DCM Ltd. — Regulatory Filings 2021

Apr 1, 2021

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April 01, 2021

BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Mumbai -400 001 Bandra - Kurla Complex Bandra (E), Mumbai - 400 051 Scrip Code: 502820 / DCM - ISIN: INE498A01018

Sub: Disclosures of defaults on payment of principal and interest amount on loans from banks / financial institutions.

Dear Sirs,

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 enclosed herewith relevant disclosures of defaults on payment of principal & interest amount on loans from banks/financial institutions in specified formats as Annexure I, as per original terms of the borrowings (refer notes given in 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

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, 2[nd] Floor, 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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Annexure I

Disclosures by listed entities of defaults on payment of interest/ repayment of principal amount on loans from banks / financial institutions and unlisted debt securities The following details shall be disclosed by listed entities for each instance of default, as specified in Para 3 (B) of circular SEBI/HO/CFD/CMD1/CIR/P/2019/140:

a. For loans including revolving facilities like cash credit from banks / financial institutions:

Sr. No	Type of disclosure	Details	Details	Details	Details	Details	Details
1	Name of the listed entity	DCM Limited
2	Date of makingthe disclosure	01.04.2021
3	Nature of obligation	Term Loan/ Cash Credit Limit
4	Name of the lender(s)	State Bank of India,ICICI Bank Limited,HDFC Bank Limited
5	Date of default	01.04.2021
6	Current default amount (Break-up of principal and interest in INR Crores)	Particulars			Amount(INR Crore)
		Principal					0.10
		Interest					0.41
7	Details of the obligation (total principal amount in INR Crore, tenure, interest rate, secured/ unsecured etc.)	Particulars	Principal/Cash Credit Limit*		Tenure	Interest rate	Secured/ Unsecured
			Outstanding	Overdue*/ Overdrawn
		SBI- Term Loan	1.84	2.16	5 years	11.40%	Secured
		ICICI-Term Loan	2.00	2.46	3 years	10.85%	Secured
		HDFC – Term Loan	2.20	0.26	5 years	12.20%	Secured
		HDFC - Overdraft	10.59	0.59	-	12.20%	Secured
		SBI-Cash Credit	9.45	3.35	-	12.05%	Secured
		ICICI-Cash Credit	6.08	3.79	-	11.75%	Secured

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, 2[nd] Floor, 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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8	Total amount outstanding borrowings from banks/ financial institutions (in INR crore)	Particulars	Amount(INR Crore)*
		Workingcapital loans	15.53
		Term loans/OD	17.80
		Total	33.33
9	Total Financial indebtedness of the listed entity including short -term and long-term debt (in INR Crore)	Particulars	Amount (INR Crore) *
		Workingcapital loans	15.53
		Term loans / Overdraft	17.80
		Total	33.33

• Including interest

For unlisted debt securities i.e. NCDs and NCRPs:

Sr. No	Type of disclosure	Details
1	Name of the listed entity	DCM Limited
2	Date of makingthe disclosure	NA
3	Type of instruments with ISIN	NA
4	Number of investors in the securityas on date of default	NA
5	Date of default	NA
6	Current default amount(Break-up of principal and interest in INR Crores)	NA
7	Details of the obligation(amount issued,tenure,coupon,secured/unsecured redemption date etc.)	NA
8	Total amount issued through debt securities(in INR crore)	NA
9	Total Financial indebtedness of the listed entityincludingshort -term and long-term debt(in INR Crore)	NA

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.

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, 2[nd] Floor, 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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The above Scheme has been filed with stock exchanges 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 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 to expedite the said process of approval of Scheme.

The Company has received certain recovery notices/petitions from the creditors. A Bank has 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. The said bank has also filed an application for the recovery of their debt before the Hon’ble Debt Recovery Tribunal. 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. In addition to the said Restructuring Scheme, the Company is also proposing for a Rights Issue of equity shares to the existing shareholders to augment capital and expedite to complete the de-leveraging the Company.

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 April 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 April 01, 2021. Whereas, against the recovery of Rs. 499.51 lacs, the Company was liable to pay only Rs. 397.60 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 installments of Term loan and interest on Term loan & Cash Credit as on April 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.

Registered office:

• Unit Nos. 2050 to 2052, Plaza - II, 2[nd] Floor, 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