DCM Financial Services has accepted the resignation of Ms. Richa Kathuria from the office of Independent Director, effective close of business on August 11, 2026. The departure, attributed to her other professional commitments, triggers a restructuring of the company’s Board committees. To maintain compliance with regulatory requirements for independent director representation, the Board appointed Ms. Snehlata Kaim as an Additional Director (Non-Executive Independent) on the same date.

The changes were approved during a Board meeting held at the company’s registered office in New Delhi on Tuesday, August 11, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III – Para A, Clause 7 and Clause 7B. Additionally, the filing complies with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/P/CIR/2026/16 dated January 30, 2026.

Ms. Kathuria ceased to be a member of the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee with immediate effect. In her resignation letter, she confirmed there were no material reasons for her departure other than those stated. She continues to hold directorships at Pankaj Polymers Limited and Confidence Petroleum India Limited.

Ms. Snehlata Kaim, a postgraduate in Commerce with certification from ICA in Computer Accounting, was appointed for a term of five consecutive years, running from August 11, 2026, to August 11, 2031. Her appointment is subject to ratification by shareholders at the next general meeting. Pursuant to BSE Circular LIST/COMP/14/2018-19 dated June 20, 2018, Ms. Kaim is not debarred from holding office under any SEBI order.

Revised Committee Composition

The Board reconstituted its committees effective August 11, 2026, to incorporate Ms. Kaim. The updated structures are as follows:

Ms. Kaim disclosed no shareholding in DCM Financial Services Limited at the time of appointment, as required under Regulation 7(1)(b) read with Regulation 6(2) of the SEBI (Prevention of Insider Trading) Regulations, 2015. She confirmed she is not related to any existing Directors or Key Managerial Personnel.

Regulatory Compliance Notes

The Board also noted the closure of the trading window for Designated Persons for the quarter ended June 30, 2026, under the SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018. Compliance with the Report on Corporate Governance under Regulation 27(2) and the Statement of Investor Complaints under Regulation 13(3) for the same quarter was reviewed. The Reconciliation of Share Capital Audit Report under Regulation 76 of the SEBI (Depositories and Participants) Regulations, 2018, and the Shareholding pattern under Regulation 31 were also taken on record.

DCM Financial Services reported a narrowed standalone net loss of ₹18.67 lakh for the quarter ended June 30, 2026, improving from the ₹25.33 lakh loss recorded in the same period last year. The company’s consolidated net loss was ₹18.78 lakh, down from ₹25.57 lakh in Q1FY25. While the operational losses contracted, statutory auditors raised significant concerns regarding unprovided interest liabilities and unresolved legal disputes that could impact future financial statements.

The Board of Directors, chaired by Nidhi Deveshwar, approved the unaudited standalone and consolidated financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the Audit Committee. V Sahai Tripathi & Co, the statutory auditors, issued a limited review report under Standard on Review Engagement (SRE) 2410, subject to specific notes and audit qualifications.

Financial Performance Overview

The company recorded no revenue from operations in the quarter. Total income comprised entirely of other income, which stood at ₹20.90 lakh on a standalone basis and ₹21.35 lakh on a consolidated basis. This compares to ₹22.46 lakh and ₹22.75 lakh respectively in Q1FY25. Expenses remained relatively stable, with total standalone expenses at ₹37.23 lakh and consolidated expenses at ₹37.74 lakh. Employee benefit expenses accounted for ₹10.01 lakh in both standalone and consolidated figures, while finance costs were minimal at ₹0.45 lakh.

Auditor Qualifications and Liabilities

V Sahai Tripathi & Co highlighted critical omissions in the financial statements. The company has not provided interest on secured and unsecured loans for the quarter, leading to an understatement of losses by ₹141.34 lakh. This includes approximately ₹39.96 lakh in interest on 19.5% debentures and ₹101.38 lakh in interest on bills payable and fixed deposits. Additionally, the auditors noted that a provision of ₹1,683 lakh towards interest on debentures and fixed deposits, as laid down by a High Court-appointed One Man Committee, has not been made in the financial statements.

Legal Disputes and Contingent Liabilities

The audit report also drew attention to ongoing legal matters. A dispute with builder NBCC Ltd regarding office premises purchased in 1995 involves a claim of ₹288.29 lakh, which is pending arbitration. The award from 2021 resulted in NBCC Ltd being awarded ₹41.06 lakh against its claim of ₹434.95 lakh, while DCM Financial Services received ₹78.97 lakh against its counter-claim of ₹3,269.50 lakh. Both parties have filed objections in the Delhi High Court. Furthermore, the company has not created a debenture redemption reserve of ₹2,014.98 lakh required for 'B' series debentures due to insufficient profits, and balance confirmations for various receivables and payables remain pending.