Atlanta Electricals Limited disclosed on 14th May 2026 that it has received a debarment order from South Bihar Power Distribution Company Limited (SBPDCL), barring the company from participating in SBPDCL-related tenders for a period of two years. The communication was received by the company on 13th May 2026 and pertains to a purchase order executed during FY2023-24. The company has stated that it respectfully disagrees with the characterisation of the matter and has already submitted detailed representations before the concerned authorities requesting reconsideration.

Key Details of the Debarment Order

The debarment order relates to the supply of power transformers under a purchase order whose value was less than ₹3 Crores. The following table summarises the key parameters of the matter:

Background and Technical Context

The matter originated from post-delivery short-circuit testing conducted at CPRI, Bhopal, on one randomly selected transformer from the supplied lot in May 2024. According to the company, the transformer successfully withstood all short-circuit shots and met all major electrical, dielectric, thermal, and post-test performance parameters. However, during internal inspection after the completion of testing, the testing agency recorded certain observations relating to the displacement of insulating components.

Based on these observations, SBPDCL issued a Show Cause Notice dated 22nd August 2024. The company submitted detailed technical replies and representations on multiple occasions, as outlined below:

• 27th August 2024: Initial detailed technical reply submitted
• 30th October 2024: Further representation submitted
• 8th January 2025: Additional technical submission made

Following the submission on 8th January 2025, the company had not received any further communication for a considerable period and was engaged in discussions with the customer for technical resolution and reconsideration, before receiving the debarment order dated 24th April 2026.

Company's Position and Clarifications

Atlanta Electricals Limited has provided the following clarifications regarding the matter:

• The transformer had successfully cleared all critical test parameters during short-circuit testing.
• No operational abnormality or unsafe condition had been observed.
• The matter did not involve any established design failure or systemic quality issue.
• Transformers of the same design supplied earlier are operating satisfactorily in the field.
• The company has historically supplied 218 transformers of the same rating to Bihar utilities, all of which are working satisfactorily.
• The company has successfully short-circuit tested transformers of the same rating 13 times at CPRI in the past ten years for Bihar State Utilities.
• The order under reference was fully executed in FY2023-24 and its value was not material in relation to the scale of operations of the company.
• The matter pertains to a single isolated technical observation during post-test inspection.

The company also noted that industry practice in similar situations generally provides an opportunity for re-testing and/or independent technical evaluation before resorting to debarment. Accordingly, the company has requested the concerned authorities to permit re-testing and independent technical review of the transformer in question.

Scope and Next Steps

The company has clarified that the debarment order is limited to the tenders of Bihar State Power Holding Company Limited and does not constitute a material event. Atlanta Electricals Limited has stated that it does not affect its present or future business. The company has indicated that it will exercise legal options if necessary and will continue to update the stock exchanges regarding any material developments in the matter. The disclosure was made in the interest of transparency, good corporate governance, and adherence to compliance requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Atlanta Electricals Limited has informed the stock exchanges that shareholders of Atlanta Trafo Limited, its material unlisted subsidiary, have approved the appointment of two Non-Executive Independent Directors at the General Meeting held on May 12, 2026. The intimation was filed pursuant to Regulation 24(1) and Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Both directors have been appointed for a first term of five consecutive years, commencing from May 12, 2026 to May 11, 2031 (both days inclusive), and are not liable to retire by rotation.

Appointment Details

The following table summarises the key details of the two directors approved at the General Meeting of Atlanta Trafo Limited:

Profiles of Appointed Directors

Mr. Dukhabandhu Rath (DIN: 08965826)

Mr. Dukhabandhu Rath is a senior banking professional with nearly four decades of experience in the banking and finance sector. He served State Bank of India for 36 years and retired as Chief General Manager and Head of SBI operations for Gujarat and 3 Union Territories. He possesses extensive experience in banking, finance, fund mobilisation, and strategic management, and also served as Managing Director of Gujarat Venture Finance Limited (GVFL). Mr. Rath holds degrees in Political Science and Economics and has completed a Management Development Programme from Indian School of Business, Hyderabad. He is presently serving as Independent Director on the boards of various companies.

Mr. Rath is an existing Independent Director on the board of Atlanta Electricals Limited, and his appointment on the board of the material unlisted subsidiary has been made in compliance with Regulation 24(1) of SEBI LODR Regulations. He is not related to any Director of the Company.

Mrs. Jinkal Darshan Patel (DIN: 08729869)

Mrs. Jinkal Darshan Patel is a seasoned leader with over 19 years of experience in the finance and pharmaceutical industries. She holds a Bachelor of Engineering in Electronics and Communication from S.P. University and an MBA in Finance from Pace University, New York, and gained approximately 2 years of experience in the finance field in the United States. Since joining Elysium Pharmaceuticals in 2009, Mrs. Patel has played a role in driving the company's growth and establishing its reputation on a global scale.

Mrs. Patel is an existing Independent Director on the board of Atlanta Electricals Limited, and her appointment on the board of the material unlisted subsidiary has been made in compliance with Regulation 24(1) of SEBI LODR Regulations. She is not related to any Director of the Company.

Regulatory Compliance

The intimation has been filed in accordance with the applicable regulatory framework. Key compliance details are as follows:

• Both appointments are made pursuant to Regulation 24(1) of SEBI LODR Regulations, which governs the appointment of Independent Directors on the boards of material unlisted subsidiaries.
• Disclosures have been made as required under Regulation 30 read with Schedule III of SEBI LODR Regulations.
• Details have been provided in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
• Neither Mr. Dukhabandhu Rath nor Mrs. Jinkal Darshan Patel is debarred from holding the office of Director by virtue of any order passed by SEBI or any other authority, as required under BSE Circular ref. no. LIST/COMP/14/2018-19 and NSE Circular ref. no. NSE/CML/2018/24, both dated June 20, 2018.

The intimation was signed by Tejalben Saunakkumar Panchal, Company Secretary and Compliance Officer of Atlanta Electricals Limited.