DCX Systems Limited has announced the receipt of significant purchase orders worth ₹57.67 crores, marking a substantial business development for the aerospace and defence company. The orders were received in the normal course of business and span across cable and wire harness assemblies for various customers.

Major Order Details

The company secured a major contract from Rafael Advanced Defence Systems Limited, Israel, representing the largest portion of the total order value. The breakdown of orders received by DCX Systems Limited is as follows:

Subsidiary Company Performance

Raneal Advanced Systems Private Limited, the wholly owned subsidiary of DCX Systems, also secured additional business during this period. The subsidiary received purchase orders worth ₹2.52 crores for the manufacture and supply of printed circuit board assemblies from domestic and international customers.

Business Significance

The orders demonstrate DCX Systems' continued strength in the aerospace and defence sector, with a significant international component through the Rafael Advanced Defence Systems contract. The company's expertise in manufacturing cable and wire harness assemblies has enabled it to secure substantial orders from both domestic and international markets.

The announcement was made through a formal communication to BSE Limited and National Stock Exchange of India Limited, fulfilling regulatory requirements under Regulation 30. DCX Systems operates from its aerospace SEZ facility in Bengaluru Rural, Karnataka, and maintains AS 9100D certification, reflecting its commitment to aerospace quality standards.

DCX Systems Limited , a prominent player in the aerospace and defense electronics sector, recently disclosed a significant change in its material subsidiary's auditing structure. The company announced that Rajagopala and Co, the statutory auditors of its material subsidiary Raneal Advanced Systems Private Limited, have resigned effective May 12, 2025.

Reasons for Auditor Resignation

The resignation was attributed to an internal realignment of audit assignments within the group. This move was reportedly undertaken to:

1. Maintain independence
2. Avoid overlapping professional engagements

Delayed Disclosure and Company's Response

DCX Systems acknowledged a delay in disclosing this information to the stock exchanges. The company stated that the late submission was due to an inadvertent oversight and expressed regret for not meeting the prescribed timeline.

Impact on Financial Reporting

While the change in auditors is a significant event, it's important to note that the resignation does not stem from any concerns with the management or operations of the material subsidiary. This suggests that the financial reporting and auditing processes of Raneal Advanced Systems Private Limited remain intact.

DCX Systems' Financial Position

To provide context on the company's overall financial health, here's a snapshot of DCX Systems' consolidated balance sheet data:

The company has shown growth in total assets and equity, with a significant increase in fixed assets. However, there's a decrease in current assets and liabilities, which may indicate changes in the company's operational structure or strategy.

Conclusion

The resignation of Rajagopala and Co as statutory auditors of DCX Systems' material subsidiary appears to be part of a broader internal restructuring rather than a cause for concern. However, investors and stakeholders should continue to monitor the company's financial reporting and any further changes in its governance structure.

As always, it's advisable for investors to consider multiple factors, including financial performance, industry trends, and corporate governance practices, when making investment decisions.