DCM Financial Ltd.

DCM Financial Services Ltd.  (DFS) was incorporated as
 Tanvi Leasing and Finance Pvt. Ltd.  on 13th February,
 1991.  The name was subsequently changed to DCM Financial
 Services Pvt.  Ltd in February 1992 to reflect the fact of
 its DCM pedigree as also the nature of its business.
 There after the Company became a public Company in July 1993
 under the provisions of Sec. 43-A of the Companies Act,
 1956.  Thereafter Shareholders of the Company passed a
 Special Resolution on 3rd June, 1994 for deleting the
 restrication clause under the Section 3(1)(iii) of the
 Companies Act, 1956 and as such Company became fully Public
 Limited Company within the meaning of Section 3(1)(iv) of
 the Companies Act, 1956.  The Company commenced its
 operations in April 1991.
 
 The Company belongs to the DCM Ltd.  group, which was
 earlier a part of the DCM group established in the year
 1889.  The DCM group was split up into four groups in the
 year 1990, one of them being the DCM Ltd., a group headed
 by Dr.Bharat Ram.  Over the years DCM has grown into one of
 the leading multi-product conglomerates of the country.  The
 business interests of DCM Ltd today include Textiles,
 Engineering, Automobiles, Electronics and Real Estates
 amongst others.  DFS is a subsidiary of DCM International
 Limited, which inturn is wholly owned subsidiary of DCM
 Ltd.
 
 The Company is a Non-Banking Financial Company and is
 governed by the Non- Banking Financial Companies (Reserve
 Bank) Directions, 1977, issued by the Reserve Bank of
 India.
 
 PRESENT ACTIVITIES OF THE COMPANY
 
 The Company commenced its operations in February, 1991.  The
 main activities under taken were lease financing of
 commercial vehicles.  Since then the Company has steadily
 grown and has added expertise in various areas of financial
 services.  It has also developed the requisite systems and
 infrastructure, in line with the market trends and future
 growth.
 
 Today, the Company's cumulative exposure in vehicle
 financing is in excess of Rs.24 crores representing 1029
 vehicles and 861 customers.  In addition to lease
 financing, the Company has added new services like Stock
 Broking, Bill discounting, Inter Corporate Financing,
 Advisory services, Equity research, Bridge Financing etc.
 
 Lease and Hire Purchase: The Company is the largest financer
 of DCM Toyota trucks (Dyna) in India.  The expertise and
 knowledge gained by the Company in the area of LCV
 financing shall help the Company in diversifying its
 portfolio into other areas of vehicle financing such as
 HCVS, passenger cars etc.  The Company projects
 disbursements of Rs 20 Crores in the coming financial year
 in this area.
 
 Corporate Lease: The Company has a diversified corporate
 lease portfolio with some of the major business houses of
 the country availing lease / hire purchase facilities from
 the Company.  Keeping in view the projected growth in the
 economy and particularly in industry, trade and
 infrastructure, the Company foresees adequate demand to
 meet the projected levels of disbursements and
 profitability.
 
 Money Market Operations (Bill discounting/ICDs):
 
 As part of the total financial services offered to the
 clients, the Company arranges short term funds by way
 of discounting of trade bills and placement of intercorporate
 deposits.  In this activity, the Company deploys its own
 funds as well as acts as an intermediary between clients.
 In this segment the Company has stabilised its operations
 in a short span and foresees tremendous growth because of
 the increased usage of such instruments in the Indian
 Money Markets.
 
 Investments & Broking : The Company is engaged in
 investment in primary and secondary equity markets.  Long
 and short term investment decisions are taken based on
 extensive research.  The Company proposes to engage in the
 business of corporate broking and institutional broking
 including private placement of securities and trading in
 debt instruments.  The Company has acquired the dealership
 of OTCEI.
 
 Merchant Banking: The Company is proposing to enter into
 merchant banking activities and has already obtained SEBI
 approval to act as Category I merchant banker.  Main
 activities which the Company is proposing to commence are
 Issue Management, Underwriting, consultancy services,
 credit syndication and technology tie-up services.
 
 Activity wise performance data for last 3 years         (Rs inlacs)
 
                                  1993-94    1992-93      1991-92
 
 A) Income from operations
 
 1) Leasing - Gross                491.35    408.18       339.02
 
 2) Hire Purchase-Gross             80.53     34.94         6.65
 
 3) Bill Discounting - Gross         2.45      2.40          -
 
 B) Disbursements Made
 
 1) Leasing - Gross                346.96    315.10       942.57
 
 2) Hire Purchase - Gross          574.36    307.58       212.29
 
 3) Bill Discounting - Gross       365.88     27.71          -
 
 C) Bad Debts
 
 1) Leasing /H.P.                   14.69       -            -
 
 D) Recovery Percentage
 
 1) Leasing & Hire Purchase         91.06%    90.07%       89.71%
 
 2) Bill Discounting                  100%      100%         100%
 
 Investment Policy
 
 The Company's investment policy is based on strict criteria
 in appraising credit risks and norms for the company's
 credit exposure based on overall and individual exposure to
 each Industry, Company and activity, security of the
 transaction, balancing between risk and return.  The
 Company closely monitors and reviews its outstanding
 commitments/positions/transactions periodically depending
 upon the amount of exposure, market conditions, payment
 record of the party and other relevant factors.  The powers
 for overall deployment of funds are vested with the
 President of the Company which are reviewed from time to
 time by the Board.
 
 There are no non-recoveries of principal/interest due, or
 bad and doubtful debts from Companies in which the
 Directors are interested
 
 2002
 
 - DCM Financial Services Ltd has informed that a massive fire
 reportedly due to an electric short circuit broke out on the
 intervening night of March 20 & 21, 2002 at around 2.00 A. M. at
 their office premises at New DelhiMost of the important documents,
 files and records relating to Secretarial, legal and other
 departments has been completely burnt.
 
 2011
 -Registered Office of the Company has been shifted To D 7/3 Okhla
 Industrial Area-II,New Delhi - 110020.
 
 2012
 
 -DCM Fin Services awarded by Sole Arbitrator in the matter of ‘MS
 Shoes East Limited Vs DCM