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.

DCM Financial Services Limited has released its audited standalone and consolidated financial results for the year ended March 31, 2026. The Board of Directors approved the financial statements during a meeting held on May 19, 2026. The company published the results in leading newspapers, including the Financial Express and Jansatta, on May 20, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Financial Performance

For the financial year ended March 31, 2026, the company reported a consolidated net loss of ₹102.58 lakhs. In the previous year ended March 31, 2025, the net loss was ₹118.61 lakhs. Total comprehensive income for the year stood at a loss of ₹102.58 lakhs, compared to a loss of ₹118.02 lakhs in the prior year.

The company’s revenue from operations was negligible, recorded at ₹0.00 lakhs for the current and previous years. Other income for the year stood at ₹55.62 lakhs, a decrease from ₹167.17 lakhs in the previous year.

Audit Qualifications and Going Concern

M/s. V Sahai Tripathi & Co., the statutory auditors, issued a report with a qualified opinion. The auditors highlighted that the company has ceased to accept deposits since September 1997, and its application for a certificate of registration as an NBFC was rejected in 2004. Consequently, the company is not carrying on any business.

The auditors noted that the revival of the company is dependent on the implementation of a scheme by a One Man Committee appointed by the Hon'ble Delhi High Court. This uncertainty casts significant doubt on the company's ability to continue as a going concern.

Key Financial Position

As of March 31, 2026, the company's accumulated losses stood at ₹9,317.33 lakhs. The total liabilities exceeded the total assets by ₹5,095.10 lakhs. Current liabilities exceeded total assets by ₹4,780.97 lakhs.

The auditors also pointed out that no provision of ₹1,683 lakhs towards interest on debentures and fixed deposits has been made in the financial statements as per the scheme laid down by the One Man Committee. Additionally, a debenture redemption reserve of ₹2,014.98 lakhs required for the redemption of 'B' series debentures has not been created due to insufficient profits.