DCM Ltd. — Interim / Quarterly Report 2022

Aug 12, 2022

August 12, 2022

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

Scrip Code: 502820

ISIN: INE498A01018

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

Sub: Unaudited Financial Results (Standalone and Consolidated) of Company for 1stQuarter ended Tune 30, ²⁰²² pursuant to Regulation ³³ of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Dear Sir,

Thisis to inform you that the Board of Directors ofthe Company at its meeting held today have inter-alia approved the Unaudited Financial Results (Standalone and Consolidated) of the Company for the 1st quarter ended June 3'0, 2022. Accordingly, pursuant to Regulation 33 of SEBI (Listing Obligations andDisclosure Requirements) Regulations, 2015, as amended from time to time, please find enclosed herewith the following:-

• 1. Unaudited Financial Results (Standalone & Consolidated) for the 1st quarter ended June 30, 2022;
• II. Limited Review Reports on the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30,2022.

Please acknowledge receipt of he same.

Encl. - As stated above

E-mail id: investors@dcm.in

Registered Office: Unit Nos. 2050 to 2052, 2nd Floor, Plaza II, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, Delhi - 110006. Phone: (011) 41539170 . ClN: L74899DLl889PLC000004 Website: www.dcrn.in Email id: dcmltd@dcm.m

~. tndependent AudItors' RevIew Report on the Unaudited QuartcrlVStandalone FInancial Results ofthe Company Punuant to tho Regulation 33 of the SEOIILlstlng Obligations and Disclosure RequIrements) RegulatIons, 2015, ;\$ amended ---

S S KOTHARI MEHTA

CllAnIElI[O ACCOl.JrI fANTO

& COMPANY#-~~--'~

RevIew Report to The Board of Directors, OCM LImIted Nllw DelhI

• 1. We have reviewed the iiccompanylng statement of unaudited standalone financial results of oeM Limited (the Company) for the quarter ended June 30, 2022, along wIth notes (the Statement), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Ustlng Obligations and Disclosure Requirements) Regulations, 2015, as amended, (the wUstfng 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, "Interim Finandal Reporting" (Ind AS 34) 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 th~ \$tatement in accordance with the Standard on Review Engagement (SRE} 2410, 'Review of Interim Financial Information performed by the Independent Auditor ofthe Entity' Issued by the Institute of Chartered Accountants of India. this Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement Is free of material misstatement. A review of Interim fif'landallnformatlon consists prtrnarllv 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 con~equentlY does not enable us to obtain assurance that we would become aware of all significant matter 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 prlnclples laid down In the aforesaid Indian Accounting Standards (Ind-AS) specified under; section 133 of the Companies Act, 2013, as amended, read with relevant rules Issued thereunder and other accountlng principles generillly accepted In India, has not di.sclosed the lnformatlon 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.
• S. Emphasis of matters

Without modifying our conclusion, we drnw attention to the. following:

a. Note 3 of the statement, during the previous vear In view of continued situation of Industrial unrest Company has declared lockout at Its enfllnenrlnp, business undertaking. On the basls of

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Pial No. 60, OkhllllndUfllrllllAroa. PllIl!lo-III, Now Oolhl-110020 Tol: +1.)1·11·41170 nann E-mail: lllfo@twkrnln.com WWW,Mkmll1,con1

& COMPANY CHARTEHEO ACCOUNTANTS

5 5 KOTHARI MEHTA

~al advice Management of the Company Is of the view that the prescnt lockout is legal and justified. Therefore, the Company has not made any provision for wages pertaining to the lockout period October 22,2019 to June 30,2022 aggregating to Rs. 4,7981akhs (current quarter 396 lakhs). ---

• b. Note 7 to the statement, 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 bankers has already been provided for In this Scheme. In addition, the Company is taking other Interim measures as explained in the said Note 4 to improve liquidity, management action Is also explained in the said note.
• c. Note 7 to the ,Statement, the banking operation of current account(s) maintained by the Company has b'~~n 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-today 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.

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 liquidlty 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. 4.217 lakhs as at June 30,2022. 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 gOlng\,ncern basis. Our conclusion Is not modified In respect ofthls matter.

For S. S. Kothari Mehta & Company Chartered Accountants

Firm Registration No: 000756N unilWahal Partner Membership No.: 087294

Place: New Delhi Dated: August 12. 2022 UDIN: 2 1.0 ^~ 1-:l-"'-\f!\ D~ R.~ z... , , Lt l.,

DC M LIMITED

Regd. Office: 2050-2052, 2nd Floor, Plaza-II, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, New Delhi -110006 E-mail: investors@dcm.in Phone: 011-41539170 GIN: L74899DL 1889PLC000004

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

					(~ lakh)
S. No.	Particulars	Fortheauarterended For the vear ended
	~	June 30 2022	March 31 2022	June 30 2021	March 31 2022
		Unaudited	Audited	Unaudited	Audited
			(Refer Note 9
1	--- Revenue
	(a) Revenue from operations	-	93	7	110
	(b' Other income (refer Note 6) -	145	1292	1291	3599
	- Total income	145	1,385	1,298	3,709
2	~ Expenses
	- (a) Gost of materials consumed	-	-	-	-
	(b) Changes in inventories of finished goods and work in progress	-	41	-	41
	(c) Employee benefits expense	91	33	43	168
	(d) Finance costs	157	1	188	579
	.. (e) Depreciation and amortization expense	170	179	203	762
	(f) Other expenses	67	271	54	416
	-
	Total exoenses	485	525	488	1966
3	Profit/(Loss) before tax	(340)	860	810	1,743
4	Tax expense
	Current tax	-	-	-	-
	Tax adiustment relatina to orior oeriods	-	-	-	(35\
	Total tax expense	-	-	-	(35)
5	Profit/(Loss) for the ouarter/vear	(340\	860	810	1778
6	Other comprehensive income
	Items that will not be reclassified to profit or loss
	Re-measurement gain on defined benefit plan	19	28	16	76
	, Income tax relating to remeasurement on defined benefit plan	-	-	-
	-
7	Total comprehensive Income/(Expense) for the auarterl vear	(321	888	826	1854
8	Paid up equity share capital (Face value Rs. 10 per share)	1,868	1,868	1,868	1,868
9	Other equity				(526)
10	Earningsl (loss) per equity share (EPS) of Rs. 10 each
	(not annualised)
	Basic EPS (~)	(1.82)	4.60	4.34	9.52
	\ .\ Diluted EPS m	(1.82\	4.60	4.34	9.52
	\

DC M LIMITED

Notes:

1. Standalone segment wise information for the quarter ended June 30, 2022

	(" lakh)
S. No.	Particulars	For the quarter		For the year ended
		June 30, 2022	March 31, 2022	June 30, 2021	March 31, 2022
		Unaudited	Audited	Unaudited	Audited
			(Refer Note 9)
	r",!.
1	Segment revenue
	- a) Real Estate	-	-	-	-
	b) Grey Iron Casting --	-	93	7	110
	Total		93	7	110
	Less: Inter seqrnent revenues -	-	-	-	-
	Net revenue from operations	-	93	7	110
		":;'" -
2	Segment results (Profit/(Loss) before interest and
	tax from ordinary activities)
	a) Real Estate	100	-	839	1,443
	b) Grey Iron Casting	(212)	812	210	868
	.' ," Total	(112)	812	1,049	2,311
	Less: I) Finance costs	157	1	188	579
	: II) Un-allocable expenditure net of
	un-allocable income	71	(49)	51	(11 )
	Profit/CLoss) before tax	(340)	860	810	1743
3	Segment assets
	a) Real Estate	-	-	328	-
	b) Grey Iron Casting	5,052	5,197	6,029	5,197
	Total segment assets	5,052	5,197
	Others un-allocated	6,309	5,726	6,357 5,320	5,197 5,726
	Total assets	11,361	10,923	11677	10,923
4	Segment liabilities	,
	a) Real Estate	,. / 5,141'	3,416	1,546	3,416
	b) Grey Iron Casting	2,435	3,106	5,688	3,106
	Total segment liabilities	7,576	6,522	7,234	6,522
	Others un-allocated (excludino borrowinos)	719	733	956	733
	Total liabilities	8,295	7,255	8,190	7,255

.

• ~ 2. 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 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. Presently the matter issub judicial before 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 June 30, 2022 aggregating to Rs. 4798 lakh out of which Rs. 3961akh pertain to quarter ended on June 30, 2022.

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 OCM 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 filing of Scheme for seeking approval from Hon'ble National Company Law Tribunal (NCLT) under Section 230 - 232 of the Companies Act, 2013 remained pending awaiting in principle approval of secured lenders (Banks). The Company has been taking necessary steps for the settlement/restructuring of dues of these secured lender(s).

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 financial results. \

1. Due to continued situation of industrial unrest, the Company has been facing liquidity issues towards cleating of dues of creditors/banks and other liabilities pertaining to its Engineering Division. This has significantly reduced the Company's net worth and the current liabilities exceed the current assets by Rs 4217 lakhs as at June 30, 2022. The Company is taking requisite steps to improve the liquidity in the system.

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/development ofland parcel(s) owned by the Company and/or restructuring/settlement 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 restructuring/settlement of debt pertaining to said Undertaking and infusing liquidity by focusing /managing of its remaining business undertaking/real estate operation (refer note 7 below) as well as other interim measures to improve liquidity, 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. 100 lakh for the quarter ended June 30, 2022 (Quarter ended March 31, 2022- Rs. Nil) and Liabilities / Provision no longer required written back of amount Rs. 44 lakh for the quarter ended June 30, 2022 (Quarter ended March 31, 2022 - Rs. 1296Iakh).

1. The Company has received certain recovery notices/petitions from the creditors and the bankers who have provided working capi4ll,fterms 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 (S..<\RFAESI) which has been duly replied. The dues of other two bankers have been settled/repaid under one time settlement (OTS) agreed with them ..

2. 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/overheadsand/or other critical payments and also the receipts are facilitated by the Company through its oneof 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 mentioned in note 4 above, the Company is in process for development of its 68.35 acres ofland at Hisar and signed a non-binding Term-Sheet with a party. Subsequently to the quarter end the Company has signed a joint development agreement with the said party which is subject to fulfilment of certain terms and conditions by them and regulatory approvals. The Company is also taking interim measures to further improve the 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 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 has not been considered in the financial results.
• 1. The figures for the quarter ended 31st March, 2022 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the financial year 2021-2022.
• 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 August 12,2022. The audit 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 ofwww.nseindia.com and www.bseindia.com.

For and on behalf of the Board of Directors

Place: New Delhi Date: August 12,2022

Independent Auditors' Review Report on the Unaudited Quarterly Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEW (listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

S S KOTHARI MEHTA & COMPANY CHAATERED ACCOUNTANTS

Review Report to The Board of Directors OeM limited New Deihl

~.

• 1. We have reviewed the accompanying statement of unaudited consolidated financial results of OCM limited (the 'Holding Company' or 'Company'), its subsidiaries (the Holding and its Subsidiaries together referred as 'the Group') and joint venture (including its subsidiary companies together referred to as "Jointly controlled entities") for the quarter ended June 30, 2022, 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 34¹¹ ), prescribed under Section 133 of the Companies Act, 2013 as amended (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 Interi~FinanCiallnformation pe~form~d by the Indepe~dent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. ThISstandard required that we plan and perform the , review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information-consists of making inquiries, primarily of persons 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 assurancethat 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 no. CIRjCFOjCMDI/44/2019 dated March 29, 2019, issued by the SEe!under Regulation 33 (8) of the SEal (listing Obligation and Disclosure Requirements) Reguliltions, 2015, as amended, to the extent applicable.

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PJot No. 68. Oktllainduslrial Area, Phase-llt, New Delhi.110020 ret: .•91·11-46701\888 E-mail: info@sskmin.com

••••

5 5 KOTHARI MEHTA

• 1. The Statement Includes results of the following entities:
• a. Subsidiaries

~.

• 1 OCM landmark Estates limited (formerly known as OeM Textiles limited)
• 2 OCM Infinity Realtors 41!'ited (formerly known as OCM Data Systems Limited)
• 3 DeM Infotech Limited (formerly known as OCM Reality Investment & Consulting Limited)
• 4 OeM Engineering limited (formerly known as OCMTools and Dies limited)
• 5 OeM Realty-and Infrastructure limited

---

6 OeM Engineering Products Educational Society

b. Jointly controlled entity and Its subsidiaries

• 1. Purearth Infrastructure limited, Joint Venture
• 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
• 1. 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 to the accompanying statement, during the earlier vear In view of continued situation of industrial unrest, the 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 and therefore, the Holding Company has not made any provision for wages pertaining to the lockout period from October 22, 2019 to June 3D, 2022 aggregating to Rs.4,798 lakhs (current quarter 396Iakhs).

Page 2 of4

~. b) Note 8 to the accompanying 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 settl.l!m~nt of all such creditors and bankers 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, management action is also explained in the said note.

5 5 KOTHARI MEHTA & COMPANY CHARTERED ACCOUNTANTS

c) Note 8 to the Statement, which 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.~his 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 dav-to-dav 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.

Material Uncertainty on Going Concern

1. We draw attention to Note 5 to the accompanying consolidated Statement, highlighting that due to recession in automotive sector and industrial unrest the Cornpanv 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 and jointly controll~d entity net worth and the current liabilities exceed the current assets by Rs. 2,078 lakh as at June 30, 2022. The Holding Company has initiated restructuring of its Engineering Division as explained in the said note. The management of Holding Company believes that with the restructuring of its Engineering BusinessUndertaking along with the debt pertaining to said undertaking and infusing liquidity by focusing Imanaging of Its remaining business undertaking/real estate operation, the Group and its Jointly controlled entities will be able to continue its operation on a going concern basis. Accordingly, the financial statements of the Company have been prepared on a going concern basis. Our ccnclqslon 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 financial results reflect total revenue of Rs. Nil, total loss after tax of Rs.llakh and total comprehensive loss of Rs.llakh for the quarter ended June 3D, 2022, 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,Jn so far as it relates to the amounts anci 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.
• b) We did not review the unaudited consolidated financial results of 1 subsidiary, whose unaudited standalone financial results reflect total revenue of Rs. Nil for the quarter ended June 30,2022, total loss after tax of Rs.Olakh for the quarter ended June 30, 2022, and total Comprehensive loss of Rs.0

Page3 of4

~ U\:h for the qUJrtt:!( cnded June 30, 2022, respectively as considered in this Statemt<nt Our lepert, to the (':.tent it ccncerns this subsidiary on the unaudited quarterly consobdated financiill rMui:\ h bliC:l ~o!cly on th~ management-c.e.rtifi.ed results. Thls subs!diaryls not matorlill to the Group.

S 5 KOTHARI MEHTA & COMPANY

• c) We dId not tC'vlew the unaucfited consolidated Ilnanclal results of one Joint venture f'ntlty, whp'/",r; Group's, share of profit including o~er comprehensive profit of Rs, .54 !a~h for the quarter end~ June 30. 2022. An independent auditors report On interim financial result of HHSfoint venture ha\ been furni~hed to us,by the m~nagement and our ccnctusion on the statement. in so far as It re!.HM to the amount~ find disclosures in respect of this }olnt venture is based sotely on the report of \$u{h audItors and pro'C,~dure\$'perrormed by us as stated In paragraph.3 above.
• d) '!I.'e did not r~ICW the unaudited consolidated financial results of 3 \$ubsld!.ari~ of the }olnt}y controUcd ~tlty. wht'f('in Group's, s,hilfl} of profit including othC( comp({'hf.msiv!;! km of lh. 0 l;li;h for the Quarter ended June 30. ?022. (\S, con~idered in the Hiltcmcna. Our report. to the C,(t('nt It cencerns l'h(.'\$c mUhe10n the uo;tuthtcd quartNlv consolidated flnanclal re,>ulU 1\$ based s,a}dy on the manaliement c~iflOO r~~utl~. locs." J iub~idiaric~of the jointly venture ate not matef'ial to the Group,

for S~S. )(.o!h.Ji M~ht.^A CompAny Chartered Accountants Fhm fie "aUon Uo; 0007S6N

\ SunnW.ho~ PartnN

M~btfShlp No: 067294

'\

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~CMLlMITED

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

ciN: L74899DL 1889PLC000004

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2022

					(~ lakh\
S. No.	Particulars	Fortheouarterended For the vear ended
		June 30, 2021			March 31, 2022
		June 30, 2022	March 31,2022
		Unaudited	Audited	Unaudited	Audited
	~		IRefer Note 10'
1	- Revenue
	(a) Revenue from operations	1,788	1,976	1,589	6,977
	Ib) Other income (refer Note 6)	205	1329	1323	3738
	---
	Totat income	1,993	3,305	2,912	10,715
	-
2	Expenses -
	(a) Cost of materials consumed	-
	(b) Changes in inventories of finished goods and work in progress	-	41		41
	- """"" (c) Employee benefits expense	1,007	948	943	3,885
	(d) Finance costs	160	3	191	590
	(e) Depreciation and amortization expense	186	193	216	814
(I)	Other expenses	709	975	519	2,687
	Total exnenses	2062	2160	1869	8017
3	Profit/Closs) before tax and share of Profit/Closs) of equity accounted investee	(69)	1,145	1,043	2,698
4	Share of Profit/Closs) of equity accounted investee	54	(14)	96	517
5	Profit/Closs) before tax	(15)	1,131	1,139	3,215
6	Tax expense
	Current tax	59	71	56	231
	Tax adjustment relating to prior periods		1		(34)
	Deferred tax expense	12	7	(~)	1
	Total tax expense	57	79	53	198
7	Profit/floss) for the auarterivear	(72	1052	1086	3017
8	Other comprehensive income
	(a) Items that will not be reclassified to profit or loss
	, Re-measurement (Iosses)/gains of defined benefit Obligations (net of tax)	19	35	16	83
	, ,
	(b) Items that will be reclassified to profit or loss
	Exchange difference in translating financial statements of foreign operations (net of tax)		-	-
	(c) Share in other comprehensive income/(expense) of joint venture (net of tax)				1
9	Total comorehensive lncomenaxoenset for the auarterNear	(53)	1087	1102	3101
10	Paid up equity share capital (Face value Rs. 10 per shares)	1,868	1,868	1,868	1,868
11	Other equity				(674)'
12	Earnings/ (loss) per equity share (EPS) of Rs. 10 ealch
	(not annualised)
	Basic EPS (~)	(0.39)	5.63	5.81	16.15
	Diluted EPS (~)	10.39	5.63	5.81	'16.15

b C M LIMITED

Notes:

1. Consolidated segment wise information for the quarter ended June 30, 2022

					(~ lakh)
S. No.	Particulars		For the auarter ended		For the year ended
	~	June 30 2022	March 31, 2022	June 30 2021	March 31 2022
		Unaudited	Audited	Unaudited	Audited
			(Refer Note 10)
	-	-
1	Segment revenue
	a) IT Services	1,788	1,883	1,582	6,867
	b) Real Estate	- -	-	-	-
	c) Grey Iron Casting	-	93	7	110
	d) Others	- .". -	-	-	-
	Total	1,788	1,976	1,589	6,977
	Less: Inter segment revenues	-	-	-	-
	Net revenue from operations	1,788	1,976	1,589	6,977
	.-
2	." Segment results (Profit/(Ioss) before tax and
	interest from ordinary activities)'
	a) IT Services	214	251	205	829
	b) Real Estate	100	-	852	1,539
	c) Grey Iron Casting	(212)	812	210	868
	d) Others	-	(1)	-	(2)
	Total	102	1,062	1,267	3,234
	Less: I) Finance costs	160	3	191	590
	: II) Un-allocable expenditure net of
	Un-allocable income	11	(86)	33	(54)
	Share of Profit 1(loss) of equity accounted	54	(14) -	96	517
	investee
	Profit/(loss) before tax	(15) ,	• 1131	1139	3,215
3	Segment assets
	a) IT Services	3,190	2,949	2,522	2,949
	b) Real Estate	-	-	240	-
	c) Grey Iron Casting	5,052	5,197	6,029	5,197
	d) Others	13	13	21	13
	Total segment assets	8,255	8,159	8,812	8,159
	Others un-allocated	4,168	3,530	2,701	3,530
	Total assets \	12,423	11689	11513	11689
	\				,
4	Segment liabilities
	a) IT Services	982	954	994	954
	b) Real Estate	5,141	3,416	1,546	3,416
	c) Grey Iron Casting	2,435	3,106
				5,688	3,106 .,
	d) Others	10	10	9	10
	Total segment liabilities	8,568	7,486	8,237	7,486
	Others un-allocated (excluding borrowings)	670	682	906	682
	Total liabilities	9,238	8,168	9,143	8,168 -

• 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 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 Holding 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 tti~' workmen of said Engineering Division before the Labour Authorities. Presently the matter is sub judicial before labour authorities.

Based on the legal advice received by the Holding Company, the 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 June 30, 2022 aggregating to Rs. 4798 lakh out of which Rs. 3961akh pertain to quarter ended on June 30, 2022.

1. Board of Directors of the Holding 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 ofthe Engineering Business Undertaking. The filing of Scheme for seeking approval from Hon'ble National Company Law Tribunal (NCLT) under Section 230 - 232 of the Companies Act, 2013 remained pending awaiting in principle approval of secured \enders (Banks) with due compliance. The Holding Company has been taking necessary steps for the settlement/restructuring of dues of these secured lender(s).

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 Holding Company has been facing liquidity issues towards clearing of dues of creditorslbanks and other-liabilities pertaining to its Engineering Division. This has significantly reduced the Holding Company's net worth and the current liabilities exceed the current assets by Rs. 2078 lakhs as at June 30, 2022. The Holding Company is taking requisite steps to-improve the liquidity in the system.

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/development of land parcel(s) owned by the Holding Company and/or restructuring/settlement 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 (refer note 8 below) as well as other interim measures to improve liquidity, the Company 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 of the Halding Company includes income from transfer of right in residential flats of amount Rs 100 lakh for the quarter ended June 30, 2022 (Quarter ended March 31, 2022 - Rs. Nil) and Liabilities / Provision no longer required written back of amount Rs. 44 lakh for the quarter ended June 30, 2022 (Quarter ended March 31, 2022 - Rs.1303 lakhj>- ,
• 1. The audited standalone financial results are available on the Holding Company's website www.dcm.in. The particulars in respect of Holding Company's stsndalone results are as under:

Particulars		For the year
v.
	June 30,	March 31,	June 30,	March 31,
	2022	2022	2021	2022
Revenue from operations	-	93	7	110
Profitl(loss) before tax	(340)	860	810	1,743
Profitl(loss) for the QuarterlY ear	(340)	860	810	1,778
Total comprehensive income	(321)	888	826	1,854
Profit before interest, depreciation and tax (PBIDT)	(13)	1,040	1,201	3,084
Cash profitl(loss)	(170)	1,039	1,0l3	2,540

The unaudited consolidated results for the quarter ended June 30, 2022, and audited consolidated financial results for the quarter and year ended March 31, 2022 have been prepared by the Group in accordance with the requirements of Ind AS 1lO "Consolidated Financial Statements", Ind AS III "Joint Arrangements" and Ind AS 28 "Investments in Associates and Joint Ventures", as specified under Section l33 of the Companies Act, 20l3, 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 controlt! entity.

The 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 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 5 subsidiaries out of 6 subsidiaries' have been audited by their respective statutory auditors. .'

1. The Holding 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 (SARF AESI) which has been duly replied. The dues of other two bankers have settled/repaid under one time settlement (OTS) agreed with them.

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 Holding Company to run its day-to-day operations as its cash creditloverdraft accounts are classified as NPA. In view of above, as an interim measure, the day-to-day banking

transaction of paymensdor 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 mentioned in note 4 above, the Holding Company is in process for development of its 68.35 acres ofland at Hisar. Subsequent to the quarter end the Holding Company has signed ajoint development agreement with a party which is subject to fulfilment of certain terms and conditions by them and regulatory approvals. The Holding Company is also taking interim measures to further 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 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 the financial results.
• 1. The figures for the quarter ended March 31,2022 are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the financial year 2021- 2022. -
• II. 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 August 12,2022. The audit report of the statutory auditors is being filed with the BSE Ltd and National Stock Exchange of India Ltd. For more details on the consolidated results, visit Company's website www.dcm.in and Financial Results under Corporates section ofwww.nseindia.com and www.bseindia.com.

For and on behalf of the Board of Directors

Place: New Delhi Date: August 12, 2022

~~ ^p l--L: r;~ Jitendra Tuli

Managing Director DIN: 00272930