DCM Limited Successfully Concludes Punjab VAT Settlement Worth Rs. 812 Lakhs

DCM Limited , a diversified company with interests in IT services, real estate, and engineering, has successfully concluded its Punjab VAT dispute settlement. The company received the final settlement order on December 30, 2025, marking the complete resolution of a long-standing litigation matter.

Settlement Completion Details

The company has fully settled its VAT dispute with Punjab authorities under the One Time Settlement Scheme (OTSS) notified by the Punjab Government on September 30, 2025. The final settlement order was received from the company's attorney on December 30, 2025, at 3:27 PM, concluding the matter entirely.

Settlement Parameters	Amount (Rs. Lakhs)
Total Dues (including interest & penalty)	812.00
Settlement Amount Paid	113.89
Previously Deposited	99.00
Additional Payment Made	19.23
Savings from Settlement	698.11

Background of the Dispute

The dispute originated from the disallowance of Entry Tax credit on High Speed Diesel (HSD) by the Assistant Commissioner of Sales Tax, Ropar. The matter involved DCM Limited's engineering division's tax returns for financial years 2010-11 through 2013-14, where the department challenged the input tax credit claims under the Punjab Value Added Tax Act, 2005.

The company had strong legal grounds for its position, arguing that:

Section 13(5)(b) restrictions apply only to VAT on intra-state purchases, not entry tax from other states
Entry tax paid under Section 3A was deemed advance tax under Section 6(7) and 6(8) of PVAT Act
Entry tax and advance tax were never levied simultaneously

Strategic Decision and Board Approval

Despite legal advice indicating strong merit in the case, DCM Limited's Board of Directors approved the settlement on November 12, 2025. The decision was driven by:

Strategic Factors	Benefits
Risk Mitigation	Eliminates extended litigation exposure
Cost Management	Caps liability at 50% of basic tax
Interest Protection	Prevents ongoing penalty accumulation
Resource Focus	Allows concentration on core business

Financial Impact and Implications

The settlement represents a significant financial benefit for DCM Limited. By paying Rs. 113.89 lakhs, the company has resolved total dues of Rs. 812 lakhs, achieving savings of approximately Rs. 698 lakhs. This resolution eliminates contingent liabilities and provides clarity to the company's financial position.

The settlement comes at a strategic time as DCM Limited continues to navigate operational challenges, including ongoing industrial issues at its engineering business and complications with development projects. This resolution removes a major uncertainty from the company's legal and financial landscape.

Regulatory Compliance

The company has fulfilled all disclosure requirements under Regulation 30 of SEBI Listing Regulations, ensuring complete transparency with stakeholders. The settlement was completed within the prescribed timeline of the OTSS scheme, which had a deadline of December 31, 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.74%	-2.94%	-3.94%	-15.55%	-17.17%	+222.81%

DCM Limited , a diversified company with interests in IT services and grey iron casting, has reported a consolidated profit of Rs 145.00 lakh for the quarter ended September 30, 2025, compared to Rs 71.00 lakh in the same quarter last year. The company's performance shows resilience despite ongoing challenges in its engineering division and real estate operations.

Key Financial Highlights

Revenue from operations remained stable at Rs 1,762.00 lakh versus Rs 1,663.00 lakh in the previous year.
Other income increased to Rs 116.00 lakh from Rs 51.00 lakh in the corresponding quarter.
The IT Services segment continued to be the primary revenue driver, contributing Rs 1,750.00 lakh to the total revenue.

Segment Performance

Segment	Revenue (Rs lakh)	Profit/(Loss) before interest and tax (Rs lakh)
IT Services	1,750.00	82.00
Real Estate	-	-
Grey Iron Casting	12.00	(108.00)

The IT Services segment showed strong performance, while the Grey Iron Casting segment continued to face challenges.

Ongoing Challenges

Engineering Division Lockout

The company's engineering business undertaking remains under lockout since October 22, 2019. DCM has not made provisions for wages during the lockout period, which amount to Rs 7,719.00 lakh as of September 30, 2025.

Real Estate Project Complications

DCM is facing issues with its Hisar land development project. The development license (No. 179 of 2022) for the 67.275-acre project has been suspended by the Director General, Town and Country Planning, Haryana.

Joint Development Agreement (JDA) Termination

On November 1, 2025, DCM issued a notice of forfeiture and termination of the JDA with GCD Prime (Developer) due to the developer's failure to obtain revocation of the license suspension.

Financial Position

The company's current liabilities, including an advance of Rs 5,000.00 lakh under the JDA, exceed current assets by Rs 745.00 lakh as of September 30, 2025.
Despite these challenges, management believes the company can continue operations by focusing on real estate operations and restructuring its Engineering Business Undertaking.

Future Outlook

DCM Limited is at a critical juncture, facing significant challenges in its engineering and real estate segments. The company's ability to resolve the ongoing issues with its Hisar land development project and the engineering division lockout will be crucial for its future performance. The IT Services segment remains a bright spot, providing stability to the company's overall operations.

Investors and stakeholders will be closely watching how DCM navigates these challenges and implements its strategies to improve liquidity and operational performance in the coming quarters.