DCM Shriram Industries Limited (DCMSR) has received approval from the National Company Law Tribunal (NCLT), New Delhi Bench, for its composite scheme of arrangement. This corporate action involves DCMSR and several other companies, including Lily Commercial Private Limited (LCPL).

Key Details of the Approval

• The NCLT pronounced its order sanctioning the composite scheme.
• The scheme was filed under Sections 230 to 232 of the Companies Act, 2013.
• The case number for this petition was CP(CAA)-17/ND/2025.

Components of the Composite Scheme

The approved scheme includes:

1. Amalgamation of DCMSR with Lily Commercial Private Limited.
2. Demerger of Chemical and Rayon undertakings into two separate companies.

Implementation of the Scheme

The composite scheme of arrangement will become effective upon the completion of two crucial steps:

1. Obtaining the certified copy of the NCLT order, which has now been received.
2. Filing the certified copy with the Registrar of Companies for the National Capital Territory of Delhi & Haryana.

Implications and Next Steps

This approval marks a significant milestone in the corporate restructuring process for DCM Shriram Industries and its associated companies. The scheme aims to create focused business verticals, which is expected to enhance operational efficiency and shareholder value.

Regulatory Compliance

DCMSR has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed entities to inform the stock exchanges about material events or information.

Company's Statement

Y.D. Gupta, Company Secretary and Compliance Officer of DCM Shriram Industries Limited, signed the official communication regarding this development. The company has received the certified copy of the NCLT order and will proceed with filing it with the Registrar of Companies to implement the approved scheme.

Investors and stakeholders of DCM Shriram Industries Limited and the associated companies should stay informed about further updates as the composite scheme moves towards implementation.

DCM Shriram Industries Limited has announced its financial results for the quarter and half-year ended September 30, 2025, revealing a complex financial picture marked by auditor qualifications and significant corporate restructuring plans.

Key Financial Highlights

The company reported a consolidated profit before tax of Rs. 3,513.00 lakhs for the quarter ended September 30, 2025, compared to Rs. 2,727.00 lakhs in the previous quarter. The total income from operations stood at Rs. 53,308.00 lakhs for the current quarter, up from Rs. 49,859.00 lakhs in the preceding quarter.

Auditor Qualifications

The company's auditors issued qualified review reports for both standalone and consolidated results, highlighting two key issues:

1. Discontinuation of Off-Season Sugar Expense Deferral: DCM Shriram Industries has discontinued its practice of deferring off-season sugar expenses. In the previous year, Rs. 3,200.00 lakhs were deferred in September 2024.

2. Non-Recognition of Impairment Loss: An estimated impairment loss of Rs. 663.00 lakhs on investment in a subsidiary that surrendered its leasehold land was not recognized in the standalone financial results.

Corporate Restructuring

The company is in the midst of a significant corporate restructuring process:

• A Composite Scheme of Arrangement for amalgamation and demerger of chemical and rayon businesses has received stock exchange approvals.
• The scheme is awaiting NCLT approval, with hearings concluded on September 30, 2025.

Subsidiary Land Surrender

A subsidiary of DCM Shriram Industries has filed an application to surrender its leasehold land. Consequently:

• The land has been reclassified as an "asset held for sale" in the consolidated results.
• An impairment loss of Rs. 533.00 lakhs has been recognized in the consolidated financial statements.

Management's Decision on Impairment

The company's management has not recognized the estimated impairment loss of Rs. 663.00 lakhs on investment in the subsidiary in the standalone financial results. This decision is based on the expectation that the investment will be cancelled upon approval of the ongoing Scheme of Arrangement.

Auditor's Stance

The auditors have qualified their review report, stating that the non-recognition of the impairment loss constitutes a departure from applicable accounting standards under Section 133 of the Companies Act, 2013.

Conclusion

DCM Shriram Industries' Q2 results reflect a period of transition and restructuring. While the company shows improved quarterly performance, the auditor qualifications highlight important accounting considerations. Investors and stakeholders will likely be watching closely as the company navigates its corporate restructuring and addresses the auditors' concerns in the coming quarters.