Darjeeling Ropeway Company Reports Loss, Appoints New Auditor, and Plans Relocation

Darjeeling Ropeway Company Limited (DRCL) has announced several significant changes and its financial results. The company reported a net loss, appointed a new statutory auditor, and plans to relocate its registered office.

Financial Performance

DRCL reported revenue from operations of Rs. 91.01 lakhs, compared to nil revenue in the previous fiscal year. However, the company incurred a net loss of Rs. 26.69 lakhs, widening from a net loss of Rs. 4.09 lakhs in the previous year.

The company's total expenses increased significantly to Rs. 116.89 lakhs, up from Rs. 4.07 lakhs in the previous year. This surge in expenses contributed to the larger loss despite the revenue growth.

Key Financial Metrics

New Statutory Auditor

DRCL's Board of Directors has recommended the appointment of M/s. Sunit M Chhatbar & Co., Chartered Accountants, as the new statutory auditor. This appointment is to fill the casual vacancy created by the resignation of the previous auditor, M/s. K M Chauhan and Associates. The new auditor's term, subject to shareholder approval, will be from FY 2025-26 to FY 2029-30.

Mr. Sunit Chhatbar, the proprietor of the new auditing firm, brings experience in concurrent audits, stock audits, and revenue audits for various banks, as well as expertise in accounting and tax audits for manufacturers, traders, and service providers.

Planned Relocation

The company has announced plans to change its registered office from Mumbai, Maharashtra, to Rajkot, Gujarat. This move is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Annual General Meeting

DRCL has scheduled its 88th AGM for August 19, 2025, to be held virtually through video conferencing or other audio-visual means.

Management Commentary

While specific management comments were not provided, the company's focus appears to be on restructuring and potentially exploring new opportunities, as evidenced by the revenue generation in the current fiscal year compared to no revenue in the previous year.

The appointment of a new auditor and the planned relocation of the registered office suggest that DRCL may be positioning itself for operational changes and possibly new strategic directions in the coming years.

Investors and stakeholders will likely be watching closely to see how these changes impact the company's performance and whether they can help reverse the current loss-making trend.