DCM Ltd. — Regulatory Filings 2021

Jan 7, 2021

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LIMITED

January 07, 2021

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

National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra - Kurla Complex Bandra (E), Mumbai - 400 051

Scrip Code: DCM / 502820 ISIN: INE498A01018

Sub: Disclosures of defaults on payment of interest / repayment of principal amount of loans from banks / financial institutions – the quarter ended as on 31.12.2020.

Dear Sir,

In terms of Securities and Exchange Board of India (SEBI) circular no. SEBI/HO/CFD/CMD1/CIR/ P/2019/140 dated November 21, 2019, please find attached herewith relevant disclosures of defaults on payment of interest / repayment of principal amount of loans from banks/financial institutions as on 31.12.2020 in specified formats as per Annexure I.

This is for your information and record.

Thanking you,

For DCM Limited

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Vimal Prasad Gupta Company Secretary & Compliance Officer FCS 6380

Enclosed- As above

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, Delhi – 110006.

Phone: (011) 41539170

CIN: L74899DL1889PLC000004, Website: www.dcm.in, Email Id: investors@dcm.in

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LIMITED

Annexure I

Disclosures as per SEBI circular dated November 21, 2019 in respect of defaults of payment of interest/ repayment of principal amount on loans from banks / financial institutions and listed debt securities as at December 31, 2020 (as per format C2.b) :

Sr. No	Type of disclosure	in INR crores
1	Loans/revolvingfacilities like cash credit from banks/financial institutions
A	Total amount outstandingas on date	32.26
B	Of the total amount outstanding, amount of default as on date(Refer Note No. 1,2 and 3 mentioned below)	11.28
2	Unlisted debt securities i.e. NCDs and NCRPS	NA
A	Total amount outstandingas on date	NA
B	Of the total amount outstanding,amount of default as on date	NA
3	Total financial indebtedness of the listed entity including short-term and long-termdebt	32.26

Note:-

• 1- The Board of Directors of the company have approved a Composite Scheme of Arrangement in its meeting held on 28.11.2019 which provides for:

  • (i) Transfer of Engineering Business Undertaking of DCM Limited (Transferor Company) into DCM Engineering Ltd (Transferee Company-formerly known as DCM Tools & Dies Limited, a wholly owned subsidiary of the Company) on a going concern basis by way of slump sale.

  • (ii) Restructuring of outstanding loan, debts and liabilities pertaining to Engineering Business to improve its serviceability and revive the said Engineering Business.

The above Scheme has been filed with stock exchanges for seeking their no-objection. The Company has received observation letter dated June 24, 2019 from BSE Limited and National Stock Exchange Limited (Stock Exchanges) enabling the Company to file the Scheme with Hon’ble National Company Law Tribunal 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 application(s) to the Stock Exchanges on December 22, 2020 for seeking extension of time of six months for filing the scheme before NCLT for seeking their approval under Section 230 – 232 of the Companies Act, 2013. The Company has been following up with the secured lenders at all level to seek their in-principle approval of the Scheme.

The Company has received certain recovery notices/petitions from creditors and a Bank. Pursuant to the said 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.

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, Delhi – 110006.

Phone: (011) 41539170

CIN: L74899DL1889PLC000004, Website: www.dcm.in, Email Id: investors@dcm.in

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LIMITED

1. Pursuant to the Composite Scheme of Arrangement, the outstanding amount of term loan/working capital facility as on appointed date of October 1, 2019 is proposed to be restructured as per the details given in the said scheme. However, in the above disclosure, pending approval of the said Scheme, the amount of current default as well as the total amount of outstanding/default as on January 01, 2021 has been shown as per original terms of these borrowing and adjustment made by Banks in their records for the payments made by the Company and/or receipt/recovery by Banks from the collection/deposit made by debtors subsequent to the said appointed date.

2. Subsequently to the appointed date, SBI has received/recovered from the collections/deposits made by debtors an aggregate sum of Rs. 499.51 lacs from the Company i.e. from October, 2019 till December, 2020. Whereas, against the recovery of Rs. 499.51 lacs, the Company was liable to pay only Rs. 372.34 lacs towards EMI of Term loan and interest on Term loan & Cash Credit for the said period as per original loan agreement(s). Thus, the Bank has fully received/recovered the instalments of Term loan and interest on Term loan & Cash Credit as on January 01, 2021. However, despite the aforesaid payment, the bank in their records have shown the outstanding and/or default position as mentioned in the above disclosure which is not tenable.

3. Subsequently to the appointed date, HDFC Bank has received/recovered from the collections/deposits made by debtors an aggregate sum of Rs. 368.80 lacs from the Company i.e. from October, 2019 till December, 2020. Whereas, against the recovery of Rs. 368.80 lacs, the Company was liable to pay only Rs. 355.08 lacs towards EMI of Term loan and interest on Term loan & Cash Credit for the said period as per original loan agreement(s). Thus, the Bank has fully received/recovered the instalments of Term loan and interest on Term loan & Cash Credit as on January 01, 2021.

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, Delhi – 110006.

Phone: (011) 41539170

CIN: L74899DL1889PLC000004, Website: www.dcm.in, Email Id: investors@dcm.in