DCM Limited has decided to terminate its joint development agreement (JDA) with GCD Prime for a 68.35-acre land parcel in Hisar, Haryana, following prolonged regulatory issues. The company's board approved issuing a forfeiture and termination notice to the developer, citing continued breaches of obligations in obtaining license revocation from the Haryana government.

Project Background and Regulatory Challenges

The project, initially planned as an affordable residential plotted colony under the Deen Dayal Jan Awas Yojana-2016 (DDJAY-2016), faced significant setbacks:

• November 2022: Received license No. 179 of 2022 for the project
• March 2023: Obtained registration from Haryana Real Estate Authority, Panchkula (HRERA)
• April 2023: License suspended by the Director General, Town and Country Planning, Haryana
• April 2023: HRERA placed the project registration in abeyance and froze DCM's escrow account

Terms of the Original Agreement

The original JDA, executed in August 2022, outlined the following key terms:

Termination Process

Despite DCM's efforts to support the developer in resolving the license suspension, the matter remained unresolved for over two years. Consequently:

• The DCM board approved issuing a forfeiture and termination notice on November 1, 2025
• The developer has been given a 15-day response period
• Upon expiration of this period, amounts paid by the developer to DCM will be forfeited
• All development rights granted to GCD Prime will be revoked

Implications and Next Steps

This termination marks a significant setback for the planned development in Hisar. DCM Limited has stated that the notice is issued without prejudice to any rights and remedies available under law, equity, and the JDA. The company reserves the right to claim damages for losses incurred due to the developer's breaches.

The termination of this agreement may have broader implications for real estate development projects in Haryana, particularly those under the DDJAY-2016 scheme. It underscores the importance of navigating regulatory challenges effectively in large-scale real estate projects.

Investors and stakeholders will be watching closely to see how DCM Limited proceeds with the development of this land parcel and whether it seeks new partnerships or alternative development strategies in the future.

DCM Limited , a diversified company with interests in IT services and engineering, has reported a turnaround in its financial performance for the first quarter. The company also announced the appointment of new secretarial auditors for a five-year term.

Financial Performance

For the quarter ended June 30, DCM Limited reported:

• Consolidated revenue from operations of Rs 1,761.00 lakh, down from Rs 1,844.00 lakh in the same quarter last year.
• Profit after tax of Rs 324.00 lakh, compared to a loss of Rs 29.00 lakh in the corresponding quarter.
• Earnings per share (EPS) of Rs 1.74, a significant improvement from the loss per share of Rs 0.15 in the corresponding quarter of the previous year.

The company's IT Services segment continued to be the primary revenue driver, contributing Rs 1,754.00 lakh to the total revenue.

Segment Performance

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

Ongoing Challenges

DCM Limited continues to grapple with industrial unrest at its engineering business undertaking. The company has not made any provision for wages pertaining to the lockout period from October 22, 2019, to June 30, which amounts to Rs 7,584.00 lakh.

The company is also facing issues with its land development project in Hisar, Haryana. The license for development has been suspended by the Director General, Town and Country Planning, Haryana, pending an inquiry. This has resulted in the company keeping Rs 5,000.00 lakh in advances under current liabilities.

Appointment of New Secretarial Auditors

In a move towards strengthening its corporate governance, DCM Limited's Board of Directors has approved the appointment of M/s. Pragnya Pradhan & Associates as the Secretarial Auditors of the Company. The appointment is for a term of five consecutive years, subject to shareholder approval at the upcoming Annual General Meeting.

M/s. Pragnya Pradhan & Associates is a firm with over a decade of experience in providing professional services in areas such as Secretarial Audit, Due Diligence, and other assurance services. The firm specializes in matters related to SEBI Regulations, RBI Guidelines, and various corporate legal matters.

Looking Ahead

Despite the ongoing challenges, DCM Limited's management remains optimistic about the company's future. They are actively pursuing the revocation of the suspension order for their Hisar land development project and are exploring options to restructure the Engineering Business Undertaking.

The company's ability to turn a profit this quarter, despite the various hurdles, signals potential for recovery. However, the resolution of the industrial unrest and the land development issues will be crucial for DCM Limited's long-term stability and growth.