DCM Ltd. — Regulatory Filings 2021

Nov 12, 2021

~ovember12,2021

BSE Limited Floor 25, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400 001

National Stock Exchange of India Ltd. Exchange Plaza, Plot no. Cl1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051

Scrip Code: 502820jDCM

Subject: Unaudited Financial Results (Standalone and Consolidated) of Company for 2ndquarter and half year ended September 30, 2021 pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dear Sirs,

In terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, this is to inform you that the Board of Directors of the Company at its meeting held on today at Delhi through Video Conferencing have approved and taken on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for 2ndquarter and half financial year ended September 30, 2021.

The aforesaid results along with Limited Review Report thereon by Statutory Auditors of the Company are enclosed herewith as Annexure 1.

Please acknowledge receipt of the same.

E-mail id: investors@dcm.in

Registered Office: Unit Nos. 2050 to 2052, 2nd Floor, Plaza Il,Central Square. 20, Manohar Lal Khurana Marg, Bara Hindu R~Il), Delhi - 110006. Phone: (011)41539170 Cllv: L74899l.)Ll889PLC000004 Website: www.dcrn.in Emaii id:dcmltd@dcm.in

S S KOTHARI MEHTA &COMPANY CHARTERED ACCOUNTANTS

Independent Auditor's Review Report on Quarterly and Year to date standalone unaudited financial results of the Company, Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Review Report to The Board of Directors, DCM Limited New Delhi

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of DCM Limited (the Company) for the quarter and six month ended September 30, 2021 (the statement), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, (the "Listing Regulations")
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review in of the statement in accordance with the Standard on Review Engagement (SRE)2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity' issued by the Institute of Chartered Accountants of India. A review of interim financial information consists primarily of making inquiries of company personnel responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain .assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement prepared in all material respects in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (lnd-AS) specified under section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Listing Regulation, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. Emphasis of matters

Without qualifying our conclusion, we draw attention to the following l

Note 3 of the Statement, during the previous year in view of continued situation of industrial unrest Company has declared lockout at its engineering business undertaking. On the basis of legal advice Management of the Company is of the view that the present lockout is legal and justified. Therefore, the Company has not made any provision for wages pertaining to the lockout period

Plot No. 68, Okhla Industrial Area, Phase-ln. New Delhi-11 0020 Tel: +91·114670 8888 E-mail: info@sskmin.com www.sskmin.com

S S KOTHARI MEf-lTA &COMPANY--

CHARTERED ACCOUNTANTS

October 22, 2019 to September 30, 2021 aggregating to Rs. 3579 lakhs (current quarter is Rs. 425 lakhs).

• b. Note 8 to the Statements, the Company has received certain recovery notices from creditors and bankers. Pursuant to the restructuring scheme approved by the Board of the Company the settlement of all such creditors and bank has already been provided for in this Scheme. In addition, the Company is taking other interim measures as explained in the said Note 8 to improve liquidity including proposed Right Issue of equity shares, management action is also explained in the said note.
• c. Note 8 to the Statement, the banking operation of current account(s) maintained by the Company has been discontinued by the Bankers in view of notification of RBI restricting opening/operation of current account by customers who have availed Cash Credit / Overdraft facilities. This has adversely impacted the ability of the Company to run its day-to-day operations as its cash credit/overdraft accounts are classified as NPA. In view of above, as an interim measure, the day to day banking transaction of receipt and as well as payment for statutory dues/overheads and/or other critical payments are facilitated by the Company through one of its wholly owned subsidiary.
• d. Note no. 7 to the statement, which describes the possible effect of uncertainties and the impact of Covid-19 pandemic on Company's operations and results as assessed by the management.

6. Material Uncertainty on Going Concern

We draw attention to Note: 5 of the Statement highlighting that due to recession in automotive sector and industrial unrest the Company is facing liquidity issues towards clearing of its statutory dues, vendor payments and borrowings pertaining to its Engineering Division. This has significantly eroded the Company's net worth and the current liabilities exceed the current assets by Rs. 52841akhs as at September 30, 2021. The Company has initiated restructuring of its Engineering Division as explained in the Note: 4. The management of Company believes that with the restructuring of its Engineering Business Undertaking along with the debt pertaining to said undertaking and infusing liquidity by focusing /managing of its remaining business undertaking/real estate operation, the Company will be able to continue its operation on a going concern basis. Accordingly, the statement of the Company has been prepared on a going concern basis. Our conclusion is not modified in respect of this matter.

For S. S. Kothari Mehta & Company

Chartered Accountants

Firm Registration No: 000756N / . Sunil Wahal

Place: New Delhi Dated: November 12, 2021 UDIN : 21087294AAAAKZ7956

Plot No. 68, Okh!a Industrial Area; Phase-Ill, New Delhi·11 0020 Tel: +91-1146708888 E-mail: info@sskmin.com www.sskmin.com

Regd. Office: 2050-2052, 2nd Floor, Ptaza-ll, Central Square, 20, Manohar Lata Khurana Marg, Bara Hindu Rao, New Delhi -110 006 E-mail: investors@dcm.in Phone: 011-41539170 CIN: L74399DL 1889PLCOOOOO4

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2021

						RuDtM!s in lakhl
	S. No. [Particulars	L	For the quarter ended		Six Months ended		For the vear ended
		aectember 30 2021	June 30 2021	aeetember 30 2020	aeetember 30 2021	Seetember 30 2020	March 31 2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	IRevenue
	(8)!Revenue from operations	1	7	4	8	(24)	50
	b) other income refer Note 6	836	1291	83	2127	101	481
	Total income	837	1,298	87	2,135	n	531
	Expenses
	(a) Cost of materials consumed			3		1	(28)
	(b) Changes in inventories of finished goods and work in progress			(2)		(4)	25
	(c) Employee benefits expense	45	43	68	88	178	402
	(d) Finance costs	197	188	213	385	413	857
	(e) Depreciation and amortization expense	193	203	214	396	430	857
	(f) Other expenses	54	54	100	108	164	415
-
	Total expenses	489	488	596	9n	1182	2528
	ProfIt/CLoss} before tax	348	810	(509)	1,158	(1,105)	(1,997)
	Tax expense
	Current tax
	Tax adjustment relating to prior periods	(3:)1			(35)
	1 Deferred tax exeense		:1	:1
	Total tax expense	(35)			(35)
	-l- Profit/floss) for the period! year	383-!-	810-!-	(50911-	1,193 I	(1,105)1	f1.997
	Other comprehensive income
	(a) Iitems that will not be reclassified to profit or loss
	Re-measurement {losses)1 gains of defined benefit obligations (net of	I 161	161	(18)1	321	(18)1	&4
	tax)
	(b) [ltems that will be reclassified to profit or loss
	Exchange difference in translating financial statements of foreign
	operations (net of tax)
		399	826	527	1 25	1123	1933
	Total comnrehensive Incomel Exnense for the neriodl vear
	Paid up equity share capital (Face value Rs. 10 per share)	1,868	1,868	1,868	1,868	1,868	1,868
	other equity						(2,380)
10	leamingsJ (loss) per equity share (EPS) of Rs.10 each
	(not annuaiised)
	Basic and diluted	I 2.051	4.3.1	2.731	6.391	(5.92)1	(10.69

Notes: 1. Standalone .egment wl.e information for the quarter and six months ended September 30, 2021

							(Rupees in lakh)
	S. No. Particulars		For the quarter ended		Six Months ended		For the year ended
		September 30, 2021	June 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020	March 31, 2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Segment revenue
a)	Real Estate		$\overline{7}$
	b) Grey Iron Casting				8	(24)	50
	Total		$\overline{7}$	4	8	(24)	50
	Less : Inter segment revenues
	Net revenue from operations	$\mathbf{1}$	$\overline{7}$	4	8	(24)	50
$\mathbf{2}$	Segment results (Profit/(Loss) before interest and
	tax from ordinary activities)
a)	Real Estate	545	839		1,384
	b) Grey Iron Casting	(29)	210	(281)	181	(638)	(1, 338)
	Total	516	1,049	(281)	1.565	(638)	(1, 338)
	Less : I) Finance costs	197	188	213	385	413	857
	: II) Un-allocable expenditure net of
	un-allocable income	(29)	51	15	22	54	(198)
	Profit/(Loss) before tax	348	810	(509)	1, 158	(1, 105)	(1, 997)
3	Segment assets
a)	Real Estate	136	328	12	136 5.841	12	1,500
b)	Grey Iron Casting	5.841	6.029	6.882		6.882	6.216
	Total segment assets	5,977	6,357	6,894	5,977	6,894	7,716
	Others un-allocated	5.287	5,320	5,523	5.287	5,523	5,394
	Total assets	11,264	11,677	12,417	11,264	12,417	13,110
4	Seament liabilities
	a) Real Estate	1,860	1,546	23	1.860	23	1,500
	b) Grey Iron Casting	4.086	5,688	8,142	4,086	8,142	8,101
	Total segment liabilities	5,946	7,234	8,165	5,946	8,165	9,601
	Others un-allocated (excluding borrowings)	785	956	930	785	930	903
	Total liabilities	6,731	8,190	9,095	6,731	9,095	10,504

Regd. Office: 2050-2052, 2nd Floor, Plaza-II, Central Square, 20, Manohar ILaia Khurana Marg, Bara Hindu Rao, New Delhi -110 006 E-mail: investors@dcm.in Phone: 011-41539170

			STATEMENT OF STANDALONE ASSETS AND LIABILITIES AS AT SEPTEMBER	30,2021
--	--	--	----------------------------------------------------------------	---------	--

	(Rupees in lakhs)
Particulars	As at	As at
	SeDtember 30, 2021	March 31, 2021
	Unaudited	Audited
ASSETS
Non-current assets
Property, plant and equipment	4,514
		4,991
Capital work-in progress	7	7
Intangible assets	10	18
Financial assets
(i) Investments	3,246	3,246
(ii) Other financial assets	180	180
Non-current tax assets (net)	402	365
Other non-current assets	766	881
Total non-current assets	9,125	9,688
Current assets
Inventories	1,313	1,314
Financial assets
(i) Trade receivables	14	17
(ii) Cash and cash equivalents	21	28
(iii) Bank balances other than (ii) above	119	167
(iv) Loans	21	22
(v) Other financial assets	160	44
Other current assets	285	1,625
Assets held for sale	205	205
Total current assets	2,138	3,422
Tota I assets	11,263	13,110
EQUITY AND LIABILITIES
Equity
Equity share capital	1,868	1,868
Other equity	(1,155)	(2,380)
Total equity	713	(512)
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	-	10
(ii) Other financial liabilities	2,365	2,005
Provisions	763	787
Total non- current liabilities	3,128	2,802
Current liabilities
Financial liabilities
(i) Borrowings	3,235	3,107
(ii) Trade payables
Dues to micro and small enterprises	606	2,426
Dues to others	1,655	3,497
(iii) Other financial liabilities	1,506	1,268
Other current liabilities	300	312
Provisions	116	116
Current tax liabilities (net)	4	94
Total current liabilities	7,422	10,820
Total enuttv and liabilities	11,263	13,110

DCM Limited

Standalone Cash Flow Statement for the period ended September 30, 2021

		(Rupees in lakhs)
Particulars	For the Period ended	For the period ended
	September 30, 2021	September 30, 2020
Cash flow from operating activities
Loss before taxation - Continued operations	1,158	(1,105)
Adjustments for:
Depreciation and amortisation expense	396	430
(Profit) I Loss on assets sold or discarded (Net)	8	(40)
Income from sale of rights in flats	(1,385)
Liabilities no longer required written back	(694)
Dividend Income	(46)	(46)
Interest income	(2)	(12)
Provision for Impairment in value of Investments		20
Finance costs	385 (0)	413 (4)
Finance lease income
Allowance/ (reversal) of expected credit loss	- 0	8
Bad debts and irrecoverable balances written off Remeasurement of revenue to finance income and lease receivable	2	45
Operating cash flow before working capital changes	(178)	(291)
Changes in assets and liabilities	2	5
(Increase)/decrease in inventories (Increase)/decrease in trade receivables	3	a
(Increase)/decrease in loans and advances	1	3
(Increase)1 decrease in other financial assets	(118)	(3)
(Increase)/decrease in other assets	1,454	(10)
Increase/ (decrease) in trade payables	(1,623)	223
Increase/(decrease) in provisions	9	(103)
Increase/(decrease) in financial liabilities	405	120
Increase/(decrease) in other liabilities	(12)	25
Cash (used in) I generated from operations	(57)	(31)
Income tax paid (net of refund)	(92)	166
Net cash (used in)/generated from operating activities (A)	(149)	135
Cash flow from investing activities
Proceeds from disposal of Property, plant and equipment (including advance received)	80	44
Interest received on financial assets measured at amortised cost	3	5
Dividend received from subsidiaries	46 48	46 (1)
Maturity of / (Investment in) bank deposits (net) not considered as cash and cash equivalents
Net cash generated from investing activities (8)	177	94
Cash flow from financing activities
Proceed from /(Repayment of) long term borrowings	(16)	13
Proceed from /(Repayment of) short term borrowings		146
Payment towards lease liability		(1)
Dividend Paid		(9)
Interest paid	(19)	(366)
Net cash (used) in financing activities (C)	(35)	(21V
Net cash flows [increase / (decrease)) during the year (A+B+C)	(7)	12
Cash and cash equivalents at the beginning of the year	28	94
Cash and cash equivalents at the end of the year	21	106
Components of cash and cash equivalents
Cash on hand	0	3
Balances with scheduled banks:
- Current accounts	21	103
Cash and cash equivalents at the end of the year	21	106

• 1. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as amended (lnd AS), prescribed under Section 133 of the Companies Act, 2013, and other recognized accounting practices and policies to the extent applicable.
• 1. In view of continued situation of industrial unrest at Engineering Business Division of the Company, situated at Village Asron, District Shaheed Bhagat Singh Nagar (Punjab), the management of the Division has recommended to declare a lockout. The Board of Directors of the Company in their meeting held on October 21, 2019 has accordingly approved the declaration of lockout at its said Engineering Business Undertaking w.e.f. October 22, 2019.
• The said lockout was opposed by the workmen of said Engineering Division before the Labour Authorities. Based on the legal advice received by the Company, the management is of the view that the present lockout is legal and justified. Therefore, the Company has not made any provision for wages pertaining to the lockout period October 22, 2019 to September 30, 2021 aggregating to Rs. 3579 lakh out of which Rs. 425 lakh pertain to quarter ended on September 30, 2021.
• 1. Board of Directors of the Company in its meeting held on November 28, 2019 have approved a composite scheme of arrangement for transfer of its "Engineering Business undertaking "to its wholly owned subsidiary namely DCM Engineering Limited (formerly known as DCM Tools and Dies Limited), on a going concern basis with effect from the appointed date of October 0 I, 2019 and restructuring of outstanding loans, debts and liabilities of the Engineering Business Undertaking. The above Scheme was filed with the Stock Exchanges viz. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for seeking their no-objection. The Company has received observation letter dated June 24, 2020 from BSE Limited and National Stock Exchange Limited (Stock Exchanges) enabling the Company to file the Scheme with Hon'ble National Company Law Tribunal (NCL T) for seeking their approval. The filing of Scheme remains pending awaiting in principle approval of secured lenders (Banks). The said approval of the Stock Exchanges was valid till December 23, 2020. Pursuant to above, the Company has filed the application(s) to the Stock Exchanges on December 22, 2020 and June 28, 2021 for seeking their approval for extension of time for enabling the Company to file the scheme before NCL T for seeking their approval under Section 230 - 232 of the Companies Act, 2013 with due compliance. The Company has been in discussion with the secured lenders at all level in this regard.

Since, the aforesaid Scheme is subject to approval from concerned regulatory authorities which is considered to be substantive, the accounting effect of the above Scheme has not been considered in these standalone fmancial results.

1. Due to continued situation of industrial unrest, the Company is currently facing liquidity issues towards clearing of statutory dues, vendor payments and repayment of borrowings pertaining to its Engineering Division. This has significantly reduced the Company's net worth and the current liabilities exceed the current assets by Rs.5284 lakhs as at September 30, 2021. The Company is taking requisite steps to improve the liquidity and manage the existing situation.

The Scheme of Arrangement mentioned in note 4 above has been made with a view to restore profitability and revive the said Engineering Business Undertaking (Undertaking) by facilitating strategic investment and further sale of surplus piece of land and restructuring of outstanding loans, debts and liabilities pertaining to the Engineering Business to revive the said undertaking and infuse sufficient liquidity.

The management believes that with the above restructuring of Engineering Business Undertaking along with the debt pertaining to said Undertaking and infusing liquidity by focusing /managing of its remaining business undertaking/real estate operation as well as other interim measures to improve liquidity including proposed Right Issue approved by the Board in its meeting held on February 12, 2021, the Company will be able to continue its operation on a going concern basis.

Accordingly, the financial results of the Company have been prepared on a going concern basis.

1. Other income includes income from transfer of right in residential flats of amount Rs.549 lakh and Rs.1385 for the quarter ended september 30, 2021 and half year ended september 30, 2021 respectively, and Liabilities / Provision no longer required written back of amount Rs. 243 lakh and Rs. 694 for the quarter ended september 30,2021 and half year ended september 30,2021 respectively.

7. Covid-19 Pandemic and Its Impact

The Covid-19 impact remains a serious concern for governments and businesses. The Company has implemented Standard Operating Procedures of social distancing, workplace sanitization and employee health monitoring, and these are being followed strictly.

The Management has been closely reviewing the impact of COVID- 19 on the Company. Due to continuation of lockout of Engineering Business Unit (Engineering Business Undertaking), declared on October 22, 2019, the operation ofthe said Business Unit remained suspended during the lock down period on account of COVID-19. Based on current indicators of future economic conditions, the Company has concluded that although due to Covid 19 the Company's initiatives of restructuring of Engineering Business Undertaking and infusing liquidity by focusing /managing of its real estate operation are taking time, however, the impact of COVID 19 is not material on long term basis on the future potential of its said Engineering Business Unit and Real Estate operation. Due to the nature of the pandemic, the Company will continue to monitor any material changes on the future economic conditions and relating to its Businesses in future periods.

1. The Company has received certain recovery notices/petitions from the creditors and the bankers who have provided working capital/terms loan facilities to the Engineering Division of the Company. A Bank has filed a suit for recovery and served demand notice u/s 13(2) under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) which has been stayed by the Hon'ble High court of Punjab & Haryana. Other two bankers have also served notice u/s 13 SARFAESI Act. The Company has duly replied these notices.

The banking operation of current account(s) maintained by the Company has been discontinued by the Bankers in view of notification of RBI restricting opening/operation of current account by customers who have availed Cash Credit / Overdraft facilities. The Company has been taking necessary steps in this regard. This has adversely impacted the ability of the Company to run its day-to-day operations as its cash credit/overdraft accounts are classified as NP A. In view of above, as an interim measure, the day to day banking transaction of payment for statutory dues/overheads and/or other critical payments and also the receipts are facilitated by the Company through its one of the wholly owned subsidiary.

Pursuant to the restructuring scheme approved by the Board of the Company, the settlement of all such creditors and bank has already been provided for in the said Scheme (refer note 4 above). In addition to the said Restructuring Scheme, the Company is also taking other interim measures to improve liquidity including proposed Right Issue of equity shares approved by the Board in its meeting held on February 12, 2021, to augment capital and expedite to complete the de-leveraging of the Company.

1. The Company has reviewed the deferred tax asset/deferred tax liabilities on deductible/taxable temporary differences between tax base of asset and liabilities and their carrying amount for fmancial reporting purposes

at each reporting date. However, due to continue situation of uncertainty of sufficient taxable profit to recover the accumulated losses and unused tax credits taxable profits in future years, deferred tax asset have not been considered in the financial results.

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

II. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on November 12, 2021 through video conferencing. The limited review report of the statutory auditors is being filed with the BSE Ltd and National Stock Exchange of India Ltd. For more details on the standalone results, visit Company's website www.dcm.in and Financial Results under Corporates section of www.nseindia.com and www.bseindia.com.

S U N IL Dig~ally signed by: ~~,6IfLWAHAL WAHA~!~!~:~~'~; Dlt~ 2021.11.1214: ·25:39 +05'30'

Place: New Delhi Date: November 12,2021 For and on behalf of the Board of Directors

JITENDR S:~~~i~~by A TU LI / ~::~~!~~O~~3~~

Jitendra Tuli Managing Director DIN: 00272930

Independent Auditor's Review Report on the Quarterly and Year to date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

S S KOTHARI MEHTA COMPANY CHARTERED ACCOUNTANTS

Review Report to The Board of Directors DCM Limited New Delhi

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of DCM Limited (the 'Holding Company' or 'Company'), its subsidiaries (the Holding and its Subsidiaries together referred as 'the Group') and its joint venture (including its subsidiary companies together referred to as "Jointly controlled entities") for the quarter and six month ended September 30, 2021, along with notes (the 'Statement'), attached herewith being submitted by the holding Company pursuant to the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (the "Listing Regulations").
• 1. This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind • AS 34")' prescribed under Section ¹³³ of the Companies Act, ²⁰¹³ (the Act), read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial arid accounting matters, and applying analytical and other review procedures. A review is substantially less in scopethan an audit conducted in accordance'with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBIunder Regulation 33 (8) of the listing Regulations, as amended, to the extent applicable.

Page 1 of4

Plot No. 68, Okhla industrial Area, Phase-ltl, New Delhi·11 0020 Tel: +91-1146708888 E-mail: info@sskmin.com www.sskmin.com

S S KOTHARI MEHTA &COI\1PANY CHARTERED ACCOUNTANTS

4. The Statement includes results of the following entities:

a. Subsidiaries

• 1 OeM Landmark Estates Limited (formerly known as OeM Textiles Limited)
• 2 OeM Infinity Realtors Limited (formerly known as oeM Data Systems Limited)
• 3 OeM Infotech Limited (formerly known as oeM Reality Investment & Consulting limited)
• 4 DCM Finance and Leasing Limited
• 5 OCM Engineering Limited (formerly known as DCM Tools and Dies Limited)
• 6 OCM Realty and Infrastructure Limited
• 7 DCM Engineering Products Educational Society
• b. Jointly controlled entity and its subsidiaries
• 1. Purearth Infrastructure Limited, jointly controlled entity
• 1. Kalptru Reality Private limited, subsidiary of Purearth Infrastructure Limited
• 1. Kamayani Facility Management Private limited, subsidiary of Purearth Infrastructure Limited
• 1. Vighanharta Estates Private Limited, subsidiary of Purearth Infrastructure Limited
• S. Based on our review conducted and procedure performed as per para 3 above and upon considerations of reports of other auditors read with para 8 below and management certified financial information, nothing further has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the applicable Indian Accounting Standards i.e. 'Ind AS' prescribed under Section 133 of the Act, read with relevant Rules issued thereunder and other recognized accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulation including the manner in which it is to be disclosed, or that it contains any material misstatement.

6. Emphasis of Matter

Without qualifying our conclusion, we draw attention to the following:

• a) Note 3 of the Statement, during the previous year in view of continued situation: of industrial unrest, Holding Company has declared lockout at its engineering business undertaking. On the basis of legal advice, Management of the Holding Company is of the view that the present lockout is legal and justified. Therefore, the Holding Company has not made any provision for wages pertaining to the lockout period October 22, 2019 to September 30, 2021 aggregating to Rs.Rs.3579 lakhs (current quarter is Rs.425 lakhs).
• b) Note 8 to the Statements, which describes the uncertainties and the impact of Covid-19 pandemic on the Group's and it's jointly controlled entity (including its subsidiary companies) operations and results as assessed by the management.

Page 2 of 4

c) Note 9 to the Statement, -whlch describe the banking operation of current account(s) maintained by the Holding Company has been discontinued by the Bankers in view of notification of RBI restricting opening/operation of current account by customers who have availed Cash Credit / Overdraft facilities. This has adversely impacted the ability of the Company to run its day-to-day operations as its cash credit/overdraft accounts are classified as NPA. In view of above, as an interim measure, the day to day banking transaction of receipt and as well as payment for statutory dues/overheads and/or other critical payments are facilitated by the Holding Company through one of its wholly owned subsidiary.

S S KOTHARI MEHTA &COJ\I\PANY CHARTERED ACCOUNTANTS

d) Note 9 to the Statements, the Holding Company has received certain recovery notices from creditors and bankers. Pursuant to the restructuring scheme approved by the Board of the Company the settlement of all such creditors and bank has already been provided for in this Scheme. In addition, the Holding Company is taking other interim measures as explained in the said Note 9 to improve liquidity including proposed Right Issue of equity shares, management action is also explained in the said note.

Material Uncertainty on Going Concern

1. We draw attention to Note: 5 of the Statement highlighting that due to recession in automotive sector and industrial unrest the Group is facing liquidity issues towards clearing of its statutory dues, vendor payments and borrowings pertaining to its Engineering Division. This has significantly eroded the Group's • net worth and the current liabilities exceed the current assets by Rs. 3656 lakh as at September 30, 202l. The Company has initiated restructuring of its Engineering Division as explained in note 4. The management of Holding Company believes that with the restructuring of its Engineering Business Undertaking along with the debt pertaining to said undertaking and infusing liquidity by focusing /managing of its remaining business undertaking/real estate operation, the Group will be able to continue its operation on a going concern basis. Accordingly, the statement of the Group and Jointly controlled entity (including its subsidiary companies) have been prepared on a going concern basis. Our Conclusion is not modified in respect of this matter.

8. Other Matters

a) We did not review the unaudited quarterly financial results of 5 subsidiaries (including step down subsidiaries) whose unaudited standalone financial results reflect total asset of Rs. i1 lakh as at September 30, 2021; total revenue of Rs. Nil and Rs. Nil for the quarter and six month ended September 30, 2021, respectively; total loss after tax of Rs. 1 lakh and Rs. 1 lakh for the quarter and six month ended September 30, 2021, respectively; and total Comprehensive loss of Rs. 1 lakh and Rs. llakh for the quarter and six month ended September 30,2021, respectively; and net cash inflow of Rs. 13 lakh for the six month ended September 30, 2021, as considered in this Statement. An independent auditor's review report on interim financial result of these subsidiaries has been furnished to us by the management and our conclusion on the statement, in so far as it relates to the amounts and disclosures in respect of these subsidiaries is based solely on the report of such auditors and procedures performed by us as stated in paragraph 3 above.

Page 3 of 4

b) We did not review the unaudited consolidated financial results of 1 subsidiary, whose unaudited standalone financial results reflect total asset of Rs. 12 lakh as at September 30, 2021; total revenue of Rs.Nil and Rs. Nil for the quarter and six month ended September 30, 2021, respectively; total loss after tax of Rs. ° lakh and Rs. ° for the quarter and six month ended September 30, 2021, respectively; and total Comprehensive loss of Rs.° lakh and Rs.° lakh ; and net cash inflow of Rs.° lakh for the six month ended September 30, 202i for the quarter and six month ended September 30, 2021, respectively as considered in this Statement. Our report, to the extent it concerns this subsidiary on the unaudited quarterly consolidated financial results is based solely on the management certified results. This subsidiary is not material to the Group.

S S KOTHARI MEHTA &COlv\PANY CHARTERED ACCOUNTANTS

• c) We did not review the unaudited consolidated financial results of one Joint venture entity, wherein Group's, share of profit including other comprehensive profit of Rs. 243 lakh and 339 lakh for the quarter and six month ended September 30, 2021. An independent auditor's review report on interim financial result of this joint venture has been furnished to us by the management and our conclusion on the statement, in so far as it relates to the amounts and disclosures in respect of this joint venture is based solely on the report of such auditors and procedures performed by us as stated in paragraph 3 above.
• d) We did not review the unaudited financial results of 3 subsidiaries of the jointly controlled entity, wherein Group's, share of profit including other comprehensive loss of Rs. 0 lakh and ° lakh for the quarter and six month ended September 30, 2021, as considered in the statements. Our report, to the extent it concerns these entities on the unaudited quarterly consolidated financial results is based solely on the management certified results. These 3 subsidiaries of the jointly controlled entity are not material to the Group.

Our conclusion on the Statement is not modified in respect of the above matters.

Chartered Accountants Firm Registration No: 000756N Sunil Wahal Partner Membership No: 087294 Place: New Delhi Dated: November 12, 2021 UDIN: 21087Z94AAAAtA3354

For S. S. Kothari Mehta & Company

Page4 of4

OCM UMrTEO

Regd. Office: 2050-2052, 2nd FlOOf',Plaza-fl, Central Square, 20, Manohar Lala Khurana Marg, Bara Hindu Rao, New Oelhl-110 006 E-mail: Investors~cm.in Phone: 011..41539170 CIN: L748990L1889PLCoo()()()'c

STATEMENT OF UNAUDITED CONSOUDATEO FlNANCIAL RESULTS FOR THE QUARTER AND six MONTHS ENDED SEPTEMBER 30, 2021

	S. No. IPartk:LJlars	I For the Quarter ended Six Months ended			• F",the
		September 30, 2021	June 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020	March 31,2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	""",•
	Revenue
	(a) IRevenue from operations	1.669	1.589	1,010	3,258	2.128	4,740
	b) Other Income refer Note 6	888	1323	38	2209	83	438
	Total Income	2,555	2,912	1,048	5,467	2,191	5,178
	Expenses
	(a) Cost of materials consumed			3		1	(28)
	(b) Chanoes in inventories 01finished goods and work in progress			(2)		(4)	25
	(c) Employee benefits expense	1,014	943	741	1,957	1,552	3,471
	(d) Finance costs	200	191	218	391	422	873
	(e) Depreciation and amortization expense	206	216	230	422	467	924
	ef) Other expenses	573	519	315	1,092	705	1,563
	Total ex \$OS	1993	1869	1 SO.	3862	3143	8828
	Prof"rtI{Loss) before tax and share of Prof"rtI(loss) of equity accounted fnvestee	562	1,043	(457)	1,605	(952)	11,'SO)
	Share of Profit/floss) of equity accounted Investee	243	96	(117)	339	(226)	(91)
	Profit/floss) before tax	806	1,139	(574)	1,944	(1,178)	11,WI
	Tax expense
	Current tax	46	56	22	102	43	109
	Tax adjustmed: relating to prior periods	(35)			(35)		(13)
	Deferred tax eXPense	2	3	12	5	,. 7	53
	Total tax expense	•	53	io	02		43
	." 'it! 055 for the	96	1.086	(584)	1,881	(1.214'
	Oth« comprehensive Income
	(a) IItems that wiI not be redassifiedto profit or loss Re-measuremerl: {1osses)lgains of defined benefit obigations (net d tax)					(18)1	n
		I 171	161	(18)1	331
	(b) IItems that wil be redassified to profit or loss
	Excha~ difference intrar'\$ating financial statements of foreign operations (net of tax)			(9)		(9)
	Total comprehensive lr1Comel Exoense for the PerlodlYear	813	1102	."	1914	1241	1712
io	IP~d'P ," share capital (F.,. ,,;,. R" 10 per .ha".)	1,868	1,868	1,868	1,888	1,888	1,888
"	"""" oquty						(3,n')
12	Earningsi (loss) per equity shate IEPS) of Rs. 10 each
	(not annualised)
	BasiCand diluted	1 2521	5.81 I	f3.1"1	10.071	I.,SO) I	(9.55

oeM LIMITED

Notes: 1. Consolidated segment wise information tor the quarter and six months ended September 3D, 2021

	tRuDees In Lakh
S.No.	Particulars		For the auarter ended		Six Months ended		For the year ended
		September 30 2021	June 30 2021	September 30 2020	September 30 2021	September 30 2020	March 31 2021
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Segment revenue
	a) IT Services	1,668	1,582	1,006	3,250	2,152	4,690
	b) Real Estate
	e) Grey Iron Casting	1	7	4	8	(24)	50
	d) Others					-	-
	Total	1,669	1,589	1,010	3,258	2,128	4,740
	Less: Inter seament revenues
	Net revenue from operations	1669	1589	1010	3258	2128	4740
2	results (Proflt/(Ioss) Segment before tax and
	interest from ordinary activities}
	a) IT Services	168	204	81	372	181	396
	b) Real Estate	629	852		1,481
	c) Grey Iron Casting	(29)	210	(281)	181	(638)	(1,338)
	d) Others	(1)			(1)	(1)	(11)
	Total	767	1,267	(200)	2,033	(458)	(953)
	Less: I) Finance costs	200	191	218	391	422	873
	: II) Un-allocable expenditure net of
	Un-allocable income	4	33	39	37	72	(176)
	Share of Profit 1{loss) of equity accounted	243	96	(117)	339	(226)	(91)
	Investee
	Prof1tlloss before tax	806	1139	574	1944	1178	1741
3	Segment assets
	a) IT Services	2,545	2,522	1,921	2,545	1,921	2,257
	b) Real Estate	129	240	12	129	12	1,500
	c) Grey Iron Casting	5,841	6,029	6,882	5,841	6,882	6,216
	d) Others	34	21	44	34	44	21
	Total segment assets	8,549	8,811	8,859	8,549	8,859	9,994
	Others un-allocated	2898	2701	2571	2898	2571	2577
	Total assets	11447	11513	11430	11447	11430	12571
4	Segment liabilities						896
	a) IT Services	931	994	793	931	793
	b) Real Estate	1,860	1,546	23	1,860	23	1,500 8,101
	c) Grey Iron Casting	4,086	5,688	8,142	4,086	8,142	9
	d) Others	23	9	3	23	3
			8,237	8,961	6,900	8,961	10,506
	Total segment liabilities	6,900	906	881	721	881	854
	Others un-allocated (excluding borrowincs	721		9842	7621	9842	11360
	Total liabilities	7621	9144

Regd. Office: 2050-2052, 2nd Floor, Plaza-II, Central Square, 20, Manohar Lala Khurana Marg, Bara Hindu Rao, New Delhi -110 006 E-mail: investors@dcm.in Phone: 011-41539170

STATEMENT	OF AUDITED CONSOLIDATED	ASSETS AND LIABILITIES	AS AT SEPTEMBER	30,2021
-----------	-------------------------	------------------------	-----------------	---------

		t"JJPti'~:i HI 1-C1I\IIJ
Particulars	As at	As at
	September 30, 2021	March 31, 2021
	Unaudited	Audited
ASSETS
Non-current assets
Property, plant and equipment	4,592	5,077
Capital work-in progress	7	7
Right to use assets
Intangible assets	74	92
Financial assets	10	18
(i) Investments
(ii) Other financial assets	921	582
Deferred tax assets (net)	196	200
Non-current tax assets (net)	62	58
Other non-current assets	402	365
	754	780
Total non-current assets	7,018	7,179
Current assets
Inventories
Financial assets	1,313	1,314
(i) Trade receivables	1,109	1,032
(ii) Cash and cash equivalents	197	427
(iii) Bank balances other than (ii) above	638	531
(iv) Loans	25	24
(v) Other financial assets	589	163
Other current assets	353	1,695
Assets held for sale	205	205
Total current assets Total assets	4,429 11,447	5,391 12,570
EQUITY AND LIABILITIES Equity Equity share capital Other equity Total equity Liabilities	1,868 (1,861' 7	1,868 (3,775) (1,907)
Non-current liabilities
Financial liabilities
(i) Borrowings	-	10
(ia) Lease liabilities	53	72
	2,365	2,005
(ii) Other financial liabilities	937	948
Provisions Total non- current liabilities	3,355	3,035
Current liabilities
Financial liabilities
(i) Borrowings	3,235	3,107
(ia) Lease Liabilities	37	34
(ii) Trade payables
Total outstanding dues of micro enterprises and small enterprises	616	2,427
Total outstanding dues of creditors other than micro enterprises and small enterprises	1,930	3,703
(iii) Other financial liabilities	1,761	1,609
Other current liabilities	330	342
Provisions	122	122
Current tax liabilities (net)	54	98
Total current liabilities	8,085	11,443
Total equity and liabilities	11,447	12,570

DCM Limited

Consolidated Cash Flow Statement

		(Rupees in lakh)
Particulars	For the period ended September 30, 2021	For the period ended September 30, 2020
Cash flow from operating activities
Loss before taxation - Continued operations	1,944	(1,177)
Adjustments for:
Depreciation and amortisation expense	422	467
(Profit) / Loss on assets sold or discarded (Net)	8	(40)
Income from sale of rights in flats	(1,481)
Liabilities no longer required written back	(694)
Interest income	(13)	(18)
Unrealised foreign exchange difference Finance costs	391	(12) 422
Finance lease income		(4)
Allowance/ (reversal) of expected credit loss		8
Remeasurement of revenue to finance income and lease receivable	2	44
Share of loss in jointly controlled entity	(339)	226
Operating cash flow before working capital changes	240	(84)
Changes in assets and liabilities
(Increase)/decrease in inventories	2	5
(Increase)/decrease in trade receivables	(77)	254
(Increase)/decrease in loans and advances		2
(Increase)/ decrease in other financial assets	(424)	(19)
(Increase)/decrease in other assets	1,451	(21)
Increase/ (decrease) in trade payables	(1,587)	232
Increase/(decrease) in provisions	22 377	(115) 164
Increase/(decrease) in financial liabilities Increase/(decrease) in other liabilities	(12)	24
Cash generated from operations	(8)	442
Income-taxes refund	(148)	117
Net cash (used) in / generated from operating activities (A)	(156)	559
Cash flow from investing activities
Payments towards Property, plant and equipment (including Capital Advances)	(3)
Payment towards purchase of rights in flats
Proceeds from disposal of Property, plant and equipment (including advance received)	80	44
Interest received on financial assets measured at amortised cost	13	9
Maturity of / (Investment in) bank deposits (net) not considered as cdsh and cash equivalents	(107)	(116)
Net cash (used) in investing activities (8)	(17)	(63)
Cash flow from financing activities Repayment of borrowings	(16)	(1)
Changes in wor1 <ing borrowings<="" capital="" td="">		146		146
Payment towards lease liability	(16)	(36)
Dividend paid		(9)
Interest paid	(25)	(366)
Net cash (used) in financing activities (C)	1m	(266)
Net cash flows [increase/(decrease)] during the year (A+B+C)	(230)	230
Cash and cash equivalents at the beginning of the year	427	542
Cash and cash equivalents at the end of the year	197	772
Components of cash and cash equivalents Cash on hand		4
Balances with scheduled banks:
- Current accounts	176	468
- Deposit accounts	20	300
Cash and cash equivalents at the end of the year	197	772

• 1. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as amended (Ind AS), prescribed under Section 133 of the Companies Act, 2013, and other recognized accounting practices and policies to the extent applicable.
• 1. In view of continued situation of industrial unrest at Engineering Business Division of the Holding Company, situated at Village Asron, District Shaheed Bhagat Singh Nagar (Punjab), the management of the Division has recommended to declare a lockout. The Board of Directors of the Company in their meeting held on October 21, 2019 has accordingly approved the declaration of lockout at its said Engineering Business Undertaking w.e.f. October 22,2019.

The said lockout was opposed by the workmen of said Engineering Division before the Labour Authorities. Based on the legal advice received by the Company, the management is of the view that the present lockout is legal and justified. Therefore, the Company has not made any provision for wages pertaining to the lockout period October 22, 2019 to September 30, 2021 aggregating to Rs. 3579 lakhs out of which Rs. 425 lakhs pertain to quarter ended on September 30,2021.

1. Board of Directors of the Company in its meeting held on November 28, 2019 have approved a composite scheme of arrangement for transfer of its "Engineering Business undertaking "to its wholly owned subsidiary namely DCM Engineering Limited (formerly known as DCM Tools and Dies Limited), on a going concern basis with effect from the appointed date of October 01, 2019 and restructuring of outstanding loans, debts and liabilities of the Engineering Business Undertaking. The above Scheme was filed with the Stock Exchanges viz. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for seeking their no-objection. The Company has received observation letter dated June 24, 2020 from BSE Limited and National Stock Exchange Limited (Stock Exchanges) enabling the Company to file the Scheme with Hon'ble National Company Law Tribunal (NCL T) for seeking their approval. The filing of Scheme remain pending awaiting in principle approval of secured lenders (Banks). The said approval of the Stock Exchanges was valid till December 23, 2020. Pursuant to above, the Company has filed the appiication(s) to the Stock Exchanges on December 22, 2020 and June 28, 2021 for seeking their approval for extension of time for enabling the Company to file the scheme before NCLT for seeking their approval under Section 230 - 232 of the Companies Act, 2013 with due compliance. The Company has been in discussion with the secured lenders at all levels in this regard.

Since, the aforesaid Scheme is subject to approval from concerned regulatory authorities which is considered to be substantive, the accounting effect of the above Scheme has not been considered in these consolidated financial results

1. Due to continued situation of industrial unrest, the Group is currently facing liquidity issues towards clearing of statutory dues, vendor payments and repayment of borrowings pertaining to its Engineering Division. This has significantly reduced the Group's net worth and the current liabilities exceed the current assets by Rs. 3656 lakh as at September 30, 2021. The Group is taking requisite steps to improve the liquidity and manage the existing situation.

The Scheme of Arrangement mentioned in note 4 has been made with a view to restore profitability and revive the said Engineering Business Undertaking (Undertaking) by facilitating strategic investment and further sale of surplus piece of land and restructuring of outstanding loans, debts and liabilities pertaining to the Engineering Business to revive the said undertaking and infuse sufficient liquidity.

The management believes that with the above restructuring of Engineering Business Undertaking along with the debt pertaining to said Undertaking and infusing liquidity by focusing /managing of its remaining business undertaking/real estate operation as well as other interim measures to improve liquidity including proposed Right Issue approved by the Board in its meeting held on February 12,2021, the Group will be able to continue its operation on a going concern basis.

Accordingly, the financial results of the Group have been prepared on a going concern basis.

• 1. Other income includes income from transfer of right in residential flats of amount Rs. 628 lakh and Rs. 1481 for the quarter ended september 30, 2021 and half year ended september 30, 2021 respectively, and Liabilities / Provision no longer required written back of amount Rs. 246 lakh and Rs. 697 for the quarter ended september 30, 2021 and half year ended september 30, 2021 respectively.
• 1. The unaudited standalone financial results are available on the Holding Company's website www.dcm.in. The particulars in respect of Holding Company's standalone results are as under:

Particulars	Quarter ended		Six Months	Year ended
	September 30,2021	June 30, 2021	September 30,2020	September 30,2021	September 30,2020	March 31, 2021
Revenue from operations	1	7	4	8	(24)	50
Net profit/(loss) after tax	384	810	(509)	1,194	(1,105)	(1,997)
Total comprehensive income	400	826	(527)	1,226	(1,123)	(1,933)
Profit before interest, depreciation and tax (PBIDT)	738	1,201	(82)	1,939	(262)	(282)
Cash profitt (loss)	577	1,013	(295)	1,590	(675)	(1,139)

The unaudited consolidated financial results for the quarter ended September 30, 2021, unaudited consolidated results for the quarter ended September 30, 2020, and audited consolidated financial results for the quarter and year ended March 31, 2021 have been prepared by the Group in accordance with the requirements ofInd AS 110 "Consolidated Financial Statements", Ind AS 111 "Joint Arrangements" and Ind AS 28 "Investments in Associates and Joint Ventures", as specified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 and on the basis of the separate audited financial results of the Parent Company, its subsidiaries, its trust and jointly controlled entity and subsidiaries of the jointly controlled entity.

(Rs. in lakh)

The audited financial results of 6 subsidiaries namely DCM Infotech Limited (Formerly known as DCM Realty Investment & Consulting Limited), DCM Infinity Realtors Limited (Formerly known as DCM Data Systems Limited), DCM Finance & Leasing Limited, DCM Landmark Estates Limited (Formerly known as DCM Textiles Limited), DCM Engineering Limited (Formerly known as DCM Tools & Dies Limited), and DCM Realty and Infrastructure Limited and DCM Engineering Products Education Society (a trust treated as subsidiary for consolidation purpose) have been consolidated. Financial statements of 6 out of above 7 have been reviewed by their respective statutory auditors.

8. COVID-19 PANDEMIC AND ITS IMPACT

The Covid-19 impact remains a serious concern for governments and businesses. The Group has implemented Standard Operating Procedures of social distancing, workplace sanitization and employee health monitoring, and these are being followed strictly.

The Management has been closely reviewing the impact of COVID- 19 on the Group. Due to continuation oflockout of Engineering Business Unit (Engineering Business Undertaking), declared on October 22, 2019, the operation of the said Business Unit remained suspended during the lock down period on account ofCOVlD- 19. Based on current indicators of future economic conditions, the Group has concluded that although due to COVID 19 the Group's initiatives of restructuring of Engineering Business Undertaking and infusing liquidity by focusing /managing of its real estate operation are taking time, however, the impact of COVID 19 is not material on long term basis on the future potential of its said Engineering Business Unit and Real Estate operation. Due to the nature of the pandemic, the Group will continue to monitor any material changes on the future economic conditions and relating to its Businesses in future periods

1. The Holding Company has received certain recovery notices/petitions from the creditors and their Bankers. A Bank has filed a suit for recovery and served demand notice u/s 13(2) under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 which has been stayed by the Hon 'ble High court of Punjab & Haryana. Other two bankers have also served notice u/s 13 SARF AESI Act. The Company has duly replied these notices.

The banking operation of current account(s) maintained by the Holding Company has been discontinued by the Bankers in view of notification of RBI restricting opening/operation of current account by customers who have availed Cash Credit / Overdraft facilities. The Holding Company has been taking necessary steps in this regard. This has adversely impacted the ability of the Company to run its day-to-day operations as its cash credit/overdraft accounts are classified as NPA. In view of above, as an interim measure, the day to day banking transaction of payment for statutory dues/overheads and/or other critical payments and also the receipts are facilitated by the Holding Company through its one of the wholly owned subsidiary

Pursuant to the restructuring scheme approved by the Board of the Company, the settlement of all such creditors and bank has already been provided for in the said Scheme (refer note 4 above). In addition to the said Restructuring Scheme, the Company is also taking other interim measures to improve liquidity including proposed Right Issue of equity''shares approved by the Board in its meeting held on February 12, 2021, to augment capital and expedite to complete the de-leveraging the Company.

• 1. The Holding Company has reviewed the deferred tax asset/deferred tax liabilities on deductible/taxable temporary differences between tax base of asset and liabilities and their carrying amount for financial reporting purposes at each reporting date. However, due to continue situation of uncertainty of sufficient taxable profit to recover the accumulated losses and unused tax credits taxable profits in future years, deferred tax asset have not been considered in these financial results.
• 1. The figures for the previous periods have been regrouped / rearranged wherever necessary.
• 1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on November 12, 2021 through video conferencing. The review report of the statutory auditors is being filed with the BSE Ltd and National Stock Exchange ofIndia Ltd. For more details on the consolidated results, visit Holding Company's website www.dcm.in and Financial Results under Corporates section ofwww.nseindia.com and www.bseindia.com.

S U N IL Digitally signed by: : •.~ILWAHAL WAHAl.i~if~fA~·J^~ ~~~I~ = 8 rsonal Da e: 2021.11.12 .14:27:12 +05'30'

Place: New Delhi Date: November 12,2021 For and on behalf of the Board of Directors

J ITE N D . Digitally signed by JITENDRA TULI RA TU III Date:2021.11.12 t/L -14m:; ¹ +05'30'

Jitendra Tuli Managing Director DIN: 00272930