DCM Ltd. — Regulatory Filings 2022

Aug 1, 2022

August 01, 2022

BSELimited Floor 25,Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai -400001

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

Scrip Code: 502820 Scrip Code: DCM

ISIN: INE498AOI018

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

I!lBI1J LIMITED

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 enclosed herewith relevant disclosures of defaults on payment of interest amount on loans from banks/financial institutions in the format, as specified under para 3(C1)(a) of aforesaid SEBI Circular, as Annexure I; as per original terms of the borrowings (refer notes giyen in Annexure I).

\ This is for your information and record.

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 . CIN: L74899DL1889PLC000004 Website: www.dcm.in Email id: dcmltd@dcm.in

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
1	Name of the listed entity	DCM Limited
2	Date of making the disclosure	01.08.2022
3	Nature of obligation	Term Loan/ Cash Credit Limit
4	Name of the lender(s)	HDFC Bank Limited
5	Date of default	01.08.2022
	Current default amount (Break-up of principal and interest in INR Crores)	Particulars			Amount (INR Crore)
6		Principal			0.07
		Interest			0.24
7	Details of the obligation (total principal amount in INR Crore,	Particulars		Principal/Cash Credit Limit*		Interest	Secured/
	tenure, interest rate, secured/ unsecured etc.)		Outstanding	Overdue*/	Tenure	rate	Unsecured
				Overdrawn
		HDFC – Term Loan	1.77	2.41	5 years	11.80%	Secured
		HDFC - Overdraft	13.37	3.37	-	11.80%	Secured
8	Total amount outstanding borrowings from banks/ financial	Particulars Amount (INR Crore)				*
	institutions (in INR crore) Working capital loans						13.37
		Term loans/OD			2.78
	Total				16.15

Registered office:

Unit Nos. 2050 to 2052, Plaza - II, 2nd 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

9	Total Financial indebtedness of the listed entity including short -term and long-term debt (in INR Crore)	Particulars	Amount (INR Crore) *
		Working capital loans	13.37
		Term loans / Overdraft	2.78
		Total	16.15

* 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 making the disclosure	NA
3	Type of instruments with ISIN	NA
4	Number of investors in the security as on date of default	NA
5	Date of default	NA
6	Current default amount (Break-up of principal and interest in INR Crores)	NA
	Details of the obligation (amount issued, tenure, coupon, secured/ unsecured
7	redemption date etc.)	NA
8	Total amount issued through debt securities (in INR crore)	NA
	Total Financial indebtedness of the listed entity including short -term and long-term
9	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 Companyformerly 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, 2nd 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

• 2- The above Scheme remained pending for filing with Hon'ble National Company Law Tribunal for seeking their approval u/s 230-232 of the Companies Act 2013, awaiting in-principal approval of secured lenders (Banks) with due regulatory compliances. The Company has been taking necessary steps for the settlement/restructuring of dues of these secured lender (s).
• 3- 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. HDFC Bank has 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 duly replied. HDFC Bank has also filed a suit for recovery which remained pending before Hon'ble Debt Recovery Tribunal (DRT). The other two bankers viz State Bank of India (SBI) and ICICI Bank (ICICI) have agreed with the Company for one time settlement (OTS) of their dues. The Company has already settled the dues of SBI under one time settlement scheme of SBI during the financial year ended March 31, 2022. During the current year, the ICICI Bank has issued a letter dated May 09, 2022 (referred as 'OTS' sanction letter) sanctioning the one time settlement of their dues of term loan and working capital facilities. As per terms and conditions contained in the said OTS sanction letter dated May 09, 2022 of ICICI Bank, the Company is required to repay Rs. 7.06 crore to ICICI as OTS amount to them on or before August 02, 2022. The Company has made full and final payment of OTS amount aggregating to Rs. 7.06 Crore in terms of the said sanction OTS letter.

Pursuant to the restructuring scheme approved by the Board of the Company, the settlement of all such creditors and bank(s) has already been provided for in the said Scheme. In addition to the said Restructuring Scheme, the Company is in process for development of its 68.35 acres of land at Hissar and signed a non-binding Term-Sheet with a party which is subject to signing of definitive agreement (s) and fulfillment of other terms and conditions. The Company is also taking 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 deleveraging of the Company.

4- 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 August 01, 2022 has been shown as per original terms of these borrowing and adjustment made by Bank in their records for the payments made by the Company and/or receipt/recovery by Bank from the collection/deposit made by debtors subsequent to the said appointed date.

Registered office: Unit Nos. 2050 to 2052, Plaza - II, 2nd 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