Date: 18.06.2019

The Head- Listing Compliance National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Mumbai - 400 051

Stock Code: DCMFINSERV

Sub: Further Clarification on Financial Results for the Quarter and year ended March 31, 2019

Dear Sir/Madam,

This is in response to your query and latest reminder dated June 17, 2019 regarding discrepancies in Financial Result of the Company for the quarter and year ended March 31, 2019, in this regard we state as under:

1. Statement on impact on Audit qualification for audit report with Modified Opinion is attached as annexure which signed by CFO also.
1. Statement required as per Regulation 33(3) (e) of SEBI LODR, 2015 has also inserted in the Annual Financial Result for the quarter and year ended March 31, 2019 (enclosed AFR).
1. Financial results have been submitted by us is in correct format as IND-AS is applicable on the Company.

Kindly take the above information on your records.

Yours faithfully, For DCM Financial Services Limited

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

Encl: As stated above

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.com

DCM FINANCIAL SERVICES LIMITED

ANNEXURE I

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along -with Annual Audited Financial Results - (Standalone)

				W
L	51.No.	Particulars	Audited Figures(asreported beforeadjusting forqualifications) .	Adjusted Figures_(audited figures afteradjusting forqualifications)
	1.	Turnover /Total income	29,936,823	29,936,823
	2.	VTotalExpenditure	39,296,215	240,794,967
	3. '	NetProfit/(Loss)	(9,359,392)	(210,858,144)-
	4.	Earnings Per Share	(0.42)	(11.32)
	5.	Total Assets	499,828,899	496,976,993
	6.	Total Liabilities	499,828,899	496,976,993
	7.	NetWorth	(431,965,185)	(633,463,937)
	8.	(as felt appropriateby theAny other financial item(s)management)

II.		(each audit qualificationAudit Qualificationseparately):
	a.	Details of AuditQualification:vide order dated:—	September, 2015 by.	the Hon'ble High
	with theand other claimants and to take stepsenumerated hereinafterCourt of Delhi to scrutinize the list of depositors_Court ofon to Hon'ble HighThe one man committee submitted its reportview to resolve at—least some of the disputes.theHon'ble High Court of Delhi on 10'" August,2017 acceptedTaking cognizance of the report,Delhi on 22nd April,2016.Under Scheme of One Man Committee, Interest of Rs 235recommendation of one man committee enumerated in the reportunder PhaseZ of Schedule of 'to Fixed Depositorsto Debenture Holders and Rs 1,448 Lacs are payablelacs are payablefurther paymentof Interest toPresently the said committee has waived anyOne Man Committee.Payments laid down byand investments, ifliquidation of propertiesDebenture—holders and other lenders, however on completeFixed Depositors,of Interest would be ,decided.Allto all stakeholder creditors, then further paymentany surplus remains after paymentof Rs. 1,683its consent to the scheme. No provisionstakeholders creditors which are covered under scheme has givenLacs.'in the financialhave been providedand Fixed Deposits,as laid down under the scheme towards Interest on Debenturesamount of Debentures and Fixed Deposits.statements on the outstandingending 31" March 2018 onvoutstandingfor in the financial statements of yearHad interest of Rs. 1,683Lacs been providedRs. 1,683 Lacs and Netthe Net Profit before tax would have been lowered byamount of Debentures and Fixed Deposits,2018. The cumulative net loss as well asRs. 1,340 Lacs as at 31st March,lowered byProfit after tax would have beenin Noteby Rs 1,340 Lacs. The same has been explained2019 would have been higherCurrent Liabilities as at 3lst March,
		17.1 and Note 17.4of '3'series debentures of Rs. 2014.98 Lacs debenture redemptionFor redemptionDebenture redemption reserve of Rs. 2014.98 Lacs has not been created due to insufficient profits.explained in Note 17.1.		to be created.reserve is requiredThe same has been
		as security in favor of banks,The value of assets chargedhas not yetbeen ascertained bya period of time. The depletionis unsecured, whereas the same has been shown as secured. The same has been explained	debenture—holders 8: financial institutions have been depletedTo the extent of shortfall,the Company.	overifany, the liabilityin Note 17.1,17.2 and 17. 3.

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, 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 8: 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

The subsidiary company namely, Global 11' Options limited has from 15l June 2014 to 315t March, 2018 incurred expenditure of Rs 22.84 Lacs for 8: on behalf of its Holding Company (i.e. DCM Financial Services Limited) and the same balance is outstanding as on 315' March 2019 also. It comes under the category of short term funding which is in—fact Inter— Corporate Deposit. In case of Inter-Corporate Deposit, Section 186 of Companies Act, 2013 stipulates to charge interest at a rate not less than the bank declared by Reserve Bank of India. No Interest has been provided on outstanding balance of Rs 22.84 Lacs by Company to its subsidiary — Global IT Options Limited with effect from 1-June—2014. It is a non-compliance of Section 186 of the Companies Act, 2013, which could attract penalties. We have discounted this liability considering the borrowing with interest @10% pa. in FY 2015—16 considering that the same will be paid in FY 2019-20 -

As per the Guidance Note on Accounting for credit available in respect of Minimum Alternative Tax/MAT Credit is an asset to be recognized in the Financial Statement when it is 'Probable 'that the future economic benefits associated with it ' will flow to the mter'prise and asset has a cost or value that can be measured reliably. In the previous periods, the company has already recorded MAT Credit Entitlement of Rs 28.52 Lacs in the books of accounts. Considering that the matter is ~ Scheme of One Man Committee is still under process and Hon'ble Delhi High Court has held that the revival of Company . will be decided later-on depending on the successful Implementation of scheme of One Man Committee, there is no virtual certainty that future economic benefit would flow to company. Considering this, we are of opinion that such MAT Credit Entitlement of Rs 28.52 Lacsneeds to be derecognized.

Had MAT Credit of Rs 28.52 Lacs had been reversed in financial statements in previous years, the net profitafter tax would» have been lower by Rs 28.52 Lacs and net profit after tax would have been lowered by Rs. 28.52 Lacs in respective previous years and consequently the net cumulative loss would have been higher by Rs 28.52 Lacs for the financial year ending 31S March 2019. In addition to, non—current loans and advances would have been lowered by Rs 2852 Lacs after considering the tax effects. ' '

Contingent liabilities and Other Commitments

vii (a) During the year ended 30». 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 31Sl March, 2019. ,,

vii(b) There is a demand of Rs. 3,458,902 raised by Income Tax Department for the Assessment Year 2006—07 and Rs. 357,542 for the Assessment Year 2012—13 for payment of income tax under the Income Tax Act, 1961, which is disputed by the company and pending before the appropriate authorities as on 315t March 2019.

vii (c) There is an award passed by thearbitrator 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 R5. 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 _ rarbitration venue rent, record keeping cost, administrative cost and stamp paper charges amounting to Rs. 549,280, had oeen 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

vii (d) 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 increasein 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: 5. Description Amount . No. ' 1. Differencein super area Vs. provisional area » 22,928,254/- 2. Claim of property tax 319,100/- 3. . Claim of ground rent 2,167,190/— 4. Allied charges 782,210/ - 5. Augmentation of Electric sub station 132,880/- 6. Loss of profit 2,000,000/- 7. Arbitration cost 500;000/- TOTAL 28,829,634]- Material Uncertainty Related to Going Concern We draw attention to Note 36 in the financial statements, which indicates that the Company incurred a net loss of Rs. 93,59,392 during the year ended March 31, 2019 and, as of that date, the'Company's current liabilities exceeded its total lassets by Rs 28,13,13,602. The accumulated loss as on 315* March, 2019 stands to Rs. 85,41,86,911 /—(Previous year Rs. 84,48,27,519/-). As on 31st March, 2019, the Company's total liabilities exceeded to its total assets by Rs. 43,19,65,184/: (Previous year Rs. 42,26,05,793/-). '. As stated in Note 36, these events or conditions, along with other matters as set forth in Note 3%, 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 indicate 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. b. Type ofAudit Qualification: Qualified Opinion i,ii,iii,iv,v,vi,vii , c. Frequency of qualification: Whether appeared first time / repetitive / since how long continuing i Repetitive since Sept 30th, 1999 ii Repetitive since Sept,30th 1999 Repetitive since Sept,30th 1999 iv' Repetitive since June,30th 1998 v Repetitive since 3lst March,2015 vi Repetitive since 315t March,2015 vii.a Repetitive since Slst March,2011-Tenant Claim viib Repetitive 3lst March,2014—ITAX vii.c Repetitive since 30th Iune,2012-MS Shoes . vii.d Repetitive since 30th June,2010—NBCC *' d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Provision ofinterest on certain liabilities covered under Para 1' and under notes 17.1. 6* 17.4 is in accordance with the Scheme ofrestructuringfiled by the Company before the Hon'ble Delhi High Court, which providesfor waiver'and cancellation ofinterest and the same is pending before the Hon'ble Court. Further, the quantum ofinterest, ifany will be decided by the High Court ofDelhi upon completion ofphase H payments and sale of assets.

	profits in the pastandfortheNon-creation ofdebenture redemption reserve cannot be created due to insufficientCourt ofDelhi videdirections ofthe Hon'ble Highredemption ofdebentures , Company has commenced repayments as perorder dated 10'" Aug,2017
	'and Debentures in Para V and covered under notes 17.1,17.2charged to Banks/InstitutionDepletion in thevalue ofAssetsagainst Debentures and Bank Loan, which could not be ascertained since thet? 17.3 relates to ascertainment ofSecuritywith various Lease and Hire Purchase customers and the matters are sub-judice,henceCompany is in litigationconfirmations and acknowledgements are not feasible.
iv	to obtain the balance confirmationsiv, its notpossiblelitigation with creditors as mentioned in the paraIn view of
	of bank accounts, assistance has beenCourt ofDelhi on the operationsby the Hon'ble HighIn view ofrestrictions imposedarrangement isfrom Global ITOptions. Company being sick and even the scheme oftaken to meet the essential expensesthis amountpayment ofInterest to creditors,company has giventhe subsidiarypending before the Court does not provideinterest willand liquiditybe decided once the scheme is approvedwithout interest and element ofinterest and paymentposition'improves,
	ofMat credit willCourt ofDelhi, the impactbeis pendingbefore the Hon'ble HighIn view ofscheme ofarrangement'decided once the schMe is approved.
vii	with the tenant and the claim oftenant is contested in' the suitforrecoveryfiled by the(a) There are certain disputesarbitration.Company and the same is pending
	to getofdemand orders and is hopefulthe rectification(b) Company has taken necessarysteps forrelief.
	Court ofDelhi in the MS Shoes East Limited matter againstthebefore Hon'ble Highan appealc) Company has preferred'arbitration order and the same pendingadjudication
	arbitration under the Indian Arbitration Act. -which is pendingthe claim ofNBCC,d) Company is contesting
	'Related to GoingConcern:aterial Uncertaintyofthe same is being implementedCourt ofDelhi and a partbefore the Hon'ble HighIn lightoffresh scheme ofarrangement is pendingAccordingly, it is not onlyhas plans forfuture business and income generation.through the One Man Committee, the Companystatements based on such Going Concern basis. The Scheme seeks to restructureto draw thefinancialprudent but aléo imperativereduction inearned by engaging in service oriented, feebased business leading to progressiverelying on debt equity swaps and profitsenable the Company to wipe out its debts but will also enable ittothe debt ofthe Company, The Scheme ofArrangement would not only'reduce carryforward losses to be a profitable entity
	by the auditor:is not quantifiedFor Audit Qualification(s)where the impacte.
	of audit qualification:Management's estimation on the impact

	reasons for the same:Ifmanagement is unable to estimate the impact,
	on assets, the banks, debentures and Banks have been shown as secured and there is no financialimpact.-Due to charge
	NPAs.However in this case necessarythat it's notfeasibleto determine the impactAs mentioned in the qualificationimpact can be estimated.been created in accordance with RBIguidelinesand no furtherfinancialhave already
	scheme andconcern basis on account ofpendingon the basis ofgoingearlier the accounts have been preparedAs explained''hence the management is unable to estimate the impact-
	Auditors' Comments on (i)or (ii)above:(iii)
	_Qualification (i)as above. The same isexplained and quantifiesand Debentures is alreadyon Interest on Fixed DepositsThe qualification-'audit report.read as per
	'',~Qualification (ii)

'Qualification (iii)over ainstitutions have depletedinfavorofbanks debenture holders 5'financialThe value ofassets chargedas securityhas not yeton disclosure ofliabilities as Secured Vs Unsecured. The depletionperiod oftime This qualificationhas bearingItSchedule IIIofCompanies Actneeds to ascertainedforappropriate disclosure as perthe Company.been ascertained yifany,the liability'is unsecured, the same has been shown as secured which'is2013. Accordingly, to the extent shortfall,incorrect disclosure. Other than this there'is no impact
-Qualification (iv)ofauditing ThirdPartyitconfirmations confirms the managementare essential componentpoint ofBalance confirmationsitforfinancialstatements. Ifthirdwith the balance thenparty does not agreeisview and balances considered byskipped to be recorded. In theclaim of'income or chargereconciliation and examine whether anynecessary to prepareitimpact which could be there. Thewas notfeasibleforus to determine anyfinancialabsence of such confirmationsitthereafter ifanyare the initialbalances'in 1998 and adjustedpayment has been made. Thebalances considered byschemeconsidering the claims lodgedinitiallyby such parties.Fresh Restructuringqualifications has been determined by2004 with Hon'ble Delhi Highto gettheCourt and no attemptthe managementsubmittedin the yearhas been made byrelating to lease and hirebills receivable and payable,advances, receivables and payablesconfirmation of balances ofmargin against l/Cdeposits, balance ofeat-employees,purchase, lease security deposit, confirmation ofinter-corporateAccordingly itus ascertain whetheris notfeasibleforinstitutions, banks and other receivables and payable.loansfromimpact. This qualification'isto be recorded which could havefinancialany claim or income or chargehas been skippedalready explained and quantifiedas above.
Qualification (v)with the CompaniesActsubsidiary company in non complianceregarding no interest on ICD takenfromThe qualificationauditreport.'explained. The same is read as peris already
Qualification (vi)willflow,thatfutureConsidering all thefactors,that there'is no probabilityeconomic benefitswe are ofopinionbeen explainedin thecreatedin previousaccordingly MAT CreditEntitlementperiods needs to be reversed and same hasqualification.
Qualification (vii)as above. The same is read as perregarding Contingent Liabilityis alreadyexplained and quantifiedThe qualificationauditreport.

O	CEO/Managing Director

	Audit Committeechairman
	Statutory Audlmr
Place: New Delhi

DCM FINANCIAL SERVICES LIlVIITED

ANNEXURE I

Statement on Impact of Audit Qualifications [for audit report with modified opinion) submitted along with Annu Audited Financial Results - (Consolidated) '

L	S].No.	Particulars	Audited Figures(asreported beforeadjusting forqualifications) ,	Adjusted F'_—=aafter(audited figuresadjusting forqualifications)
	1	Turnover /Total income	29,962,982	29,962,982
	2	Total Expenditure	39,444,189	240,942,941
	3	NetProfit/(Loss)	(9,481,207)	(250,424,148)-
	4.	Earnings Per Share	(0.43)	(11.32)
	5	Total Assets	500,157,951	497,306,045
	6	Total Liabilities	500,157,951	497,306,045
	7	Net Worth	(429,767,899)	(631,266,651)
	8.	Any other financial item(s)(as felt appropriateby themanagement)
II.		Audit Qualification(each audit qualificationseparately):
	3.	Details ofAuditQualification:
	Court of Delhito scrutinize the list of depositorsand other claimants and to take stepsenumerated hereinafter with theview to resolve at—Ieast some of the disputes.The one man committee submitted its reporton to Hon'ble HighCourt ofDelhi on 22"d April,Taking cognizance of the report,Court of Delhi on 10"I August,Hon'ble High2017 acceptedthe2016.recommendation of one man committee enumeratedin the report.Under Scheme of One Man Committee,Interest of Rs 235to Debenture Holders and Rs 1,448Lacs are payableLacs are payableto Fixed D'epositorsunder Phase-2 of Schedule of .Payments laid down byOne Man Committee.Presently the said committee haswaived anyfurther paymentof Interest toFixed Depositors,Debenture-holders and other lenders,however on completeifliquidation of propertiesand investments,any surplus remains after paymentto all stakeholder creditors,Allthen further paymentof Interest would be decided.stakeholders creditors which are covered under scheme has givenits consent to the scheme. No provisionof Rs. 1,683Lacsas laid down under the scheme towards Intereston Debentures and Fixed Deposis,'in the financial.have been providedamount of Debentures and Fixed Deposits.statements on the outstandingfor in theHad interest of Rs. 1,683Lacs been providedfinancial statements of yearending 31" March 2018 on, outstandingamount of Debentures and Fixed Deposits,the Net Profit before tax would have been lowered by135. 1,683 l.acs and NetProfit after tax would have beenRs. 1,340 Lacs as at 3lst March,lowered by2018. The cumulative net loss as wellasCurrent Liabilities as at Slst March,in Note2019 would have been higherby Rs 1,340 Lacs. The same has been explained
	17.1 and Note 17.4of '3' series debenturesof Rs. 2014.98 lacs debenture redemptionFor redemptionto be createdreserve is requiredreserve of Rs. 2014.98 Lacs has not been created due to insufficient profits.Debenture redemptionThe same has beerexplained in Note 17.1.
	a period	as security in favor of banks,The value of assets chargedof time. The depletionhas not yetbeen ascertained byis unsecured, whereas the same has been shown as secured. The same has been explained	debenture—holders & financial institutions have been depletedthe'Company. To the extent of shortfall,in Note 17.1,	overifany, the liability17.2 and 17. 3.

alance confirmation of bills receivableand payable,advances recoverable in cash or in kind,receivables and payable'selating 'to lease and hire purchase,lease securitydeposit of which partywise details are' not available.Balance _onfirmation of inter-corporatedeposits, balance of ex-employees,margin against L/C,loans from institutions,banks, andther receivables and,payables have not been received from the parties/personsconcerned. In the absenceof balanceonfirmation the closingbooks of accounts havebalances as perin the finalbeen incorporatedaccounts and have beenhown, unless otherwise stated bythe managementabout its recoverabilityin the financialsincluding considering the NPA 'for recovery/payment.rovisions, are goodTime barred debts under the LimitationsAct have not beenseparatelycertained and written off orprovided for. In the absenceof such confirmationreconciliation, it8: correspondingis notfeasible for us to determinefinancial impacton the financials and the amount referredas payable in the financialscan differPlease refer Note No-38
As perthe GuidanceNote on Accountingfor credit availablein respectof Minimum AlternativeTax, MAT Credit is anin the Financialasset to be recognizedStatement when itis 'Probable 'that the future economic benefits associatedwith itwillflow to the enterpriseand asset has a cost or value that can beIn the previousmeasured reliably.periods, the companyrecorded MAT Credit Entitlementhas alreadyof Rs 28.52 Lacs in the booksof accounts.Considering that the matter isScheme of One Man Committee is stillunder processand Hon'ble Delhi HighCourt has held that the revival ofCompanywillbe decided later-on dependingon the successful Implementationof scheme of One Man Committee,there is no virtualcertainty that future economic benefitwould flow to company.Considering this, we are of opinionthat such MAT CreditEntitlement of Rs 28.52 Lacs needs to'be derecognized.'
Had MAT Credit of Rs 28.52have been lov'ver byyears and consequentlyIn additionMarch 2019.the tax effects.		Lacs had been reversed in financial statementsin previousRs 28.52 Lacs and net profitafter tax would have been lowered bythe net cumulative 1655 would have been higherto, non-current loans and advances would havebeen lowered by	years, the net profitafter tax wouldRs. 28.52 L'acs in respectiveprevious ,by Rs 28.52 Lacs for the financial yearending 315Rs 28.52 Lacs after considering
		Commitments
Contingent liabilities and Othervi(a) During the yearended 30lh June,2011 the company'stenant had filed a claim of Rs. 10,000,000against the companydue to damagesthe tenant which is still pendingsuffered byunder arbitration proceedingsas on 315* March,2019.*
There is a demand of Rs. 3,458,902for the Assessment Year 2006—07raised byIncome Tax Departmentvi(b)and Rs.357,542 for the Assessment Year 2012-13for paymentof income tax under the Income Tax Act,1961, which is disputedby-and pendingthe companybefore the appropriateauthorities as on Slst March 2019.
vi (c)There is an award passed2012 for Rs. 5,128,320company in the yeararbitration venue rent,been awarded to the company.before Hon'ble Delhi High	1995 for the publicrecord keepingCourt	in the matterby .the arbitrator againstthe companyalong with Rs. 30,680,848i.e. the claim amount,towards interest cost for an underwritingissue of M/sMS Shoes East Ltd. Furthermore,cost, administrative cost and stampThe total financial impactcomes to Rs. 36,358,448	of MS Shoes East Limited on May28;given by thean incidental cost which includespaper charges amounting to Rs. 549,280, had,which has been contestedby Company'


vi (d)Due to disputein the yearwhich the builder i.e. M/s28,829,634 mentioned supra		with the builder namelyNBCC Ltd. from which the companyM/son account of increase in super1995, regarding'a claim of Rs. 28,829,634NBCC Ltd. had incurred and the same is pendingin arbitration. Breakupis as follows:'	had purchasedan office premisesarea andcertain other expenditureof the amount of Rs_.'-
	S.	Description	Amount
	No.
	1.2.	Difference in superarea Vs. provisionalareatax	22,928,254/-
	3.	Claim of propertyClaim of groundrent	319,100/—
	4.	,"Allied charges	2,167,190/—782,210/-
	5.	Augmentation of Elechic sub station	,'132,880/—
	6.	Loss of profit	'2,000,000/—
	7.	Arbitration cost	50.0000/-
	TOTAL		28,529;634/-

	Material UncertaintyRelated to GoingConcernWe draw attention toNote 36 in theconsolidated financial statements,which indicatesthat the Companyincurred anet loss of Rs. 94,81,207during the yearended March 31,2019 and, as of that date,the Company'scurrent liabilitiesexceeded its total assets byRs. 28,11,92,526. The accumulated loss as on 315' March,2019 stands to Rs. 65,10,18,439/-(Previous year Rs. 64,15,37,232/-).As on 31$t March,2019, the Company'stotal liabilities exceeded toits total assets byRs.42,97,67,899/— (Previous year Rs. 42,02,86,692/-).'
	As stated in Note 36,these events or conditions,along with othermatters as set forth in Note36 which are as under~:—
	The Companyis not carryingon anybusiness as to complywith thedirectives of the Reserve Bank of India,thecompany ceased to acceptdeposits from September1997 and the company'sapplication to RBI for certificate ofregistration (COR) as a NBFC_had been rejectedby the RBI in year2004.The Companycontends that the Schemeof One Man Committeeshall be implementedin full andof fresh restructuringother aspectscheme such i55uanceof equityto SBI Home Finance Limited andwould be approved/decidedPressman Leasing,upon by the Hon'bleDelhi HighCourt and accordinglythe decision on revival of Companywould betaken byHon'ble Delhi HighCourt indicate that a materialuncertainty exists that maycast significantdoubt on the Company'sability toconcern. Our opinioncontinue as a goingis not modified inrespect of this matter.
	Type of Audit Qualification:b.Qualified Opinioni,ii,ii.i,iv,v,vi'
	first time /Frequency of qualification:repetitive /Whether appearedc.since how longcontinuing
	iRepetitive since Sept30th, 1999
	iiRepetitive since Sept,30th1999
	iiiRepetitive since Sept,30th1999
	iv'Repetitive since Iune,30th1998
	viRepetitive since 3st March,2015
	vii Since31st March,2018
	vii.aRepetitive since 31 stMarch,2011-Tenant Claim
	vii.b Repetitive31st March,2l)14—'ITAX
	vii.c Repetitivesince 30th Iune,2012—MS Shoes
	vii.d Repetitivesince 30th Iune,2010—NBCC
	For Audit Qualification(s)where the impactby the auditor,d.is quantifiedManagement's Views: ,
ii	iProvision ofinterest on certain liabilities covered under Paraand under notes 17.1. 6; 17.4 is in accordance with theScheme ofrestructuringfiledby the Companybefore the Hnn'ble Delhi HighCourt, which providesforwaiverandwillofinterest, ifanycancellation ofinterest and the same is pendingbefore the Hon'ble Court. Further,the quantumbeHpaymentsCourt ofDelhi uponpended by the Highand sale ofassets.completion ofphaseNon-creation ofprofits in the pastdebenture redemptionreserve cannot be created due to insuflicientandforthe_redemption ofdebentures , Companydirections ofthe Hon'ble HighCourt ofDelhi vide .has commenced repaymentsas per
	'order dated 10'"Aug,2017'
iii	'Depletion in the value ofAssetsand Debentures in Paracharged to Banks/InstitutionVand covered under notes 17.1,17.25* 17.3 relates to ascertainment ofSecurityagainst Debentures and Bank Loan, which could not be ascertained since theCompany is in litigationwith various Lease and Hire Purchase customersand the matters are sub-judice,henceconfirmations and acknowledgerhents are not feasible.
iv	litigation with creditorsIn view ofas mentioned in the paranotpossibleto obtain the balance confirmationsiv, its
V'	credit willofMatIn view ofbefore the Han'ble HighCourt ofDelhi,is pendingthe impactscheme ofarrangementbedecided once the scheme is approved.v
Vi	with the tenant and the claim' oftenant is contested in the suitforrecoveryfiledby the(a) There are certain disputesarbitration.Company and the same is pending
	the rectification ofdemand orders and is hopefulto get(b) Company has taken necessarysteps forrelief.
	Court ofDelhi in the MS Shoes East Limited matter againstthean appealbefore Hon'ble High(c) Company has preferredarbitration order and the same pending'adjudication

(d) Company is contesting the claim ofNBCC, which is pending arbitration under the Indian Arbitration Act. \ Material Uncertainty Related to Going Concern: In light offresh scheme ofarrangement is pending before the Hon'ble Hi h Court 0 Delhi and a art a the same is bein i through the One Man Committee, the Company has plans forfuture 1714551555 and ihcome generab'on. Afccordingly, it isiol'nfrlilynenkd prudent but also imperative to draw thefinancial statements based on such Going Concern basis. The Scheme seeks to restructure relying on debt equity swaps and profits earned by engaging in service oriented, fee based business leading to progressive reduction in the debt ofthe Company. The Scheme ofArrangement would not only enable the Company to wipe out its debts but will also enable it to reduce carryforward losses to be a profitable entity ' . e. For Audit Qualification(s) where the impact is not quantified by the auditor: Management's estimation on the impact of audit qualification: If management is unable to estimate the impact, reasons for the same: Due to charge on assets, the banks, debentures and Banks have been shown as secured and there is nofinancial impact. ' As mentioned in the qualification that it's notfeasible to determine the impact .However in this case necessary NPAs have already been created in accordance with RBIguidelines and nofurtherfinancial impact can be estimated. ' As explained earlier the accounts have been prepared on the basis ofgoing concern basis on account ofpending scheme and hence the management is unable to estimate the impact . (iii) Auditors' Cements on (i) or (ii) above: Qualification (i) The qualification an Interest on Fixed Deposits and Debentures is already explained and quantifies as above. The same is read as per audit report. ' I Qualification (ii) - , ' ' 'r The qualification regarding non creation ofDebenture Redemption Reserve is already explained and quantified as above. The same is read as per audit report. Qualification (iii) ' The value ofassets charged as security infavor ofbanks, debenture holders 8financial institutions have depleted over a period oftime. This qualification has bearing on disclosure of liabilities as secured Vs Unsecured The depletion has not yet been ascertained y the Company. It needs to ascertainedfor appropriate disclosure as per Schedule III ofCompynies Act. 2013. Accordingly, to the extent shortfall, ifany, the liability is unsecured, the same has been shown as secured which is incorrect disclosure. Other than this there is no impact - Qualification (iv) Balance confirmations are essential component ofauditing. Third Party confirmations confirms the managementpointlof view and balances considered by itforfinancial statements. Ifthird party does not agree with the balance then it is necessary to prepare reconciliation and examine whether any claim ofincome or charge skipped to berecorded. In the bsence of such confirmations it was notfeasiblefor us to determine anyfinancial impact which could be there. The balances considered by it are the initial balances in 1998 and adjusted thereafter ifany payment has been made. The _ qualifications has been determined by considering the claims lodged initially by such parties. I-'resh' Restructuring scheme submitted in the year 2004 with Hon'ble Delhi High Court and no attempt has been made by the management to get the confirmation of balances of bills receivable and payable, advances, receivables and payables relating to lease and hire purchase, lease security deposit, confirmation ofinter-corporate deposits, balance oftax-employees, margin against I/C loansfrom institutions, banks and other receivables and payable. Accordingly itis notfeasiblefor us ascertainwhether any claim or income or charge has been skipped to be recorded which could havefinancial impact. This qualification is already explained and'quantified as above. Qualification (v) . . . . Considering all thefactors, we are of opinion that there is no probability thatfuture economic benefits willflow, . ' accordingly MAT Credit Entitlement created in previous periods needs to be reversed and same has been explained in the . qualification. Qualification (vi) _ ' The qualification regarding Contingent Liability is already explained and quantified as above. The same 15 read as per audit report. -

O	CEO/Managing Director

	Audit Committeechairman
	Statutory Audlmr
Place: New Delhi

DCM FINANCIAL SERVICES LIMITED CIN L65921DL1991PLC043087 Regd. Office:- D7/3, Okhla Industrial Area, Phase - 2, New Delhi - 110020. Tel. 011-26387750, Fax. 91-11-26385996 Email id.: [email protected]; Website: www.dfslonline.com

	Quarter Ended			Year Ended
Particulars	Quarter ended31-03-2019	Preceding 3month ended31-12-2018	Corresponding 3month ended31-03-2018	Year to date figures forthe Curent year ended on31-03-2019	Year to date figures for theprevious year period endedon 31-03-2018

	(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
I. Revenue from Operations	-	-	-	-	-
II. Other Income	56.16	80.31	476.24	299.37	725.16
III. Total Income (I +II)	56.16	80.31	476.24	299.37	725.16
IV. Expenses
Cost of Material Consumed	-	-	-	-	-
Purchases of Stock-in-trade	-	-	-	-	-
Changes in inventories of finished goods, Work-in
progress and stock-in-trade	-	-	25.32	-	-
Employee Benefits Expenses	19.07	19.94	12.70	59.35	44.99
Finance Costs	25.94	29.30	100.62	110.73	100.62
Depreciation and amortisation expenses	7.83	7.83	9.02	31.32	31.43
Other Expenses	23.47	29.69	310.59	148.86	403.68
Total Expenses (IV)	76.31	86.76	458.25	350.25	580.72
V. Profit/(Loss) before exceptional items and tax (III- IV)	-20.15	-6.45	17.99	-50.88	144.44
VI. Exceptional items	-	-	-	-	-
VII. Profit/(Loss) before tax (V-VI)	-20.15	-6.45	17.99	-50.88	144.44
VIII. Tax Expense	54.27		115.21	43.60	150.74
(1) Current tax	-12.81	-	3.47	-	39.00
(2) Deferred tax	66.89	1.12	110.91	43.41	110.91
(3) Previous Year Tax	0.19	-2.60	0.83	0.19	0.83
IX. Profit/(Loss) for the period from continuing	-74.42	-4.97	-97.22	-94.47	-6.30
operations (VII-VIII)
X. Profit/(Loss) from discontinued operations	-	-	-	-	-
XI. Tax expense of discontinued operations	-	-	-	-	-
XII. Profit/(Loss) from Discontinued operations (aftertax) (X-XI)	-	-	-	-	-
XIII. Profit/(Loss) for the period (IX+XII)	-74.42	-4.97	-97.22	-94.47	-6.30
XIV. Other Comprehensive Income	2.77	-0.85	-1.21	0.88	-1.21

(A) (i) Items that will not be reclassified to profit or loss	2.56	0.22	-1.05	-	-1.05
(ii) Income tax relating to items that will not be
reclassified to profit or loss	0.21	-	-0.16	0.88	-0.17
(B) (i) Items that will be classified to profit or loss	-	-	-	-	-
(ii) Income tax relating to items that will be reclassified to	-	-	-	-	-
profit or loss
XV. Total Comprehensive Income for the period
(XIII+XIV)	-71.65	-5.60	-98.44	-93.59	-7.52
(Comprising Profit (Loss) and Other Comprehensive
Income for the Period)
XVI. Earnings per equity share (for continuingoperation):
(1) Basic	-0.32	-0.03	-0.44	-0.42	-0.03
(2) Diluted	-0.32	-0.03	-0.44	-0.42	-0.03

XVII. Earnings per equity share (for discontinuedoperation):
(1) Basic	-	-	-	-	-
(2) Diluted	-	-	-	-	-
XVIII. Earnings per equity share (for discontinued &
continuing operations)
(1) Basic	-0.32	-0.03	-0.44	-0.42	-0.03
(2) Diluted	-0.32	-0.03	-0.44	-0.42	-0.03

Statement of Standalone Audited Financial Results for the Quarter and Year ended March 31, 2019 Amt. (In Lakhs)

Notes:

(1) The above results have been reviewed by Audit Committee and taken on record by the Board of Directors at its Meeting held on 28th, May 2019. The Statutory Auditors have carried out their Audit of the above results.

(2) The above results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (IND AS), prescribed under section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable.

(3) The IND AS compliant corresponding figures for the period as reported above have not been subjected to review. However, the Company's management has exercised necessary due diligence to ensure that such financial results provide a true and fair view of its affairs.

(4) The figures for the previous period/year have been regrouped/reclassified, wherever necessary, to conform to the current period/year classification.

(5) As the Company's business activity falls within a single segment, therefore "Segment Reporting" are not applicable.

(6) The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year-to-date figures upto the third quarter of the current financial year.

For DCM Financial Services Ltd

(SHANTANU DEVESHWAR) Whole Time Director DIN : 08268523