DCM Ltd

Arbitration with GCD Prime

• HC dismissed GCD Prime's Section 9 petition on July 28, 2026.
• Division Bench stayed the effect of the July 28 order and maintained status quo on the project land.
• Appeal against the order remains pending before the Division Bench.
• Notice of forfeiture and termination under JDA dated 01 Nov 2025 remains disputed.
• Sole Arbitrator appointed under Section 21; arbitration proceedings not yet commenced.
• JDA deemed non-determinable; termination requires notice and 30-day cure period.

Compliance update

• Board noted related party disclosure non-compliance for Q4 FY26 due to XBRL validation issues; meeting Aug 13, 2026.
• Fines paid to NSE and BSE on July 10, 2026, including GST.
• Company to strengthen processes to ensure future regulatory compliance.

Litigation / arbitration update

• GCD Prime filed an appeal under Section 37(1)(b) of the Arbitration Act.
• Delhi High Court order dated 28 July 2026 dismissed the Section 9 petition.
• Appeal filed on 7 August 2026 seeks to set aside the HC order.
• Sole Arbitrator appointed: Justice (Retd) Badar Durrez Ahmed; arbitration to proceed.
• JDA covers 68.35 acres at Bir Hisar, Hisar, Haryana; revenue share 55:45.
• License under DDJAY suspended since 18 April 2023; development paused.
• Notice of forfeiture and termination issued 1 November 2025; JDA termination subject to arbitration.
• Total developer investments approx Rs 72 crore; deposits, charges, and on-site costs included.

Independent Director Appointment

• Special resolution to appoint Maj. Gen. Shailendra Singh as Non-Executive Independent Director for five years; approved 99.75%.

Dematerialisation processing status

• Securities dematerialised and listed on exchanges; certificates mutilated and cancelled; depository name substituted in records within 15 days.

Board approvals

• Approved audited standalone and consolidated financial results for quarter and year ended March 31, 2026.
• Approved audited standalone and consolidated financial statements for year ended March 31, 2026.
• Took on record statutory auditors' reports on the audited financial results.

Financial performance

• Standalone quarterly revenue from operations was nil; quarterly loss after tax was Rs 165 lakh.
• Standalone annual revenue from operations was Rs 23 lakh; annual loss after tax was Rs 580 lakh.
• Consolidated quarterly revenue from operations was Rs 1,887 lakh; quarterly loss after tax was Rs 15 lakh.
• Consolidated annual revenue from operations was Rs 7,178 lakh; annual profit after tax was Rs 289 lakh.

Audit remarks

• Auditors issued an unmodified opinion on standalone and consolidated results.
• Auditors highlighted the engineering division lockout and unpaid wages of Rs 7,964 lakh.
• Auditors noted material uncertainty over going concern due to the Hisar land dispute and liquidity pressure.

Legal and regulatory matters

• Engineering division lockout since October 22, 2019 remains sub-judice before labour authorities.
• Company terminated the Hisar joint development agreement and seeks forfeiture of Rs 5,000 lakh advance.
• Delhi High Court proceedings on the Hisar dispute are pending; judgment on the Section 9 petition was reserved.

Liquidity and going concern

• Standalone current liabilities exceeded current assets by Rs 4,162 lakh at March 31, 2026.
• Consolidated current liabilities exceeded current assets by Rs 259 lakh at March 31, 2026.
• Financial statements were prepared on a going concern basis.