DCM Shriram Industries Ltd has secured a significant regulatory milestone with the National Company Law Tribunal (NCLT) sanctioning its comprehensive corporate restructuring plan. The approval marks a major step in the company's strategic reorganization efforts.

Corporate Restructuring Details

The NCLT-approved scheme encompasses a composite arrangement involving multiple corporate actions. The restructuring plan includes the amalgamation of DCM Shriram Industries with Lily Commercial, followed by a strategic demerger of operations.

Shareholder Impact

Under the sanctioned scheme, existing shareholders of DCM Shriram Industries will receive shares in the resultant companies following the completion of the restructuring process. This arrangement ensures that current stakeholders maintain their investment exposure through equity participation in the newly formed entities.

Strategic Implications

The corporate restructuring will result in the creation of two distinct business entities - DCM Shriram Fine Chemicals and DCM Shriram International. This separation is expected to allow each entity to focus on its specific business segments and operational requirements.

The NCLT approval represents the completion of the regulatory approval process for this complex corporate arrangement, enabling the company to proceed with the implementation of its restructuring plan.

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.

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:

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.