Rathi Bars has designated Chief Financial Officer Uddhav Rathi as its interim Compliance Officer. The appointment ensures uninterrupted regulatory and listing compliance while the company searches for a permanent candidate.

The company notified the BSE Limited on August 26, 2026, regarding the interim arrangement. This step maintains statutory adherence during the vacancy period for the Compliance Officer role.

Regulatory Framework

Rathi Bars cited Regulation 6 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as the basis for this disclosure. The company also referenced SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2025/47 dated April 1, 2025.

This circular clarifies the organizational position and level required for the Compliance Officer under Regulation 6(1). The company confirmed it is aware of the requirement to appoint a qualified Company Secretary within three months of any vacancy.

Next Steps

Rathi Bars stated it is actively identifying a suitable and qualified Company Secretary to fill the position permanently. The interim arrangement will remain in force only until this appointment is made.

The company will inform the stock exchange once the permanent Compliance Officer is appointed. This process aims to comply with all applicable regulatory timelines without disrupting ongoing compliance activities.

Rathi Bars Limited reported a standalone net loss of ₹1,561.79 lakh for the quarter ended June 30, 2026 (Q1FY26), widening from a loss of ₹1,477.22 lakh in the fourth quarter of FY26. The steel manufacturer recorded zero revenue from operations as its manufacturing facilities remain suspended due to regulatory and environmental constraints. Total expenses for the quarter stood at ₹1,561.79 lakh, primarily driven by finance costs of ₹126.46 lakh and other expenses including a provision for bad and doubtful debts of ₹11.94 crore. The company’s basic and diluted earnings per share (EPS) were negative ₹9.56, compared to negative ₹9.05 in the previous quarter.

The Board of Directors approved the unaudited financial results on August 12, 2026, following a meeting at the company’s registered office in New Delhi. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Masar & Co, Chartered Accountants. The filing was made pursuant to Regulation 30 and 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Operational Status and Legal Proceedings

Manufacturing operations continue to remain suspended, a status unchanged since the previous review. The suspension stems from multiple factors, including income-tax search proceedings initiated on December 15, 2025, the invocation of GRAP Stage IV restrictions in the National Capital Region by the Central Air Quality Management (CAQM), and a suo-moto amendment of the Consent to Operate (CTO) by the Rajasthan State Pollution Control Board (RSPCB) on January 16, 2026. Additionally, significant increases in power tariffs by Jaipur Vidyut Vitrans Nigam Limited (JVVL) have impacted operational viability.

The Board noted that a writ petition filed before the Hon’ble Rajasthan High Court is pending. On May 26, 2026, the High Court directed the Central Pollution Control Board (CPCB) to consider representations submitted by the company through a speaking order. Management has been advised to pursue these legal avenues to facilitate the revival and re-commencement of operations.

Financial Health and Asset Monetization

Statutory auditors Masar & Co raised significant concerns regarding the company’s financial stability. Cash Credit facilities from Axis Bank (₹60.08 crore) and Yes Bank (₹19.68 crore), along with a term loan from HDFC Bank (₹4.07 crore), have been classified as Non-Performing Assets (NPA). Furthermore, an outstanding amount of ₹64.21 crore towards Trade Receivables Discounting System (TReDS) financiers remains unpaid and is under litigation. The auditors stated that these matters indicate material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.

To address these liabilities, the Board reviewed discussions with bankers and lenders regarding moratoriums, restructuring, One Time Settlements (OTS), and fresh credit facilities. A Joint Lenders’ Meeting held on July 27, 2026, at EY, Worldmark-1, Aerocity, New Delhi, discussed the potential monetization of the company’s assets. The Board advised management to continue coordination with lenders to pursue appropriate revival measures.

What the Numbers Show

The complete absence of revenue from operations contrasts sharply with the persistent cash outflows, highlighting the severe drag of fixed costs during the suspension period. While revenue dropped to zero from ₹1,954.12 lakh in the previous quarter, expenses remained elevated at ₹1,561.79 lakh, largely due to non-operational costs such as depreciation (₹102.05 lakh) and employee benefits (₹4.69 lakh). The recognition of a ₹11.94 crore provision for bad debts further eroded equity, signaling deteriorating receivable quality even in the absence of active sales. This divergence between zero top-line growth and sustained bottom-line pressure underscores the urgency of the proposed asset monetization strategy to stabilize the balance sheet.