RLF Limited , a company operating in textile embroidery and sports academy segments, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a significant downturn compared to the same period last year.

Financial Performance

RLF Limited reported a net loss of Rs 9.82 lakhs for the quarter ended September 30, 2025, compared to a profit of Rs 3.99 lakhs in the corresponding quarter of the previous year. The company's revenue from operations declined sharply to Rs 3.79 lakhs from Rs 14.51 lakhs year-on-year.

For the half-year period, the company posted a loss of Rs 10.71 lakhs against a profit of Rs 8.01 lakhs in the same period last year. The total revenue for H1 FY2026 stood at Rs 31.49 lakhs, down from Rs 58.89 lakhs in H1 FY2025.

Operational Highlights

The company operates in two reportable business segments: Textile Embroidery and Sports Academy. The decline in revenue suggests challenges in both these segments during the quarter.

Financial Position

As of September 30, 2025, RLF Limited's balance sheet shows:

• Total assets of Rs 3,236.20 lakhs
• Total equity of Rs 2,750.09 lakhs
• Cash and cash equivalents of Rs 8.40 lakhs

Auditor's Observations

The independent auditor's review report highlighted several issues:

1. Outstanding foreign currency receivables of USD 31,211.86 from certain debtors for more than three years.
2. Unbooked interest income of approximately Rs 0.90 lakhs on loans to group companies.
3. Unbooked finance costs of Rs 1.43 lakhs on borrowings from group companies and key management personnel.
4. Default in employee provident fund contributions of Rs 0.85 lakhs, outstanding for over four years.
5. No provision made for interest and penalties on outstanding statutory liabilities.

Management Initiatives

The company's management is taking various initiatives, including monetization of assets and recovery of long-outstanding dues, to meet its financial obligations.

Conclusion

RLF Limited faces significant challenges as reflected in its Q2 FY2026 results. The sharp decline in revenue and the shift from profit to loss indicate a difficult operating environment. The company will need to address the auditor's concerns and successfully implement its initiatives to improve its financial position in the coming quarters.

RLF Limited , a company operating in textile embroidery and sports academy segments, has reported a net loss of Rs 0.89 lakhs for the quarter ended June 30, 2025, according to its latest financial results. This marks a significant downturn from the profit of Rs 4.02 lakhs recorded in the same quarter of the previous year.

Financial Performance

The company's financial performance for Q1 FY2026 showed a notable decline:

• Revenue from operations fell to Rs 12.40 lakhs, down from Rs 24.77 lakhs year-over-year.
• Total revenue decreased to Rs 20.67 lakhs from Rs 35.05 lakhs in the corresponding quarter.
• Total expenses stood at Rs 21.56 lakhs, compared to Rs 31.03 lakhs in Q1 FY2025.

Key Financial Metrics

Auditor Reappointments

In a board meeting held on August 13, 2025, RLF made the following reappointments:

1. M/s. Sumit Bajaj & Associates, a Peer Reviewed Company Secretary Firm (FRN: S2019DE677200), as the Secretarial Auditors for FY 2025-2026.
2. M/s. Pankaj Sachdeva & Co., Chartered Accountants (FRN: 039532N), as the Internal Auditors for FY 2025-2026.

Auditor's Observations

The independent auditor's review report highlighted several concerns:

1. Foreign Currency Receivables: USD 31,610.47 is outstanding beyond the permissible time under FEMA regulations.
2. Unbooked Interest Income: Rs 0.94 lakhs of interest income on loans to group companies has not been recorded.
3. Unrecorded Interest Expense: Rs 1.49 lakhs of interest expense on borrowings has not been booked.
4. Statutory Liabilities Default: The company has defaulted on Rs 0.85 lakhs in provident fund and labor welfare fund payments, outstanding for over four years.

Management's Stance

Despite the reported loss, the company's management maintains a positive outlook:

• The net worth of the company remains positive.
• Management is pursuing various initiatives, including asset monetization and recovery of long-outstanding dues, to meet financial obligations.
• The company is in discussions with statutory authorities to settle outstanding liabilities, including fines and penalties.

RLF operates primarily in the textile embroidery sector and has recently ventured into the sports academy segment. The company's ability to address the auditor's concerns and improve its financial performance will be crucial for its future prospects.