid in 6 equal yearly installments of one year after the approval of the said scheme or 1st April, 2006 which ever will be earlier and balance 40% by equity shares at any time within three years of the effective date or 1.4.2006. The shares were to be allotted on preferential allotment basis as per the rate approved by SEBI under its guidelines. The sale price of the share was protected to the extent of Rs.375 lacs by issuing fresh additional equity, if required. The bank was paid Rs. 90 lacs in the year 2005-06, but further amount could not be paid on account of order dated 6th March, 2006 “of the Hon’ble Court. The Bank received the amounts partly under the settlement and could not withdraw from the scheme without refunding the amounts received by it, yet in 2012 it filed an application for intervention/ objection to the scheme which has not been allowed. In the circumstances the amount payable to the bank has been taken as settled with the Bank and 70% of the. said amount be paid forthwith in the first phase and balance in the second phase which is substantially better as earlier only Rs.60 lakhs was payable in six years and equity shares were to be issued for the balance amount. Under the previous proposal which has been accepted by the Bank, the amount was payable in installments and part of the amount by converting the amount in’ equity shares whereas under present recommendation 70% of the amount is payable forthwith and balance’ amount in second phase after liquefying all the assets of the Company which will be probably within two years.

In the scheme, the amount payable to Punjab & Sind Bank has been quantified at Rs. 9.0180 Cr as on 30th June 2004. This figure has been arrived at after compounding the interest payable on the principal amount due as on 30th September 1997, at the rate of 10% compounded quarterly till 31st March 2000, after allowing credit for actual amount paid till date. (Present Value of amount payable after all adjustments the payable amount is Rs 8.034 Cr) The settlement made with the Bank in the scheme earlier has been considered as the base. Accordingly, keeping in line with the above settlement and OTS guidelines of RBI, the following payments is recommended to be made to PSB:

(A) Amount due to PSB as decided one man committee as at 31st December, 2015

S.N.	S.N.	Particulars	Particulars	Amount in Cr	Amount in Cr
I		Principal Outstanding		Rs 8.03 Cr
II		Interest		--
		TOTAL		Rs 8.03 Cr.
Payment Schedule (Rs. in Cr.)
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 5.62 Cr		-
II	Less than Rs 5,000		-		-
III	30% of total amount		-		Rs 2.41 Cr
	Total		Rs 5.62 Cr		Rs 2.41 Cr

Payment to PSB has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

INDUSIND BANK

In the scheme, the total principal amount payable to IndusInd Bank has been quantified at Rs 6.515 Lacs as on 30th June 2004. This figure has been arrived at after calculating interest upto31st March 2000 @12% p.a. compounded quarterly on the principal amount of L/C devolvement, after allowing credits for actual amounts paid till date and credit for margin money amounting to Rs. 35.99 Lacs, and excludes penal interest/ additional interest/ overdue charges, if any, debited by the’ Bank. (Present outstanding after all adjustments is Rs 5.77Cr) The settlement made with the Bank in the earlier scheme has been considered as the base. The total amount payable under the scheme to IndusInd Bank so quantified shall be repaid in line with the above settlement and RBI guidelines of OTS is as under:

106

DCM FINANCIAL SERVICES LTD.

(A) Amount due to INDUSIND Bank as decided by one man committee as at 31st December, 2015

2015
S.N.	Particulars	Amount in Cr
I	Principal Outstanding	Rs 5.77 Cr
II	Interest	--
	TOTAL	Rs 5.77 Cr.

	TOTAL Rs 5.77 Cr.	TOTAL Rs 5.77 Cr.	TOTAL Rs 5.77 Cr.	TOTAL Rs 5.77 Cr.
(B)	Payment Schedule (Rs. in Cr.)
	S.N.	Particulars	Phase-I	Phase-II
	I	70% of totalprincipal amount	Rs 4.04 Cr	-
	II	Less than Rs 5,000	-	-
	III	30% of total amount	-	Rs 1.73 Cr
		Total	Rs 4.04 Cr	Rs 1.73 Cr

Payment to Indusind Bank has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

SBI HOME FINANCE LTD

A consent decree was passed by the Hon’ble High Court of Delhi at New Delhi on 12th December 2000 for an amount of Rs.315,00,000/- The terms of the Consent Decree were as under :-

i. Rs 2.90 Crores were to be paid on or before 31st March 2001 under a monthly payment schedule commencing from December 2000, and on payment of Rs. 2.90 Crores, the title of the property was to be released;
ii. the sum of Rs. 25.00 Lacs was to be discharged by issuance of Equity shares of the Company of the face value of Rs. 10/- at a premium of Rs. 20/- per share or as per applicable SEBI guidelines. In terms of the Decree, a sum of Rs. 2.90 Crores has been paid by the Company to SBI Home Finance and the title deeds of the NBCC property have been released by SBI Home Finance Ltd. However, balance amount of Rs. 25.00 Lacs which was to be converted into fully paid up shares of the Company at Rs. 30/- per share (share value Rs. 10/ - plus premium Rs. 20/- per shares) have not been issued by the Company.

The Company proposes to allot shares worth Rs. 25.00 Lacs to SBI Home Finance Ltd. as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme as per applicable SEBI guidelines. Under this scheme, payment shall be discharged in the following manner:-

(A) Amount due to SBI Home Finance Ltd as decided by one man committee as at 31st December, 2015

S.N.	Particulars	Amount in Cr
I	Principal Outstanding	Rs 25 Lacs
II	Interest	--
	TOTAL	Rs 25 Lacs

(B) Payment Schedule by issuing in Shares

S.N.	Particulars	Rupees in Lac
I	To be discharged by issuance of Equity shares of the Company of the face value of Rs. 10/- at a premium of Rs. 20/- per share or as per applicable SEBIguidelines	Rs 25 Lac
II	The Company proposes to: allot shares worth Rs. 25.00 Lacs to SBI Home Finance Ltd. as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme asper applicable SEBIguidelines	-
	Total	Rs 25 Lac

107

DCM FINANCIAL SERVICES LTD.

Since, the number of shares to be allotted are not clear, presently the amount of Rs. 25 Lacs is shown in Liabilities and not under other equity. The same shall be reclassified depending upon whether Company has to issue variable number of equity shares or fixed number of equity shares.

ICD LENDERS

ICD Lenders will be paid principal due to them as on 30th June 2004. Interest dues are waived and cancelled. The payment of principal to the ICD lenders will be made as follows:

(A) Amount due to ICD Lenders as decided by one man committee

S.N.	S.N.	Particulars	Particulars	Amount Rs in Lac	Amount Rs in Lac
I		Principal Outstanding		Rs 27.17 Lac
II		Interest		--
		TOTAL		Rs 27.17 Lac
Payment Schedule (Rs. in Lac)
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 19.02 Lac		-
II	30% of total amount		-		Rs 8.15 Lac
	Total		Rs 19.02 Lac		Rs 8.15 Lac

PRESSMAN LEASING

The amount due to M/s, Pressman Leasing has been quantified at the lump sum of Rs 4.10 Cr and such amount would be paid 55% in cash and 45% in shares and details are under :-

(A) Amount due to PRESSMAN LEASING as decided by one man committee

S.N.	S.N.	Particulars	Particulars	Amount Rs in Cr	Amount Rs in Cr
I		Principal Outstanding		Rs 4.10 Cr
II		Interest		--
		TOTAL		Rs 4.10 Cr.
Payment Schedule in Cash Amount Rs in Cr
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 1.58 Cr		-
II	30% of total amount		-		Rs 00.68Cr
	Total		Rs 1.58 Cr		Rs 00.68 Cr
Balance Payment by issuing of Equity Shares
S.N.		Particulars		Amount Rs in Cr
I		To be discharged by issuance of Equity shares of the Company of the face value of Rs. 10 as per applicable SEBI guidelines		Rs 1.84 Cr
		TOTAL		Rs 1.84 Cr

Payment to Pressman Leasing has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20. The shares as per the scheme will be issued as per the scheme. Developments during the fnancial year ended 31st March, 2020 and 31st March 2021

During the financial year ending March 2020 and March 2021, the company is continuing to make payments to deposit holders and debenture holders in Phase – I. Phase II has also been started simultaneously during the current financial year.

108

DCM FINANCIAL SERVICES LTD.

creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

27) Earnings Per Share (EPS):

		Year ended 31st March, 2021	Year ended 31st March, 2020
a)	Calculation of Weighted Average Number of Equity Shares of 100 each Number of Shares at the beginning of the period Number of Shares at the close of the period Weighted Average number of Equity Shares** Duringtheperiod	22,125,054 22,125,054 22,125,054	22,125,054 22,125,054 22,125,054
b)	Net Proft/(Loss) for the period attributable to EquityShares(in Rs.)	(12,46,925)	(32,08,547)
c)	Earning per share – Basic**	(0.06)	(0.15)
d)	Earning per share – Diluted**	(0.06)	(0.15)

28) Contingent Liabilities and Commitments

A) Contingent Liabilities

(a) During the year ended 30th June, 2011 the company’s tenant had filed a claim of Rs. 10,000,000 against the company due to damages suffered by the tenant which is still pending under arbitration proceedings as on 31st March, 2021.
(b) There is an award passed by the arbitrator against the company in the matter of MS Shoes East Limited on May 28, 2012 for Rs. 5,128,320 i.e. the claim amount, along with Rs. 30,680,848 towards interest cost for an underwriting given by the company in the year 1995 for the public issue of M/s MS Shoes East Ltd. Furthermore, an incidental cost which includes arbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had been awarded to the company. The total financial impact comes to Rs. 36,358,448 which has been contested by Company before Hon’ble Delhi High Court.
(c) Due to dispute with the builder namely M/s NBCC Ltd. from which the company had purchased an office premises in the year 1995, regarding a claim of Rs. 28,829,634 on account of increase in super area and certain other expenditure which the builder i.e. M/s NBCC Ltd. had incurred and the same is pending in arbitration. Breakup of the amount of Rs. 28,829,634 mentioned supra is as follows:

S.No.	Description	Amount
1.	Difference in super area Vs.provisional area	22,928,254/-
2.	Claim ofpropertytax	319,100/-
3.	Claim ofground rent	2,167,190/-
4.	Allied charges	782,210/-
5.	Augmentation of Electric sub station	132,880/-
6.	Loss ofproft	2,000,000/-
7.	Arbitration cost	500,000/-
TOTAL		28,829,634/-

In current year, an Award was given by Arbitrator in respect of dispute that has arisen between NBCC Ltd. (Claimant) and DCM Financial Services Limited (Respondent) in relation to sale of Commercial Space-Upper Ground Floor NBCC Place, PragatiVihar, New Delhi by the Claimant to the respondent.

109

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

The summary position of award is as under:
Party Amount Claimed (in Rs.) Awarded (in Rs.)
NBCC Ltd.- Claimant 4,34,95,374/- 41,05,656/-
DCM Financial Services Limited- 32,69,49,945/- 78,97,424/-
Counter Claimant/Respondent
In addition to the above, Interest @ 10% is payable by both the parties on their respective
amounts.
That whereas NBCC has filed objections to the award in Delhi High Court in December
2020 and the same appears to be lying in objections.
That DCM has also filed objection in Delhi High Court and the same has not being listed
so far.
Company Management is hopeful that there will not be any extra claims in view of Award
declared by Arbitrator.
B) Commitments
There are no non-cancelable capital commitments.
29) Defined Benefit Plans/Long Term Compensated Absences :-
Description of Plans
The Company makes contributions to Defined Benefit and Defined Contribution Plans for
qualifying employees. Gratuity Benefits and Leave Encashment Benefits are unfunded in
nature. The Defined Benefit Plans are based on employees’ length of service.
The liabilities arising in the Defined Benefit Schemes are determined in accordance with the
advice of independent, professionally qualified actuaries, using the projected unit credit method
at the year end. The Company makes regular contributions to these Employee Benefit Plans.
The net Defined benefit cost is recognized by the companies in Financial Statements.
Discount Rate: The present value of Defined Benefit Plans liability is determined using the
discount rate based on the market yields prevailing at the end of reporting period on Government
bonds. A decrease in yields will increase the fund liabilities and vice-versa.
The estimated term of the benefit obligations works out to 10.87 years. For the current valuation
a discount rate of 7.63% p.a. compound has been used.
Salary Escalation Rate: The Salary Escalation rate usually consists of at least three
components, viz. regular increments, price inflation and promotional increases. In addition to
this any commitments by the management regarding future salary increases and the Company’s
philosophy towards employee remuneration are also to be taken into account. Again, a long
term view as to the trend in salary escalation rates has to be taken rather than guided by the
escalation rates experienced in the immediate past, if they have been influenced by unusual
factors.
WithdrawalsRate:Past experience indicates the current level of attrition. The assumption may
incorporate the Company’s policy towards retention of employees, historical data and industry
outlook.
Mortality Rate :We have used Indian Assured Lives Mortality Table (IALM) 2006-08, as issued
by Institute of Actuaries of India, for the valuation.
The following table summarize the components of net benefit expenses recognized in the
statement of Profit & loss and the funded status and the amount recognized in Balance Sheet
during 2020-21.
----- End of picture text -----

110

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

PARTICULARS Gratuity Leave Gratuity Leave
Encashment Encashment
Unfunded Unfunded Unfunded Unfunded
31.03.2021 31.03.2020
Statement of profit & loss
Net employee benefit expense recognized in employee cost
Current Service Cost 1,23,265 83,839 56,019 41,448
Interest Cost on Defined 37,412 4,378 150,551 44,056
Benefit Obligation
Total Expense recognized 1,60,677 88,217 206,570 85,504
in the Statement of Profit
and Loss
Remeasurements
recognised in Other
Comprehensive Income
Net Actuarial (Gain)/Loss (47128) 9617 (33,916) (17,784)
Total defined benefit (1,13,549) 97834 172,654 67,720
cost recognized in
Profit & Loss and Other
Comprehensive Income
Changes in the present value of the defined benefit obligation are as follows:
Opening Defined Benefit 5,58,384 65,348 1,973,149 577,404
Obligation
Interest Cost 37412 4,378 150,551 44,056
Current Service Cost 1,23,265 83,839 56,019 41,448
Benefits Paid - - (15,87,419) (579,776)
Actual Losses / (Gain) on (47128) 9617 (33,916) (17,784)
Obligation
Closing Defined Benefit 6,71,933 1,63,182 558,384 65,348
Obligation
Classification in Balance Sheets
Net Assets/ (Liability) Gratuity Leave Encashment
Current Non-Current Current Non-Current
As at 31st March 2021 14,004 6,57,929 1,01,337 61,845
As at 31st March 2020 10,894 547,490 40,502 24,846
The principal assumptions used in determining gratuity obligations for the Company’s
plans are shown below:
Discount Rate 6.70` 6.70 6.70 6.70
Increase in Compensation 6.00 6.00 6.00 6.00
Cost
SENSITIVITY ANALYSIS
PARTICULARS Gratuity Leave encashment
a. Defined benefit obligation - Discount rate + 100 Basis (58,044) (7256)
points
b. Defined benefit obligation - Discount rate - 100 Basis 66,958 8448
points
c. Defined benefit obligation – Salary escalation rate + 100 66,897 8,439
Basis points
d. Defined benefit obligation – Salary escalation rate - 100 (59,025) (7,378)
Basis points
----- End of picture text -----

111

DCM FINANCIAL SERVICES LTD.

30) For year ended 31st March, 2021, Company has no dues from any party that it is covered under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED).
31) As the Company has brought forward unabsorbed depreciation amounting to Rs.28,20,33,011under the Income Tax Act, 1961 and is unlikely to have taxable income in the foreseeable future. Deferred tax assets in situation where carry forward unabsorbed depreciation/business loss exists, are recognized to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered, accordingly Deferred Tax Assets on Unabsorbed Depreciation Losses are not recognized in accordance with Ind AS 12 “Income Taxes”.

32) Deposit of Rs 195,000,000 by DCM Services Limited

DCM Services Ltd, as a promoter had committed to bring in Rs 195,000,000 as a promoter contribution upon sanction of their restructuring scheme under erstwhile Section 391 of the Indian Companies Act, 1956 which is under implementation by One Man Committee appointed with the direction of Hon’ble Delhi High Court.

The Court vide order dated 06.05.2008 has asked DCM Services Limited to deposit Rs. 195,000,000 with the Court and pursuant to the court order.DCM Services Limited depositedRs 50,000,000 on 16.07.2010, Rs 67,000,000 on 18.11.2010, Rs. 39,000,000 on 21.04.2011 &Rs. 39,000,000 on 27.04.2012 aggregating to Rs. 195,000,000 on behalf of the promoters with the Registrar, Hon’ble Delhi High Court. All the funds are with Delhi High Court along-with accrued interest thereon. No financial impact of this has been recorded in the financials of the company for the period ended 31st March, 2021 as there is no clarity provided by Hon’ble High Court of Delhi on whether Company would have to issue any shares against such contribution as per SEBI guidelines or such amount would be refundable to DCM Services Limited or there would be no liability on the Company to pay or issue any shares. Till Company gets any clarity on this matter, no financial entry has been recorded in the books of accounts.

33) Related Parties Transactions:

A. List of Related parties

SN	Description of Relationship	Description of Relationship	Name of Party	Name of Party	Name of Party
(a)	Control Exist
	- Subsidiary Company		(i)	Global IT Option Limited
(b)	Signifcant Infuence Exist		(i)	DCM Services limited
			(ii)	DCM International Limited
			(iii)	DCM Anubhavi Marketing Private Limited
(c)	Key Management Personnel		(i)	Mr. Shantanu Deveshwar – Executive Director
			(ii)	Mrs.Somali Tiwari- Company Secretary and CFO (Appointed on w.e.f 18.07.2019
Transactions with related parties during the year (Amount in Rs.)
	Particulars	For the year ending 31st March 2021			For the year ending 31st March 2020
Key Management Personnel
1.	Remuneration	3,75,648			4,81,131
2.	Repayment of loan
	- DCM Services Limited	-			66,99,000
	- DCM Anubhavi Marketing Private Limited	-			1,73,09,902
	- Global IT Options Limited	-			22,84,425
3.	Interest Expense
	- DCM Services Limited	-			67,37,930

112

DCM FINANCIAL SERVICES LTD.

	- DCM International Limited	-	25,66,399
	- DCM Anubhavi Marketing Private Limited	-	2,90,242
	- Global IT Options Limited	-	2,08,217
4.	Interest Income
	- DCM Services Limited	-	49,15,886
	- DCM International Limited	-	21,40,068
	- DCM Anubhavi Marketing Private Limited	-	2,42,077
	- Global IT Options Limited	-	1,73,708
Balance Outstanding (Amount in Rs.)
1.	DCM Services ltd.	7,39,24,220	7,39,24,220
2.	DCM International Limited	2,81,56,876	2,81,56,876
3.	DCM Anubhavi Marketing Private Limited	31,84,349	31,84,349
4.	Remuneration Payable	NIL	28,829

34) Financial Instruments and Related Disclosures

Financial Instruments and Related Disclosures	Financial Instruments and Related Disclosures	Financial Instruments and Related Disclosures	Financial Instruments and Related Disclosures	Financial Instruments and Related Disclosures
a) Categories of Financial Instruments
Particulars		Note	As at 31st March 2021	As at 31st March 2020
Financial Assets
I	Measured at amortised cost
	(i)Investments	6	17,150	NIL
	(ii) Cash and cash equivalents	8	27,46,586	1,130,865
	(iii) Other Bank Balances	9	2,96,00,408	2,78,81,916
	(iv)Others	3& 10	17,68,17,606	182,536,685
	Total(A)		21,91,81,150	21,15,49,466
II	Measured at fair value through Other Comprehensive Income
	(i)Investments	6	NIL	NIL
	Total(B)		NIL	NIL
III	Measured at fair value through Proft & loss
	(i)Investments	6	81,11,658	6406027
	Total(C)		81,11,658	6,406,027
	Total fnancial assets(A+B+C)		21,72,76,258	21,79,55,493
Financial Liabilities
I	Measured at amortised cost
	(i)Borrowings	14	2,07,70,000	2,07,70,000
	(ii) Other fnancial liabilities	17	80,22,08,985	80,80,65,524
	Total fnancial liabilities		82,29,78,985	82,88,35,524

113

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

(b) Fair Value Hierarchy
Particulars As at 31st As at 31st
March 2021 March 2020
I Financial Assets / Financial Liabilities at
amortized cost
The carrying amount of financial assets and
financial liabilities measured at amortized cost are
a reasonable approximation of their fair values
except the following:
Investment in Non-Convertible Debentures 17,150 NIL
Fair value of Current Maturities of Long Term Debt/
105,265,445 105,265,445
Borrowing measured at amortized cost (Level 3)
II Financial assets at fair value through profit &
loss
Investment in Equity Shares (Level 1) 28,63,303 12,18,021
Investment in Equity Shares (Level 2) 52,31,205 51,88,006
III Financial assets at fair value through Other NIL NIL
Comprehensive Income
The Company determines the fair value of its financial instruments on the basis of the following
hierarchy:
Level 1: The fair value of financial instruments that are quoted in active markets are determined on
the basis of quoted price for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market are determined
on the basis of net asset value as per last available audited financial statements.
Level 3: If one or more of the significant inputs is not based on observable market data, the fair value
is determined using discounted cash flow method with the most significant inputs being the discount
rate that reflects the credit risk of the counter-party.
35) Capital Management
The Company’s objective for managing capital is to ensure as under:
a) To ensure the company’s ability to continue as a going concern.
b) Maintaining a strong credit rating and healthy debt equity ratio in order to support business
and maximize the shareholders’ value.
c) Maintain an optimal capital structure.
d) Compliance financial covenants under the borrowing facilities.
For the purpose of capital management, capital includes issued equity capital, and all other
equity reserves attributable to the equity holders of the Company.
The Company manages its capital structure keeping in view of:
a) Compliance of financial covenants of borrowing facilities.
b) Changes in economic conditions.
In order to achieve this overall objective of capital management, amongst other things, the
Company aims to ensure that it meets financial covenants as decided by One Man Committee
and Delhi High Court. One Man Committee has given few recommendations for payments
to its creditors which has been accepted by Hon’ble Delhi High Court.
There has been no breach in the financial covenants of any borrowing facilities in the current
period. There is no change in the objectives, policies or processes for managing capital over
previous year.
36) Going Concern Basis
The company filed a fresh Scheme of Arrangement for the reorganization of the share capital
of the company and for compromise with the secured and unsecured creditors of the company,
----- End of picture text -----

114

DCM FINANCIAL SERVICES LTD.

hereinafter referred to as the “ Fresh Restructuring Scheme ” before the Hon’ble Delhi High Court at New Delhi on 24th September 2004. Pursuant to the orders of the Hon’ble Delhi High Court, the unsecured creditors and debenture holders in their meeting convened under the Chairpersonship of court appointed Chairpersons (retired Judges of Hon’ble Delhi High Court) on 1stApril 2005 and 2nd April, 2005 have approved the scheme without any modifications with the requisite majority. The meeting of the other secured creditors (banks/ institutions) was held on 17thSeptember 2005 and has also approved the scheme by the requisite majority after considering some modifications proposed by the Punjab & Sind Bank. The promoter company has undertaken, subject to sanction of the scheme by the Hon’ble Delhi High Court, contributed Rs. 195,000,000 of which Rs. 156,000,000 were deposited with the Registrar of the Hon’ble Delhi High Court Registrar, as per court order by the promoter group, and the balance amount of Rs 39,000,000 had been deposited on 27th April, 2012. The Fresh Restructuring Scheme kept pending for approval of Hon’ble High Court of Delhi. Over the years and till 31st March, 2017, the accounts of the company have been drawn on the assumption that the “ fresh restructuring scheme ” will be accepted and implemented. If it is not accepted and cannot be implemented for any reason the total liability before the proposed restructuring scheme including those for which no provision has been made and has been quantified under appropriate heads, shall become payable. Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one man committee enumerated in the report. One Man Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. Under Phase -1, 70% a part of the amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. or less than Rs.5,000 in the first instance. In the second phase, which should also commence. with phase 1 simultaneously, properties and shares and all the assets be liquidated by selling and the realized amount is recommended to be utilized for the repayment of balance 30% of principal and the maturity value on the fixed deposits, debentures and banks. If the amount is still available to the Company, the Hon’ble Company Court may decide whether some amount - be paid as interest as has also been recommended by the Reserve Bank of India. During the year ended 31st March, 2018, Company started paying the amount as per Phase-I and Phase-I is still in continuation for the financial year ending 31st March 2019, 31st March 2020 and 31st March 2021, However, company has simultaneously started making payment under phase- II of balance 30% to those who have claimed the same. During the year 2020-21 company has started making payment of 100% to those creditors who are claiming it. Hon’ble High Court of Delhi held that the issue of revival of the company will be decided once all payments are made in the manner as suggested in the report. The accounts of the company have been prepared on a “going concern” basis on an assumption & premises made by the management that:-

(a) Company incurred a net loss of Rs.12,46,925during the year ended March 31, 2021 and, as of that date, the Company’s current liabilities exceeded its total assets by Rs.41,44,90,596. The accumulated loss as on 31st March, 2021 stands to Rs. 85,86,42,383/-(Previous year Rs. 85,73,95,457/-). As on 31st March, 2021, the Company’s total liabilities exceeded to its total assets by Rs. 43,64,20,657/- (Previous year Rs. 43,51,73,731/-).
(b) The Company is not carrying on any business as to comply with the directives of the Reserve Bank of India the company ceased to accept deposits from September 1997 and the company’s application to RBI for certificate of registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The Company contends that the Scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme such issuance of equity to SBI HOME FINANCE LTD and Pressman Leasingwould be approved/decided upon by the Hon’ble Delhi High Court and accordingly the decision on revival of Company would be taken by Hon’ble Delhi High Court and

115

DCM FINANCIAL SERVICES LTD.

(c) Adequate finances and opportunities would be available in the foreseeable future to enable the company to start operating on a profitable basis,
37) The Company’s application to RBI for Certificate of Registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The company had made an appeal to the Appellate Authority, Ministry of Finance which directed the RBI to keep its order of rejection of CoR in abeyance for a period of six months and directed the company to file Fresh Restructuring Scheme before Hon’ble Delhi High Court. RBI has preferred an appeal before the Hon’ble Delhi High Court against the order of the appellate authority, which is still pending. This may be decided upon once scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme would be approved/decided upon by the Hon’ble Delhi High Court.
38) Balance confirmation of bills receivable and payable, advances recoverable in cash or in kind, receivables and payables relating to lease and hire purchase, lease security deposit of which party wise details are not available. Balance confirmation of inter-corporate deposits, balance of ex-employees, margin against L/C, loans from institutions, banks, and other receivables and payables have not been received from the parties/persons concerned. In the absence of balance confirmation the closing balances as per books of accounts have been incorporated in the final accounts and have been shown, unless otherwise stated by the management about its recoverability in the financials including considering the NPA Provisions, are good for recovery/ payment. Time barred debts under the Limitations Act have not been separately ascertained and written off or provided for. In the absence of such confirmation & corresponding reconciliation, it is not feasible for us to determine financial impact on the financials and the amount referred as payable in the financials can differ.

39) Segment information for the year ended 31st March 2021

The Company is engaged in a single segment i.e. Financing Operations viz., inter corporate deposits and investments. Presently Company is not carrying on any operation except realizing all debts or maintaining existing assets.The operating results are regularly reviewed and performance is assessed by its Chief Operating Decision Maker (CODM). All the company’s resources are dedicated to this single segment and all the discrete financial information is available for this segment.
40) The COVID -19 pandemic is rapidly spreading throughout the world. The company is not doing any operations as there is order by the Hon’ble High Court and RBI to not to do any operations/ business. Accordingly, company is only paying back its creditors and Fixed Deposit Holders as per the recommendations of One Man Committee. The Company has resumed repayment to its creditors in a phased manner as per directives from the Government of India. The Company has evaluated impact of this pandemic on its business operations and financial position and based on its review of current indicators of future economic conditions, there is no significant impact on its financial results as at 31st March 2021. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration and accordingly the impact may be different from that estimated as at the date of approval of these financial results. The Company will continue to monitor any material changes to future economic conditions.
41) Figures for the previous year are in brackets and have been re-grouped/re-classified wherever necessary to make them comparable with the figures of the current year.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Rishi Mittal Richa Kalra Shantanu Deveshwar Partner Director Director M.No. 521860 DIN: 07632571 DIN: 08268523 Place : New Delhi Somali Tiwari Dated : 29 June, 2021 Company Secretary M.No.A47631

116

DCM FINANCIAL SERVICES LTD.

INDEPENDENT AUDITOR’S REPORT

To the Members of

DCM FINANCIAL SERVICES LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of DCM FINANCIAL SERVICES LIMITED (“hereinafter referred to as the Holding Company”) and its subsidiary (the Holding Company and its subsidiaries together referred to as the ‘Group”) which comprise the Consolidated Balance Sheet as at 31st March, 2021, and the Consolidated Statement of Profit and Loss, Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone Ind AS consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,

(a) In the case of the Consolidated Balance Sheet, of the Consolidated State of Affairs of the Company as at March 31, 2021; and
(b) In the case of Consolidated Statement of Profit and Loss account, of the loss for the year ended on date March 31, 2021.
(c) In the case of Consolidated Cash Flow Statement for the year ended on date March 31, 2021.
(d) In the case of Consolidated Statement of changes in equity for the year ended on date March 31, 2021.

Basis for Qualified Opinion

(i) Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one man committee enumerated in the report. Under Scheme of One Man Committee, Interest of Rs 235 Lacs are payable to Debenture Holders and Rs 1,448 Lacs are payable to Fixed Depositors under Phase-2 of Schedule of Payments laid down by One Man Committee. Presently the said committee has waived any further payment of Interest to Fixed Depositors, Debenture-holders and other lenders, however on complete liquidation of properties and investments, if any surplus remains after payment to all stakeholder creditors, then further payment of Interest would be decided. All stakeholders creditors which are covered under scheme has given its consent to the scheme. No provision of Rs. 1,683 Lacs as laid down under the the scheme towards Interest on Debentures and Fixed Deposits, have been provided in the consolidated financial statements on the outstanding amount of Debentures and Fixed Deposits.
Had interest of Rs. 1,683 Lacs been provided for in the consolidated financial statements of year ending 31st March 2018 on outstanding amount of Debentures and Fixed Deposits, the Net Profit before tax would have been lowered by Rs. 1,683 Lacs and Net Profit after tax would have been lowered by Rs. 1,340 Lacs as at 31st March, 2018. The cumulative net loss as well as Current Liabilities as at 31st March, 2021 would have been higher by Rs 1,340 Lacs. The same has been explained in Note 17.2 and Note 17.3
(ii) For redemption of ‘B’ series debentures of Rs. 2014.98 Lacs debenture redemption reserve is required to be created. Debenture redemption reserve of Rs. 2014.98 Lacs has not been created due to insufficient profits. The same has been explained in Note 17.2.

117

DCM FINANCIAL SERVICES LTD.

(iii) The value of assets charged as security in favor of banks, debenture-holders & financial institutions have been depleted over a period of time. The depletion has not yet been ascertained by the Company. To the extent of shortfall, if any, the liability is unsecured, whereas the same has been shown as secured. The same has been explained in Note 17.2
(iv) Balance confirmation of bills receivable and payable, advances recoverable in cash or in kind, receivables and payables relating to lease and hire purchase, lease security deposit of which party wise details are not available. Balance confirmation of inter-corporate deposits, FD balances with Bank, interest on FD from banks, balance of ex-employees, margin against L/C, loans from institutions, banks, no dues certificate on payment of loans from bank and other receivables and payables have not been received from the parties/persons concerned. In the absence of balance confirmation, the closing balances as per books of accounts have been incorporated in the final accounts and have been shown, unless otherwise stated by the management about its recoverability in the financials including considering the NPA Provisions, are good for recovery/ payment. Time barred debts under the Limitations Act have not been separately ascertained and written off or provided for. In the absence of such confirmation & corresponding reconciliation, it is not feasible for us to determine financial impact on the financials and the amount referred as payable in the financials can differ. Please refer Note No-38
(v) Contingent liabilities and Other Commitments
v (a) During the year ended 30th June, 2011 the company’s tenant had filed a claim of Rs. 10,000,000 against the holding company due to damages suffered by the tenant which is still pending under arbitration proceedings as on 31st March, 2021.
v (b) There is an award passed by the arbitrator against the holding company in the matter of MS Shoes East Limited on May 28, 2012 for Rs. 5,128,320 i.e. the claim amount, along with Rs. 30,680,848 towards interest cost for an underwriting given by the holding company in the year 1995 for the public issue of M/s MS Shoes East Ltd. Furthermore, an incidental cost which includes arbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had been awarded to the holding company. The total financial impact comes to Rs. 36,358,448 which has been contested by Holding Company before Hon’ble Delhi High Court.
v (c) Due to dispute with the builder namely M/s NBCC Ltd. from which the holding company had purchased an office premises in the year 1995, regarding a claim of Rs. 28,829,634 on account of increase in super area and certain other expenditure which the builder i.e. M/s NBCC Ltd. had incurred and the same is pending in arbitration. Breakup of the amount of Rs. 28,829,634 mentioned supra is as follows:

S. No.	Description	Amount
1.	Difference in super area Vs.provisional area	22,928,254/-
2.	Claim ofpropertytax	319,100/-
3.	Claim ofground rent	2,167,190/-
4.	Allied charges	782,210/-
5.	Augmentation of Electric sub station	132,880/-
6.	Loss ofproft	2,000,000/-
7.	Arbitration cost	500,000/-
TOTAL		28,829,634/-

The summary position of award is as under:

Party	Amount Claimed (in Rs.)	Awarded (in Rs.)
NBCC Ltd.- Claimant	4,34,95,374/-	41,05,656/-
DCM Financial Services Limited - Counter Claimant/Respondent	32,69,49,945/-	78,97,424/-

118

DCM FINANCIAL SERVICES LTD.

In addition to the above, Interest @ 10% is payable by both the parties on their respective amounts. That whereas NBCC has filed objections to the award in Delhi High Court in Dec 2020 and the same appears to by lying in objections. That DCM has also filed objection in Delhi High Court and the same has not being listed so far.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:(i) We draw attention to Note 36 in the consolidated financial statements, which indicates that the Company incurred a net loss of Rs. 12,84,461 during the year ended March 31, 2021 and, as of that date, the Company’s current liabilities exceeded its total assets by Rs. 41,22,43,012. The accumulated loss as on 31st March, 2021 stands to Rs. 85,67,02,303/- (Previous year Rs. 85,54,17,842/-). As on 31st March, 2021, the Company’s total liabilities exceeded to its total assets by Rs. 43,41,73,153/- (Previous year Rs. 43,28,88,693/-). As stated in Note 36, these events or conditions, along with other matters as set forth in Note 36 which are as under:The Holding Company is not carrying on any business as to comply with the directives of the Reserve Bank of India, the company ceased to accept deposits from September 1997 and the company’s application to RBI for certificate of registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The Company contends that the Scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme such issuance of equity to SBI Home Finance Limited and Pressman Leasing, would be approved/decided upon by the Hon’ble Delhi High Court and accordingly the decision on revival of Company would be taken by Hon’ble Delhi High Court. This indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
(ii) We draw attention to Note 26 in the consolidated financial statements regarding successful implementation of scheme of One Man Committee on which continuity and revival of the Company is completely dependent which not only includes successful implementation of Schedule of payments described under Phase-I and Phase-II, but also realisability of funds from the disposal of Fixed Assets especially Building which is under dispute with Tenant as well as NBCC.
(iii) We draw attention to Note 32 in the consolidated financial statements on the deposit Rs. 195,000,000 with the Hon’ble Delhi High Court. DCM Services Ltd, as a promoter had committed to bring in Rs. 195,000,000 as a promoter contribution upon sanction of their restructuring scheme under erstwhile Section 391 of the Indian Companies Act, 1956 which is under implementation by One Man Committee appointed with the direction of Hon’ble Delhi High Court. The Court vide order dated 06.05.2008 has asked DCM Services Limited to deposit Rs. 195,000,000 with the Court and pursuant to the court order DCM Services Limited deposited Rs. 50,000,000 on 16.07.2010, Rs 67,000,000 on 18.11.2010, Rs. 39,000,000 on 21.04.2011 & Rs. 39,000,000 on 27.04.2012 aggregating to Rs. 195,000,000 on behalf of the promoters with the Registrar, Hon’ble Delhi High Court. All the funds are with Delhi High Court along-with accrued interest thereon. No financial impact of this has been recorded in the financials of the company till 31st March, 2021 as there is no clarity provided by Hon’ble High Court of Delhi on whether Company would have to issue any shares against such contribution as per SEBI guidelines or such amount would be refundable to DCM Services Limited by company or there would be no liability on the Company to either to pay the said amount or issue any shares in lieu of that. Till Company gets any clarity on this matter, no financial entry has been recorded in the books of accounts.

119

DCM FINANCIAL SERVICES LTD.

Other Matter

We draw attention to Note 40 to the financial statements, regarding management’s assessment of Covid-19 impact on the future performance of the company. Our report is not modified in respect of the matter.

Information Other than the consolidated financial statements and Auditor’s Report Thereon

The Board of Directors of Group is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Director’s Report, Report on Corporate Governance and General Shareholders Information, but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the consolidated financial statements

The Board of Directors of Company is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these consolidated financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Group in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The

120

DCM FINANCIAL SERVICES LTD.

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Companies Act, 2013, we report that:
a. Except for the matters described in the Basis for Qualified Opinion and Key Audit Matters paragraph, we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. Except for the matters described in the Basis for Qualified Opinion and Key Audit Matters paragraph, in our opinion proper books of account as required by law have been kept by so far as it appears from our examination of those books;
c. The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, the Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the books of account.;
d. Except for the matters described in the Basis for Qualified Opinion and Other Key Matters

121

DCM FINANCIAL SERVICES LTD.

paragraph, in our opinion, the aforesaid consolidated financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with rule 7of the Companies (Accounts) Rules,2014 ;
e. The matter described in the Basis for Qualified Opinion and Other Key Matters paragraph above, in our opinion, may have an qualified effect on the functioning of the Group.
f. On the basis of the representations received from the directors as on 31st March 2021 taken on the record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act..
g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ‘A’ ; and
h. with respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act. i. with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Group has disclosed the impact of pending litigations on its financial position in its consolidated financial statements – Refer Note 28 to the consolidated financial statements; ii. The Group has made necessary provision in its consolidated financial statements under the applicable law or Indian accounting standards, wherever required; iii. The Company moved an application before the Hon’ble Company Law Board, New Delhi on 22nd July 2004 under Regulation 44 of the Company Law Regulations 1991 proposing a fresh repayment schedule for fixed depositors, debenture-holders and other creditors of the Company. The company filed a Fresh Scheme of Arrangement for the reorganization of the share capital of the company and for compromise with the secured and unsecured creditors of the company, hereinafter referred to as the “ Fresh Restructuring Scheme ” before the Hon’ble Delhi High Court on 24th September 2004 mentioning therein repayment schedule. Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The one man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one man committee enumerated in the report. One Man Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. Under Phase -1, 70% of the principal amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. or less than Rs.5,000 in the first instance to fixed depositors, Debenture-holders and banks. In the second phase, which should also commence with phase 1 simultaneously, properties and shares and all the assets be liquidated by selling and the realized amount is recommended to be utilized for the repayment of balance 30% of principal amount and the maturity interest component only on the fixed deposits and debentures. Other creditors such as banks, financial institutions, ICD Holders shall also be paid 30% of the Principal Amount except to SBI Home Finance Limited and Pressman Leasing which will be issued equity shares in Second Phase. Depending upon the availability of surplus amount from disposal of assets with the Company, the Hon’ble High Court of Delhi may decide whether some

122

DCM FINANCIAL SERVICES LTD.

additional amount of interest can be paid to depositors or other creditors. During the year ended 31st March, 2018, During the year ended 31st March, 2018, Company started paying the amount as per Phase-I and the company is still in continuation of making payments as per Phase I for the year ended 31st March 2021. Also the company has started making payments as per Phase II simultaneously during the current financial year. The matter regarding payment to fixed depositors, debentureholders and other sums are already covered under Phase-I and Phase-II schedule of payment decided by One Man Committee duly appointed by Hon’ble Delhi High Court.

The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modified by the committee on 18th May 2019 and accordingly it has been decided to pay creditors in full who have claimed amount as per procedure set by the committee and whose documents have been verified. As per the claims made by the creditors 100% of principal being paid to them. Also company has also started paying balance 30% to creditors to whom 70% has already been paid previously. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

There is no outstanding amounts in Subsidiary Company which are required to be transferred to the Investor Education and Protection Fund.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Place : New Delhi Dated : 29th June 2021 UDIN : 21521860AAAABH6320

Rishi Mittal Partner M.No. 521860

123

DCM FINANCIAL SERVICES LTD.

Annexure ‘A’ to Independent Auditors’ Report

Referred to in Paragraph 2 (f) under the heading of “Report on Other Legal and Regulatory Requirements” of our report of even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of DCM FINANCIAL SERVICES LIMITED (“herein referred as the Company”) and its subsidiary company as of March 31, 2021 in conjunction with our audit of the consolidated Ind AS financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The management of Company and its subsidiary company is responsible for establishing and maintaining internal financial controls based on internal policies & procedures, accounting records and essential components on the internal control over financial reporting criteria established by the respective Company as per Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company and its subsidiary based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

Meaning of Internal Financial Controls over Financial Reporting

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the

124

DCM FINANCIAL SERVICES LTD.

possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

According to the information and explanation given to us, the Company and its subsidiary has not established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2021.

We have considered the disclaimer reported above in determining the nature, volume of transactions, materiality, timing, and extent of audit test applied in our audit of the financial statement of the company and the disclaimer does not affect our opinion on the financial statements of the company. Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to one subsidiary, is based on solely on the corresponding reports of the auditors of such company incorporated in India.

For Mukesh Aggarwal & Company Chartered Accountants Firm Registration No. 011393N

Place : New Delhi Dated : 29th June 2021 UDIN:

Rishi Mittal Partner M.No. 521860

125

DCM FINANCIAL SERVICES LTD.

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2021

	(Amount in Rupees)	(Amount in Rupees)
Particulars Note No.	As at 31.03.2021	As at 31.03.2020
I. ASSETS Non-current assets (a) Property, Plant and Equipment 1 116,563,504 119,498,959 (b) Right to use asset 1.1 810,014 (c) Financial Assets (i) Investments 2 49,877 20,857 (ii) Other Financial Assets 3 175,300,000 171,275,950 (d) Deferred Tax Assets (Net) Including MAT 4 37,066,885 37,356,300 (e) Other Non-Current Assets 5 17,597,812 22,089,934 2 Current assets (a) Financial Assets (i) Investments 6 8,111,658 6,406,027 (ii) Trade Receivable 7 - - (iii) Cash and cash equivalents 8 2,954,000 3,506,422 (iv) Other Bank Balance 9 31,500,408 27,881,916 (v) Other Financial Assets 10 1,588,239 11,260,735 (b) Other Current Assets 11 111,473 3,448 TOTAL ASSETS 391,653,868 399,300,547 II EQUITY AND LIABILITIES Equity (a) Equity Share Capital 12 221,250,540 221,250,540 (b) Other Equity 13 Attributable to Owners of the Parent (655,736,140) (654,455,433) Non - Controlling Interests 312,446 316,200 2 Liabilities Non-current liabilities (a) Financial Liabilities (i) Borrowings 14 20,770,000 20,770,000 (ii) Lease Liability 15 440,367 (b) Provisions 16 719,774 572,336 Current liabilities (a) Financial Liabilities (i) Lease Liability 17 404,006 - (ii) Other Financial Liabilities 17 802,286,124 808,341,990 (b) Other current liabilities 18 1,091,408 2,453,518 (c) Provisions 19 115,341 51,396 TOTAL EQUITY AND LIABILITIES 391,653,868 399,300,547 For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N Rishi Mittal Partner M.No. 521860 Shantanu Deveshwar Director DIN: 08268523 Richa Kalra Director DIN: 07632571 Somali Tiwari Company Secretary M.No. A-47631 Place : Delhi Dated : 29.06.2021	116,563,504 810,014 49,877 175,300,000 37,066,885 17,597,812 8,111,658 - 2,954,000 31,500,408 1,588,239 111,473	119,498,959 20,857 171,275,950 37,356,300 22,089,934 6,406,027 - 3,506,422 27,881,916 11,260,735 3,448
	391,653,868	399,300,547
	221,250,540 (655,736,140) 312,446 20,770,000 440,367 719,774 404,006 802,286,124 1,091,408 115,341	221,250,540 (654,455,433) 316,200 20,770,000 572,336 - 808,341,990 2,453,518 51,396
	391,653,868	399,300,547

126

DCM FINANCIAL SERVICES LTD.

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 31ST MARCH 2021

==> picture [313 x 402] intentionally omitted <==

----- Start of picture text -----

||||||
|---|---|---|---|---|
|(Amount in Rupees)|
|Particular|Note|For the year ended|For the yearended|
|No.|31.03.2021|31.03.2020|
|I.|Revenue From Operations|-|-|
|II.|Other income|20|20,351,369|25,508,700|
|III.|Total Revenue (I + II)|20,351,369|25,508,700|
|IV.|Expenses:|
|Employee benefits expense|21|4,759,363|3,910,419|
|Finance costs|22|109,492|9,595,039|
|Depreciation and amortization expense|1|3,345,120|2,941,782|
|Other expenses|23|9,147,846|16,720,571|
|Total expenses|17,361,821|33,167,811|
|V.|Profit before exceptional items and tax (III-IV)|2,989,548|(7,659,111)|
|VI.|Exceptional Item|
|VII.|Profit before tax (V - VI)|2,989,548|(7,659,111)|
|VIII.|Tax expense:|24|
|(1) Current tax|780,000|-|
|(2) Deferred tax|285,956|(7,365,128)|
|(3) MAT Credit Entitlement|-|2,851,906|
|(4) Prior Period Taxes|3,217,897|-|
|IX|Profit (Loss) for the period from continuing operations|(1,294,305)|(3,145,889)|
|(VII-VIII)|
|X|Profit (Loss) for the period|(1,294,305)|(3,145,889)|
|XI|Other Comprehensive income|
|A (i) Items that will not be reclassified to profit or loss|13,302|33,916|
|(ii) Income tax relating to items that will not be|(3,459)|(8,818)|
|reclassified to profit or loss|
|B (i) Items that will be reclassified to profit or loss|
|(ii) Income tax relating to items that will be reclassified to|-|-|
|profit or loss|
|XII|Total Comprehensive Income for the period (X+XI)|(1,284,461)|(3,120,791)|
|(Comprising profit (loss) and other Comprehensive|
|Income for the period)|
|Total Comprehensive Income|
|Attributable to|
|Owners of the Parent|(1,280,707)|(3,129,566)|
|Non-Controlling Interests|(3,754)|8,775|
|Profit for the year|
|Attributable to:|
|Owners of the Parent|(1,290,550)|(3,154,664)|
|Non-Controlling Interests|(3,754)|8,775|
|Other Comprehensive Income for the year|
|Attributable to:|
|Owners of the Parent|9,843|25,098|
|Non-Controlling Interests|-|-|
|XIII|Earnings per equity share (for continuing operation):|
|- Basic|(0.06)|(0.14)|
|- Diluted|(0.06)|(0.14)|

----- End of picture text -----

==> picture [300 x 75] intentionally omitted <==

----- Start of picture text -----

|||||
|---|---|---|---|
|For Mukesh Aggarwal & Co.|
|Chartered Accountants|
|Firm Registration No. 011393N|
|Rishi Mittal|Shantanu Deveshwar|Richa Kalra|Somali Tiwari|
|Partner|Director|Director|Company Secretary|
|M.No. 521860|DIN: 08268523|DIN: 07632571|M.No. A-47631|
|Place : Delhi|
|Dated : 29.06.2021|

----- End of picture text -----

127

DCM FINANCIAL SERVICES LTD.

CONSOLIDATED CASH FLOW STATEMENT FOR THE ENDED 31ST MARCH 2021

	(Amount in Rupees)	(Amount in Rupees)
Particulars	31.03.2021	31.03.2020
(A) Cash fow from Operating Activities Proft Before Tax Add: Depreciation Interest on lease liability Interest Paid Provision for Impairment of Investment Less: Remeasurement of post employment defned beneft plans Lease rent paid Interest on Fixed Deposits Deferred Income Dividend Income Proft on sale of Investments Interest On Income tax Refund Reversal of Provisio, no longer required Unrealised gain on account of fair valuation of Investments Operating Profts before working Capital changes Adjustment for: Change in Other Non Current Assets Change in Other Financial Current Assets Change in Current Liabilities Change in Other Current Financial Liabilities Change in Other Non Current Financial Liabilities Change in Provisions Change in Other Current Assets Cash generation from Operating Activities Less: Income Tax paid (B) Cash Flow from Investing Activities Interest Income Dividend Income Redemption/(Purchase) of FD Sale of Investments Sale of Fixed Assets (C) Cash Flow from Financing Activities Repayment to Debenture Holders Repayment to SIDBI Reapyment of Bank Loan - PSB Repayment of Loan to Fixed Depositors Repayment of Loan to Related Parties Net increase decrease in cash & cash equivalents Cash and Cash equivalents (Opening Balance) Cash and Cash equivalents (Closing Balance) Notes forming part of Financial Statements Thisis the Cash FlowStatementreferred toinour report ofevendate.	2,989,548 3,345,120 - - - 13,302 (480,000) (16,257,522) - (25,224) (1,812,534) (94,980) (4,387) (2,120,021) (14,446,698) - 9,672,496 (1,362,110) 471,918 - 211,383 (108,025) (5,561,035) (589,204) (4,971,831) 16,352,502 25,224 (7,642,542) 2,216,660 (4,658) 10,947,186 (693,045) - - (5,834,739) - (6,527,784) (552,429) 3,506,422 2,954,000	(7,659,111) 2,941,782 9,594,571 4,680 33,916 (18,072,623) (7,297,981) (45,542) - 5,230,970
		(15,269,337) 221 (9,512,205) (609,936) 2,025,071 - (1,926,821) (25,293,007) 1,805,148
		(27,098,155) 18,072,623 45,542 109,291,965 473,177 (37,100)
		127,846,207 (17,340,829) (1,088,982) (24,102,141) (32,980,662) (24,008,903)
		(99,521,517) 1,226,535 2,279,885
		3,506,422

As per our report annexed,

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Rishi Mittal Shantanu Deveshwar Richa Kalra Somali Tiwari Partner Director Director Company Secretary M.No. 521860 DIN: 08268523 DIN: 07632571 M.No. A-47631 Place : Delhi Dated : 29.06.2021

128

DCM FINANCIAL SERVICES LTD.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Equity Share Capital

Particulars	As at 31st March 2021	As at 31st March 2020 221,250,540 - 221,250,540
Balance at the beginningof the reporting period;	221,250,540
Changes in equityshare capital duringtheyear;	-
Balance at the end of the reporting period	221,250,540

Other Equity

Other equity consist of following :

Particualrs	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Reserves and Surplus	Retained Earnings			Total
	Capital Reserve	Securities Premium	De- benture Re- demp- tion Reserve	Special Reserve		Attributable to the owners of Parent	Non Controlling Interest
Balance at the end of the 1.04.2019	19,386,846	165,086,340	875,000	15,623,000	(852,297,051)	(651,325,865)	307,425	(651,018,440)
a. Balance at the beginning of the reporing period b. Changes in accounting policy or prior period errors c. Restated balance at the beginning of the reporting period d. Total proft for the year e. Dividends f. Transfer to retained earnings g. Total other comprehensive income for theyear	19,386,846 - - - - - -	165,086,340 - - - - - -	875,000 - - - - - -	15,623,000 - - - - - -	(852,297,051) - - (3,145,889) - - 25,098	(651,325,865) - - (3,154,664) - - 25,098	307,425 - - 8,775 - - -	(651,018,440) - - (3,145,889) - - 25,098
Balance at the end of the 31.03.2020	19,386,846	165,086,340	875,000	15,623,000	(852,565,586)	(651,594,400)	316,200	(654,139,231)
a. Balance at the beginning of the reporing period b. Changes in accounting policy or prior period errors c. Restated balance at the beginning of the reporting period d. Total proft for the year e. Dividends f. Transfer to retained earnings g. Total other comprehensive income for theyear	19,386,846 - - - - - -	165,086,340 - - - - - -	875,000 - - - - - -	15,623,000 - - - - - -	(852,565,586) - - (1,294,304) - - 9,843	(651,594,400) - - (1,290,550) - - 9,843	316,200 - - (3,754) - - -	(654,139,231) - - (1,294,304) - - 9,843
Balance at the end of the 31.03.2021	19,386,846	165,086,340	875,000	15,623,000	(853,850,048)	(652,875,108)	312,446	(655,423,692)

129

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Total 132,003,492 4,658 - 132,008,150 12,504,533 2,940,113 - 15,444,646 1,215,021 - 1,215,021 405,007 405,007 810,014
- - -
90,426 90,426 55,706 11,208 66,914 23,512 116,563,504 Right to Use Assets
Office Equipment & Appliances
Furniture & Fixtures 780,910 - - 780,910 709,545 - - 709,545 71,365
Computers 10,688 10,688 8,124 2,216 10,340 348
Vehicles 378,229 - - 378,229 281,256 63,736 - 344,992 33,237
Buildings 130,434,470 - - 130,434,470 11,449,902 2,862,476 - 14,312,378
2,769 4,658 - 7,427 - 477 - 477 6,950 116,122,092
Plant & Machinery
Land 306,000 - - 306,000 - - - - 306,000
Property, Plant and Equipment Property, plant and equipment consist of the following :
Particulars Year ended 31 March 2020 Opening Gross Carrying Amount Additions Disposals Closing Gross Carrying Amount as at March 31, 2021 Opening Accumulated Depreciation Depreciation charged during the year 2020-2021 Depreciation on Disposals Closing Accumulated Depreciation as at March 31, 2021 Net Carrying Amount as at March 31, 2021 Right to use asset Opening Gross Carrying Amount Additions Disposals Closing Gross Carrying Amount as at March 31, 2021 Opening Accumulated Depreciation Depreciation charged during the year 2020-2021 Depreciation on Disposals Closing Accumulated Depreciation as at March 31, 2021 Net Carrying Amount as at March 31, 2021
1 Note 1.1
----- End of picture text -----

130

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

As at 20,857 20,857 7,843 49 12,315 20 630 20,857
As at 31st
March, 2020
31st March, 2020 (Amount in Rs.)
26,802 282 22,740 20 33 49,877
As at 31st March, 2021
Amount in Rs.
As at 49,877 49,877
Fully paid
Partly Paid / Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
31st March, 2021
Quoted / Unquoted
82 Quoted 58 Quoted 300 Quoted 20 Quoted 5 Quoted 465
Amount in Rs.
As at 31 st March, 2020
82 58 300 20 5 465
No. of Shares / Units
As at 31 st March, 2021
Others
Subsidiary /
Associate / JV/ Others Others Others Others Others
Particulars
Investments in Equity Shares Non -Trade Investments Hindalco Industries Limited Digjam Limited Federal Bank Limited Dion Global Solutions Limited Healthfore Technologies TOTAL
NON CURRENT INVESTMENTS Particulars Details of non current investment --Investments in Equity Shares Total
Sr. No. (a) 1 2 3 4 5
2 2 (A) Details of non current investment consist of following:
----- End of picture text -----

131

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Note 3: Other Financial Assets (Non-Current)
Other Financial Assets consist of the following:
Particulars As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Bank Deposits 175,300,000 171,275,950
(Deposits having original maturity more than
12 months)
Total 175,300,000 171,275,950
These are restricted bank deposits and cannot be operated without getting prior approval of
Hon’ble Delhi High Court.
Note 4: Deferred Tax Assets (Net)
Major Components of the deferred tax balances
Deffered Tax Libilities As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Depreciation and amortisation 29,398,495 30,090,635
Total (a) 29,398,495 30,090,635
Deffered Tax Assets As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Post Employement Defined Benefit Plans 204,853 162,170
Provision for Doubtful Debts 62,931,679 62,941,813
Unrealised gain on securities carried at fair 3,319,914 4,342,952
value through statement of profit and loss
Lease 8,933
Total (b) 66,465,379 67,446,935
Net Deferred Tax (Liabilities)/ Assets (b-a) 37,066,885 37,356,300
Add: Minimum Alternative Tax (MAT) credit - -
entitlement
Net Deffered Tax Asset 37,066,885 37,356,300
----- End of picture text -----

132

DCM FINANCIAL SERVICES LTD.

Movement in Deferred Tax Assets/(Liabilities)

Particulars	Property, Plant and Equipment	Post Employment Defned Beneft Plans	Provision for Doubtful Debts	Remeasurement of Investment through Proft and Loss	Remeasurement of Investment through Proft and Loss	Lease	Related Parties	Related Parties	Total
At 31st March, 2018	(31,126,586)	431,378	67,869,815	(1,697,831)			(1,285,719)		34,191,056
(Charged) / credited
– to Statement of Proft and Loss	380,758	319,593	(4,943,524)	(556,592)			634,470		(4,165,295)
– to Other Compre- hensive Income	-	(87,827)	-	-			-		(87,827)
At 31st March, 2019	(30,745,828)	663,144	62,926,291	(2,254,423)			(651,249)		29,937,934
(Charged) / credited
– to Statement of Proft and Loss	629,476	(492,155)	15,522	6,598,689				651,249	7,402,780
– to Other Compre- hensive Income		(8,818)							(8,818)
At 31st March, 2020	(30,116,352)	162,170	62,941,813	4,344,266		-		(0)	37,331,897
(Charged) / credited
– to Statement of Proft and Loss	681,069	46,141	(10,134)	(1,015,497)		8,933		0	(289,487)
– to Other Compre- hensive Income		(3,459)							(3,459)
At 31st March, 2021	(29,435,284)	204,853	62,931,679	3,328,769		8,933		-	37,038,951
5 OTHER NON CURRENT ASSETS Other non current assets consist of the following : Particulars Advances other than capital advances: Security Deposits Tax Recoverable (Net of Provisions) (Refer Note 5A) Unsecured , Doubtful - Employee Advances - Others Less: Provision towards doubtful advances/ECL Total 5A Details of Tax Recoverable Particulars Advance Tax and TDS Provision for Tax TDS on Dividend Net					As at 31st March, 2021 Amount in Rs. 665,944			(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 665,944
					665,944			665,944
					16,931,868			21,423,990
					16,931,868			21,423,990
					1,022,936 (1,022,936) -			- 1,022,936 (1,022,936) -
					17,597,812			22,089,934
					As at 31st March, 2021 21,612,330 4,680,462 -			(Amount in Rs.) As at 31st March, 2020 28,176,358 6,752,368 21,423,990
					16,931,868

133

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

- -
As at 31st
March, 2020
Amount in Rs.
17,150 17,150
As at 31st
March, 2021
Amount in Rs.
Fully paid
Partly Paid / Fully Paid
As at - Quoted / Unquoted
49 Unquoted
6,406,027 6,406,027
31st March, 2020 Amount in Rs. As at 31 st March, 2020
49
No. of NCD / Unit
As at 31st March, 2021 8,094,508 17,150 8,111,658 As at 31 st March, 2021
Amount in Rs.
Others
Subsidiary /
Associate / JV/ Others
Particulars
Investments in Non Convertible Debentures At Amortised Cost Nayara Energy Ltd (NCD) Amalgamation of Vadinar oil terminal Ltd with Nayara Energy Ltd (Non Convertible Debentures issued for Shares) Total (a)
Particulars Details of current investment --Investments in Equity Shares --Investments in NCD Total
CURRENT INVESTMENTS
Sr. No. (a)
6 6(A) Details of current investment consist of following:
----- End of picture text -----

134

DCM FINANCIAL SERVICES LTD.

)
(Amount in Rs.	Amount in Rs.	As at 31st March, 2020			619,676	(619,675)	66	(65)	1,200	(1,199)	2,600	(2,599)	5,000	(4,999)	723	(722)	300	(299)	26,398	(26,397)	55,358	(55,357)	30	(29)	400	(399)
	Amount in Rs.	As at 31st March, 2021			619,676	(619,675)	66	(65)	1,200	(1,199)	2,600	(2,599)	5,000	(4,999)	723	(722)	300	(299)	24,790	(24,789)	55,358	(55,357)	30	(29)	400	(399)
	Partly Paid / Fully paid				Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid		Fully Paid
	Quoted / Unquoted				Quoted		Quoted		Quoted		Quoted		Quoted		Quoted		Quoted		Quoted		Unquoted		Unquoted		Unquoted
	No. of Shares / Units	As at 31 st March, 2020			98,050		10		300		1,300		500		300		100		13,400		8,250		3		200
		As at 31 st March, 2021			98,050		10		300		1,300		500		300		100		13,400		8,250		3		200
	Subsidiary / Associate / JV/ Others				Others		Others		Others		Others		Others		Others		Others		Others		Others		Others		Others
		Particulars	Investments in Equity Shares	At Fair Value Through Proft & Loss	Clutch Auto Limited	Less: Provision for impairment	Health fore Technologies (Religare Technologies Ltd)	Less: Provision for impairment	Indo Biotech Foods Ltd	Less: Provision for impairment	Sujana Steel Ltd	Less: Provision for impairment	Padmini Technology Ltd	Less: Provision for impairment	Radhika Spinning Mills Ltd	Less: Provision for impairment	Uniworth Textiles Ltd.	Less: Provision for impairment	Virtualsoft System Limited	Less: Provision for impairment	Daewoo Motors India Ltd	Less: Provision for impairment	ESSAR Ports Ltd.	Less: Provision for impairment	Galaxy Indo Fab Ltd (Shri Laksmi Cotsyn Ltd)	Less: Provision for impairment
		Sr. No.	(b)		1		2		3		4		5		6		7		8		9		10		11

135

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

90 (89) 2,060 (2,059) 250,000 (249,999) 10,000 (9,999) 11,953,000 (11,952,999) 30 (29) 443 (442) 3,240 40 1,792 13,341 840 1 97 412,055 4,325 604,679 1 170,000 165 74 7,351 1
90 (89) 2,060 (2,059) 250,000 (249,999) 10,000 (9,999) 11,953,000 (11,952,999) 30 (29) 443 (442) 5,467 40 1,092 20,303 840 1 350 579,965 1 1,948,593 1 296,000 330 316 9,932 1
Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
Unquoted Unquoted Unquoted Unquoted Quoted
9 200 3 Unquoted 100 Unquoted 110 Quoted 40 Quoted 800 65 Quoted 200 Quoted 100 Quoted 100 Quoted 500 Quoted 200 Quoted 8 Quoted
1,000 8,255 Quoted 1,100 Quoted 3,100 Quoted
25,000 19,300 Quoted 30,000 Quoted
437,500 Unquoted 200,000 Quoted
9 200 25,000 1,000 437,500 3 100 110 40 700 65 200 100 100 19,300 500 8,255 30,000 200,000 1,100 200 8 3,100
Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others
Hazira Cargo Terminals Ltd Less: Provision for impairment Haryana Sheet Glass Ltd Less: Provision for impairment Profin Money Market Ltd Less: Provision for impairment Tulip Finance Ltd Less: Provision for impairment World Tex Ltd Less: Provision for impairment Salaya Bulk Terminals Ltd Less: Provision for impairment Skypack Courier Ltd Less: Provision for impairment Banaras Beads Ltd Doin Global Solutions Ltd (Religare Technova) Gagan Polycot Ltd GE Shipping Ltd Gujarat Meditech Ltd Kinetic Trust Ltd. Mid India Industries Ltd Profin Capital Services Ltd Shree Rajasthan Syntex Ltd Sree Rayalaseema Hi Strength Hypo Ltd Cepham Milk Specialities Ltd. Punj Llyod Ltd Sujana Universal Industries Ltd Svam Software Ltd United Breweies Limited Sunstar Lubricants Ltd
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 34 35
----- End of picture text -----

136

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

1 1 1 1 1 1 1 1 1 1 1 1 404,126 4,690,150 57,278 23,044 13,354 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 - 5,204,100 1 13,750 13,354 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
80 Quoted 1 Quoted 50 Unquoted
100 Quoted 100 Quoted 400 Quoted 600 Quoted 100 Quoted 200 Quoted 300 Quoted 100 Unquoted 700 Unquoted 100 Unquoted 400 Unquoted 300 Unquoted 250 Unquoted 200 Unquoted 200 Unquoted 825 Unquoted 500 Unquoted 100 Unquoted
5,000 Quoted 9,600 Quoted 220,000 Unquoted 30,000 Unquoted 30,000 Unquoted 25,000 Unquoted 3,900 Unquoted 2,800 Unquoted 1,700 Unquoted 1,000 Unquoted 4,100 Unquoted
100 80 100 400 5,000 1 600 100 200 300 9,600 100 - 30,000 30,000 25,000 700 100 400 300 50 250 3,900 2,800 1,700 1,000 200 200 825 500 4,100 100
Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others
Jaimata Rolled Glass Ltd Jsw Ispat Steel Ltd Modern Threads Ltd Tribology India Ltd HPM Industries Ltd Mardia Samyoung Capillary Tube Grand Foundry Ltd Goldwon Textiles Ltd Good Value Marketing Ltd Krishna Engineering Works Ltd Superforging & Steels Ltd Bharati Telecom Ltd RFB Latex Ltd Rajasthan Antibiotics Ltd. Cebon India Ltd. Krishna Cold Rolled Ltd(Rs.2.50 pd) Valplus Biotech Ltd Adhunik Synthetics Ltd Bhiwani Synthetics Ltd BLB Mutual Services Ltd BLB Share & Financial Services Ltd Cepham Organics Ltd Chirau Finance Invest. & Leasing City Lifts Ltd Crest Paper Mills Ltd Datapro Information Technology Ltd Decora Tubes Ltd East India Syntex Ltd Electrolux Kelvinator (Intron) Garg Forgings & Castings Ltd Girnar Fibres Ltd Gorden Herbert india Ltd
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
----- End of picture text -----

137

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 490 (489) 6,406,027 6,406,027
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8,094,508 8,111,658
Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid Fully Paid
Unquoted
4 Unquoted
127,000 Unquoted 21,050 Unquoted 1,200 Unquoted 100 Unquoted 400 Unquoted 1,700 Unquoted 50 Unquoted 100 Unquoted 200 Unquoted 20 Unquoted 400 Unquoted 5,400 Unquoted 4,500 Unquoted 5,000 Unquoted 100 Unquoted 19,400 Unquoted 3,500 Unquoted 100 Unquoted 200 Unquoted 13,400 Unquoted 200 Unquoted 2,500 Unquoted 500 Unquoted 1,600 Unquoted 9,700 Unquoted 49
1,407,182
127,000 21,050 1,200 100 400 1,700 50 100 200 20 400 5,400 4,500 4 5,000 100 19,400 3,500 100 200 13,400 200 2,500 500 1,600 9,700 1,187,033
Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others Others
Greenfield Corporation Ltd(Rs.5.00 pd) Hindustan Development Corpn. Ltd Jainpur Straw Products Ltd Jay Vinyls Ltd Jiwan Flora Ltd Karishma Floriculture Ltd Kashipur Holdings Ltd(Bonus) Kitti Steels Ltd Makan Agro Ltd Minerva Holdings Ltd Moon Beam Industries Ltd Pan Asia Industries Ltd Rasik Plast Ltd S.M. Dychem Ltd S.V. Electricals Ltd Sajjan Textiles Ltd Shree Pommani Metals & Alloys Ltd Siddarth Spinfab Ltd Starspin & Twist Ltd Sturdy Polymers Ltd Suryachakra Seafoods Ltd Swarnima Oils Ltd Transpower Engineering Ltd U.P. Lime Chem Limited Vikram Projects Ltd Vishal Lakco Ltd Vadinar Oil Terminal Limited Total (b) Total (a+b)
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94
----- End of picture text -----*

138

DCM FINANCIAL SERVICES LTD.

7 TRADE RECEIVABLES

Trade receivables consist of the following: (Amount in Rs.) TRADE RECEIVABLES As at 31st March, 2021 As at 31st March, 2020 Amount in Rs. Amount in Rs. Unsecured, considered doubtful 169,467,432 169,467,432 Less: Provision for doubtful debts (169,467,432) (169,467,432) Total - - 8 Cash and Cash Equivalent Cash and cash equivalents consist of the following at amortised cost: (Amount in Rs.) Particulars As at 31st March, 2021 As at 31st March, 2020 Amount in Rs. Amount in Rs. (a) Balances with Bank Balance with Banks (Refer Note 8A, 8B) 2375021 -Restricted Bank Balance (Refer Note 8B) 3,723,105 1,905,505 Less: Provision for impairment (Refer Note 8B & 8C) (774,640) (774,640) 2,948,465 3,505,887 (b) Cash in hand 5,535 535 Total 2,954,000 3,506,422 8A Bank Balances Includes: (Amount in Rs.) Particulars As at 31st March, 2021 As at 31st March, 2020 Amount in Rs. Amount in Rs. Canara Bank 11,193 11,371 Axis Bank 190,686 2,363,651 Total 201,878 2,375,021 8B Restricted Bank Balances Includes : Particulars As at 31st March, 2021 As at 31st March, 2020 Canara Bank 748,745 748,745 IDBI Bank Limited 24,812 281,693 Axis Bank 694,665 625,084 UTI Bank 25,895 25,895 Kotak Mahindra 232,190 222,519 IDFC 1,794,919 1,569 Total 3,521,226 1,905,505 8C During the year ended 31st March, 2018, the provision for impairment of Rs. 7,74,640 had been provided for the banks balances which are not in operation from past years and confrmations to their balances are not made available. These balances are subject to confrmation as on 31.3.2020 and are still not operative.	As at 31st March, 2021 Amount in Rs. 169,467,432 (169,467,432)	As at 31st March, 2021 Amount in Rs. 169,467,432 (169,467,432)	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 169,467,432 (169,467,432)
	-		-
			(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 2375021 1,905,505 (774,640)
		2,948,465 5,535	3,505,887 535
		2,954,000	3,506,422
		As at 31st March, 2021 Amount in Rs. 11,193 190,686	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 11,371 2,363,651
		201,878	2,375,021
			As at 31st March, 2020 748,745 281,693 625,084 25,895 222,519 1,569
			1,905,505
Canara Bank UTI Total		As at 31st March, 2021 748,745 25,895 774,640	(Amount in Rs.) As at 31 st March, 2020 748,745 25,895 774,640

Canara Bank UTI	(Amount in Rs.) As at 31st March, 2021 As at 31 st March, 2020 748,745 748,745 25,895 25,895
Total	774,640 774,640

139

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

8D These are restricted bank balance and cannot be operated without getting prior approval of
Hon’ble Delhi High Court.
9 Other Bank Balances
Other Bank Balances consist of the following at amortised cost:
Particulars As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Bank Deposits
(deposits with original maturity of more than 3 months 31,500,408 27,881,916
having remaining maturity less than 12 months)
Total 31,500,408 27,881,916
9A These are restricted bank deposits and cannot be operated without getting prior approval of
Hon’ble Delhi High Court.
10 Other Current Financial Assets
Other Current Assets consist of the following at amortised cost: (Amount in Rs.)
Particulars As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Interest accrued but not due on Fixed Deposits 1,588,239 11,260,735
(A) 1,588,239 11,260,735
Unsecured, Doubtful
- Inter Corporate Deposit 7,957,994 7,957,994
- Bills Receivable 10,717,132 10,717,132
- Rent Receivable 51,846,552 51,846,552
Less: Provision towards Doubtful Debts/ECL (70,521,678) (70,521,678)
(B) - -
Total (A) + (B) 1,588,239 11,260,735
11 Other Current Assets (Non-Financial)
Other Current Assets consist of the following:-: (Amount in Rs.)
Particulars As at 31st As at 31st
March, 2021 March, 2020
Amount in Rs. Amount in Rs.
Prepaid Expenses 3448
Employee Advances 12,447 12,447
Other Advances 354,285 284,763
Prepaid Expenses 2,973
369,705 297,210
Less: Provision NPA (258,233) (297,210)
Total 111,473 3,448
----- End of picture text -----

140

DCM FINANCIAL SERVICES LTD.

12 SHARE CAPITAL

The Authorised,Issued,Subscribed and fully Paid up Share Capital of Equity Shares having a par value of Rs.10/- each as follows:

value of Rs.10/- each as follows:
Share Capital	As at 31st March, 2021		As at 31st March, 2020
	Number	Amount in Rs.	Number	Amount in Rs.
Authorised Equity Shares of Rs. 10/- each 6,50,00,000 Equity Shares of Rs.10 each Issued 2,21,25,054 Equity Shares of Rs.10 each Fully paid up	65,000,000	650,000,000	65,000,000	650,000,000
	65,000,000	650,000,000	65,000,000	650,000,000

	22,125,054	221,250,540	22,125,054	221,250,540
Total	22,125,054	221,250,540	22,125,054	221,250,540

12A Reconciliation of number of shares

Particulars	Equity Shares	Equity Shares	Equity Shares	Equity Shares
	As at 31st March, 2021		As at 31st March, 2020
	Number	Amount inRs.	Number	Amount in Rs.
Shares outstanding at the beginning of theyear	22,125,054	221,250,540	22,125,054	221,250,540
Shares Issued duringtheyear	-	-	-	-
Shares bought back duringtheyear	-	-	-	-
Anyother movement(please specify)	-	-	-	-
Shares outstanding at the end of theyear	22,125,054	221,250,540	22,125,054	221,250,540

12B Details of shares held by shareholders holding more than 5% of aggregate shares in the company

company
Name of Shareholders	Equity Shares As at 31st March, 2021 As at 31st March, 2020 No. of Shares held % of Holding No. of Shares held % of Holding
			As at 31st March, 2020
		% of Holding	No. of Shares held	% of Holding
DCM Services Ltd	6,352,487	28.71%	6,352,487	28.71%
Intellect Capital Services Ltd	2,075,000	9.38%	2,075,000	9.38%
Punjab & Sind Bank	1,319,900	5.97%	1,319,900	5.97%
Total	9,747,387	44.06%	9,747,387	44.06%

141

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Total (651,018,440) (651,018,440) - - (293,983) - - 25,098 (654,139,231) (654,139,231) (1,294,304) 9,843 (655,423,692)
307,425 307,425 8,775 - - - 316,200 316,200 (3,754) - 312,446
Non
Interest
Controlling
of Parent (3,154,664) - - 25,098 (1,290,550) 9,843
Attributable to the owners (651,325,865) (651,325,865) (654,455,431) (654,455,431) (655,736,139)
Retained Earnings - - (3,145,889) - - 25,098 (1,294,304) 9,843
Special Reserve - - - - - -
- - - - - -
Reserve 875,000 15,623,000 (852,297,051) 875,000 15,623,000 (852,297,051) 875,000 15,623,000 (855,417,842) 875,000 15,623,000 (855,417,842) 875,000 15,623,000 (856,702,303)
Debenture Redemption
Reserves and Surplus Securities Premium - - - - - -
Capital Reserve - - - - - -
19,386,846 165,086,340 19,386,846 165,086,340 19,386,846 165,086,340 19,386,846 165,086,340 19,386,846 165,086,340
OTHER EQUITY Other equity consist of following :
13 Other Equity Balance at the end of the 1.04.2019 a. Balance at the beginning of the reporing period b. Changes in accounting policy or prior period errors c. Restated balance at the beginning of the reporting period d. Total comprehensive income for the year e. Dividends f. Transfer to retained earnings g. Total other comprehensive income for the year Balance at the end of the 31.03.2020 a. Balance at the beginning of the reporing period b. Changes in accounting policy or prior period errors c. Restated balance at the beginning of the reporting period d. Total comprehensive income for the year e. Dividends f. Transfer to retained earnings g. Total other comprehensive income for the year Balance at the end of the 31.03.2021
----- End of picture text -----

142

DCM FINANCIAL SERVICES LTD.

14 Long Term Borrowing

Long term borrowings consist of following : Particulars A. Unsecured (i) Term Loan from SBI HF (Refer Note 14.1) (ii) Payable to Related Party - DCM Services Ltd (Refer Note 14.2) Total	As at 31st March, 2021 Amount in Rs. 2,500,000 18,270,000	As at 31st March, 2020 Amount in Rs. 2,500,000 18,270,000
	20,770,000	20,770,000

	20,770,000	20,770,000

14.1 SBI HOME FINANCE LIMITED

(a) Status till 31-March-2017 and as on 31-March 2021 - The company has already paid Rs. 29,000,000 under the Old Scheme and proposes to allot shares worth Rs. 2,500,000 for the balance as per the Fresh Restructuring Scheme in the first year from the effective date (Effective date means the date of filing of the certified copy of the order sanctioning the scheme of the Hon’ble High Court of Delhi at New Delhi with the Registrar of Companies of Delhi & Haryana). SBIHF has removed a charge on its assets and therefore the loan is now categorized as unsecured loan.

(b) DECISION OF ONE MAN COMMITTEE

As per Report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi Court as on 10th August, 2017, the debt settlement will be as follows:

(i) Amount due to SBI Home Finanace as at 31-Dec-2015

Particulars	Amount(In Lacs)	Amount(In Lacs)
I. Principal Outstanding	25.00
II. MaturityInterest	-
Total	25.00
(ii) Payment Schedule by issuing in shares (In Lacs)
Particulars		Phase-I
To be discharged by issuance of Equity shares of the Company of the face value of Rs. 10/- at a premium of Rs. 20/- per share or as per applicable SEBI guidelines		25.00
The Company proposes to allot shares worth Rs. 25.00 Lacs to SBI Home Finance Ltd. as per the Decree awarded by the’ Hon ‘ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme as per applicable SEBIguidelines
Total		25.00
Since, the number of shares to be allotted are not clear, presently the amount of Rs. 25 Lacs is shown in Liabilities and not under other equity. The same shall be reclassifed depending upon whether Company has to issue variable number of equity shares or fxed number of equity shares.

143

DCM FINANCIAL SERVICES LTD.

14.2 PRESSMAN LEASING

(a) DECISION OF ONE MAN COMMITTEE

The amount due to M/s, Pressman Leasing has been quantified at the lump sum of Rs 4.10 Cr and such amount would be paid 55% (Rs. 2.26 Crore) in cash and 45% (Rs. 1.84 Crore) in shares and details are under:-

(i) Payment Schedule Amount (In Cr)	(i) Payment Schedule Amount (In Cr)	(i) Payment Schedule Amount (In Cr)
Particulars	Phase-I	Phase-II
I. 70% of totalprincipal amount	1.58	-
II. 30% of total amount	-	0.68
Total	1.58	0.68

(b) The Company has to allot fully paid up shares of the Company (45% of 4.10 crores i.e. 1.84 Crore) as per SEBI guidelines to Pressman Leasing as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme.
Since, the number of shares to be allotted are variable, the amount is shown in Liabilities and not equity.

(c) The Interest dues were waived and cancelled.]

(d) The Loan of Pressman Leasing (55% of 4.10 crore i.e. 2.26 Crore) was acquired by DCM Services Limited. The company pursuant to scheme of One Man Committee, has paid 70% i.e. Rs. 1.56 Crore of the principal amount to DCM Services Limited under Phase-I during the year ended 31-March-2018, being assignee of said loan of Pressman Leasing. The balance 30% amount which was outstanding as on 01st April 2019 and was included in the Payment to Related Party has been released as per Phase-II as per Schedule. The closing balance after payment as per phase II of Rs. 0.68 lacs to Pressman Leasing is NIL as on 31st March 2021.

15 Lease Liability

Other Non Current Liabilities consist of the following:-

Lease Liability
Other Non Current Liabilities consist of the following:- Particulars Lease Liability Total	As at 31st March, 2021 Amount in Rs. 440,367	(Amount in Rs.) As at 1st March, 2020 Amount in Rs. -
	440,367	-

16 Provisions (Non-Current)

Provisions (Non-Current)
Provisions consist of the following : Particulars (a) Provision for Employee Benefts Leave Encashment Gratuity Total	As at 31st March, 2021 Amount in Rs. 61,845 657,929	(Amount in Rs.) As at 1st March, 2020 Amount in Rs. 24,846 547,490
	719,774	572,336

17 Other Current Financial Liabilities

144

DCM FINANCIAL SERVICES LTD.

Other Financial Liabilities consist of the following at amortised cost:- Particulars As at 31st March, 2021 Amount in Rs. i Lease Liability 404,006 404,006 ii a. Current Maturities of Long Term Debt Payable to Related Party - Inter Corporate Deposits (Refer Note 17.1) 105,265,445 105,265,445 b. Secured Debentures (Refer Note 17.2) 184,174,878 c. Unsecured Fixed Deposit from Public (Refer Note 17.3) 484,931,457 Inter - Corporate Deposits (Refer Note 17.4) 2,716,607 487,648,064 (d) Rent Payable - (e) Security Deposits 625,000 (f) Payable to Punjab & Haryana High Court 10,000,000 (Refer Note 17.5) (g) Expenses Payable 9,060,747 (h) Other Payable 5,511,990 Total 802,286,124	Other Financial Liabilities consist of the following at amortised cost:- Particulars As at 31st March, 2021 Amount in Rs. i Lease Liability 404,006 404,006 ii a. Current Maturities of Long Term Debt Payable to Related Party - Inter Corporate Deposits (Refer Note 17.1) 105,265,445 105,265,445 b. Secured Debentures (Refer Note 17.2) 184,174,878 c. Unsecured Fixed Deposit from Public (Refer Note 17.3) 484,931,457 Inter - Corporate Deposits (Refer Note 17.4) 2,716,607 487,648,064 (d) Rent Payable - (e) Security Deposits 625,000 (f) Payable to Punjab & Haryana High Court 10,000,000 (Refer Note 17.5) (g) Expenses Payable 9,060,747 (h) Other Payable 5,511,990 Total 802,286,124	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 105,265,445
	404,006
	105,265,445
	105,265,445	105,265,445
	184,174,878	184,867,923
	484,931,457 2,716,607	490,766,196 2,716,607
	487,648,064	493,482,803
	- 625,000 10,000,000 9,060,747 5,511,990	- 625,000 10,000,000 8,607,299 5,493,520
	802,286,124	808,341,990

17.1 Payable to Related Partie s

The One Man committee earlier recommended to pay to the creditors 70% of the principal
amount. The above said arrangement was modifed by the committee on 18th May 2019 and
accordingly it has been decided to pay creditors who have claimed amount as per procedure
set by the committee and whose documents have been verifed. As per the claims made by the
creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has
already been paid has also started by the company. The balance payable to creditors is as per
books and who have not claimed so far or their documents are under verifcation.
Payable to Related Party Include the following:
31.03.2021
31.03.2020
- DCM International Limited
28,156,876
28,156,876
- DCM Services Limited
73,924,220
73,924,220
- DCM Anubhavi Market Private Limited
3,184,349
3,184,349

105,265,445
105,265,445

17.2 DEBENTURES

Debentures	As at 31.03.2021	As at 31.03.2020
"A"Series Debenture	210,000	210,000
"B" Series Debenture - 19.5% Regular - 19.5% Cumulative -Deep Discount Bonds
	78,687,989	78,951,189
	79,970,237	80,310,237
	25,306,652	25,396,497
	184,174,878	184,867,923

(b) Scheme ‘’A’’ Series

The company had allotted the Debenture ‘A’ series on 28th February, 1996 and 23rd September, 1996 respectively. These debentures are secured against mortgage/hypo-thecation/charge on assets financed out of the proceeds of these debentures. The outstanding debentures of Rs. 710,000 were overdue as on March 31,2019 out of which Rs 5,00,000 have been repaid during the year 2019-2020. The remaining overdue balance are to be paid as per report of One Man Committee under Fresh Restructuring Scheme.

145

DCM FINANCIAL SERVICES LTD.

(c) Scheme ‘’B’’ Series

Debenture ‘B’ Series were allotted on 5th November, 1996 and are secured against hypothecation/charge on land and premises situated at Mouje Pirangut, Taluka Mulshi, Distt Pune in the State of Maharashtra alongwith all buildings, structures thereon and all plant and machinery, spares, tools, accessories and other movables of the Company, both present and future, whether installed or not. The total amount of debentures allotted were Rs 281,804,100 which matured for redemption on 5th May, 1998. Out of total debentures allotted amounting to Rs 281,804,100, debentures of Rs. 9,71,46,177 have been redeemed till March 31st, 2020. The remaining debentures as at March 31, 2020 in the ‘’B’’ series amounting to Rs 18,46,57,923 consist of the following:-

consist of the following:-
Particulars	Amount(Rs.)	Amount(Rs.)
19.5% Regular	78,951,189	78,951,189
19.5% Cumulative	80,310,237	80,310,237
DeepDiscount Bonds	25,396,497	25,396,497
Total	184,657,923	184,657,923

(d) The value of assets charged in favor of debentures has been depleted over a period of time but the depletion has not been ascertained. To the extent of shortfall, if any, the liability is unsecured.
(e) A supplementary trust deed for giving effect to the proposed repayment plans as provided in Clause 44 of the Trust deed has not been prepared by the trustees so far.
(f) Status till 31-March-2017 and till 31st March 2020 - Provision of interest on debentures up to 31st March, 2017 from the date of renewal offer letter of 1998 is calculated @ 10% p.a. of simple interest on 19.5% Debenture “B” Series and regular interest on Debenture “A” Series amounting to approximately Rs. 482,230,034 has not been provided since a Fresh Restructuring Scheme that is subject to the approval of the Hon’ble High Court of Delhi has been submitted which does not envisage payment of any interest. The rate of 10% per annum issued for Dentureholders is based on the order of Company Law Board (CLB) which was pronounced for Fixed Depositors. Though Fresh Scheme does not envisage payment of any interest, it has been considered prudent to provide Interest of 10% per annum on 19.5% Debenture “B” Series and regular interest on Debenture “A” Series since date of renewal offer letter in 1998 by following principles of prudence.
However, since the Restructuring Scheme proposed by One Man Committee has been approved Hon’ble Delhi High Court, the maturity interest amount is restricted to Rs 2.35 Crores which is scheduled to be shall be to be paid in Phase-2, although decision regarding payment of interest after maturity will be taken at a future date by Hon’ble Delhi Court.
(g) Status till 31-March-2017 - The Central Bank of India, Bombay, Trustees for the NonConvertible Debentures B-Series have filed a suit for recovery of Rs. 442,178,385 on 14th October, 1999 before the Hon’ble Bombay High Court. It includes interest of Rs. 155,361,443 and Rs. 286,796,000 towards principal. No provision has been made in the books of accounts for such interest.

146

DCM FINANCIAL SERVICES LTD.

(h) DECISION OF ONE MAN COMMITTEE

As per report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi Court as on 10th August, 2017, repayment of Debentureholders of “A” Series as well as “B” Series is to be made in two phases. In the first phase of scheme of repayment, debentureholders are to be paid 70% the balance principal amount. The Debentureholders having balance of Rs 5,000 or less will be paid their 100% principal amount in the First Phase. In the second phase maturity interest on debentures is to be paid along with remaining 30%. The schedule of payment to Debentureholders to settle debt will be as under :-

==> picture [312 x 427] intentionally omitted <==

----- Start of picture text -----

(i) Amount due to Debenture-holders
Particulars Amount (In Cr.)
I. Principal Outstanding 25.53
II. Maturity Interest 2.35
Total 27.88
(ii) Payment Schedule
(In Crores)
Particulars Phase-I Phase-II
I. 70% of total principal amount 17.87 -
II. Less than Rs 5,000 1.69 -
III. 30% of total amount - 5.97
IV. Maturity Interest - 2.35
Total 19.56 8.32
(i) Statement on Reconciliation of Debentures:
Principal Outstanding as per the Scheme of One Man Committee 255,285,689
Less: Redemption made during the year with the approval of High Court 264,845
of Delhi
Balance as on 1st April 2017 255,020,844
Less: Redemption made during the year ended 31-March-2018 as per the 17,616,779
scheme of one man committee
Balance as on 31st March 2018 237,404,065
Less: Redemption made during the year ended 31-March-2019 as per the 35,195,313
scheme of one man committee
Balance as on 31st March 2019 202,208,752
Less: Redemption made during the year ended 31-March-2020 as per the 17,340,829
scheme of one man committee
Balance as on 31st March 2020 184,867,923
Less: Redemption made during the year ended 31-March-2021 as per the 693,045
scheme of one man committee
Balance as on 31st March 2021 184,174,878
Total Debt was scheduled to be paid in Two phases. First phase of debt settlement as per
Report of One Committee pursuant to order dated 3.9.2015 has already commenced in the FY
17-18 and payments to debentureholders amounting of Rs.7,01,52,921 has already been made
till March 31, 2020. Remaining debt includes balance 30% and unclaimed original principal
amount invested of Rs 5000 or less. Since KYC norms are still under process and payments
are to be made in coming periods, the entire debt balance of Rs 18,48,67,923 is shown as Other
Current Financial Liability.
The One Man committee earlier recommended to pay to the creditors 70% of the principal
amount. The above said arrangement was modified by the committee on 18th May 2019 and
accordingly it has been decided to pay creditors who have claimed amount as per procedure
set by the committee and whose documents have been verified. As per the claims made by the
creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has
already been paid has also been started by the company. The balance payable to creditors is as
per books and who have not claimed so far or their documents are under verification.
----- End of picture text -----

147

DCM FINANCIAL SERVICES LTD.

17.3 FIXED DEPOSITORS

(a) STATUS AS AT -31-MARCH-2017 - In respect of repayment of outstanding deposits with interest vide order dated 17.07.98, the Company Law Board had ordered payment of interest at contracted rates up to the date of maturity and at 10% thereafter. Due to liquidity problems, the company has not fully followed the schedule of repayment ordered by the Company Law Board. However, a Fresh Restructuring Scheme of arrangement for re-organization of the share capital of the company and for compromise with its creditors including fixed depositors filed with Hon’ble Delhi High Court in 2004 does not envisage payment of interest accordingly provision of interest payable amounting to Rs. 82,706,000 recorded earlier has been written back in earlier years.

STATUS AS AT -31-MARCH-2017 - Provision for interest on fixed deposits up to March 31, 2017 calculated at simple interest @ 10% p.a. in accordance with the order of The Hon’ble Company Law Board amounting to approx. Rs. 1,158,866,417 (including Rs. 1,102,721,307 for the earlier years) has not been made, in view of the “Fresh Restructuring Scheme” pending before the Hon’ble Delhi High Court wherein the company does not envisage payment of any interest. To the extent of non-provision of interest @10% as per the previous CLB order, the cumulative Interest of Rs.1,147,419,074 were not provided for. The difference between the contracted rate of interest and rate of interest @ 10% has also not been ascertained and provided for.

(b) Liability on account of Fixed Deposits received contain certain deposits which appear prima-facie to be suspect due to either lack of identification of depositors or no claim or confirmation having been received by the company. Payment of those deposits that are under a suspicious category will be made under the schee of One Man Committee only after the evidence of receipt of money is established.

(c) DECISION OF ONE MAN COMMITTEE

As per Report of One Man Committee pursuant to order dated 3.9.2015 passed by Hon’ble Delhi Court as on 10th August, 2017, repayment to Fixed Depositors is to be made in two phases. In the first phase of scheme of repayment are to be paid 70% the balance principal amount. The Depositors having balance of Rs 5000 or less will be paid their 100% principal amount in the first phase. In the second phase maturity interest is to be paid along with remaining 30%. In the circumstances the debt settlement will be as follows:

(i) Amount due to Fixed Depositors as at 31-Dec-2015

Particulars	Amount (In Lac)
I. Principal Outstanding	56.31
II. Maturity Interest	14.48
Total	70.79

(ii) Payment Schedule

Total 70.79 Payment Schedule	Total 70.79 Payment Schedule	Total 70.79 Payment Schedule
(In Lacs)
Particulars	Phase-I	Phase-II
I. 70% of total principal amount	36.15	-
II. Less than Rs 5,000	4.67	-
III. 30% of total amount	-	15.59
IV. Maturity Interest	-	14.48
Total	40.82	30.07

148

DCM FINANCIAL SERVICES LTD.

(d) Statement on Reconciliation of FDs Accepted: Amount in Rs.	(d) Statement on Reconciliation of FDs Accepted: Amount in Rs.
Particulars	Amount in Rs
Balance as on 1st April 2018	544,992,529
Less: Redemption made during the year with the approval of High Court of Delhi	21,245,671
Balance as on 31st March 2019	523,746,858
Less: Redemption made during the year as per the scheme of one man committee	32,980,662
Balance as on 31st March 2020	490,766,196
However, since the Fresh Restructuring Scheme has been approved by One Man Committee, the maturity interest amount is decided to be 14.48 Crores payable in II Phase. Although the same is not recorded in Books of Accounts. Also the decision regarding payment of interest after maturity will be taken at a future date by Hon’ble Delhi Court.

The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modified by the committee on 18th May 2019 and accordingly it has been decided to pay creditors who have claimed amount as per procedure set by the committee and whose documents have been verified. As per the claims made by the creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

17.4 INTER CORPORATE DEPOSITS

(a) tatus as at 31-March-2017- The value of inter corporate deposits is Rs 27,16,607. Considering the the order of The Hon’ble Company Law Board for Fixed Deposits which states to charge interest @10% p.a. which should also be considered for Inter Corporate Deposits on prudence basis. Considering the interest rate of 10% p.a. the total interest lability comes to be approximately Rs. 5,433,213 which includes approximately Rs. 5,161,553 for the earlier years, has not been made in view of the “Fresh Restructuring Scheme” pending before the Hon’ble High Court of Delhi wherein the company does not envisage payment of any interest. The interest is not provided in the books of accounts
(b) DECISION OF ONE MAN COMMITTEE ICD Lenders will be paid principal due to them as on 30th June 2004. Interest dues are waived and cancelled. The payment of principal to the ICD lenders will be made as follows:
(i) Amount due to ICD Lenders as at 31-Dec-2015

==> picture [293 x 100] intentionally omitted <==

----- Start of picture text -----

Particulars Amount (In Crore)
I. Principal Outstanding 27.17
II. Maturity Interest -
Total 27.17
(ii) Payment Schedule
(In Crores)
Particulars Phase-I Phase-II
I. 70% of total principal amount 19.02 -
II. 30% of total amount - -
III. Maturity Interest - 8.15
Total 19.02 8.15
----- End of picture text -----

149

DCM FINANCIAL SERVICES LTD.

However, after approval of Scheme of One Man Committee, the settlement has been decided at Rs 27.17 Lacs. Interest Dues are waived and cancelled.
No payment has been made till date to ICD Lenders. However, scheme has been already approved, so the amount is to be paid in coming periods as per Phase-1 and Phase-2. Hence, the amount of ICD is classified as Other Current Financial Liability.
17.5 During the year 1999, the company had received Rs. 10,000,000 from one of its debtors i.e. Pure Drinks New Delhi Ltd. where the winding up petition proceedings was already initiated. Upon receipt of payment, the Company reduced the recoverable amount accordingly. Subsequently, the Hon’ble Punjab and Haryana Court deemed that payment is out of turn/preferential payment made by Pure Drinks New Delhi Ltd where winding up petition proceedings was already initiated and asked the company to deposit back the said amount with Hon’ble Punjab and Haryana Court. The company had filed a SLP with the Hon’ble Supreme Court of India which has been dismissed by them. Therefore the company is liable to deposit the amount mentioned above which is yet to be deposited.
18 Other Current Liabilities (Non-Financial)

Other current libilities consist of the following:- Particulars Statutory Liabilities Payable to Employees/Employee Advances Total	As at 31st March, 2021 Amount in Rs. 338,279 753,130	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 363,885 2,089,633
	1,091,409	2,453,518

19 Provision (Current) Provisions consist of the following : Particulars (a) Provision for employee benefts - Leave Encashment - Gratuity Total	As at 31st March, 2021 Amount in Rs. 101,337 14,004	(Amount in Rs.) As at 31st March, 2020 Amount in Rs. 40,502 10,894
	115,341	51,396

20 Other Income

Other income (net) consist of the following:

Particulars Interest on Fixed Deposits Deferred Income Dividend Income Proft on sale of Investment Miscellaneous Income Reversal of Provision, no longer required Interest on Income Tax Refund Gain or Loss on Fair Value of Investment Total	For the year ended 31.03.2021 Amount in Rs. 16,257,522 25,224 1,812,534 12 41,075 94,980 2,120,021 20,351,369	(Amount in Rs.) For the year ended 31.03.2020 Amount in Rs. 18,072,623 7,297,981 45,542 2,825 115,000 - - -25,270 25,508,700

150

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

21 Employee Benefit Expense
Employee benefits expenses consist of the following:
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
(a) Salaries, Wages & Bonus 4,151,844 3,401,874
(b) Contributions to Provident Fund and other funds 607,519 508,032
(c) Staff Welfare expenses - 513
Total 4,759,363 3,910,419
22 Finance Cost
Finance costs consist of the following:
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
Interest on late deposit of TDS 140 468
Interest Expense on financial liability - 9,594,571
Interest Expense on Lease liability 109,352 -
Total 109,492 9,595,039
23 Other Expenses
Other expenses consist of the following
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Rs. Amount in Rs.
Travelling & Conveyance 126,948 202,914
Repairs
- Building 27,500 30,950
- Others 25,460 411,426
Electricity & Water 78,488 103,735
Legal & Consultancy Charges 5,801,460 6,442,497
Postage and Telegram 1,805 6,009
Auditors Remuneration:
- Statutory/Tax Audit 413,000 413,000
- Other 53,100 -
Rent 86,402 532,704
Telephone Expenses 32,738 48,307
Advertisement & Publicity 96,553 596,701
Printing and Stationery 13,114 21,794
Bank Charges 3,263 2,242
Provision for Diminuation of Investments - 4,680
Provision for NPA - 59,702
Unrealised loss on account of fair valuation of - 5,205,700
Investments
Share Transfer Expenses 219,640 150,000
AGM Expenses 977,910 1,027,421
Internal Audit Fees 20,000 20,000
Lisiting Fees 784,236 783,717
Rates and Taxes - 15,200
Excess Accrued Interest written off - 157,460
Property Tax 338,237 284,409
----- End of picture text -----

151

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Penalty on late deposit of EPF challan - 944
Loss on sale of Investments - 42,879
Fine/Penalty - 129,800
Insurance Charges 7,386 -
Other Expenses 40,606 26,380
TOTAL 9,147,846 16,720,571
24 Income tax expenses (Amount In Rs.)
Particulars For the For the
year ended year ended
31.03.2021 31.03.2020
Amount in Amount in
Rs. Rs.
A. Amount recognised in profit or loss
Current tax
Income tax for the year
Current tax 780,000 -
Adjustments/(credits) related to previous years - Net 3,217,897 -
Total current tax 3,997,897 -
Deferred tax
Deferred tax for the year 285,956 (7,365,128)
Adjustments/(credits) related to previous years - Net - -
Total deferred tax 285,956 (7,365,128)
TOTAL 4,283,853 (7,365,128)
B. Amount recognised in other comprehensive income
The tax (charge)/credit arising on income and expenses
recognised in other comprehensive income is as follows:
Deferred tax
On items that will not be reclassified to profit or loss
- Remeasurement gains/(losses) on defined benefit plans 3,459 8,818
TOTAL 3,459 8,818
25) Significant Accounting Policies
I. BASIS OF CONSOLIDATION
The Consolidated financial statements (CFS) relate to DCM Financial Services Limited (the
holding company) and its subsidiary company.
(a) Basis of Accounting:
(i) The Consolidated financial statements of the subsidiary companies used in the
consolidation are drawn up to the same reporting date as the holding company i.e. year
ended March, 2021.
(ii) The Consolidated financial statements of the holding company and its subsidiary
companies have been prepared in accordance with the relevant Indian Accounting
Standards (Ind AS) specified under Section 133 of the Companies Act, 2013.
(b) Principles of consolidation:
The consolidated financial statements have been prepared on the following basis:
(i) The Consolidated financial statements of the holding company and its subsidiary
companies are combined on a line-by-line basis by adding together the book values of
like items of assets, liabilities, income and expenses, after fully eliminating intra-group
balances and intra-group transactions in accordance with Indian Accounting Standard (Ind
AS) 110 - “Consolidated financial statements”.
----- End of picture text -----

152

DCM FINANCIAL SERVICES LTD.

(ii) The excess/deficit of the cost to the holding company of its investment in its subsidiaries over its share of net worth of the subsidiaries at the date of investment in the subsidiaries are treated as goodwill/capital reserve in the CFS. Goodwill is disclosed as asset and capital reserve as a reserve in Consolidated Balance Sheet.
(iii) Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments are made by the holding company in the subsidiary companies and further movements in their share in the equity, subsequent to the dates of investments as stated above.

(c) Information on Subsidiary Companies

The following subsidiary companies are considered in the consolidated financial statements:

Particulars	% voting power held	% voting power held
	As at 31st March, 2021	As at 1st April, 2020
Subsidiary Companies:-
Global IT Options Limited	90%	90%

II Basis of preparation of consolidated financial statements
A. Statement of Compliancewith Ind AS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013. The financial statements have also been prepared in accordance with the relevant presentation requirements of the Companies Act, 2013. The Company adopted Ind AS from 1st April, 2018.

Up to the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the requirements of previous Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006.

B. Basis of Preparation
The financial statements are prepared in accordance with the historical cost convention, except for certain items that are measured at fair values, as explained in the accounting policies.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the following fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 -Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
Fair value for measurement and / or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 – Share-based Payment, leasing transactions that are within the scope of Ind AS 116 – Leases, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IndAS 2 – Inventories or value in use in Ind AS 36 – Impairment of Assets.

153

DCM FINANCIAL SERVICES LTD.

==> picture [312 x 426] intentionally omitted <==

----- Start of picture text -----

All the amounts included in the financial statements are reported in Indian Rupees (‘Rupees’ or
‘Rs.’), except per share data and unless stated otherwise and rounded off to nearest Rupees.
C. Basis of classification of Current and Non-Current
The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.
An asset is classified as current when it is:
a) Expected to be realized or intended to be sold or consumed in normal operating cycle
b) Held primarily for the purpose of trading
c) Expected to be realized within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is classified as current when:
a) It is expected to be settled in normal operating cycle
b) It is held primarily for the purpose of trading
c) It is due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period
All other liabilities are classified as non-current.
D. Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013
and Ind AS 1 – Presentation of Financial Statements.
Based on the nature of products / activities of the Company and the normal time between
acquisition of assets and their realization in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non-current.
E. Use of Estimates
The preparation of financial statements in conformity with Ind AS requires management to make
judgments, estimates and assumptions that affect the application of the accounting policies
and the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the year. Actual results could differ from those estimates. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that
period; they are recognized in the period of the revision and future periods if the revision affects
both current and future periods.
F. Property, Plant and Equipment – Tangible Assets
Property, plant and equipment are stated at cost ofacquisition or construction less accumulated
depreciationand impairment, if any. For this purpose, cost includesdeemed cost which represents
the carrying value of property, plant and equipment recognized as at 1st April, 2016measured as
per the previous GAAP.
----- End of picture text -----

Cost is inclusive of inward freight, duties and taxes andincidental expenses related to acquisition. In respect ofmajor projects involving construction, related pre-operationalexpenses form part of the value of assets capitalized.Expenses capitalized also include applicable borrowingcosts for qualifying assets, if any. All up-gradation/enhancements are charged off as revenue expenditureunless they bring similar significant additional benefits. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits areexpected to arise from the continued use of asset. Any gainor loss arising on the disposal or retirement of an item ofproperty, plant and equipment is determined as the differencebetween the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

154

DCM FINANCIAL SERVICES LTD.

The estimated useful lives of property, plant and equipment of the Company are as follows:

Asset	Life of Asset
Buildings	30 Years
Furniture and Fixtures	10 Years
Vehicles	8 Years
Offce Equipment	5 Years
Plant & Machinery	15 years

G. Impairment of Assets

Impairment loss, if any, is provided to the extent, the carrying amount of assets or cash generating units exceed their recoverable amount.

H. Financial Assets

Recognition: Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and cash equivalents. Such assets are initially recognized at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

a) Amortized cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.
b) Fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognised in other comprehensive income.
c) Fair value through profit or loss (FVTPL) , where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognized in the Statement of Profit and Loss in the period in which they arise. Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at amortized cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.

155

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Reclassification: When and only when the business model is changed, the Company
shall reclassify all affected financial assets prospectively from the reclassification date as
subsequently measured at amortized cost, fair value through other comprehensive income,
fair value through profit or loss without restating the previously recognized gains, losses or
interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial
Instruments.
De-recognition: Financial assets are de-recognized when the right to receive cash flows from
the assets has expired, or has been transferred, and the Company has transferred substantially
all of the risks and rewards of ownership.
Concomitantly, if the asset is one that is measured at:
a) Amortized cost, the gain or loss is recognized in the Statement of Profit and Loss;
b) Fair value through other comprehensive income, the cumulative fair value adjustments
previously taken to reserves are reclassified to the Statement of Profit and Loss unless the
asset represents an equity investment in which case the cumulative fair value adjustments
previously taken to reserves is reclassified within equity.
Income Recognition: Interest income is recognized in the Statement of Profit and Loss using
the effective interest method. Dividend income is recognized in the Statement of Profit and Loss
when the right to receive dividend is established.
I. Financial Liabilities
Borrowings, trade payables and other financial liabilitiesare initially recognised at the value of
the respectivecontractual obligations. They are subsequently measuredatamortised cost. Any
discount or premium onredemption/ settlement is recognised in the Statement of Profit andLoss
as finance cost over the life of the liability using theeffective interest method and adjusted to the
liability figuredisclosed in theBalanceSheet.
Financial liabilities are de-recognised when the liability isextinguished, that is, when the
contractual obligation isdischarged, cancelled and on expiry.
J. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.
K. Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amountis included in the Balance Sheet
where there is a legallyenforceable right to offset the recognized amounts andthere is an
intention to settle on a net basis or realizetheasset and settle the liability simultaneously.
L. Equity Instruments
Equity instruments are recognised at the value of theproceeds, net of direct costs of the capital
issue.
M. Revenue
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
• Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow to the
Company; and
a) Interest income: Incomefrom a financial asset is recognised when it is probable
that the economic benefits will flow to Company and the amount of income can be
measured reliably. Interest income is accrued on time basis, by reference to the
principal outstanding and at the interest rate as applicable.
b) Dividend income: dividend is recognised when the right to receive the payment is
established (generally on shareholder’s approval by the reporting date).
c) Other revenues: are recognised on accrual basis, except where there are
uncertainties in realisation / determination of income and in such case income is
recognised on realisation / certainty.
----- End of picture text -----

156

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

N. Employee Benefits
a) Retirement benefit costs and termination benefits :
Payments to defined contribution retirement benefit plans are recognised as an expense
when employees have rendered service entitling them to the contributions.
Contribution towards Provident Fund is paid as per the statutory provisions. These benefits
are charged to the Statement of profit and loss of the year when they become due. For
defined benefit retirement benefit plans, the cost of providing benefits is determined using
the projectedunit credit method, with actuarial valuations being carried out at the end of
each annual reporting period.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the
return on plan assets(excluding net interest), is reflected immediately in the balance sheet
with a charge or credit recognised in othercomprehensive income in the period in which
they occur. Re-measurement recognised in other comprehensive income is reflected
immediately in retained earnings and is not reclassified to the statement of profit and loss.
Pastservice cost is recognised in the statement of profit and loss in the period of a plan
amendment. Net interest iscalculated by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and
losses on curtailments and settlements);
• net interest expense or income; and
• re-measurement.
b) Short-term and other long-term employee benefits:
A liability is recognised for benefits accruing to employees in respect of wages and salaries
in the period the related service is rendered at the undiscounted amount of the benefits
expected to be paid in exchange for that service. Liabilities recognised in respect of
short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in exchange for the related service.
Leave availment / encashment benefit is provided as per Company Scheme. Employee‘s
are entitled to accumulate leaves subject to certain limit as per Company scheme.
Liabilities for compensated absence that are not expected to be settled wholly within 12
months after the end of the period in which the employees rendered the related service,
are measured at the present value of expected future payment to be made in respect of
service provided by employees up to the end of reporting period using the projected unit
credit method. The benefitsare discounted using the market yields at the end of reporting
period. Re-measurement as a result of experience adjustments and change in actuarial
assumptions are recognised in the statement of profit and loss. The liability is determined
through actuarial valuation using projected unit credit method.
O. Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance
of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if
fulfillment of the arrangement is dependent on the use of a specific asset/s and the arrangement
conveys a right to use the asset/s, even if that right is not explicitly specified in an arrangement.
At the date of commencement of the lease, the Company recognizes a right-of-use asset
(“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses.
The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing rates. Lease liabilities are remeasured
with a corresponding adjustment to the related right of use asset if the Company changes its
assessment if whether it will exercise an extension or a termination option.
----- End of picture text -----

157

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are classified as operating leases.
P. Taxes on Income
Income tax expense represents the sum of the tax currently payable and deferred taxation.
a) Current Tax
Current tax in the Statement of Profit and Loss isprovided as the amount of tax payable
in respect of taxableincome for the period using tax rates and tax laws enactedduring the
period, together with any adjustment to tax payable in respect of previous years. Taxable
profit differs from ‘profit before tax’ as reported in the statement of profit and loss because
of items of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible.
b) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for
all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax isrecognised in the statement of profit and loss, except when they relate to
items that are recognised in other comprehensive income or directly in equity, in which
case, the deferred tax is also recognised in other comprehensive income or directly in
equity respectively.
c) Minimum Alternate Tax
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered
as an asset if there is convincing evidence that the Group will pay normal income tax.
Accordingly, MAT is recognized as an asset in the Balance Sheet when it is highly probable
that future economic benefit associated with it will flow to the Group. Current and deferred
tax are recognised in the statement of profit and loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively. The carrying amount of deferred tax assets is reviewed at the end of
each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.
Q. Claims
Claims against the Company not acknowledged as debts are disclosed after a careful evaluation
of the facts and legal aspects of the matter involved.
R. Provisions
Provisions are recognised when, as a result of a past event, the Company has a legal or
constructive obligation; it is probable that an outflow of resources will be required to settle
the obligation; and the amount can be reliably estimated. The amount so recognised is a best
estimate of the consideration required to settle the obligation at the reporting date, taking into
account the risks and uncertainties surrounding the obligation.
In an event when the time value of money is material, the provision is carried at the present
value of the cash flows estimated to settle the obligation.
S. Operating Segment
The Company is engaged in a single segment i.e. Financing Operations viz., inter corporate
deposits and investments. Presently Company is not carrying on any operation except realizing
all debts or maintaining existing assets.The operating results are regularly reviewed and
----- End of picture text -----

158

DCM FINANCIAL SERVICES LTD.

performance is assessed by its Chief Operating Decision Maker (CODM). All the company’s resources are dedicated to this single segment and all the discrete financial information is available for this segment. T. Earnings per share Basic earnings per share is calculated by dividing profit or loss attributable to the owners of the company by weighted average number of equity shares outstanding during the financial year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, share split and any new equity issue. For the purpose of calculating diluted earnings per share, profit or loss attributable to the owners of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. U. Contingent liabilities A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood on outflow of resources is remote, no provision or disclosure is made. V. Financial and Management Information Systems The Company’s Accounting System is designed to unify the Financial Records and also to comply with the relevant provisions of the Companies Act, 2013, to provide financial and cost information appropriate to the businesses and facilitate Internal Control. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. ADDITIONAL NOTES TO ACCOUNTS 26) RESTRUCTURING SCHEME (Holding Company) Preamble The management for a structured debt repayment had prepared two schemes of arrangement for reorganization of share capital of the company and for compromise with its secured and unsecured creditors. Both the schemes of arrangement envisage a viable, just & equitable settlement with its secured and unsecured creditors while simultaneously increasing the risk and stake of the promoters and their shareholding through fresh infusion of funds by the promoter company.

The company filed a fresh Scheme of Arrangement for the reorganization of the share capital of the company and for compromise with the secured and unsecured creditors of the company, hereinafter referred to as the “ Fresh Restructuring Scheme ” before the Hon’ble Delhi High Court at New Delhi on 24th September 2004.

159

DCM FINANCIAL SERVICES LTD.

Pursuant to the orders of the Hon’ble Delhi High Court, the unsecured creditors and debenture holders in their meeting convened under the Chairpersonship of court appointed Chairpersons (retired Judges of Hon’ble Delhi High Court) on 1stApril 2005 and 2nd April, 2005 have approved the scheme without any modifications with the requisite majority. The meeting of the other secured creditors (banks/ institutions) was held on 17thSeptember 2005 and has also approved the scheme by the requisite majority after considering some modifications proposed by the Punjab & Sind Bank.

The promoter company has undertaken, subject to sanction of the scheme by the Hon’ble Delhi High Court, to contribute to Rs. 195,000,000 of which Rs. 156,000,000 were deposited with the Registrar of the Hon’ble Delhi High Court Registrar, as per court order by the promoter group, and the balance amount of Rs 39,000,000 had been deposited with the Registrar of the Hon’ble Delhi High Court Registrar on 27th April, 2012.

The restructured debts of the company for each category of debt is on the basis of outstanding as envisaged in the fresh restructuring scheme filed in the year 2004 excluding interest not provided for and all liquidated damages/penal charges and interest on unpaid interest. The “Fresh Scheme of Arrangement” is drawn on the basis of acceptance of waiver of payment of past and future interest, penal charges, liquidated damages, and any other charges, costs and claims etc. except as provided and for values contained therein which is subject to the approval of the Hon’ble Delhi High Court.

Over the years and till 31st March, 2017, the accounts of the company have been drawn on the assumption that the “fresh restructuring scheme” will be accepted and implemented. If it is not accepted and cannot be implemented for any reason the total liability before the proposed restructuring scheme including those for which no provision has been made and has been quantified under appropriate heads, shall become payable. Developments during the fnancial year ended 31st March 2021 Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September, 2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes. The Hon’ble High Court of Delhi entrusted the following functions to said One Man Committee :-
(i) To scrutinize and finalize the list of depositors/ claimants so as to assess the genuineness of the depositors and their claim and to weed out any duplicate) benami, fictitious and doubtful claims.
(ii) To categorize the claimants/ depositors into groups, on the basis of various parameters. For instance, depositors could be segregated into (a) individuals (b) corporate (c) institutions (Banks and Finance Companies), etc. Similarly, very small depositors wherein, the amount due is only uptoRs. 5,000 could be segregated as a separate category.
(iii) At the same time it would also be open to the Central Bank of India which was constituted a debenture trustee by the company, to put up any claims that they may have before the said committee.
(iv) To take stock of the entire assets of the company, whether in the form of fixed assets or bank accounts and fixed deposits, etc.
(v) To assess the value of the fixed assets of the company and for the purpose, If need be, take the help of a professional valuer. Also, to get from the company its brief statement of accounts which shall include all income and expenditures, so as to enable a proper review of the assets and liabilities of the company.
(vi) To suggest modalities for the disposal of ‘fixed assets, so that the money realized could be used for disbursal of principal amounts as well as interest (over the delayed period), if possible, amongst the depositors.
(vii) To make suggestions on the modalities of payment, which would obviously depend upon the amounts finally realized after disposing off/ liquefying all assets of the company.

160

DCM FINANCIAL SERVICES LTD.

all payments are made in the manner as suggested in the report. The report of one committee has laid the schedule of payments to parties covered under the scheme as under:-

(i) Before starting repayment of amount, the genuineness of the all the depositors and their claims shall be assessed to weed out any benami, fictitious and doubtful claims. Notices to all the depositors/ claimants shall be sent and consideration of their pleas and contentions will be necessary. From the data it has also been observed that some of the individuals and companies have invested sums by depositing multiple small amounts. Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. It is recommended in the circumstances that 70% a part of the amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. 5,000 or less than Rs.5,000 in the first instance.

(iii) Tentative realizable value of the following assets of the Company will be:-

1. Value of Assets/Sources of Funds As on 31.12.15

S.N.	Source	Amount Rs in Cr.
1	Sale of Immoveable assets	42.00
	Receivables	8.50
	Investments in shares	1.00
	Fixed Deposits with Banks	47.50
	Promoter Contribution-Deposits with High Court	29.50
	Total	128.50
Less	Scheme Repayment Cost	1.00
	StatutoryDues & Taxation	1.43
	Legal Cost	0.50
	To be deposited with P& H High Court	1.00
	Due to Employees	0.50
	Claim of MS Shoes arbitration award	5.13
	Claim of NBCC-pendingarbitration	2.88
	Income Tax on Interest for Deposit with Delhi High Court	3.00
	Total	15.44
	Net Available	113.06

161

DCM FINANCIAL SERVICES LTD.

Details of Creditors for repayment under Scheme: (As on 31.12.15)

Rs in Cr	Rs in Cr	Rs in Cr
S.N.	Source	Amount Rs in Cr.
I	Fixed Deposit holders	56.31
II	Debentures	25.53
III	ICD & BRD lenders	0.27
IV	Punjab & Sind Bank	8.03
V	Indusind Bank	5.77
VI	Pressman Limited	4.10
VII	SBI Homes Finance Ltd (To be paid in shares)	0.25
VIII	SIDBI	0.36
IX	Maturity Interest on Fixed Deposits	14.48
X	Maturity interest on Debentures	2.35
	Total	117.45

Taking these figures and facts and circumstances it is recommended that repayment be made in two phases, as detailed below:

Phase 1:

S.N.	Particulars	Source of Utilization
I	Repayment to the extent of 70% of the principal amount of Fixed Deposits, Debentures and Banks having deposits of more than Rs.5,000/	Available Cash in Bank, Fixed Deposits and Promoter’s Deposits with Court
II	Full amount be paid to Fixed Deposits, Debentures and Banks having deposit of Rs. 5,000 / - and less	Available Cash in Bank, Fixed Deposits and Promoter’s Deposits with Court

Phase 2

DEBENTURES

(A) Amount due to Debenture-holdersas decided by one man committee as at 31st December, 2015

2015
S.N.	Particulars	Amount
I	Principal Outstanding	Rs 25.53 Cr
II	Maturity Interest	Rs 2.35Cr
	TOTAL	Rs 27.88Cr

162

DCM FINANCIAL SERVICES LTD.

Payment Schedule (Rs. in Cr.)	Payment Schedule (Rs. in Cr.)	Payment Schedule (Rs. in Cr.)	Payment Schedule (Rs. in Cr.)
S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	17.87 Cr.	-
II	Less than Rs 5,000	1.69	-
III	30% of total amount	-	5.97
IV	MaturityInterest	-	2.35
	TOTAL	Rs 19.56 Cr.	Rs 8.32 Cr.

FIXED DEPOSITS

(A) Amount due to Fixed Depositors as decided one man committee as at 31st December, 2015

S.N.	S.N.	Particulars	Particulars	Amount in Rs	Amount in Rs
I		Principal Outstanding		Rs 56.31 Cr
II		MaturityInterest		Rs 14.48 Cr
		TOTAL		Rs 70.79 Cr
Payment Schedule (Amount in Rs)
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 36.15Cr.		-
II	Less than Rs 5,000		Rs 4.67 Cr.		-
III	30% of total amount		-		Rs 15.49 Cr
IV	MaturityInterest		-		Rs 14.48 Cr
	Total		Rs 40.82 Cr.		Rs 29.97 Cr.

Payment to Fixed Deposit holders are being made as per the recommendation of One Man Committee during the Financial Year 2017-18, 2018-19, 2019-20 and 2020-21 refer note 17.3 for details regarding repayments made to Fixed deposit holders.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

(A) Amount due to SIDBI as decided by one man committee as at 31st December, 2015

S.N.	S.N.	Particulars	Particulars	Amount Rs . in Lacs	Amount Rs . in Lacs
I		Principal Outstanding		Rs 36.30Lac
II		Interest		--
		TOTAL		Rs 36.30 Lac
Payment Schedule (Rs. in lacs)
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 25.41 Lac		-
II	Less than Rs 5,000		-		-
III	30% of total amount		-		Rs 10.89 Lac
	Total		Rs 25.41 Lac		Rs 10.89 Lac

Payment to SIDBIhas been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

163

DCM FINANCIAL SERVICES LTD.

PUNJAB & SIND BANK (PSB)

Background

The Punjab and Sind Bank had filed recovery proceedings in the year 2000 before the Debt Recovery Tribunal for Rs.12.l7 Cr. comprising of Rs.8.50 Cr. as ledger balance and Rs.3.76 Cr. as Memo Interest. In the year 2000. Company in order to redress the repayment issues, propounded a scheme and in the scheme of rearrangement with its creditors proposed to pay Rs 9.51Cr to the Bank and the Bank voted in favour of scheme and the suit in DRT has been stayed by the High Court and the Bank agreed to receive Rs. 9.51 crores. This amount was agreed after protracted discussions/ negotiations with PSB, and it has been agreed that amount payable as on Sept,1997 will be taken as principal and interest from Sept 1997 to March, 2000 will be added @ 10% quarterly compounded. Thus the amount payable became Rs 9.51 Cr. It was admitted and justified by the said bank that this settlement was as per RBI guidelines. Reliance for this can be placed on an internal note dated 12th Sept, 2000 of the bank and a letter dated 20th Oct,2000 from the counsel of PSB. As per terms of settlement Rs 50.00 Lacs were paid to PSB in the year 2000. Though the part payment has been made to the Bank pursuant to settlement and scheme, however, due to modifications made in scheme for, PSB by Company in the creditors meeting. The scheme was, will be paid in 6 equal yearly installments of one year after the approval of the said scheme or 1st April, 2006 which ever will be earlier and balance 40% by equity shares at any time within three years of the effective date or 1.4.2006. The shares were to be allotted on preferential allotment basis as per the rate approved by SEBI under its guidelines. The sale price of the share was protected to the extent of Rs.375 lacs by issuing fresh additional equity, if required. The bank was paid Rs. 90 lacs in the year 2005-06, but further amount could not be paid on account of order dated 6th March, 2006 “of the Hon’ble Court. The Bank received the amounts partly under the settlement and could not withdraw from the scheme without refunding the amounts received by it, yet in 2012 it filed an application for intervention/ objection to the scheme which has not been allowed. In the circumstances the amount payable to the bank has been taken as settled with the Bank and 70% of the. said amount be paid forthwith in the first phase and balance in the second phase which is substantially better as earlier only Rs.60 lakhs was payable in six years and equity shares were to be issued for the balance amount. Under the previous proposal which has been accepted by the Bank, the amount was payable in installments and part of the amount by converting the amount in’ equity shares whereas under present recommendation 70% of the amount is payable forthwith and balance’ amount in second phase after liquefying all the assets of the Company which will be probably within two years.

(A) Amount due to PSB as decided one man committee as at 31st December, 2015

S.N.	S.N.	Particulars	Particulars	Amount Rs in Cr.	Amount Rs in Cr.
I		Principal Outstanding		Rs 8.03 Cr
II		Interest		--
		TOTAL		Rs 8.03 Cr.
Payment Schedule (Rs. in Cr.)
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 5.62 Cr		-
II	Less than Rs 5,000		-		-
III	30% of total amount		-		Rs 2.41 Cr
	Total		Rs 5.62 Cr		Rs 2.41 Cr

Payment to PSB has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

164

DCM FINANCIAL SERVICES LTD.

INDUSIND BANK

(A) Amount due to INDUSIND Bank as decided by one man committee as at 31st December, 2015

2015
S.N.	Particulars	Amount Rs in Cr.
I	Principal Outstanding	Rs 5.77 Cr
II	Interest	--
	TOTAL	Rs 5.77 Cr.

(B) Payment Schedule
(Rs. in Cr.)

S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	Rs 4.04 Cr	-
II	Less than Rs 5,000	-	-
III	30% of total amount	-	Rs 1.73 Cr
	Total	Rs 4.04 Cr	Rs 1.73 Cr

Payment to Indusind Bank has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20.

SBI HOME FINANCE LTD

A consent decree was passed by the Hon’ble High Court of Delhi at New Delhi on 12th December 2000 for an amount of Rs.315,00,000/- The terms of the Consent Decree were as under :-
i. Rs 2.90 Crores were to be paid on or before 31st March 2001 under a monthly payment schedule commencing from December 2000, and on payment of Rs. 2.90 Crores, the title of the property was to be released;
ii. the sum of Rs. 25.00 Lacs was to be discharged by issuance of Equity shares of the Company of the face value of Rs. 10/- at a premium of Rs. 20/- per share or as per applicable SEBI guidelines. In terms of the Decree, a sum of Rs. 2.90 Crores has been paid by the Company to SBI Home Finance and the title deeds of the NBCC property have been released by SBI Home Finance Ltd. However, balance amount of Rs. 25.00 Lacs which was to be converted into fully paid up shares of the Company at Rs. 30/- per share (share value Rs. 10/ - plus premium Rs. 20/- per shares) have not been issued by the Company.

(A) Amount due to SBI Home Finance Ltd as decided by one man committee as at 31st December, 2015

S.N.	Particulars	Amount Rs in Cr.
I	Principal Outstanding	Rs 25 Lacs
II	Interest	--
	TOTAL	Rs 25 Lacs

165

DCM FINANCIAL SERVICES LTD.

(B) Payment Schedule by issuing in Shares

S.N.	Particulars	Rupees in Lac
I	To be discharged by issuance of Equity shares of the Company of the face value of Rs. 10/- at a premium of Rs. 20/- per share or as per applicable SEBIguidelines	Rs 25 Lac
II	The Company proposes to: allot shares worth Rs. 25.00 Lacs to SBI Home Finance Ltd. as per the Decree awarded by the’ Hon’ble High Court of Delhi at New Delhi, within two’ years from the effective date of the scheme asper applicable SEBIguidelines	-
	Total	Rs 25 Lac

ICD LENDERS

ICD Lenders will be paid principal due to them as on 30th June 2004. Interest dues are waived and cancelled. The payment of principal to the ICD lenders will be made as follows:

(A) Amount due to ICD Lenders as decided by one man committee

S.N.	Particulars	Amount Rs in Lac
I	Principal Outstanding	Rs 27.17 Lac
II	Interest	--
	TOTAL	Rs 27.17 Lac

(B) Payment Schedule

S.N.	Particulars	Phase-I	Phase-II
I	70% of totalprincipal amount	Rs 19.02 Lac	-
II	30% of total amount	-	Rs 8.15 Lac
	Total	Rs 19.02 Lac	Rs 8.15 Lac

PRESSMAN LEASING

The amount due to M/s, Pressman Leasing has been quantified at the lump sum of Rs 4.10 Cr and such amount would be paid 55% in cash and 45% in shares and details are under :-

(A) Amount due to PRESSMAN LEASING as decided by one man committee

S.N.	S.N.	Particulars	Particulars	Amount Rs in Cr	Amount Rs in Cr
I		Principal Outstanding		Rs 4.10 Cr
II		Interest		--
		TOTAL		Rs 4.10 Cr.
Payment Schedule in cash
S.N.	Particulars		Phase-I		Phase-II
I	70% of totalprincipal amount		Rs 1.58 Cr		-
II	30% of total amount		-		Rs 00.68Cr
	Total		Rs 1.58 Cr		Rs 00.68 Cr
Balance Payment by Issuing of Equity Shares
S.N.		Particulars		Amount Rs in Cr
I		To be discharged by issuance of Equity shares of the Company of the face value of Rs. 10 as per applicable SEBI guidelines		Rs 1.84 Cr
		TOTAL		Rs 1.84 Cr

Payment to Pressman Leasing has been made as per the recommendation of One Man Committee during the Financial Year 2017-18 and 2019-20. The shares as per the scheme will be issued as per the scheme.

166

DCM FINANCIAL SERVICES LTD.

Developments during the fnancial year ended 31st March, 2020 and 31st March 2021

The One Man committee earlier recommended to pay to the creditors 70% of the principal amount. The above said arrangement was modified by the committee on 18th May 2019 and accordingly it has been decided to pay creditors who have claimed amount as per procedure set by the committee and whose documents have been verified. As per the claims made by the creditors 100% of principal being paid to them and balance 30% to creditors whom 70% has already been paid has also started by the company. The balance payable to creditors is as per books and who have not claimed so far or their documents are under verification.

27) Earnings Per Share (EPS):

		Year ended 31st March, 2021	Year ended 31st March, 2020
a)	Calculation of Weighted Average Number of Equity Shares of 100 each Number of Shares at the beginning of the period Number of Shares at the close of the period Weighted Average number of Equity Shares** Duringtheperiod	22,125,054 22,125,054 22,125,054	22,125,054 22,125,054 22,125,054
b)	Net Proft/(Loss) for the period attributable to Equity Shares(in Rs.)	(12,84,461)	(31,20,791)
c)	Earning per share – Basic**	(0.6)	(0.14)
d)	Earning per share – Diluted**	(0.6)	(0.14)

28) Contingent Liabilities and Commitments

A) Contingent Liabilities

(a) During the year ended 30th June, 2011 the company’s tenant had filed a claim of Rs. 10,000,000 against the company due to damages suffered by the tenant which is still pending under arbitration proceedings as on 31st March, 2021.
(b) There is an award passed by the arbitrator against the company in the matter of MS Shoes East Limited on May 28, 2012 for Rs. 5,128,320 i.e. the claim amount, along with Rs. 30,680,848 towards interest cost for an underwriting given by the company in the year 1995 for the public issue of M/s MS Shoes East Ltd. Furthermore, an incidental cost which includes arbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had been awarded to the company. The total financial impact comes to Rs. 36,358,448 which has been contested by Company before Hon’ble Delhi High Court.
(c) Due to dispute with the builder namely M/s NBCC Ltd. from which the company had purchased an office premises in the year 1995, regarding a claim of Rs. 28,829,634 on account of increase in super area and certain other expenditure which the builder i.e. M/s NBCC Ltd. had incurred and the same is pending in arbitration. Breakup of the amount of Rs. 28,829,634 mentioned supra is as follows:

S.No.	Description	Amount
1.	Difference in super area Vs.provisional area	22,928,254/-
2.	Claim ofpropertytax	319,100/-
3.	Claim ofground rent	2,167,190/-
4.	Allied charges	782,210/-
5.	Augmentation of Electric sub station	132,880/-
6.	Loss ofproft	2,000,000/-
7.	Arbitration cost	500,000/-
TOTAL		28,829,634/-

167

DCM FINANCIAL SERVICES LTD.

The summary position of award is as under:

Party	Amount Claimed(in Rs.)	Awarded(in Rs.)
NBCC Ltd.- Claimant	4,34,95,374/-	41,05,656/-
DCM Financial Services Limited- Counter Claimant/Respondent	32,69,49,945/-	78,97,424/-

That whereas NBCC has filed objections to the award in Delhi High Court in December 2020 and the same appears to be lying in objections.

That DCM has also filed objection in Delhi High Court and the same has not being listed so far.
Company Management is hopeful that there will not be any extra claims in view of Award declared by Arbitrator.

B) Commitments

There are no non-cancellable capital commitments.

29) Defined Benefit Plans/Long Term Compensated Absences :-

Description of Plans

The Company makes contributions to Defined Benefit and Defined Contribution Plans for qualifying employees. Gratuity Benefits and Leave Encashment Benefits are unfunded in nature. The Defined Benefit Plans are based on employees’ length of service. The liabilities arising in the Defined Benefit Schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method at the year end. The Company makes regular contributions to these Employee Benefit Plans. The net Defined benefit cost is recognized by the companies in Financial Statements. Discount Rate: The present value of Defined Benefit Plans liability is determined using the discount rate based on the market yields prevailing at the end of reporting period on Government bonds. A decrease in yields will increase the fund liabilities and vice-versa.

The estimated term of the benefit obligations works out to 10.87 years. For the current valuation a discount rate of 7.63% p.a. compound has been used.

Salary Escalation Rate: The Salary Escalation rate usually consists of at least three components, viz. regular increments, price inflation and promotional increases. In addition to this any commitments by the management regarding future salary increases and the Company’s philosophy towards employee remuneration are also to be taken into account. Again, a long term view as to the trend in salary escalation rates has to be taken rather than guided by the escalation rates experienced in the immediate past, if they have been influenced by unusual factors.

WithdrawalsRate: Past experience indicates the current level of attrition. The assumption may incorporate the Company’s policy towards retention of employees, historical data and industry outlook.

Mortality Rate: We have used Indian Assured Lives Mortality Table (IALM) 2006-08, as issued by Institute of Actuaries of India, for the valuation. The following table summarize the components of net benefit expenses recognized in the statement of Profit & loss and the funded status and the amount recognized in Balance Sheet during 2020-21.

168

DCM FINANCIAL SERVICES LTD.

PARTICULARS Gratuity Leave Encashment Gratuity Leave Encashment Unfunded Unfunded Unfunded Unfunded 31.03.2021 31.03.2020 Statement of proft & loss Net employee beneft expense recognized in employee cost Current Service Cost 1,23,265 83,839 56,019 41,448 Interest Cost on Defned Beneft Obligation 37,412 4,378 150,551 44,056 Total Expense recognized in the Statement of Proft and Loss 1,60,677 88,217 206,570 85,504 Re measurements recognised in Other Comprehensive Income Net Actuarial (Gain)/Loss (47128) 9617 (33,916) (17,784) Total defned beneft cost recognized in Proft & Loss and Other Comprehensive Income (1,13,549) 97834 172,654 67,720 Changes in the present value of the defned beneft obligation are as follows: Opening Defned Beneft Obligation 5,58,384 65,348 1,973,149 577,404 Interest Cost 37412 4,378 150,551 44,056 Current Service Cost 1,23,265 83,839 56,019 41,448 Benefts Paid - - (15,87,419) (579,776) Actual Losses / (Gain) on Obligation (47128) 9617 (33,916) (17,784) Closing Defned Beneft Obligation 6,71,933 1,63,182 558,384 65,348 Classifcation in Balance Sheets Net Assets/ (Liability) Gratuity Leave Encashment Current Non-Current Current Non-Current As at 31st March 2021 14,004 6,57,929 1,01,337 61,845 As at 31st March 2020 10,894 547,490 40,502 24,846 The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below: Discount Rate 6.70 6.70 6.70 6.70 Increase in Compensation Cost 6.00 6.00 6.00 6.00 SENSITIVITY ANALYSIS	PARTICULARS	Gratuity	Leave Encashment	Leave Encashment	Gratuity	Gratuity	Leave Encashment
		Unfunded	Unfunded		Unfunded		Unfunded
		31.03.2021			31.03.2020
	Statement of proft & loss
	Net employee beneft expense recognized in employee cost
	Current Service Cost	1,23,265	83,839		56,019		41,448
	Interest Cost on Defned Beneft Obligation	37,412	4,378		150,551		44,056
	Total Expense recognized in the Statement of Proft and Loss	1,60,677	88,217		206,570		85,504
	Re measurements recognised in Other Comprehensive Income
	Net Actuarial (Gain)/Loss	(47128)	9617		(33,916)		(17,784)
	Total defned beneft cost recognized in Proft & Loss and Other Comprehensive Income	(1,13,549)	97834		172,654		67,720
	Changes in the present value of the defned beneft obligation are as follows:
	Opening Defned Beneft Obligation	5,58,384	65,348		1,973,149		577,404
	Interest Cost	37412	4,378		150,551		44,056
	Current Service Cost	1,23,265	83,839		56,019		41,448
	Benefts Paid	-	-		(15,87,419)		(579,776)
	Actual Losses / (Gain) on Obligation	(47128)	9617		(33,916)		(17,784)
	Closing Defned Beneft Obligation	6,71,933	1,63,182		558,384		65,348
	Classifcation in Balance Sheets
	Net Assets/ (Liability)	Gratuity			Leave Encashment
		Current	Non-Current		Current		Non-Current
	As at 31st March 2021	14,004	6,57,929		1,01,337		61,845
	As at 31st March 2020	10,894	547,490		40,502		24,846
	The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below:
	Discount Rate	6.70	6.70		6.70		6.70
	Increase in Compensation Cost	6.00	6.00		6.00		6.00
	PARTICULARS			Gratuity		Leave encashment
a.	Defned beneft obligation - Discount rate + 100 Basis points			(58,044)		(7256)
b.	Defned beneft obligation - Discount rate - 100 Basis points			66,958		8448
c.	Defned beneft obligation – Salary escalation rate + 100 Basis points			66,897		8,439
d.	Defned beneft obligation – Salary escalation rate - 100 Basis points			(59,025)		(7,378)

169

DCM FINANCIAL SERVICES LTD.

30) For year ended 31st March, 2021, Company has no dues from any party that it is covered under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED).
31) As the Company has brought forward unabsorbed depreciation amounting to Rs.28,20,33,011under the Income Tax Act, 1961 and is unlikely to have taxable income in the foreseeable future. Deferred tax assets in situation where carry forward unabsorbed depreciation/business loss exists, are recognized to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered, accordingly Deferred Tax Assets on Unabsorbed Depreciation Losses are not recognized in accordance with Ind AS 12 “Income Taxes”.

32) Deposit of Rs 195,000,000 by DCM Services Limited

DCM Services Ltd, as a promoter had committed to bring in Rs 195,000,000 as a promoter contribution upon sanction of their restructuring scheme under erstwhile Section 391 of the Indian Companies Act, 1956 which is under implementation by One Man Committee appointed with the direction of Hon’ble Delhi High Court.
The Court vide order dated 06.05.2008 has asked DCM Services Limited to deposit Rs. 195,000,000 with the Court and pursuant to the court order.DCM Services Limited depositedRs 50,000,000 on 16.07.2010, Rs 67,000,000 on 18.11.2010, Rs. 39,000,000 on 21.04.2011 &Rs. 39,000,000 on 27.04.2012 aggregating to Rs. 195,000,000 on behalf of the promoters with the Registrar, Hon’ble Delhi High Court. All the funds are with Delhi High Court along-with accrued interest thereon. No financial impact of this has been recorded in the financials of the company for the period ended 31st March, 2021 as there is no clarity provided by Hon’ble High Court of Delhi on whether Company would have to issue any shares against such contribution as per SEBI guidelines or such amount would be refundable to DCM Services Limited or there would be no liability on the Company to pay or issue any shares. Till Company gets any clarity on this matter, no financial entry has been recorded in the books of accounts.

33) Related Parties Transactions:

A. List of Related parties	A. List of Related parties	A. List of Related parties	A. List of Related parties	A. List of Related parties	A. List of Related parties
SN	Description of Relationship	Name of Party
	Control Exist - Subsidiary Company	(i)	Global IT Option Limited
(a)	Signifcant Infuence Exist	(i) (ii) (iii)	DCM Services limited DCM International Limited DCM Anubhavi Marketing Private Limited
(b)	Key Management Personnel	(i)	Mr. Shantanu Deveshwar – Executive Director
		(ii)	Mrs. Somali Tiwari- Company Secretary and CFO(Appointed on w.e.f 18.07.2019)
Transactions with related parties during the year (Amount in Rs.)
Particulars				For the year ending 31st March 2021	For the year ending 31st March 2020
Key Management Personnel
1.	Remuneration			3,75,648	4,81,131
2.	Repayment of loan
	- DCM Services Limited			-	66,99,000
	- DCM Anubhavi Marketing Private Limited			-	1,73,09,902
	- Global IT Options Limited			-	22,84,425
3.	Interest Expense
	- DCM Services Limited			-	67,37,930
	- DCM International Limited			-	25,66,399
	- DCM Anubhavi Marketing Private Limited			-	2,90,242
	- Global IT Options Limited			-	2,08,217

170

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

4. Interest Income
- DCM Services Limited - 49,15,886
- DCM International Limited - 21,40,068
- DCM Anubhavi Marketing Private - 2,42,077
Limited
- Global IT Options Limited - 1,73,708
C. Balance Outstanding (Amount in Rs.)
1. DCM Services ltd. 7,39,24,220 7,39,24,220
2. DCM International Limited 2,81,56,876 2,81,56,876
3. DCM Anubhavi Marketing Private Limited 31,84,349 31,84,349
4. Remuneration Payable NIL 28,829
34) Financial Instruments and Related Disclosures
a) Categories of Financial Instruments
Particulars Note As at 31st As at 31st
March 2021 March 2020
Financial Assets
I Measured at amortised cost
(i) Investments 6 17,150 NIL
(ii) Cash and cash equivalents 8 29,54,000 3,506,422
(iii) Other Bank Balances 9 31,500,408 27,881,916
(iv) Others 3 & 10 17,68,88,239 182,536,685
Total (A) 21,13,59,796 213,925,022
II Measured at fair value through Other Comprehensive Income
(i) Investments 2 &6 NIL NIL
Total (B) NIL NIL
III Measured at fair value through
Profit & loss
(i) Investments 2 &6 81,61,534 6,426,844
Total (C) 81,61,534 6,426,844
Total financial assets (A+B+C) 21,95,04,181 220,351,906
Financial Liabilities
I Measured at amortised cost
(i) Borrowings 14 2,07,70,000 2,07,70,000
(ii) Other financial liabilities 17 82,30,56,124 80,83,41,990
Total financial liabilities 82,30,56,124 82,91,11,990
(b) Fair Value Hierarchy:
Particulars As at 31st As at 31st
March 2021 March 2020
I Financial Assets / Financial Liabilities at amortized cost
The carrying amount of financial assets and
financial liabilities measured at amortized cost are
a reasonable approximation of their fair values
except the following:
Investment in Non-Convertible Debentures 17,150 NIL
Fair value of Current Maturities of Long Term 105,265,445 105,265,445
Debt/Borrowing measured at amortized cost
(Level 3)
II Financial assets at fair value through profit & loss
Investment in Equity Shares (Level 1) 29,13,180 12,38,878
Investment in Equity Shares (Level 2) 52,31,205 51,88,006
III Financial assets at fair value through Other NIL NIL
Comprehensive Income
----- End of picture text -----

171

DCM FINANCIAL SERVICES LTD.

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

The Company determines the fair value of its financial instruments on the basis of the following
hierarchy:
Level 1: The fair value of financial instruments that are quoted in active markets are determined
on the basis of quoted price for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market are
determined on the basis of net asset value as per last available audited financial statements.
Level 3: If one or more of the significant inputs is not based on observable market data, the fair
value is determined using discounted cash flow method with the most significant inputs being
the discount rate that reflects the credit risk of the counter-party.
35) Capital Management
The Company’s objective for managing capital is to ensure as under:
a) To ensure the company’s ability to continue as a going concern.
b) Maintaining a strong credit rating and healthy debt equity ratio in order to support business
and maximize the shareholders’ value.
c) Maintain an optimal capital structure.
d) Compliance financial covenants under the borrowing facilities.
For the purpose of capital management, capital includes issued equity capital, and all other
equity reserves attributable to the equity holders of the Company.
The Company manages its capital structure keeping in view of:
a) Compliance of financial covenants of borrowing facilities.
b) Changes in economic conditions.
In order to achieve this overall objective of capital management, amongst other things, the
Company aims to ensure that it meets financial covenants as decided by One Man Committee
and Delhi High Court. One Man Committee has given few recommendations for payments
to its creditors which has been accepted by Hon’ble Delhi High Court.
There has been no breach in the financial covenants of any borrowing facilities in the current
period. There is no change in the objectives, policies or processes for managing capital over
previous year.
36) Going Concern Basis
The company filed a fresh Scheme of Arrangement for the reorganization of the share capital
of the company and for compromise with the secured and unsecured creditors of the company,
hereinafter referred to as the “ Fresh Restructuring Scheme ” before the Hon’ble Delhi High
Court at New Delhi on 24th September 2004.
Pursuant to the orders of the Hon’ble Delhi High Court, the unsecured creditors and debenture
holders in their meeting convened under the Chairpersonship of court appointed Chairpersons
(retired Judges of Hon’ble Delhi High Court) on 1stApril 2005 and 2nd April, 2005 have approved
the scheme without any modifications with the requisite majority. The meeting of the other
secured creditors (banks/ institutions) was held on 17thSeptember 2005 and has also approved
the scheme by the requisite majority after considering some modifications proposed by the
Punjab & Sind Bank. The promoter company has undertaken, subject to sanction of the scheme
by the Hon’ble Delhi High Court, contributed Rs. 195,000,000 of which Rs. 156,000,000 were
deposited with the Registrar of the Hon’ble Delhi High Court Registrar, as per court order by the
promoter group, and the balance amount of Rs 39,000,000 had been deposited on 27th April,
2012. The Fresh Restructuring Scheme kept pending for approval of Hon’ble High Court of
Delhi. Over the years and till 31st March, 2017, the accounts of the company have been drawn
on the assumption that the “ fresh restructuring scheme ” will be accepted and implemented.
If it is not accepted and cannot be implemented for any reason the total liability before the
proposed restructuring scheme including those for which no provision has been made and has
been quantified under appropriate heads, shall become payable.
Justice Anil Kumar as one man committee was appointed vide order dated:- 3rd September,
2015 by the Hon’ble High Court of Delhi to scrutinize the list of depositors and other claimants
and to take steps enumerated hereinafter with the view to resolve at-least some of the disputes.
----- End of picture text -----

172

DCM FINANCIAL SERVICES LTD.

The one man committee submitted its report on to Hon’ble High Court of Delhi on 22nd April, 2016. Taking cognizance of the report, Hon’ble High Court of Delhi on 10th August, 2017 accepted the recommendation of one man committee enumerated in the report. One Man Committee observed that that it already has sufficient funds, ready cash, to repay about 70% of the deposits to all the depositors having deposits of more than Rs 5,000 including secured creditors in the first stage. Under Phase -1, 70% a part of the amount be paid to the creditors having deposits of more than 5,000 and full amount be paid to those who have deposits of Rs. or less than Rs.5,000 in the first instance. In the second phase, which should also commence. with phase 1 simultaneously, properties and shares and all the assets be liquidated by selling and the realized amount is recommended to be utilized for the repayment of balance 30% of principal and the maturity value on the fixed deposits, debentures and banks. If the amount is still available to the Company, the Hon’ble Company Court may decide whether some amount - be paid as interest as has also been recommended by the Reserve Bank of India. During the year ended 31st March, 2018, Company started paying the amount as per Phase-I and Phase-I is still in continuation for the financial year ending 31st March 2019, 31st March 2020 and 31st March 2021, However, company has simultaneously started making payment under phase- II of balance 30% to those who have claimed the same. During the year 2020-21 company has started making payment of 100% to those creditors who are claiming it. Hon’ble High Court of Delhi held that the issue of revival of the company will be decided once all payments are made in the manner as suggested in the report. The accounts of the company have been prepared on a “going concern” basis on an assumption & premises made by the management that:-

(a) Company incurred a net loss of Rs.12,84,461during the year ended March 31, 2021 and, as of that date, the Company’s current liabilities exceeded its total assets by Rs.41,22,43,012. The accumulated loss as on 31st March, 2021 stands to Rs. 85,67,02,303/-(Previous year Rs. 85,54,17,842/-). As on 31st March, 2021, the Company’s total liabilities exceeded to its total assets by Rs. 43,41,73,153/- (Previous year Rs. 43,28,88,693/-).
(b) The Company is not carrying on any business as to comply with the directives of the Reserve Bank of India the company ceased to accept deposits from September 1997 and the company’s application to RBI for certificate of registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The Company contends that the Scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme such issuance of equity to SBI HOME FINANCE LTD and Pressman Leasingwould be approved/decided upon by the Hon’ble Delhi High Court and accordingly the decision on revival of Company would be taken by Hon’ble Delhi High Court and
(c) Adequate finances and opportunities would be available in the foreseeable future to enable the company to start operating on a profitable basis,
37) The Holding Company’s application to RBI for Certificate of Registration (CoR) as a NBFC had been rejected by the RBI in year 2004. The company had made an appeal to the Appellate Authority, Ministry of Finance which directed the RBI to keep its order of rejection of CoR in abeyance for a period of six months and directed the company to file Fresh Restructuring Scheme before Hon’ble Delhi High Court. RBI has preferred an appeal before the Hon’ble Delhi High Court against the order of the appellate authority, which is still pending. This may be decided upon once scheme of One Man Committee shall be implemented in full and other aspect of fresh restructuring scheme would be approved/decided upon by the Hon’ble Delhi High Court.
38) Balance confirmation of bills receivable and payable, advances recoverable in cash or in kind, receivables and payables relating to lease and hire purchase, lease security deposit of which party wise details are not available. Balance confirmation of inter-corporate deposits, balance of ex-employees, margin against L/C, loans from institutions, banks, and other receivables and payables have not been received from the parties/persons concerned. In the absence of balance confirmation the closing balances as per books of accounts have been incorporated in the final accounts and have been shown, unless otherwise stated by the management about its recoverability in the financials including considering the NPA Provisions, are good for recovery/ payment. Time barred debts under the Limitations Act have not been separately ascertained and written off or provided for. In the absence of such confirmation & corresponding reconciliation, it is not feasible for us to determine financial impact on the financials and the amount referred as payable in the financials can differ.

173

39) Segment information for the year ended 31st March 2021

The Company is engaged in a single segment i.e. Financing Operations viz., inter corporate deposits and investments. Presently Company is not carrying on any operation except realizing all debts or maintaining existing assets.The operating results are regularly reviewed and performance is assessed by its Chief Operating Decision Maker (CODM). All the company’s resources are dedicated to this single segment and all the discrete financial information is available for this segment.
40) The COVID -19 pandemic is rapidly spreading throughout the world. The company is not doing any operations as there is order by the Hon’ble High Court and RBI to not to do any operations/ business. Accordingly, company is only paying back its creditors and Fixed Deposit Holders as per the recommendations of One Man Committee. The Company has resumed repayment to its creditors in a phased manner as per directives from the Government of India. The Company has evaluated impact of this pandemic on its business operations and financial position and based on its review of current indicators of future economic conditions, there is no significant impact on its financial results as at 31st March 2021. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration and accordingly the impact may be different from that estimated as at the date of approval of these financial results. The Company will continue to monitor any material changes to future economic conditions.
41) Statement of Net Assets and Profit or (loss), other comprehensive income and total comprehensive income attributable to owners

Name of the Company	Net Assets (Total Assets minus Total Liabilities)	Net Assets (Total Assets minus Total Liabilities)	Share in Proft or (Loss)	Share in Proft or (Loss)	Share in other Comprehensive Income	Share in other Comprehensive Income	Share in Total Comprehensive income	Share in Total Comprehensive income
	As % of Consol- idated net assets	Amount in Lakh	As % of Con- solidated proft or loss	Amount in Lakh	As % of Consolidated other Com- prehensive Income	Amount in Lakh	As % of Consolidated Total Com- prehensive income	Amount in Lakh
Parent Company (Indian)
DCM Financial Services Limited	100.52	-4364.21	97.10	-12.57	100	0.10	97.08	-12.47
Subsidiaries (Indian)
Global IT Options Limited	-0.45	19.36	2.61	-0.33	0	0	2.63	-0.33
Non- Controlling Interest	-0.07	3.12	0.29	-0.04	0	0	0.29	-0.04
Total	100	-4341.73	100	-12.94	100	0.10	100	-12.84

42) (42) Figures for the previous year are in brackets and have been re-grouped/re-classified wherever necessary to make them comparable with the figures of the current year.

For Mukesh Aggarwal & Co. Chartered Accountants Firm Registration No. 011393N

Rishi Mittal Partner M.No. 521860 Place : Delhi Dated : 29.06.2021

Richa Kalra Director DIN: 07632571

Shantanu Somali Tiwari Deveshwar Company Secretary Director M.No. A-47631 DIN: 08268523

174

==> picture [328 x 532] intentionally omitted <==

----- Start of picture text -----

D
C
Mezzanine Floor, New Delhi-110020 D7/3, Okhla Industrial Area-II SERVICES LTD. FINANCIAL M If Undelivered. please return to:
----- End of picture text -----

AI assistant

DCM Financial Services Ltd. — Annual Report 2021

64106_rns_2021-11-30_f0ae5100-af45-4a3a-823a-f7272332b8e5.pdf

Date: 30/11/2021

For DCM Financial Services Limited

Place: New Delhi

DCM FINANCIAL SERVICES LIMITED

D C M FINANCIAL SERVICES LTD.

30[th] ANNUAL REPORT 2020-2021

BOARD OF DIRECTORS

KEY MANAGERIAL PERSONNEL

SECRETARIAL AUDITOR

Ojha& Associates

Company Secretaries

STATUTORY AUDITOR

Mukesh Aggarwal & Co., Chartered Accountants

REGISTRAR & SHARE TRANSFER AGENT

MCS Share Transfer Agent Limited

CIN

CORPORATE OFFICE &REGISTERED OFFICE

SHARES LISTED AT

NATIONAL STOCK EXCHANGE OF INDIA LTD.

BSE LIMITED

CALCUTTA STOCK EXCHANGE LIMITED

E-MAIL

WEBSITE

CONTENTS

NOTICE OF ANNUAL GENERAL MEETING

ORDINARY BUSINESS:

NOTES:

For Shareholders holding shares in Demat Form and Physical Form

PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL ADDRESSES ARE NOT REGISTERED WITH THE DEPOSITORIES FOR OBTAINING LOGIN CREDENTIALS FOR E-VOTING FOR THE RESOLUTIONS PROPOSED IN THIS NOTICE:

INSTRUCTIONS FOR SHAREHOLDERSATTENDING THE AGM THROUGH VC ARE AS UNDER:

INSTRUCTIONS FOR SHAREHOLDERS FOR E-VOTING DURING THE AGM ARE AS UNDER:-

CIN : L65921DL1991PLC043087

GREEN INITIATIVE IN CORPORATE GOVERNANCE

E-COMMUNICATION REGISTRATION FORM

DIRECTOR’S REPORT

To

The Shareholders of the Company,

COVID-19 PANDEMIC

CIRCULATION OF ANNUAL REPORTS IN ELECTRONIC FORM

FINANCIAL HIGHLIGHTS- AT A GLANCE

DIVIDEND

RESERVES

SHARE CAPITAL

TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

DEPOSITS

SUBSIDIARY / ASSOCIATE/ JOINT VENTURES COMPANIES OF THE COMPANY

MANAGEMENT DISCUSSION & ANALYSIS REPORT

CHANGE IN DIRECTORS /KEY MANAGERIAL PERSONNEL DURING THE YEAR

STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SECTION 149(6) OF COMPANIES ACT, 2013

EXTRACT OF ANNUAL RETURN

NUMBER OF MEETINGS OF THE BOARD& COMMITTEES

AUDIT COMMITTEE

NOMINATION & REMUNERATION COMMITTEE

STAKEHOLDERS’ RELATIONSHIP COMMITTEE

VIGIL MECHANISM COMMITTEE

BOARD ANNUAL EVALUATION

STATUTORY AUDITOR& SECRETARIAL AUDITORWITH THEIR QUALIFICATION, RESERVATION ORADVERSE REMARKS ALONG WITH THE EXPLANATION OR COMMENTS BY THE DIRECTORS

A. STATUTORY AUDITOR

Director’s Comment

Director’s Comment

Director’s Comment

Director’s Comment

5. Contingent liabilities and Other Commitments

Director’s Comment

Director’s Comment

Director’s Comment

B. SECRETARIAL AUDITOR

Qualification(s) and Directors’ comments on the report of Secretarial Auditor:

Annual Secretarial Compliance Report

C. INTERNAL AUDITOR

REPORTING OF FRAUDS

PARTICULAR OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES UNDER SECTION 188 OF THE COMPAIES ACT, 2013

MATERIAL CHANGES AND COMMITMENTS, IF ANY,AFFECTING THE FINANCIAL POSITION OF THE COMPANY

SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUT-GO

RISK MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

DCM Financial Services Ltd. Annual Report 2021