DCM Ltd. — Capital/Financing Update 2019

Nov 29, 2019

m~1i!ilLIMITED
The Manager /	The Manager
Listing Depent	ListingDepartment
BSE Limid,	The NationalStock Exchangeof India Ltd,
1st Floor.ew TradingRing,	ExchangePlaza, Bandra-KurlaComplex,
RotundBuilding,P.1 Towers,	Bandra(East),
Dalaltreet Fort,	Mumbai-400 051.
Muai - 400 001.
ScriCode:502820	ScriCode:DCM

Date: November 29,2019

Subject: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulation") read with the circular issued by the Securities and Exchange Board of India ("SEBI") dated September 9, 2015, bearing reference no. CIRlCFD/CMD/4/2015 ("SEBI Circular")

Respected Sir,

Pursuant to Regulation 30 of the Listing Regulations, we are pleased to inform you that the board of directors of DCM Limited ("Transferor Company"), at its meeting held on November 28, 2019, considered and approved the scheme of arrangement amongst the Transferor Company and DCM Engineering Limited ("Transferee Company") and their respective shareholders and creditors ("Scheme"), in relation to, inter alia, the transfer of the engineering business undertaking of the Transferor Company namely the 'DCM Engineering Product' ("Business Undertaking") and vesting of the Business Undertaking with and into the Transferee Company on a going concern basis by way of a slump sale (as defined under Section 2(42C) of the Income Tax Act, 1961), in the manner set out in the Scheme, and restructuring of the debt in relation to the Business Undertaking to be transferred by the Transferor Company to the Transferee Company pursuant to the Scheme, after giving effect to the transfer of the Business Undertaking and vesting of such Business Undertaking with and into the Transferee Company.

The Scheme is subject to the necessary approvals from the shareholders and creditors of each of the Transferor Company and the Transferee Company and other statutory and regulatory approvals under applicable laws, including the approval from the National Company Law Tribunal, New Delhi bench ('NCLT') and approvals from the BSE Limited, the National Stock Exchange ofIndia Limited and the SEBI in accordance with the Listing Regulations and SEBI circular number CFDIDIL3/CIRl2017/21 dated March 10,2017, read with the SEBI circular number CFD/DIL3/CIR/2017/26 dated March 23, 2017, the SEBI circular number CFD/DIL3/CIRl20 171105 dated September 21, 2017, the SEBI circular number CFDIDlL3/CIRl2018/2 dated' January 3, 2018 and the SEBI circular number CFDIDILl/CIRlP/20191192 dated September 12,2019.

Registered Office : Vikrant Tower, 4, Rajendra Place, New Delhi-ll0008 Phone: (011) 25719967 Fax: (011) 25765214 CIN: L74899DL1889PLC000004 Website: www.dcm.in E-mail: dcmltd@dcm.in As required under Regulation 30 of the Listing Regulations read with the SEBI Circular, please find enclosed herewith brief details of the Scheme in Annexure A.

Kindly take note of the same on your records.

Yours respectfully, For DCM Limited

Jitendra Tuli Managing Director DIN: 00272930

Enclosed: as above.

Disclosure under Regulation 30 of the Listing Regulations read with the SEBI Circular, in relation to the Scheme.

1.	Theamountandpercentageof theturnoveror revenueor incomeandnet worthcontributedbysuchunitordivisionofthelistedentityduringthelast financialyear	Theturnoverandnetworthof eachTransferorCompanyandtheUndertakingforthefinancialyearMarch31, 20 19 (on a standalonebasis),the percentageof the turnoverof the BusinessUndertakingto the turnoverof the TransferorCompanyfor the financialyear ended31, 2019 (on a standalonebasis) are as set outbelow:		of theBusinessendedandMarch
		Sr.	Particulars	Net	(INR in Crore)Turnover
		No.		Worth	--
		I	OCM Limited	194.60	1100.04
		2	BusinessUndertaking	(4.97)	388.76
		3	Percentage		35.34%
2.	Date on which the agreementfor salehas been enteredinto	Thebasisundertaken	Not applicable,theretransferof thethe TransfereeCompanybywayofapursuant	is no agreementBusinesson a goingslumpsaleto the Scheme.	for sale.UndertakingtoconcernisbeingII
3.	The expecteddateof completionofsale/disposal	BusinessTransfereethe	Not applicable.The transferUndertakingCompanySchemecomeswith its terms.	withandwillbe completedinto effect	and vestingof theintotheafterin accordance
4.	Considerationreceivedfromsuchsale/disposal	ThewithwhollyCompany.payableTransferor	BusinessUndertakingandintotheownedsubsidiaryThereisbytheTransfereeCompany.	transferTransfereeofthenocashCompany	/ vestingCompanyis aTransferorconsiderationtothe
5.	Brief detailsofbuyer(s)and whetheranyofthebuyerbelongtothepromoter/promotergroup/groupcompanies.If yes, details thereof	NameDetailsOCM	of thebuyerDCM Engineeringof the buyerEngineering	/ TransfereeLimited/ TransfereeLimitedis	Company:Company:apublic
		companyAct,	incorporated1956 having	undertheits registered	Companiesofficeat New

		Delhi.It wasincorporatedonDecember23,1998 underthe nameandstyle "DCMToolsandDiesLimited"andthenameoftheTransfereeCompanywaschangedtoDCMEngineeringLimitedwith effect from October15,2019.TheobjectoftheTransfereeCompanyistoundertaketheengineeringbusinesswhichincludesmanufacturingandsupplyof greyironcasting.TheTransfereeCompanydoesnotconductanybusinessoperationsas of date.
		Detailofpromotergroup:DCMEngineeringLimitedisawhollyownedsubsidiaryoftheDCMLimited,theTransferorCompany.
6.	Whetherthetransactionwouldfallwithinrelatedpartytransactions?Ifyes,whetherthesameisdoneat"armslength"	SincetheTransfereeCompanyis a whollyownedsubsidiaryof the TransferorCompany,thetransferof the BusinessUndertakingfromtheTransferorCompanytotheTransfereeCompanypursuantto theSchemewillbe arelatedpartytransaction.Thusexemptfrompurview of regulationsgoverningrelated partytransactions.TheSchemewillbeimplementedon an arms'lengthbasis.
7.	Additionally,in case of a slump sale,indicativedisclosuresprovidedforamalgamation/merger,shallbedisclosedbythelistedentitywithrespectto such slumpsale	Pleaserefer paragraphs8 to 13 below.
8.	Nameof the entitiesformingpart ofthe amalgamation/merger,detailsinbrief such as size, turnoveretc.	NameofTransferorCompany:DCMLimited,whichpresentlyhas its equityshareslisted on the NationalStock ExchangeofIndiaLimitedand the BSE Limited.
		The total assets,net worth and turnoverof theTransferorCompanyas onMarch31, 2019(on a standalonebasis)is as set out below:
		a)Totalassets:INR588,97,00,000(IndianRupees Five HundredEighty Eight CroresNinetySevenLakh);b)Networth:INR194,60,00,000(IndianRupeesOne HundredNinetyFour CroresSixty Lakh);and

		c)Turnover:INR1100,04,00,000(IndianRupeesOneThousandOneHundredCroresFour Lakh).NameoftheTransfereeCompany:OCMEngineeringLimitedisapublicunlistedcompanyanda whollyownedsubsidiaryofthe TransferorCompany.
		Theobjectof theTransfereeCompanyis toundertaketheengineeringbusinesswhichincludesmanufacturingandsupplyofgreyironcasting.TheTransfereeCompanydoesnot conductany businessoperationsas of date.
9.	Whetheritisarelatedpartytransaction?If yes, whetherit is doneat "armslength"	Pleaserefertothedescriptionsetoutinparagraph6 above.
10.	Area of businessof the entity/entities	The TransferorCompanyand the TransfereeCompanyareengagedinthefollowingbusinessactivities:1.TransferorManufacturing/Companysaleofcastingstotheautomotiveindustryandreal
		estatedevelopment2.TransfereeEngineeringCompanybusinesswhichincludesmanufacturingandsupplyof greyironcasting
11.	Rationalefor amalgamation/merger	TherationalefortheproposedSchemeincludes:(i)ThemanagementoftheTransferorCompanybelievesthatthebusinessinterestsof theTransferorCompanyintheBusinessUndertaking,whichcomprisestheengineeringdivision,andbusinessundertakingsof theTransferorCompanyotherthantheBusinessUndertaking(includingtherealestatebusiness)("RemainingUndertaking")

requirededicatedmanagementfocus andbusinessstrategiestoensurethattherespectivebusinessesare giventhe rightimpetusfor growthby securing,amongotherthings,strategicandfinancialpartnership(s).
Withaviewtoachievegreater(ii)managementfocusoneachoftheRemainingUndertakingand the BusinessUndertaking,themanagementoftheTransferorCompanyproposesto transferthe BusinessUndertaking,and vest suchBusinessUndertakingwithandinto theTransfereeCompany(awhollyownedsubsidiaryof TransferorCompany).
(iii)With a view to restoreprofitabilityof andrevivetheBusinessUndertaking,itisconsiderednecessaryto inductfinancial!strategicpartner(s)IntheBusinessUndertaking(whichcomprisestheengineeringdivision)whocanprovidecriticallyrequiredmoderntechnologyand financialinvestmentto the BusinessUndertaking,enablingtheTransfereeCompanytosustainandgrowtheoperationsof the BusinessUndertaking.
(iv)ThemanagementoftheTransferorCompanybelievesthat the segregationofthe BusinessUndertakingwill enabletheTransfereeCompanytorestructuretheoutstandingloans, debts and liabilitiesofthe TransferorCompanyin relationto theBusinessUndertaking,enablingtheTransfereeCompanytoimproveserviceabilityof suchoutstandingloans,debtsandliabilitiesandrevivetheBusinessUndertaking.
(v)The transferof the BusinessUndertakingbytheTransferorCompanytotheTransfereeCompanywillenablethemanagementof the TransferorCompanyto focuson theRemainingUndertakingandtodevelopandmanagerealestateassets,so as to derivelong termannuityvalue for the shareholders.This will helpin expeditingthemonetizationof these

assetsandtobridgethegapbetween
intrinsicvalueand marketcapitalization
of the TransferorCompany.
(vi)ThemanagementoftheTransferor
CompanyandtheTransfereeCompany
believethatthe transferof theBusiness
UndertakingfromtheTransferor
Companyandvestingof suchBusiness
Undertakingwith and into the Transferee
Companyandtherestructuringofthe
outstandingloans,debtandliabilitiesin
relationto the BusinessUndertaking,are
in the largerinterestof the shareholders,
creditorsand employeesof the Transferor
CompanyandtheTransfereeCompany
andwillenhancetheprospectsofthe
future growthof the TransferorCompany
andtheTransfereeCompany,andIS
likelyto resultin the followingbenefits
fortheTransferorCompanyandthe
TransfereeCompany:
(a)impartingbettermanagementfocus,
facilitatingadministrative
convenienceandensuringoptimum
utilizationof variousresourcesof the
TransferorCompanyand Transferee
Company;
(b)increasingefficienciesin
management,controland
administrationof theaffairsof the
TransferorCompanyand Transferee
Company;
(c)facilitatingstrategicinvestmentin
the TransfereeCompany;
(d)enablingtheTransferorCompany
and TransfereeCompanyto focus on
their core businessverticals;
(e)creatingandenhancing
stakeholders'value by unlockingthe
intrinsicvalue of the core businesses
oftheTransferorCompanyand
TransfereeCompany;
(t)enablingeachoftheTransferor
CompanyandtheTransferee
Companytoraisenecessary
resourcesfortheirrespective
businessesindependently;and
(g)achievinganoptimumcapital

		structureandcommensurateassetswhichislikelytoenhancethebusinessprospectsof the TransferorCompanyas wellas the TransfereeCompanyandprovideforwealthcreationfor theshareholdersof theTransferorCompanyandtheTransfereeCompanyinthelongterm.
12.	Incaseofcashconsideration(amount)orotherwiseshareexchangeratio	Please refer to paragraph4 above.
13.	Detailsofchangeinshareholdingpattern(if any) of listed entity	Nil
14.	Detailsand reasonsfor restructuring	Detailsof restructuring:Upon the transferoftheBusinessUndertakingandvestingof thesame with and into the TransfereeCompany,the loans and outstandingdebt transferredbytheTransferorCompanytotheTransfereeCompanypursuanttotheSchemewillberestructuredin the followingmanner:(i)Termloanfacilities:TheTransfereeCompanywillissueoptionallyconvertibledebentureshavingface valueofINR1,000(IndianRupeesOneThousand)each ("OCDs")to each of thetermlendersfor an amountequivalentto50%(fiftypercent.)oftheentireoutstandingprincipalamount(excludingthe accruedinterestthereon,if any) undersuch term loan facilitiesas on the date theschemecomesinto effectin accordancewith its terms (such date being referredtoas the "EffectiveDate"and such amountbeingreferredtoasthe"OutstandingTLAmount").The terms of such OCDsare as set out in the Scheme.
L-__~	~	The remaining50% (fifty per cent.) of theOutstandingTL AmountalongwiththeoutstandingaccruedinterestunderthetermloanfacilitiesasontheEffectiveTLDate("RepaymentAmount"),willbe paid by the TransfereeCompanyoveraperiodof5(five)yearsfromtheEffectiveDatein5 (five)equalannualinstalmentspayableattheendof each__such year followingthe EffectiveDate. In

		of the TransfereeCompanycreatedintheTransfereeCompanyafterthe EffectiveDate.(iii)Paymentsto sundrycreditors:The entireoutstandingamountowed(includingtheprincipalamountandtheaccruedinterest)to the sundrycreditorsas on theEffectiveDate,willbepaidbytheTransfereeCompanytoeachoftherespectivesundrycreditorsover a periodof 6 (six) yearsfrom the EffectiveDate,payableby the end of eachsuch year, asperthedetailssetoutintheScheme(under which the priorityto the paymentstobemadetothesundrycreditorsisdeterminedinincreasingorderofthevalueof the outstandingamountsdue tosuch sundry creditors).Reasonsforrestructuring:Pleasereferto
		paragraph11 above.
15.	Quantitativeand!orqualitativeeffect of restructuring	Pursuanttotheabovementioneddebtrestructuring,allcreditorsin relationto theBusinessUndertakingwill be repaid the entireoutstandingamountowedto themas per thetimelinesmentionedabove.
16.	Detailsofbenefit,ifany,tothepromoter!promotergroup!groupcompaniesfromsuchproposedrestructuring	Thepromoter!promotergroup!groupcompanieshave not receivedany benefitfromtheproposedrestructuringotherwisethanintheircapacityasshareholdersoftheTransferorCompany.
17.	BriefdetailsofchangeInshareholdingpattern(if any)of allentities	Therewillbe no changein the shareholdingpatternof theTransferorCompanyandtheTransfereeCompanypursuantto the Scheme.